The market of digital assets is not subject to central banks, which means crypto coins cannot be issued or limited by central banks. The lack of control is the reason for the market volatility, which, in turn, opens numerous earning opportunities for traders and investors. In this article, we will talk about two reasons to buy crypto – trading and investments – and the most promising projects that deserve attention.
Crypto Trading
Trading stands for buying and selling digital coins using a cryptocurrency exchange and generating income from the difference in crypto prices. Trading has several options:
- Buy and hold
- Swing
- Intraday trading
- Scalping
- Arbitrage
They vary depending on the time spent between opening and closing the position. The most dynamic option is intraday trading, for it means entering and exiting the market within one day. Scalping may last up to 15 minutes and implies catching even the slightest crypto prices fluctuations. These methods require a quick reaction on a trader’s part. There is a less stressful way to invest – buy and hold.
Long-Term Investment
When a person buys crypto assets and holds them longer than several weeks or months (sometimes years), it is called long-term investment or position trading. It gives much more time for a trader to analyze the following steps based on the market research without rushing.
Picking digital assets for long-term investment, you should look for those coins that will more likely exist up to the year or month you are supposed to sell them. Simply put, choose the most established coins with high liquidity. We confidently recommend considering Bitcoin, Ethereum, Ripple, and Solana projects. However, you should research on your own and choose assets to buy for the long term. Analyze the price chart and see what level the asset has never broken through. Analyze the current stage of project development, its plans and roadmap. Check out the latest news and updates, etc.
Learn more about the crypto market on the WhiteBIT platform.
About Author
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David Watson is the founder of DesignDrizzle and is a professional website designer for over 10 years. He has competence in creating visually appealing and user-friendly websites for all the clients. He likes to explore new and creative ideas for designing, photography effects and other inspirational subjects