Did you know that investors in the U.S. made an estimated $4 billion in crypto trading profits in 2020? Undoubtedly, becoming a crypto trader has gained popularity in recent years, and many experts expect it to continue growing as more countries and governments adopt it. But, trading with cryptocurrencies isn’t an easy task since it requires careful planning if you want to make a decent profit.
Would you like to know how most experts build crypto trading strategies? If so, we invite you to keep reading since we’ll tell you some of the best strategies that’ll help you make a huge profit.
Create a Diversified Crypto Ledger
A couple of years ago, there were only a handful of coins to choose from, which made diversifying your investments quite a challenge. There are plenty of options for cryptocurrencies nowadays, so you can easily create a diversified crypto ledger. A general rule of thumb is having one stablecoin and two or three other altcoins when trading with cryptocurrencies.
Stablecoins are coins backed by “stable” currencies like the EUR, USD, or the Japanese Yen. That means these coins won’t fluctuate as erratically as other currencies in the crypto market. Here are some stablecoins you should consider:
- TrueUSD
- Tether
- Dai
- BiananceUSD
After you pick a stablecoin, you can start to think about which alt crypto coins you want to include in your ledger. And if you’re unsure which one to choose, be sure to visit https://www.bytefederal.com/2021s-biggest-cryptocurrency-trends-so-far/ to see what coins were the most profitable in 2021.
Choose the Right Platform
Another important aspect of creating a successful trading strategy is picking a trading platform. The good news is that there are several reputable crypto trading platforms that can make trading cryptos a breeze. But, you’ll still need to be careful when looking for one as there are a lot of trading platforms that are scams.
Here are some of the most popular ones:
- Binance – Perfect for altcoins
- Coinbase – Best for stablecoins
- Cash App – Beginner-friendly
- Bisq – Completely anonymous
Of course, there are plenty of other ones you can use, but these are the most reliable platforms. Furthermore, you’ll want to ensure that the trading platform has the coins you wish to trade with.
Exit Plan Strategy
The final step in building a crypto strategy is including an exit plan, so when the time comes to withdraw, you can do so without losing too much. A good rule to follow is having a set amount of money you’ll want to earn before cashing out, so as soon as you reach it, you can withdraw it. Additionally, you’ll want to reinvest some of your earnings, so you can keep the money flowing.
Build Crypto Trading Strategies Easily
Most experts build crypto trading strategies with the previous tips, so be sure to follow them! But, of course, becoming an expert takes time and dedication, so be sure not to lose hope. So, don’t wait any longer, and start making money today!
Did you find this post about crypto strategies helpful? If so, feel free to check out our other crypto-related articles before you leave!