The art of long positions in cryptocurrency: strategies for upward markets
In the world of cryptocurrency, the long positions for investors and retailers were equally a fixed point. If it is done correctly, long positions can be incredibly profitable, but also go hand in hand with considerable risks. In this article we will examine the strategies and techniques used by expert retailers to insert long positions on the markets of cryptocurrencies profitable positions.
What are the long positions?
A long position is a commercial strategy in which an investor acquires security (in this case cryptocurrency) at a lower price than its current market value and sells it at a higher price. The idea is that the security value increases over time and can make a profit for the retailer.
Why invest in cryptocurrency?
Cryptocurrencies have reached massive popularity in recent years due to their potential for the high investment yields (ROI). With the rise of decentralized loan (Defi), the initial currency offers (ICO) and the growing hypothesis by institutional investors, the cryptocurrency has become an attractive class of activity. As for any investment, however, it is important to understand the associated risks.
Popular cryptocurrency trading strategies
Here are some popular commercial strategies used for long positions in cryptocurrency markets:
- Day trade : Purchase and sale of cryptocurrencies within a single day of negotiation to use market fluctuations.
- Oscillation trade : Attack for a few days or weeks of cryptocurrency, so that more time can be used to analyze the trends and adjustments of the market.
- Position trade : attack cryptocurrencies for a longer period of time and often uses long -term price movements.
technical analysis
Technical analysis is a crucial aspect of the cryptocurrency trade and helps dealers to identify models, trends, as well as support and resistance support. Some popular technical indicators used in cryptocurrency are:
- Average mobile values (MA) : calculation of the average safety price for a certain period of time to identify the direction of the trend.
- RSI (relative resistance index) : measurement of the strength of the movements of safety prices to determine whether it is hyper -compute or oversized.
- Bollinger tapes : View volatility and market impulse with the help of average mobile values with standard deviations.
Basic analysis
The basic analyzes are of essential importance for long -term cryptocurrency investors and help them understand the underlying bases of security:
- early relationships : analysis of the annual budget in order to measure the perspectives of profitability and growth of a company.
2
- Regulatory environment : understanding of the regulatory panorama and possible effects on the sector.
Risk management
To mitigate risks, retailers use different strategies:
- Position size : fix realistic risk objectives to avoid considerable losses.
- Arrest orders
: implement automatic sales orders to limit losses when prices drop.
- Security strategies : Use derivatives or other tools to reduce potential losses.
Examples in the real world
Some remarkable examples of long successful positions on cryptocurrency markets are:
- Bitcoin (BTC) : long -term market, with some investors resist BTC for years without significant losses.
- Ethereum (ETH) : an old popular coin that has recorded significant growth over the years, led by its applications and adoption.
3
Diploma
Long positions can be an effective strategy for the growing upward markets in cryptocurrency, but it is important to face these investments with caution and in -depth research.
