Creating a trading strategy for Ethereum Classic (etc): beginner guide
Cryptocurrency trading has become more and more popular in recent years, many investors seeking to take advantage of volatile markets. However, with so many available cryptocurrencies, it can be difficult to make the knowledge of the case about what of them to trade. In this article, we will focus on creating a trading strategy for Ethereum Classic (etc), one of the most active and altcoins on the market.
What is Ethereum Classic?
Ethereum Classic (etc) is an Open-Source decentralized blockchain, which allows users to build and implement intelligent platform contracts. Etc was created in 2015 as a fork of the original Bitcoin Blockchain, but since then it has evolved in its own unique entity with its own cryptocurrency and ecosystem.
Why is it trading etc?
There are several reasons why you might want to trades etc:
- Liquity : etc is one of the most liquid cryptocurrency on the market, which makes it easy to buy and for sale.
- Volatility : etc was an extremely volatile historical, which can lead to significant prices earnings if executed correctly.
- Community support
: The Ethereum Classic community is known for its active and supportive nature, many developers and traders contributing to the platform.
What are the key values?
To create a trading strategy for etc, you will need to focus on multiple key values:
- Price : Monitor the current price of, etc. (ETHC) in relation to other cryptocurrencies.
- Volatility : Pay attention to daily and monthly volatility, etc., which may indicate market feeling.
- Market capitalization : Follow the general market capitalization of Ethereum Classic to evaluate its value in relation to other assets.
- Trading volume : Monitor the trading volume to identify potential purchase or sale opportunities.
Strategy Ideas
Here are some strategy ideas to start:
- Long -term possession : Invest in etc for long -term and output fluctuations.
- The day trading : Short -term trade, using technical indicators such as moving media and RSI (relative resistance index).
- Swing translation : Use etc as a trade with swing, holding it for 1-3 days to take advantage of its volatility.
Strategy parameters
In order to create an effective trading strategy for etc, you will need to set some parameters:
- Input point : Set -Entrance point depending on the current price and market conditions.
- STOP-LOSS : Set a stop-loss command on top or below your entry point to limit potential losses.
- Take-Profit : Set a profit price to block profits when you touch your target.
Strategy options
Here are some strategy options for etc:
- The average cost of dollars (DCA) : Invest a fixed amount of money at regular intervals, regardless of the market price.
- Stop-lodge commands with a stop stop : Use stop-bloss commands to block profits, also protecting you against significant losses.
- Position translation : Sell it, etc. and buy it back when falling under your entry point, using lever to maximize the winnings.
tools and resources
To help you create a successful strategy for etc, you will need a few tools and resources:
- Cryptocurrency exchanges
: Use platforms like binance, kraken or coinbase to buy and sell etc.
- Trading platforms : Use trading platforms such as Metatrader 4 (MT4) or CointtrendStrading.com to analyze market data and perform transactions.
- Technical analysis tools : familiar with technical indicators such as moving media, RSI and Bollinger bands.
Conclusion
Creating a successful trading strategy for etc requires careful planning and execution. By focusing on key values, strategy ideas and parameters, you can configure an effective trading plan to go on the waves of the cryptocurrency market.
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