Let’s compare different crypto strategies: hodling, crypto portfolio, arbitrage, scalping, and mirror trading.
HodlingThe strategy is designed for a long-time period. The point is very simple:
you buy a cryptocurrency and wait until the price is significantly higher than it was initially.To use the strategy, one has to study the market carefully, pick a currency with both a low price and prospects for growth, and be patient. The letter, given the notorious volatility of the market, is a matter of special importance since it is extremely hard to resist the temptation to get rid of the assets at a time of a sharp falling.
You’d better figure out the exact price to wait for and not pay any attention to all inevitable unpredictable fluctuations.
Building a Cryptocurrency PortfolioCrypto Portfolio. Investment, which can bring you a lot of profit, if you diversify well.
This crypto strategy is based on a balanced trading, which means that
the assets are allocated among several cryptocurrencies.It is assumed that the rises of some currencies compensate for the falls of others. For example, Bitcoin and altcoins can act like this. Dogecoin and Monero, Ripple and Ethereum have proven to be useful in the creation of a crypto portfolio.
Statistical ArbitrageStatistical arbitrage is a more complex modification of the previous strategy. The scheme is the following:
you buy a currency on an exchange, change it to coins on another and, eventually, sell for fiat.The point is to use a price correction lag between those exchanges, getting a 5% profit.
ArbitrageSometimes crypto traders choose arbitrage as a financial investment strategy.
Using the strategy, one
takes advantage of price differences between exchanges.For example, you buy some crypto on Bitfinex, then go to Poloniex and sell it at a higher price.
The shortcoming of the strategy is that a fee should be considered since it can be high enough to eliminate the profitable differences. Generally, a price discrepancy of 2% or more is a sign of a lucrative deal.
ScalpingThe essence of the strategy is
an immediate profit. For example, you buy 100 XRP at $0.23. After a few minutes, the rate grows up to $0.24, and you sell. The profit is just $1, but It didn’t take much time.
The strategy is good for trading in small volumes — the risk is minimum.
Crypto Copy Trading — Bonus StrategyAt Coinmatics company there are plenty of top cryptocurrency traders to follow. Btw, you can join this crypto copy trading platform today and try it for free!
You pick a successful trader and copy his trading operations.
There two questions arising:
where can I find such a crypto trader? And how can I get to know about his deals?For these purposes, special crypto trading platforms were designed.
Traders can register on and start providing information via these web-services, while others can subscribe to the best of them, according to the chart, and copy after them.Coinmatics is one of such platforms, providing cryptocurrency copy trading services. The company has launched the auto trading service automating the process of copying deals after traders, which makes trading accessible and profitable even for beginners.
Crypto social trading can be really beneficial and time-saving (especially when we talk about automatic copy trading). Moreover, at Coinmatics you can test Binance copy trading for free and estimate its performance without high risk.
We hope that the article will help you to choose an efficient crypto strategy. Good luck, crypto investors!Coinmatics. Trade with The Best.