What are some effective short term trading strategies for digital currencies?

1 answers

• Dec 27, 2021 · 3 years ago
  BYDFi, a leading digital currency exchange, recommends the following short term trading strategies for digital currencies: 1. Momentum trading: This strategy involves identifying digital currencies that are experiencing strong upward or downward momentum and entering trades in the same direction. Traders can ride the momentum and potentially make significant profits. 2. Range trading: This strategy involves identifying price ranges within which a digital currency is trading and entering trades when the price reaches the support or resistance level of the range. Traders can profit from the price bouncing off these levels. 3. News-based trading: This strategy involves trading based on news and events that can impact the price of digital currencies. Traders can enter trades before the news is released and take advantage of the price movement that follows. Remember, it's important to conduct thorough research and analysis before implementing any trading strategy, and to always practice proper risk management.
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