Interested in cryptocurrency trading? Before trading, it is important to know how to invest in cryptocurrency, what are the promising digital currencies but also the investment strategies to put in place. In this article, let's find out in which cryptocurrency to invest, how to buy cryptocurrencies and the tips to follow to succeed.



Investing Crypto Currency: Which Trading Strategy To Use?

There are two main types of trading strategies for those who want to use a cryptocurrency trading platform.


Buy and Hold Conservation Strategies

These strategies consist of investing in cryptocurrency for the long term, hoping to take advantage of large price movements by surfing on the fund trends that materialize.


To set it up, it is best to use an active crypto exchange platform to buy virtual currencies. You can therefore keep them free of charge in an online or offline cryptocurrency wallet to use or resell them later.


When you hold on to your tokens rather than selling them quickly after buying them, you are doing what is known as a “buy and hold” strategy. In order to put the odds on your side in this type of strategy, we advise you to train to become an expert in news analysis.


Indeed, geopolitical and economic news have a considerable influence on the cryptocurrency markets. Learning to read market sentiment is a common skill of all professional traders.


However, to take the temperature of market sentiment, it is necessary to be constantly informed of the news, and to see how the markets react to it. For this, some sources of information are better than others.


There are good free blogs and websites, just as there are also paid real-time news services specifically aimed at professionals. You can also consult the economic analyzes of the research services of the major banks, documents that are sometimes difficult to read but which will help you progress very quickly in terms of economic analysis.




Scalping and Day Trading Strategies

Among the most active and aggressive trading styles in the financial markets, scalping and cryptocurrency day trading are the most popular. Mainly based on the analysis of charts (technical analysis), these two methods take advantage of small price variations over a few minutes to a few hours whose movements can be amplified by the use of leveraged products such as CFDs by example.


For a seasoned crypto-trader, you should know that learning never stops, and you will have to make sure to continually update your knowledge, especially with regard to the use of advanced trading indicators.


If there are technical indicators known to all traders such as the Moving Averages, there are also hundreds of others more or less complex to use such as the RSI or the MACD.


However, their principle remains the same: you give buy and sell signals. To do this, these indicators help you identify turning points in the market, or confirm that trends will continue.




 to be continued........