Best trading strategies in 2021 on Bityard

There’s a famous adage that goes like “strategy is better than strength “. These words couldn’t be truer as far as trading is concerned. Discovering what strategy works and doesn’t work could be the best thing that ever happened to any trader. It is little wonder why a platform like Bityard would offer a user a demo account to experiment with different strategies in order to settle for a strategy that works. The number of strategies that can be used to execute trades is as countless as the number of traders in the world. However, executing profitable trades requires one to have a successful strategy. A trading strategy is like a roadmap that is meant to guide a trader on his path to profits. It is highly recommended that a trader take his time to build a meaningful trading strategy. A demo account on Bityard would give a trader sufficient opportunity to devise a good and workable strategy.

This article will briefly highlight 3 of the easiest trading strategies that a trader could use on their trading journey. It is important to note that a trader can modify the strategies in a way that best suits his situation and objectives.

Fundamental analysis

This is one of the most important strategies that a trader can use to make successful trades. Although this strategy has its origins in stock trading, it is equally useful in the trade of cryptocurrencies. In fundamental analysis, what is involved is the critical analysis of the particular asset. It can range from considering the team behind the asset, use case of the asset, partnerships, and any other information that may negatively or positively influence the price of an asset. This information is critical in determining the market conditions of the asset, so knowing this information will give the trader a good idea about which direction the markets will go.
Basically, the essence of fundamental analysis is to follow all news and announcements about an asset in order to understand the asset, as well as understand the fundamentals influencing its price in the market.

Dollar-Cost Averaging (DCA)

Dollar-Cost Averaging is probably the simplest, yet most effective trading strategy. Dollar-Cost Averaging is the practice of making regular purchases of an asset over time. This strategy will consolidate the gains achieved when market conditions are good and offset the losses incurred when market conditions are unfavorable. This strategy is most effective for trading cryptocurrencies due to the nature of crypto assets. Cryptocurrencies are highly and deflationary by nature, so they will experience a lot of price swings as they increase in value with time. consider this hypothetical example of two traders on Bityard: one makes a lump sum investment of $1000, while the other one makes a monthly investment of $100. At the end of the year, the trader buying every month would have bought some coins at the lowest lows which would significantly improve his Return on Investment (ROI).

Leverage trading

Bityard enables leverage trading on different assets up to 200X. Although leverage trading is a risky strategy, it is equally a strategy that could result in very lucrative gains for experienced traders. In leverage trading, a trader is able to trade a larger position with borrowed money from the exchange (Bityard). For example, if the trader believes that the price of a coin will go up, he can leverage a position by putting up some funds as collateral, while Bityard provides the remaining funds depending on the size of the leverage. Upon exiting the trade, the trader must pay back the borrowed funds to the exchange (Bityard).

Conclusion

The strategies for trading are not cast in stone. A trader is free to choose what works for him. Most importantly, every trader must be aware that trading is a risky endeavor, hence the risk must be managed appropriately to prevent losses. One of the ways to manage risk is to use the demo account feature on Bityard until a trader is confident in their particular choice of trading strategy.