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    David Osima posted in the group Crypto Guide

    2 months, 2 weeks ago

    Good evening sir’s and ma’s.
    we will be talking about types of cryptocurrency trading.

    Cryptocurrency trading is the buying and selling of cryptocurrencies on an exchange.There isn’t one style of trading cryptocurrency, there are a few. Some styles are more likely to fit a person’s tastes, tolerances, and goals than others.

    Spot and futures trading will be our main focus ;
    What is spot trading in crypto? Spot trading refers to buying or selling digital assets at their current market prices for immediate delivery. It is a straightforward method that involves directly exchanging one cryptocurrency for another or exchanging crypto for fiat currency.
    Spot trading starts with a trader placing an order on a cryptocurrency exchange for a specific digital asset at its current market price. The exchange then matches the buy and sell orders, enabling the immediate transfer of assets between traders.

    To facilitate these transactions, traders use digital wallets provided by the exchange or external wallets that support their preferred cryptocurrencies.

    Futures contracts are fixed agreements between two market participants on purchasing a specific asset at a predetermined price and future date. Futures can be used to anticipate price movements of a specific crypto asset and profit from guessing the trend correctly, allowing investors to purchase virtual currencies at a lower price or sell them at a higher price.
    Another significant characteristic of futures trading is leverage. In futures trading, traders can use leverage to control a larger position with less capital, which means that they can take on bigger trades and potentially earn higher profits. However, leverage also amplifies both potential gains and losses, making it a riskier option for traders compared to spot trading. In spot trading, leverage is not used, reducing the risk of significant losses.

    While spot trading and futures trading both involve buying and selling digital assets, they differ in several key aspects, making them two distinct methods of trading in the crypto market.
    1. In spot trading, traders own the underlying assets upon transaction completion. They have complete control over their purchased cryptocurrencies and can immediately transfer or hold them as desired.
    2. In futures trading, traders can use leverage to control a larger position with less capital, which means that they can take on bigger trades and potentially earn higher profits.

    Type of strategies for trading
    Although there are different ways to denote the styles of trading, I would denote them as: scalping, day trading,p intra-day trading, swing trading and position trading.

    Scalping is all about making very quick trades. The goal is to make constant profits (even if the profits are very small). You’ll take profits quickly, and you’ll cut losses just as quick. You might make a trade every few minutes, or you might only scalp a few positions a day.
    Day trading is just what it sounds like, it is like scalping, but instead of making trades over the course of minutes, you typically make them over the course of the day. A day trader might scalp, trade the range, or even take short term position trades in a single day. They are day trading because they aren’t holding their position into multiple trading days.

    Intraday trading is a style of day trading that allows for holding positions over more than one day. Simple as that. The reality is traders do this and there is no rule that it can’t be successful. In crypto, the market never closes, so there is no end to a trading day (the best we get is daily candle closes).

    Swing trading is all about finding support and trading to the next resistance level, or more generally picking an entry and a target and holding the position until your target is hit or other exit conditions are met. Swing trading is generally done over the course of days or weeks. That means you’ll be taking a position, sleeping on it, watching it go up and down in waves, etc… ideally, all without panicking.

    Position trading is like a zoomed out version of swing trading or like the trading version of investing. Here you’ll try to build/take a long position low or short position high and then stick with that position for weeks, months, or even years.
    This is the simplest form of trading, but it also takes a lot of discipline.
    Position trading is a lot like investing, in that it is long term.

    THANKS FOR TIME🙏🏾

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