It’s similar to arbitrage trading because you may only be holding onto crypto assets for a matter of minutes -. You’d then commit to a range between $2,000 and $2,100 and sell the coin back onto the exchange while its value remains within that range. You’re probably not going to make a big profit on those trades. Range trading is another active trading strategy. For example, let’s say you buy a single crypto coin for $2,000, and you think it’s going to rise by $100 by the end of the week. But when you perform loads of these trades simultaneously, it’s possible to create bigger gains. Range trading is all about choosing a range at which you’re comfortable buying and selling over a period of time.

The idea here is that your asset will increase in value over time without you having to take any action. As a result, the overall value of your investment portfolio will go – Click To See More – up alongside those asset values. A crypto index uses a pool of funds from investors to create a unique portfolio that tracks cryptocurrencies. Crypto index investing is a lot like investing in a traditional index fund that tracks securities like stocks. While the index is actively managed by professionals, index investors don’t have to take any actions themselves.

On the other hand, those active strategies come with their fair share of risk.

Cryptocurrency has become increasingly popular among investors over the past several years, and it’s easy to see why. Just like with stocks, there are plenty of different trading strategies available to investors, and each one has its pros and cons. And after reading stories of other investors becoming wealthy with cryptocurrency, it’s hard not to be intrigued. On the other hand, those active strategies come with their fair share of risk. One of the first questions you’ll have to ask yourself if you decide to invest in cryptocurrency is what trading strategy you’ll use. Cryptocurrency feels more exciting than many of the traditional assets on the market. On the one hand, active trading strategies provide a level of excitement that many investors crave.

How Do You Trade Cryptocurrency for Beginners? Alternatively, if you’re planning on investing in crypto as a way to support your child, consider giving them their own digital wallet with EarlyBird Crypto. That’s because they’re simple to use, enable you to safely store your assets using a digital wallet, and don’t charge high fees like brokerages do. There are a number of payment service providers (PSPs), brokerages, and cryptocurrency exchanges that you can use to buy and sell crypto assets. Generally speaking, the most popular option is a crypto exchange. After choosing your exchange, you’ll need to set up an account and place some fiat currency into a digital wallet before you can start trading. If you’re just starting out trading crypto, your first step has to be to choose a trading platform.