A Beginner’s Guide: 3 Popular Crypto Tactics To Be Aware Of In 2024
There’s a lot happening in the crypto world right now, you may have noticed. XRP is up, Binance is up, Bitcoin and Ethereum are still the top dogs, and there’s just an all-round happy feeling.
Quite the difference when you consider the bear market that crypto has been in for the last couple of years. Ever since Terra UST dipped below its $1 peg – thanks a lot, Terra, you terror – the crypto-verse has been struggling to reach the highs of 2021 when BTC sat at a healthy $68,000.
Many traders have been wondering if it would ever reclaim those heights again, and while the last few months are not an indication that it will, they do give traders hope that things are on the way up.
Crypto Then And Crypto Now
So, now, what about you? You’ve been sitting on the sidelines for a while, right, wondering whether it’s the right time to invest? If that’s the case, then we feel bad for you. Your head must have been spinning.
That’s the trouble with bear markets. On the one hand, they’re the perfect time to invest, when prices are low and movement is minimal. On the other hand, who would invest in coins that have fallen so brutally, and may never climb again? It’s big-sweat time, and a lot of people can’t handle it.
Now, however, things have changed, and perhaps you should too. Right now is an optimal time to invest in crypto, when prices aren’t too high that the investment feels scary, but enough positive movement is happening to give you the confidence you’re doing the right thing – we should add, however, that this is the case at the time of writing, make sure to check out cryptosoho.com to learn about the movement in real-time.
Before you make any moves, however, you need to have a few tactics up your sleeve. As we’ve alluded to, cryptocurrency is a volatile market, and no one can really tell where it’s headed at any one time. We could be out of the crypto winter as early as 2024, or it could be another few years. No-one knows. And that’s why you need a strategy to cut down on the risks.
To help you out, here are three of the top crypto trading tactics of 2024 and a few words on why they might be right for you:
HFT
HFT – or “high-frequency trading” – is known as the “sophisticated” trading strategy. It involves making a large amount of trades in a short time period, sometimes even within seconds. This relies on advanced data, algorithms, and a whole lot of nerve.
Traders who opt for HFT can make market movements faster than anyone else, and this can result in significant profit, as well as significant losses. If you haven’t got a crypto trading system, and you’re not going to be scanning the market permanently nearly every second of the day, this one might not be for you. But it is one of the most popular going into 2024.
Range Trading
If you want something with a little lower risk, then you can’t go wrong with range trading. This includes buying tokens near the lower boundary, and then selling when they reach the upper boundary of an established range.
So, basically, buyers search for coins at the lower support level, buy, anticipate a range of a price rebound, and then sell as close to that range as possible. This takes advantage of price predictions and looks to rule out short-term market fluctuations. Far more risk averse than HFT, but not necessarily foolproof.
HODL
Ah, the HODL. This is perhaps the most straightforward, kind, and stress-free investment tactic. Hence it is one of the most popular going into 2024. It involves buying crypto as a long-term strategy and holding it until prices boom. This could be months, years, or even decades if you wanted it to. The best thing about this strategy is that it cuts out all the noise of short-term price movements, and simply accepts the fact that crypto is volatile.
There’s no speculative trading or quick-trading decision-making. It’s just about buying the crypto you think will do well, HODling the tokens for an extended period, and taking advantage when necessary. As mentioned before, however, you should do a lot of research about the best coins to HODL, and go with the trading tactic if it works for you.