Altcoin trading strategies

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Altcoin trade is gaining popularity from some past years with most of the traders which seeks for capitalization of potential for gaining higher returns in cryptocurrency market but altcoin trade may be highly fluctuating and unpredictable which make it significant for traders for development of particular strategies for management of risks and maximizing profits.

Strategy 1: Day trade

Day trading consists to purchase and sell altcoins in single trading day with purpose of giving profit from short term price fluctuations. This strategy is requiring from traders to become most active and attentive,to monitor market trends regularly and to make adjustments of their positions according to it.

This type of trading may be profitable however it may also carries potential risks specifically if traders are failing for setting stop losses or over leveraging of their positions.

Strategy 2: Swing trade

Swing trade consists to hold altcoin positions for short time period in comparison of making investment however longer than day trade. This strategy is used for capturing medium price fluctuations mostly through identification of trends and trade ranges.

Swing trade may be less hectic in comparison to day trade because it permits traders for holding positions overnight and for avoiding constant requirements for monitoring markets.But when we discuss swing trade then still it needs from traders to become active and adaptable according to conditions as well as making adjustments in their positions as a result of market conditions alterations.

Strategy 3: Investment

Investment in altcoins consists to hold positions for longer time period mostly with purpose to capture long time growth and adoption.This strategy needs traders for conducting proper research and due diligence, identification of altcoins with strong fundamentals and potential for long time success.

Investment strategy may be less hectic in comparison with day or swing trade because it permits traders for holding positions for long time period without requirement for regular monitoring but investment also carries potential risks specifically if traders are becoming fail in diversification of their portfolios and over allocate to single altcoin.

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Strategy 4: DCA

Dollar cost averaging consists to invest fix amount of money at constant and continuous intervals irrespective of performance of market.This strategy is useful in reducing effect of fluctuation and timing related risks which permits traders for benefiting from long term growth and adoption.

Dollar cost averaging may be considered as a potential strategy for making investment in alts specially for those that are new in market or which seeks for reducing their exposure of involved challanges or risks but this strategy needs traders to become disciplined and patient because it may take time for strategy for bearing fruit.

Strategy 5: Range trade

Range trade consists to recognise and trade within established range of prices mostly by the use of technical analysis and chart patterns for informing trade related decisions.This strategy is important in capturing profits from price fluctuations in particular range mostly by purchasing at lower range and to selling at upper end.

Range trade us significant strategy for altcoin traders especially in markets that have organised and established trading ranges but when I talk about range trading then it requires traders for being most active and to alter themselves, adjusting their positions in response to changing market conditions.

Strategy 6: Trend following

Trend following consists of identification and trading in direction of well established trends particularly by the use of technical indicators and chart patterns for informing trade decisions.This strategy is important in capturing profits from trends continuity mostly through purchase in uptrends and selling in downtrends.

Trend following may be an effective technique for altcoin traders in those market that have existence with very strong trends but trend following strategy is demanding from traders to become highly active and adaptable by making adjustments of their positions as a response of alternating market conditions.

In conclusion I must want to say that I have discussed about altcoin trade strategy and shared around total 6 strategies in detail.Hopefully everyone understands this topic very well...

Have a blessed day