How to create a trading strategy for Ethereum (ETH): Beginner Guide
The cryptocurrency trading has become increasingly popular in recent years, and many investors and traders want to use the potential of digital currencies such as Ethereum. Ethereum is one of the most valuable and widely traded currency currency, with market capitalization of over $ 400 billion. In this article, we will provide a detailed guide on how to create a trading strategy for Ethereum (ETH) and start your own investment journey in the Crypto Currency.
Understanding Ethereum’s bases
Before you can create a trading strategy, it is crucial to understand the basics of Ethereum:
* What is Ethereum? : Ethereum is an open, decentralized and transparent blockchain platform that allows you to create smart contracts and decentralized applications (DAPPS).
* How does Ethereum work? : Ethereum acts on the algorithm of the consensus of evidence of work, which requires the miners to solve complex mathematical puzzles to confirm transactions. This procedure is known as mining.
* Key features : The fundamental features of the Ethereum include his home cryptocurrency, the valuta, the ether (ETH), the gas processing fees and the smart functionality of the contract.
TRAINS OF TRADE STRATEGIES
There are several types of trading strategies you can use when trading Ethereum:
Daily Daily Daine : Buying and Sales ETH in one day to profit from the market fluctuation.
Range Trading : retain the position of a longer period (eg 5-10 days) in the hope that the price will remain stable or increase over time.
TRADE SHOWER : Buying and posture positions in a shorter period than trading in the range, but longer than the day of trading.
Position trading : SALE ETH at one point and buy back in another to profit from prices.
A guide to creating a trading strategy of Ethereum
Here’s a detailed guide to create your own trading strategy Ethereum:
Select Broker : Choose a reputable internet mediator offering Ethereum Trading, such as Binance, Kraken or Coinbase.
Set a shopping account : Create a new account with a selected broker and finance it with an ether (ETH).
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Define risk management rules : Determine how much you are willing to lose by store or total on any day.
Select a trading pair : Select ETH/USD (or other couples) that aligns with your investment goals.
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Example of trading plan
Here’s an example of a simple Ethereum trading strategy:
* Ticket
: Buy ETH/USD $ 400 with 10% position size.
* Stop loss : Sell ETH each $ 380 to limit losses (10%).
* The profit aim : Sell ETH each $ 420 for profit from the price increase.
* Rule Risk Management : Limit your total risk daily at 5%.
Tips and Tricks
Stay informed but not overly invested
: be ongoing with market news, trends and analysis, but avoid excessive investing in one trade or strategy.
Use technical indicators and forms of chart : use technical indicators, such as moving average, RSI (relative power index) and Bollinger Bands, to help identify the potential trading options.
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Conclusion
Creating a successful Ethereum trading strategy requires careful planning, research and execution.
