Some common techniques involve price chart analysis, while others focus more on fundamental analysis or market news.
Technical Analysis:
Support and Resistance: Identify support (lower limit of price) and resistance (upper limit of price) levels to decide when to buy.
Technical Indicators: Use indicators such as Moving Average, RSI, or MACD to identify trends or overbought/oversold conditions.
Fundamental Analysis:
Market News: Pay attention to breaking news that could impact the crypto market.
Project Development: Learn about the crypto project you want to buy and see if there are any developments or releases that could impact the price.
Dollar Cost Averaging (DCA):
Buy the same amount of crypto at certain time intervals, without paying attention to the current price. This helps even out the effects of market volatility.
Swing Trading:
Open trading positions based on short-term trend changes. This involves buying at the bottom of an uptrend and selling at its peak.
Importance of Trading Plan:
Determine in advance when you will buy and sell, and set your loss and profit limits.
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