The cryptocurrency market is highly unstable, so building a trading strategy is a must for any investor. While instability is a reason to “play on the safe side” for some traders, others see it as a boosting factor for making more profit, so they take risks eagerly. Both novice and experienced profiteers benefit from combining various strategies and automation because it helps them save time and avoid emotional decisions. Tons of information on the Internet about how to create a trading bot help profiteers find an efficient solution according to their style.
Still, before migrating to automatic bots, profiteers must have a profound knowledge of these styles for successful crypto trading. This article will tell you about active and passive strategies for trading on crypto exchange platforms to help you make profitable deals.
6 Strategies for Crypto Trading in 2020
There are generally two types of players in the crypto exchange market – active and passive. Active strategies are efficient for short and mid-term currency movements, while passive ones focus on long-term price changes on various trading platforms. In this part of our article, we gathered the five most popular active strategies and the main passive strategy for crypto trading in 2020.
Day trading is one of the leading models of active trading. According to this strategy, investors open and close deals until the end of their trading day. In the crypto market, a trading day lasts until a trader leaves the computer. Investors focus on immediate results rather than future…