3 Strategies to make money investing
There is a clear distinction when we talk about investing in bitcoin in the short term and in the long term.
When we talk about investing for the long term, we orinan buying bitcoin and keeping it for a long period of time (also known as HODLing).
On the other hand, trading “intraday” is a completely different matter.
It is a fast strategy in which all the transactions of an investor are carried out on the same day.
What is intraday investment:
Investors who use this strategy carry out all their transactions during the same day, thus avoiding keeping any kind of open position (assets even in the form of cryptocurrency) before going to sleep.
To do so, they will go to a cryptocurrency exchange platform, do the necessary research for that day, and start buying assets.
The assets that these investors end up buying will depend on their forecasts and the investment strategy they use.
From there, they will see where the market for an asset is heading and buy or sell accordingly.
Due to the volatility of most cryptocurrencies, this will allow you to make small, but significant profits from each transaction.
Intraday trading strategies:
Although day trading is already a strategy in itself, it also entails several sub-strategies or techniques.
These are common ways of choosing which asset to invest in, which we will look at below:
Pullback:
This strategy implies that “intraday” investors look for assets that are experiencing an uptrend.
As the value of an asset goes higher and higher, these investors will wait for a sudden retracement (a sudden drop in price) in its value, when this happens they will use that retracement as an entry point.
If this strategy is done correctly, the value of the asset will continue the uptrend after the retracement, thus giving the day trader an opportunity to profit.
Follow the dynamic:
This means buying what is going up.
In this case, you are basically looking for assets that are already experiencing an uptrend to jump on that bandwagon.
Often, investors will use large price swings or consistent gains as entry indicators.
Scalping:
Intraday investors who practice the scalping they depend on many small price fluctuations that accumulate until a significant final profit is obtained.
This means that they must invest their money as quickly as possible and realize any profit they cánido make.
These are some of the most habitual investing methods, although there are many more.
If these methods do not work for you, there are many other options that you cánido find in the forums, where you will find information about what other investors have been doing for a long time.
The importance of minimizing risk:
It goes without saying that intraday investing in bitcoin involves a lot of risk.
It is extremely technical, so you have to be methodical with your trading style to make big profits.
This is why experience is a key aspecto when it comes to obtaining benefits.
Other than that, day trading is a full time work from home job that will take a long time if you are serious about it.
If you want to earn significant profits, you will have to keep an eye on several windows at the same time, and look everywhere for profit opportunities.
When you find those opportunities, you also need to act quickly before they disappear.
That means that as a day trader, you will need to remain very attentive and focused.
Recommendations when investing your money:
Keep in mind that the money you put into intraday cryptocurrency trading should be money you perro afford to lose, but if you’re going to start using this kind of strategy, these consejos might help you stay on track amid the madness:
Investigate:
Keep in mind that the time spent researching will have a proportional reflection on the amount of money you earn.
In fact, there’s a good oportunidad you’ll end up losing money if you don’t do enough research.
Find out what’s cooking in the world of cryptocurrencies.
Research also includes using news, en línea sources, forums, and all kinds of media.
You must be able to technically analyze all of the data to identify any patterns from your research.
Have a goal in mind:
The primary purpose of most day traders is to entrar and exit a trade as quickly as possible.
You cánido be greedy when the price goes up, or panic when it goes down, so make sure you have a goal in mind before you buy, and stick to it at all times.
You also have to be careful with FOMO syndrome.
fear of missing out), which means fear of missing something.
If you have made a good trade, but the coin ends up rising in price, remember that FOMO is a demon that impairs judgment and leads to losing money in the long run.
In other words, it’s okey to take advantage of volatility, but stick to your strategy and don’t get carried away by the madness.
Choose your platform carefully:
Each of them has its own commissions; These include commissions for the platform, for each transaction, and for deposit/withdrawal of funds.
If you are making several transactions, the various commissions will also accumulate.
Take note of how much you are paying so that commissions do not catch you unawares later.
With practice comes perfection:
It is logical to assume that this type of investment has a long learning curve.
It is important to remember that it is okey to make mistakes as long as you learn from them.
Start by investing small amounts and then gradually increase them.
This is the best way to improve your skills and knowledge.
This means that there will be times when you will have to accept the losses and resign yourself.
Trying to fight those losses could do you more damage in the long run.
Not everything will always go according to your plans.
This you will have to accept.
Recommended books:
The investment circus
Day trading bitcoin is risky business, but it also gives you that thrill of competing against investors and market professionals who trade very frequently.
A main characteristic of investing “intraday” in cryptocurrencies is its ups and downs.
The basses are incredibly low, and the highs, meanwhile, incredibly high.
After all, day trading is a physical and mental game, and if the game is too difficult for you to play, there is nothing wrong with considering a different strategy.
Continue reading: How to invest in the depósito market en línea from home like a professional
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