Cryptocurrency Trading Strategy for the New Decade [2020 Guide]

With each day passing by, we have more knowledge to create a new cryptocurrency trading strategy. Of course, we can apply many models from Forex trading. In the simplest model, we can consider crypto coins as adding new currency pairs.

Like in any industry, the new arrivals try to differentiate from the previous. For example, the difference between the new and old Lion King. Even though it is not evident for the audience, for a cartoonist eye like mine, it is easy to spot the new CGI tools taking place.

Similarly, there is a massive difference between crypto and Forex trading. For this reason, crypto closed 2019 with a  92% rise in the price, which is not happening on the Forex.

Still, some models are always applicable. Thereby, if you are familiar with Forex trading, you can get into cryptocurrency trading, too. Be aware, though, as there are higher volatility and high elasticity to the news. In this case, more tweets mean more volume the next day!

Logically, if big companies tend to fill losses in their financial statements, it is easiest to do that with crypto. If some Bitcoin whale sells millions of Bitcoin – the price will drop. After a while, repurchasing happens.

Therefore, you should consider some of the aspects of the new crypto tips for 2020.

The Predictions for the Crypto Market

When you think of it, 2019 was significant for crypto. During the crypto winter of 2018, some predicted crypto would survive only for 1%, mostly traders. But then again, a few April’s fool jokes on fake crypto acceptance triggered trading bots to buy. Who could predict that?

At the moment, I am considering to come up with a cartoonish Trump approving crypto for the 1st of April of 2020. Unlikely it will work again, but hey, who knows? Maybe trading bots won’t catch a cartoon as a joke, eh?

For this reason, the only viable prediction for the crypto market is that it will remain unpredictable. Because of possible orchestrated government acts, there is a constant fear of breaking down to zero.

At the same time, every year people predict Bitcoin going to $50.000. Long ago, people predicted even $1.000.000 for 1 Bitcoin. Believe it or not, John McAfee, the guy behind the antivirus, is running for a president with his platform predicting a rise in crypto. In recent years, this crypto icon provided enough statements for the crypto comic book.

What is interesting is those people who make these predictions do that over and over again. All without the need to explain why previous predictions didn’t come true. But there is always someone to listen to, as each year there is a batch of newcomers. Seemingly, their mistakes won’t be different in the upcoming decade.

New Crypto Strategy Foundation

Investing in crypto is hype for younger generations. Unlike their parents, they tend to think that pension fund is not equal to being financially aware. Even Ashton Kutcher and Paris Hilton are making their retirement savings in crypto. 

However, many are not stars that can afford to lose their savings, For this reason, people lose money by entering crypto in the worst possible way. The usual model is buying because of hype or FOMO and then selling to recover losses.

Still, even when some year is a disaster for crypto, it doesn’t have to be bad for traders. When following reliable crypto tips, profits can plummet. What is interesting, this strategy is easy to implement for each type of trader.

 

  • Swing Trader (Hodling)

These guys are doing what is best for crypto. It is because of their longterm strategy that radiates around waiting for the price to rise. Yet, all hodling crypto strategies emphasize only one side – the buying side.

We all know the stories of those who bought crypto at the right time. Most of these guys, like Crypto Kid, look like some characters from the comic books. But, these extreme hodlers are helping reduce the volatility.

 

  • Day trader

Seemingly, the volatility of the crypto market is perfect for day traders. Apparently, day trading is the ideal strategy for those that are starting out to trade crypto. Because of the high volatility, they can make big profits by analyzing the market.

But, what analysis to perform on the crypto market? Believe me for this one – it should be the news. And by this – I mean any news. As we all know, social media is of utmost importance. There is no difference in crypto trading. 

Similarly, a statement by Forbes that the United Nations should embrace blockchain leads to a surge in a price. Imagine that you were the first one to hear him before the news. At the end of the day, you would be rich! 

Of course, you would need to react before other traders.

 

  • Scalp trader

One way or another, and regardless of your strategy, you are always competing with other traders. 

Beware, though, crypto is a very manipulative market. In the case of Bitcoin, as mentioned, one whale can make a difference within seconds. This is the cause of the flash crash you cannot influence.

However, in this case, too, you can do the scalping. It is because the scalping is buying and selling within seconds. Even when the price is going down, people or their bots are buying, too.

For this reason, it might be lucrative to do this strategy even in the times of the significant fall in price. Behaving accordingly and reacting within seconds can be very profitable.

Your New Cryptocurrency Trading Strategy

Whatever you do at this market, prepare to do it for a long time. It is because you would need consistency in your new crypto trading strategy. 

Even though it would suit my interests, this excludes hodling up until the end. The best move possible is to sell the portion of your crypto investment when your profits allow you to keep enough.

However, if you decided to hodl, don’t give up. There is always a possibility for a comeback even if the market goes close to zero. After all, it all started at zero.

Because of this all about how cryptocurrency trading works is more of a game of psychology. Mixing FOMO with FUD drives this market, and you shouldn’t let it influence you. 

No matter which strategy you choose to use, consistency is the driving force of every successful crypto trader. Hereto, exclude emotional trading and making the decision to follow some hot new Altcoin.

In the next decade, as blockchain is a revolutionary technology, the adoption will rise for sure. Thereby, stay afloat by being consistent with the type of trading you choose – and you will profit.

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