Have you started trading cryptos already? Soon, you will find many tools and resources online which can hone your trading skills. To become successful as a crypto trader, you must practise risk management. You should also work on learning how to interpret charts and technical indicators. The truth is traders will make losses but you can keep these to a low by following advanced crypto trading techniques. Auto trading robots in place simplify and manage all of these advanced trading techniques. Bitcoin Rush is one of the most trending and advanced crypto robot in market. Visit https://coincierge.de/bitcoin-rush/ to know more information about this trading bot.
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How to make money by using advanced crypto trading techniques:
- Trader psychology: One of the first things to consider is how traders think because the crypto market is always driven by speculations.
- Margin trading: This is when you trade on leverage; this is useful for building your portfolio. In this, you borrow funds for increasing your trade volume and profits potential. Here however, potential losses are higher than in spot trading because the trade sizes are larger. Leverage choice depends on how long the trade is going to be kept open.
- Technical and fundamental analysis: Both are methods to analyse crypto trades and each has its advantages and disadvantages. Technical analysis deals with studying charts, demand and supply, statistical data, etc. Fundamental analysis seeks to evaluate an asset’s value using factors like industry outlook, financial reports, market conditions, market size, etc.
- Using candlestick charts: Candlesticks represent price actions and you can find out how prices have changed over a specific time-period. These charts also reveal the underlying psychological implications that you can exploit. X-axis shows time elapsed while Y-axis shows price movements. A bullish candlestick means positive movement while a bearish candlestick shows negative movement.
- Chart patterns: Patterns refer to things that happen repeatedly. When you notice chart patterns forming you will understand where prices will head next in order to complete the pattern. Examples of patterns are symmetrical triangles, ascending/descending triangles, cup-and-handle pattern, etc.
- Support & Resistance: Support is the price level where buying pressure is strong so that prices do not fall from that level. Resistance level, on the contrary, is marked by strong selling pressure to stop prices from moving above that level. Traders must understand key resistance and support levels to make buying and selling decisions.
- Supply and demand: To make more money through trading you should be able to understand the impact of demand and supply. When demands exceed supply, prices will shoot up, and vice versa. Supply zone in charts refers to the area where supply is more than demand. Demand zone refers to the area where sellers are lesser than buyers.
- Observe trade volumes: This reveals how much has been traded during a time-period. Liquidity is higher when volume is high and therefore market is less volatile. Price movements are impacted by trading volumes. Stronger price movements have high volumes behind them.
- Identifying breakouts: For advanced crypto trading, you need to know how to identify real or fake breakouts. Volume indicators is used as confirmation that a breakout is happening. Breakouts are large price increase through resistance levels.
- Using mathematical indicators: All chart indicators are calculated with statistics and mathematics for assessing correctly past price movements. These allow traders to plan for future movements. You must also spot divergence patterns because these offer bearish and bullish indicators for you to pick your trades correctly.
- Moving Averages and RSI: These indicators are vital for understanding the momentum in crypto trading.
- Bollinger Bands: The bands here are wide apart when price movements are very volatile; when the market is calm, bands converge.
- Fibonacci rule: A mathematical rule that is applied in crypto trading for making more money.