Did you know there are three different types of trading: short-term, mid-term, and long-term? First, you focus on your goals. Do you enter the crypto world to generate revenue in a day, 3–5 days, 1–2 weeks, or under 6 months? If you fall in this period, you are a short-term trader.
When you have decided that you are a short-term trader, then the selection of the coin has the biggest impact on your profitability. Bitcoin and Ethereum are the market leaders, but do both suit you? From a technical perspective, bitcoin is not suitable for the short term because it has high volatility, but altcoin is the best. Because many altcoin investors do not have faith in it, they only use it to gain a short-term advantage. Moreover, holding altcoins for a long time may bring severe dangers to your investment. If you think that I am wrong, then consider holding meme coin for two years. Does the meme coin have the guarantee of returns over 1–2 years?
Midterm traders are those people who can wait for 3–6 months. They mostly react to periodic market trends and predict future market trends through current market analysis. Traders in this period of time make the arrangements for market changes in advance. So, they think ahead of time about what happened after 3–5 weeks or months.
Long-term traders are those people who can hold the coins for more than 6 months and up to 1-2 years. They never worried over the short-term volatility and only focused on the huge profits through long-term market trends. In addition, long-term trading always requires the selection of coins with strong fundamentals. If long-term traders ignore the strong fundamentals and avoid the market’s certainty, they are never able to generate maximum profit.
The reason to first determine the period is crucial. For example, if you select Bitcoin for the short term, it is impossible to make money in 1-2 weeks because Bitcoin starts to decline and usually takes 2–3 weeks to recover. So, how do you achieve the best results? Similarly, choosing the meme coin for the long term also brings disaster for your investment. So, before starting trading, the time frame and the associated coin are important.
The short-term trading looks easy, but traders always have many things to consider, like buy points and sell points. When to put stop-profit and stop-loss points? If you are not paying attention to entering or exiting, you may damage your confidence, and you will exit the market in a hurry.
In summary, before entering the crypto world, first determine your time frame, then select the coin that meets the relevant condition. If you are among those who blindly enter the crypto world to chase the rise. Your results never meet your expectations. Thanks for reading.
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