Art of long positions in cryptocurrency: strategies for stubborn markets
In the world of cryptocurrencies, long positions were the basis of both investors and traders. After making correctly, long positions can be extremely lucrative, but also associated with a significant risk. In this article, we will examine the strategies and techniques used by experienced traders to make profitable long positions on cryptocurrency markets.
What are the long positions?
A long position is a trade strategy in which the investor buys security (in this case cryptocurrencies) at a lower price than its current market value and sells it at a higher price. The point is that the security value will increase over time, enabling traders to earn.
Why invest in cryptocurrency?
Cryptocurrencies have gained immense popularity in recent years due to their potential of high return on investment (ROI). Along with the development of decentralized finance (DEFI), the initial coins (ICO) offer and the growing adoption by institutional investors, the cryptocurrency became an attractive asset class. However, as in the case of any investment, it is necessary to understand the risk.
Popular cryptocurrency trade strategies
Here are some popular trade strategies used in long positions in cryptocurrency markets:
- Trade Day : Buying and selling cryptocurrencies in one commercial day, aimed at taking advantage of market fluctuations.
- swing : keeping cryptocurrencies for several days or weeks, enabling more time to analyze market trends and introduce corrections.
- Trade position : Keeping cryptocurrencies for a long time, often using long -term price movements.
Technical analysis
Technical analysis is a key aspect of cryptocurrency trading, helping traders identify patterns, trends and levels of support and resistance. Some popular technical indicators used in cryptocurrency trading include:
- Medium walking (MA) : Calculation of the average safety price in a certain period to identify the direction of the trend.
2.
- Bollinger bands : Visualization of variability and market momentum using medium medium with standard deviations.
Basic analysis
Basic analysis is necessary for long -term cryptocurrency investors, helping them understand the basic basics of security:
- Profit reports : Analysis of financial statements in order to assess the prospect of the company’s profitability and growth.
- Industry trends : Examination of trends and market conditions specific to the sector.
- Regulatory environment : Understanding the regulatory landscape and potential impact on industry.
risk management
To reduce the risk, traders use various strategies:
- position size : Setting realistic risk goals to avoid significant losses.
- Orders for stopping : Implementation of automatic sales orders to limit losses if prices fall.
- Security strategies : Use of derivatives or other instruments to relieve potential losses.
Examples of a real world
Some noteworthy examples of successful long positions in cryptocurrency markets include:
- Bitcoin (BTC) : long -term bull market, and some investors keep BTC for years without significant losses.
- Ethereum (ETH)
: The popular Altcoin, which has experienced significant growth over the years, driven by cases of use and adoption.
- Litecoin (LTC) : Another popular cryptocurrency with strong long -term performance achievements.
Application
Long positions can be an effective strategy for stable markets in cryptocurrencies, but it is necessary to approach these investments with caution and accurate research.