The cryptocurrency market provides a unique opportunity for everyone to earn following various trading strategies, as cryptocurrencies are highly volatile assets. Furthermore, there is an opportunity to earn even when the cryptocurrency prices are dropping – in the short position. But today, according to the topic, we will focus on the long trading strategy. Let’s get down to the business below to discover both trading strategies by the case and start our cryptocurrency guide for dummies.
By the way, a long position means a bullish position; if you earn because the prices of your asset increase, you are bullish. Broadly, if a broad market index is going up during a period, it is referred to as a bull market.
If you earn because the cryptocurrency prices of your asset go down, you are bearish. Broadly, if a broad market index is declining during a period, it is called a bear market.
To find the best time to enter a trade and go long, check out the bitcoin net flows in/out of cryptocurrency exchange platforms. Reduction of the number of Bitcoins in circulation usually leads to its price increasing, as the less the supply, the higher the price.
As a rule, a large amount produced and added to the circulation of cryptocurrency exchange platform’s stablecoins leads to rising BTC prices.
Stablecoins are digital assets designed to mimic the value of fiat currencies like the dollar or the euro.
When the emission of any cryptocurrency is large enough, such coins are burned regularly, which also causes price rising.
What is crypto burning? Coin burning is the process of permanently removing coins from circulation, reducing the total supply.
Buying something when the market is already heating up may hurt, and your long position may turn to the short one without a right to get a reward. When a cryptocurrency has already reached its highest price, it is very volatile and unexpected, so you better wait for the price correction.
A long position on the cryptocurrency futures can be more profitable, but that trading strategy becomes riskier. Be ready, as that BTC price might very well drop after you went long on it, and you will then have the choice to either close the position at a loss or hope for the BTC price to recover, which of course could happen too. On the cryptocurrency futures, your deposit may be liquidated until the BTC price recovers.
It is always helpful to be aware and updated on any activity. Check out the news around Bitcoin and other cryptocurrencies to know about all the updates and information that may affect your portfolio.
On the other hand, it is essential to learn about listing crypto coins in time to make easy money. When a coin is listed on such popular cryptocurrency exchange platforms like Binance, it may rise extremely fast, even after the first day of trading there.
Listing in crypto – is a procedure of adding a crypto token to the cryptocurrency exchange.
By the way, be careful with the pump-and-dump projects; that is why we don’t recommend holding questionable altcoins for a long time.
With proven spot and futures signals, you don’t need to study technical analysis and various trading strategies; you can make money even without experience.
How crypto trading signals work? After the successful subscription, you will regularly receive a signal with all needed information: coin, spot/long/short, amount of leverage(on futures), entry and exit point. All that you need is to set the limit orders to improve your trading activity and wait for the reward.
How to find an honest signal service? Don’t trust random telegram channels, as free signals can waste your money. Find the service which meets your needs and ask for the statistics. As for us, you can check our trade results at our telegram group, where there is information about both successful and unsuccessful trades.