Margin trading can be a little risky; it involves trading assets borrowed from a third party. In crypto trading, this third party is usually another trader.
Margin trading helps you leverage your position (increase the profits made from a trade).
You can borrow up to 100× what you originally have but this comes at a price.
You can use the margin trading method on almost all exchanges, these include our top3 ;
- You can lose more money than you invest.
- You can be at risk of liquidation
This has to be one of the easiest trading methods out there. All you have to do is to buy a coin of your choice and keep them somewhere safe for a given period. You can hold them for a year or more, then sell them when you feel they’ve increased and a substantial profit has been made.
You can use the HODL trading method on any exchange platform.
- Holding your coins has little to no risk unless you decide to sell them at a time when their values plummeted.
The scalping method involves taking advantage of small increases in price over and over again. “Scalpers” don’t hold their positions for long periods; some scalpers can open and close positions in a matter of seconds. This is done repeatedly during the day to increase the amount of profit. A lot of popular exchanges give you the freedom to use the scalping method.
- Scalping can be very time consuming
- It requires a level of determination & concentration.
Other trading methods include;
- Day trading
- Swing trading
- Trend trading
- Index investing
If you’re not sure which trading method you want to start with, you can test run each method to see what works well for you.