Easy strategies to use In Ethereum trading

Learn fundamental analysis

Fundamental analysis is an investment technique used to evaluate security or the market. It involves analyzing economic, financial and other qualitative and quantitative factors to evaluate the intrinsic value of an investment based on its current price.

With fundamental analysis, investors determine the value of a security by looking at fundamental data, such as earnings, dividends, assets and liabilities. Investors then use this information to determine what prices would be appropriate to pay for a security.

For example, if a company with net assets of $1 billion and earnings per share of $2, then a company with net assets of $1 billion and earnings per share of $1 would be undervalued. Undervalued companies often trade at a premium to their intrinsic value. Understanding whether an investment is undervalued or overvalued can be crucial in making the right investing decisions.

There are quite a few reasons why blockchain-based cryptocurrencies such as ETH, and ETC are superior to most other cryptocurrencies over the long term.

Technical Analysis

Technical analysis is a form of financial analysis that uses charts to predict future price movements. It is possible through intracounter or across different markets. There are several forms of technical analysis (charting methods), but the two most popular are support and resistance. These two price levels become essential as soon as you feel the support or resistance beginning to break down.

Suppose a cryptocurrency begins to break through these levels. In that case, it can indicate an imminent change in the direction of the currency, leading to potentially significant gains for traders who hold cryptocurrency then. People can use charting techniques to identify trends and make predictions.

The candlestick chart is one of the two primary forms of price charts in technical analysis. A candlestick chart is perhaps the oldest form of a trading chart. A candlestick gives a visual representation of a security's price over a certain period, with the vertical axis representing the security's close price and the horizontal axis representing time.

Pick up a trading strategy

1. Day trading - This refers to trading cryptocurrency markets from the same day to the next. Day trading is a form where you trade for short periods to make a profit when prices fluctuate by an extreme amount, or you wait for an extended period before moving on.

The advantage to this is that because you are trading smaller amounts, the impact moves will not have as much effect on your portfolio as if you were purchasing more significant amounts. You can also use various indicators like moving averages and support and resistance levels.

2. Scalping - This refers to trading cryptocurrency markets, on the same day or within a short period. A scalper trades small amounts of cryptocurrency and usually moves the price at very short intervals. A scalper will usually only trade when prices increase and then get out quickly, as they do not want their investment to go down by too much.

The advantage is that you can make your investments more quickly, but the disadvantage is that you can't hold on to your profits for as long.

3. Swing trading - This refers to trading cryptocurrency markets from one day to another, similarly to daily trading, but with much more significant amounts of investment.

4. Arbitrage trading - This form of trading is more passive than other forms and is done by identifying price differences between exchanges. For example, if you see a price difference between exchange in your country and another that's not, you could buy the currency at a lower price and then sell it on the expensive market to make a profit.

5. Scalper-arbitrage Trader - This type of trading involves buying one currency at a relatively low price on an exchange and then selling it at a relatively high price to profit.