When it comes to profitable cryptocurrency trading, many people think that pro traders just keep their eyes on charts and use technical analysis to have a profitable trade. The truth is that having good eye isn’t what makes pro traders different from average ones. However, having good eyes on the market is an essential tool, having a good strategy also plays a significant role. In this article we are going to talk about 2 strategies every trader should know in order to make right decisions.
In fact, we are going to show that an investor doesn’t need a massive trading balance in order to generate profits.
2 strategies every trader should know; Non-directional strategies
The crypto market is volatile. As a result, the price of crypto assets fluctuates in double or even triple within 1 hour to 24-hour period.
Pro investors are always looking for small possible interests. For example, they prefer to have 2% profit per month. But, perhaps it becomes a question in your mind that why should a pro trader choose such a low amount of crypto. The answer is 2% monthly profit means 24-27% profit per year.
Such this strategy reduces the stress, because the trader can guess the tops and bottoms easier without scaring losing their money.
Another great strategy, which use by pro traders is “carry trade”. In this strategy the trader buy cryptocurrency on traditional market and then sell its fixed-month calendar futures. In this case, the rate can be measured by analyzing the basis indicator.
One great strategy called the carry trade. It consists of buying a cryptocurrency on traditional markets and selling its fixed-month calendar futures.
This rate can be measured by analyzing the basis indicator, a metric also referred to as the futures markets annualized premium.
There is an important thing traders should notice in this strategy. Unlike perpetual futures (inverse swaps), fixed-calendar futures contracts have a set expiry date. As a result, the trader should sell the spot position at the moment of futures contract liquidation.