Just like any investment and trading, cryptocurrency requires planning. Even if you are looking for short-term gain, you can still look for a strategy to ensure you can get the maximum out of your investment without losing it. If you are looking for short-term gains, here are a few strategies you can adopt and make profits.
Short-term Trading Strategies That Can Be Used to Make a Profit
- Day trading – Day trading of cryptocurrency is the same as the day trading of stocks. While day trading you gain profits on the fluctuations of value during the day. The volume of trade of every crypto may be lower, but the total volume of trade is high, and the aim is to get profits of 5% to 15% on each crypto and make it a big amount. Day trading is risky and there isn’t any guaranteed profit at the end of it. The concept of day trading is when the crypto is bought and sold on the same day for a quick profit. Day trading is a dynamic option in the case of crypto as the market is open for 24 hours and you can choose to do it any time of the day. For example, USDT to INR value can reach peaks during nights.
- Scalping – In this method, the investor buys and sells very quickly and multiple times in a day. A good way to ensure you get the maximum out of your investment is to ensure the brokerage is negligible. That way the commission does not affect the profits you are making on the trade. Scalping is a good way to enter the crypto market as it uses little time, lesser funds, and has lesser risk. The profit made by scalping is due to the volume of trading done.
- Swing trading – As one becomes more experienced, the ways to make a profit change. One of the ways you can make a profit is by swing trading. This strategy calls for the analysis of graphs and identifying patterns and windows during the day that can show a rise in the value. These are the work of experts as they need commitment to the market every day and close study of patterns. The peaks and drops are a part of the market and this strategy involves the use of tools like apps, charts, graphs, and other indicators to ensure you can make a profit. For example, if you are trading Ethereum, then you should track the Ethereum to INR value and identify the best time for trading it.
Things to Keep in Mind While Adopting Short-term Strategies
Short-term gains are usually achieved by aggressive forms of trading. There are many factors you need to consider while going for short-term strategies. A few of the things to keep in mind are:
- Can you dedicate time to pursue any of the short-term strategies? You need to understand the market before you start investing and trading. You might need to spend a whole chunk of your day going through the ups and downs of the market to identify the right strategy for you and to ensure you are investing your money the right way.
- Identify how much you can afford to invest and lose in a day. Set a stop loss for how much you can, lose in a day, and stick to it. Financial risk tolerance is an important factor you need to determine while looking for short-term gain.
- Investing is not a gamble and you need to understand what is the scope and what are the risks involved as well. You can get an overview of all the cryptocurrencies you are interested in and make use of all the tools at your disposal wisely to concentrate on a couple of cryptocurrencies at a time. If you try to buy and sell many currencies throughout the day, it is possible your attention may be divided and you end up missing a crucial window.
What Can You Do to Maintain Your Profits?
While starting there are a few ways you can ensure you maintain discipline and consistency can help you decipher patterns and trends. You can set time aside and ensure you start small. When you are just starting out and do not have the basic know-how of the market, it is advisable to invest less and aim for lower gains. Another way to secure your profits is by buying a crypto wallet and continuing to put your cryptocurrency in the wallet. This way it is also protected from third-party interference and only you are in charge of your earnings. If you are looking for a trustworthy exchange platform, you cannot go wrong with CoinSwitch. It is reliable, prompt, easy to use, and has all the tools required that can help you grow your wealth steadily. Expert articles and comments are one of the ways you can gather data and choose where you are going to invest your money.