A complete guide to the trading strategies for Altcoin in cryptocurrency
The world of cryptocurrencies has exploded in the last ten years, with thousands of new coins and tokens that emerge daily. As a result, traditional investment strategies have left the seat of alternative approaches that meet the unique characteristics of the Altcoin. In this article, we will deepen the kingdom of cryptocurrency trading strategies, specifically focusing on Altcoin’s trading.
What are altcoin?
Before immersing ourselves in the world of trading strategies, we quickly examine what altcoin are. Altcoin are cryptocurrencies that are not directly related to Bitcoin or any other blockchain project established. Often they have their unique characteristics, use cases and applications in the cryptocurrency market. Some popular examples of Altcoin include Ethereum (ETH), Litecoin (LTC), Dogecoin (Doge) and Monero (XMR).
trading strategies for altcoins
Trading strategies for Altcoin trading are a mix of technical analysis, fundamental analysis and psychological techniques that help operators to make informed decisions on the market. Here are some popular trading strategies for Altcoin Trading:
- Momentum Trading : This strategy provides for the identification of the trends in the action of the prices of an activity and the morse to generate profits. The traders of the moment are looking for activities with a strong moment on the rise and aim to buy or sell at the height of a trend.
2 This strategy is particularly useful when there are significant changes in the feeling or liquidity of the market.
- Scaling
: the boost implies the execution of smaller operations in a short period to exploit the movements of minor prices. The Scalpers aim to profit from the volatility of the Altcoin markets.
- Trend that follows : The tendency to the trend involves identification and the following direction of market trends. This strategy is useful for resources with consolidated tendencies or those that have been high for some time.
5
Technical analysis strategies
Technical analysis is a crucial aspect of Altcoin trading, as it provides valuable information on the behavior and market trends. Here are some technical analysis strategies that can be applied to Altcoin:
- Recognition of the graphic model : the recognition of the graphic model implies the identification of pre -existing models in the action of the prices of an activity, such as heads of head and shoulders or triangles.
- Crossover on average Mobile : The Media Mobile Crossover involve the purchase when a mobile average crosses a long -term average and sells when it crosses a short -term average.
3 It is often used as a purchasing sign for the conditions of hyper -mp.
Fundamental analysis strategies
The fundamental analysis provides for the study of the basic economy of an activity, market trends and other external factors to predict future performance. Here are some fundamental analysis strategies that can be applied to Altcoin:
- Cheap indicators : economic indicators such as GDP growth rates, inflation rates and interest rates can provide valuable information on the strength or relative weakness of a currency.
2 .
- Regulatory environment : The regulatory environment of an activity can significantly affect its value.
