It sounds simple but I’m going to say it, “the best way to trade crypto is the one that suits you best!” No, I’m not going to leave you there, that would be cruel! So let’s examine what that statement really means.
The real question is what is the best way to trade crypto specifically for your personality and risk tolerance? The answer is simple. You can find your best way by figuring out two issues. First, which crypto trading platform is ideal in your case? Second, what trading strategy is ideal for you? The answer to these two questions will enable you to find the best way to trade crypto. So, let’s answer both questions together!
Choosing the best Trading Platform
Trading platforms hold key importance to implementing your best way to trade crypto. Therefore, choosing the right crypto trading platform is crucial. Hence, we have shortlisted the top two trading platforms that we recommend. You can choose any one from the following two! If you want to look at other exchanges we have a comprehensive list here.
Coinbase is one of the leading and most reliable crypto trading platforms. It was established in 2012 as a startup. Right now, Coinbase is providing services to over 100 million verified users with about five thousand remote employees. The company has no headquarters because it successfully transitioned to remote work during the COVID pandemic. Right now, they serve more than a hundred countries and more than $200 Billion is traded quarterly on the platform. These statistics and the trust of users make it the best trading platform in the world. On top of that, the Coinbase web and app are easy to use and ideal for beginner traders.
Binance is one of the best crypto trading platforms in the world! It was launched in 2017 but it became the world’s largest crypto trading platform within the first six months. Hence, it took the crypto world by storm. It is a very reliable and advanced trading platform. It is more than a crypto trading platform. Binance provides a complete ecosystem for crypto traders. This ecosystem consists of Binance Academy, Labs, Launchpad, Trust Wallet, BNB Chain, and Binance Exchange. Hence, new crypto traders can learn about crypto from Binance Academy. Meanwhile, expert crypto traders can keep eye on upcoming crypto projects through Binance Labs and Launchpad. On top of that, long-term crypto traders can hold funds in Trust Wallet. Hence, Binance is the second ideal choice.
Choose the Right Trading Strategy to find your Best Way to Trade Crypto
The second step to finding the best way to trade crypto is to figure out your ideal trading strategy. You can choose any of the below-mentioned trading strategies.
As humans, we are addicted to news, and our decisions are usually influenced by what we see, read and hear in the news. Therefore, news continuously impacts the market in various ways. Consequently, some crypto traders employ a news trading strategy. In this strategy, crypto traders use two techniques. The first technique is to invest after the positive news with the hope that other investors would invest and the prices will go up. Many beginner traders use this strategy as they are learning the markets. The second strategy is to predict the news and invest before it comes out. Hence, reaping the profit when news comes into public knowledge!
The second crypto trading strategy is to do day trading. Day traders enter the market during the day with an exit strategy in the mind. Their goal is to exit the market before the end of the trading day. In this way, these traders do not take the risk for the next day’s opening. Instead, they focus on getting same-day profit. It is ideal if you are just starting!
Trend trading strategy is ideal for crypto traders who do not want to put a lot of effort into research. In the trend trading strategy, the trader notices a trend and works on the motto that the trend is your best friend. It seems risky but usually, it is less risky because the trend is based on collective wisdom. This collective wisdom is based on research done by trendsetters. Hence, if you are unable to do your research, then this strategy may be a good way for you to trade crypto.
A swing trading strategy is ideal for those traders who have spent reasonable time in the market. This strategy is devised with the perfect blend of knowledge and experience. The crux of the strategy is simple. The market never remains flat! It will go up and sometimes it will go down. Hence, crypto traders make a profit by swinging market conditions. They use various techniques. One of the techniques is to invest when any asset is oversold and sell when any asset is overbought.
A scalping trading strategy is ideal for big and disciplined crypto traders. In this trading strategy, crypto traders do not take huge risks. Instead, the focus of the trader is to secure their profits on small fluctuations in the market. Therefore, it is ideal for big traders as they earn a handsome amount on the minor but safe fluctuation. However, it requires a lot of discipline because one single mistake can result in a big loss that can evaporate a lot of previous small wins in profit!
A position trading strategy is ideal for long-term crypto traders and investors. In this strategy, the traders ignore daily or minor fluctuations in the market. Instead, crypto traders focus on long-term profit. This strategy requires a lot of research, patience, and courage. Therefore, it is ideal for seasoned crypto traders who want to earn big in the long term. Moreover, this is ideal for crypto traders who want to save for early retirement.
In conclusion, crypto is bringing a digital revolution to the world. Therefore, sooner or later, everyone will use crypto. Consequently, it is still early to start trading cryptocurrencies. You know what they say, “The early bird gets the worm.” We all know that! But the real issue is finding the best way to trade crypto. However, the best way to trade crypto can look different for everyone. You can find the best way to trade crypto by figuring out the right trading platform and trading strategy for your particular goals and style. Hence, if you want to find the best way to trade crypto, just choose the trading platform and trading strategy from the above and start right now!