Digital assets are a type of high-risk investment, and their unplanned trading usually leads to a loss of capital.
Most analysts agree that there is no “perfect” trading strategy, we have three well-known methods that are very suitable for novice traders:
1. Dollar Cost Average (DCA): Instead of investing all your money in one particular cryptocurrency at once, break it down into small amounts, choose a specific time and day of the week, and only make your purchases at those times. Buying at such regular intervals over a long period of time helps to reduce the impact of market fluctuations – that is, sharp price fluctuations.
2.Golden Cross/ Death Cross: Is a method that uses two moving average lines (MA) on the trading view chart; A moving average is a chart indicator line that shows the average price of an asset over a given period of time.
Simply put, a moving average is a line drawn on a chart so that we can guess price behavior more accurately from past data.
3. Trading strategy based on RSI Divergence:
The RSI divergence strategy is a more technical strategy, but it is more effective in predicting the reversal timing before it occurs. Inversion of the trend is when the price starts to move in the opposite direction; From a downtrend to an uptrend or vice versa. The index fluctuates between 0 and 100 and can be used to highlight an “oversold” or “overbought” of an asset. You can also use this strategy to find smaller changes in a trend.