Investing in Bitcoin and other cryptocurrency is nothing new, but if you want to consistently make money in 2021 it helps to follow a few proven trading strategies.
Here are 3 trading methods you can adopt for 2021.
Robo Advisors and Automated Trading
If you’re still using traditional methods of trading then you may want to move up to the latest trends. Today, Bitcoin investors are making money passively and even while they sleep.
Robo trading, or otherwise known as automated trading is the process of putting in money on Ethereum and other cryptocurrencies and waiting for the software algorithm to detect a significant rise in value. When this happens, the robo advisor completes the action without any input from the user, effectively multiplying their earnings.
In 2021 people are busy with their health, work and family. It’s still important to make money aside from your main job but it’s made easier with the help of trading software.
Sign up and open an account in one of the most reputable Ethereum trading platforms today, and enjoy limitless profit potential. It’s a form of passive income, which means you can do other things, such as spending time with loved ones and working on your hobby instead of staring at a computer screen all day.
Day trading is termed as such because it’s like a 9 to 5 job. You work with charts, analytics and check for cryptocurrency price movement to see which ones are profitable to trade short-term.
It’s a more aggressive form of cryptocurrency trading since you’ll be making dozens of trade actions throughout one day. For example, you spend a hundred dollars in Bitcoin and watch as the price equals $150, then cash them in and earn a tidy $50 profit.
Day trading is lucrative, and it’s rewarding because you make money in a short time. All the trades you make are calculated, and it’s mostly a matter of following the basic principle ‘buy low, sell high’.
This trading strategy doesn’t require much to set up. All you need is a computer or a TV where you can view news and events about cryptocurrencies, and access to an exchange platform for converting crypto to cash and vice versa.
HODL is short for ‘holding on for dear life’ and can serve as the exact opposite of day trading.
This trading strategy is best for Bitcoin and cryptocurrencies that have been established for a long time. The greater the coin’s stability the more viable it is to hold for a long time. Ethereum is another good example of a cryptocurrency that’s expected to rise in value.
Holding can be a passive sort of investment for those who are interested in digital assets. It can serve to diversify your portfolio and give you something different than stocks or assets such as gold or real estate properties.
Keep in mind that long-term here is ‘a few years’ or even more. Thus, it’s ideal to put in a large capital and cash them all in when the conditions are right for the trading strategy to be efficient.