Today, we are going to share some strategies to think about when you start trading any assets class such as Bitcoin, altcoins within Spot, Futures, Margin, ETP (Exchange Traded Products) ,Options and more.
At Huobi, we have a variety of platforms to suit your needs and if you don’t have an account sign up here.
Now let’s discuss five strategies that you should consider when trading. These items are for newbies but this could also be a nice refresher for traders that have been trading for awhile.
5 Trading Strategies
- Get Educated
In addition to knowledge of basic trading items, you need to keep up on the latest crypto market news and events. You can check out a variety of crypto news sites such as: Coingecko, CoinMarketCal, Coindesk , and Cointelegraph just to name a few.
A. Coingecko is the world’s largest independent cryptocurrency data aggregator with over 6,000 different crypto assets tracked across more than 400 exchanges worldwide. Check out the news section here.
B. CoinMarketCal is the leading economic calendar for reliable cryptocurrency news. It covers all events that help crypto traders make better decisions. A great way to see when your favorite crypto project is having an upgrade or a BIG event.
C. Cointelegraph + Coindesk cover recent news about the crypto industry as well as overviews of bitcoin, Ethereum, blockchain, mining, cryptocurrency prices and more! Another option is just to stay tuned to the Huobi Global Twitter and we will post the biggest news within the industry as well.
2. Allocate Your Funds Responsibly
Assess your capital you’re willing to risk within your trades. Many traders risk less than 1% per trade. Set aside an amount capital that you can trade with for a extended period of time if the market turns against your trade. Remember this is not financial advice just basic knowledge of what may work for you — at the end it’s your strategy on how to use your funds to trade.
3. Small Trades | Buy Fractions
Make trades only after you feel you have researched the asset well enough, and setup a way to track the performance You can also buy fractions of crypto tokens for example 0.01 of a Bitcoin or 0.04 Ethereum. This will help you to establish a slow approach to using your capital wisely and not feeling like you have to buy a full token for each trade.
4. Limit Orders | Stop Loss
There are many types of orders you can setup on Huobi. Today, We will cover two which are commonly used to trade . Limit orders , and stop losses/trigger orders. Make sure you know how to execute them on Huobi and how to use them in order to trade your positions.
A quick glance at these two terms:
A limit order is an order to buy or sell an asset at a specific price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. A limit order is not guaranteed to execute.
A Trigger order is a pre-set order, that you place ahead with an order price and contracts amount (like a limit order), which will only be triggered under specific conditions (a trigger price/trigger). Once the latest traded price has reached the “trigger”, the pre-set order will be executed.
Now that you are familiar with these two types of order — it can be used to ensure safety of your capital or to enter/exit a trade at the price you determine. You can research these more online.
5. Plan Your Trade , Trade Your Plan
Develop a trading strategy of where you will be buying/selling, and make sure you can stick to this plan . A well-known saying within trading is “Plan your trade and trade your plan.” This is ideal to make sure you don’t do something based on feelings and emotion rather than a well organized structured way to buy /sell an asset.
Well now that we have covered five basic strategies for crypto trading, that about sums up this overview.
Trading in digital assets comes with high risks due to huge price fluctuations. Users should be fully aware of the risks associated with digital asset trading and make prudent trading decisions.
Huobi Global’ s announcements and information do not constitute investment advice, and Huobi will not bear responsibility or provide compensation for direct or indirect losses arising from trading decisions whilst relying on this information.