A complete guide for commercial strategies for cryptocurrencies
The world of cryptocurrencies has exploded in the last decade, with thousands of new coins and tokens emerging daily. As a result, traditional investment strategies have given way to alternative approaches that satisfy the unique characteristics of the Altcoins. In this article, we will deepen the scope of cryptocurrency trade strategies, focusing specifically on the Altcoins trade.
What are the Altcoins?
Before immersing ourselves in the world of commercial strategies, let’s review what Altcoins are. Altcoins are cryptocurrencies that are not directly related to Bitcoin or any other established blockchain project. They often have their own unique characteristics, use cases and applications in the cryptocurrency market. Some popular examples of Altcoins include Ethereum (ETH), Litecoin (LTC), Dogecoin (Doge) and Monero (XMR).
Commercial strategies for Altcoins
Commercial strategies for Altcoin’s trade are a combination of technical analysis, fundamental analysis and psychological techniques that help merchants make informed decisions about the market. Here are some popular commercial strategies for Altcoin’s trade:
- Impulse trade : This strategy implies identifying trends in the action of the price of an asset and driving them to generate profits. Impulso merchants seek assets with a strong rising impulse and aim to buy or sell at the top of a trend.
- Range range : Range trade implies buying or selling assets within a defined range, where the price has established a level of support and resistance. This strategy is particularly useful when there are significant changes in the feeling or liquidity of the market.
- CALOPE : The scale implies executing multiple small operations in a short period to take advantage of lower price movements. The resellers aim to benefit from the volatility of Altcoins markets.
- Next tendency : The following trend implies identifying and following the direction of market trends. This strategy is useful for assets with established trends or those that have been in upward trend for some time.
- Medium reversion : Medium reversion strategies imply identifying over -sales conditions or overalls in the price of an asset and bets in a correction.
Technical Analysis Strategies
The technical analysis is a crucial aspect of the Altcoins trade, since it provides valuable information about the behavior and trends of the market. Here are some technical analysis strategies that can be applied to Altcoins:
- Recognition of graphic patterns : The recognition of graphics patterns implies identifying pre -existing patterns in the price action of an asset, such as head and shoulder triangles.
- Mobile average crossovers : Mobile average crossovers imply purchase when a mobile average crosses over a long -term average and sells when it crosses below an average short -term.
- RSI (relative force index) : RSI is an indicator of moment that measures the speed of price changes in relation to price movements. It is often used as a purchase signal for overcompra conditions.
Fundamental analysis strategies
The fundamental analysis implies studying the underlying economy of an asset, market trends and other external factors to predict its future performance. Here are some fundamental analysis strategies that can be applied to Altcoins:
- ECONOMIC INDICATORS : Economic indicators such as GDP growth rates, inflation rates and interest rates can provide valuable information about the relative strength or weakness of a currency.
- Market feelings analysis : Market feelings analysis involves monitoring the attitudes of investors towards an asset using techniques such as feelings analysis tools such as Twitter feelings or news articles.
- Regulatory environment : The regulatory environment of an asset can significantly affect its value.