Cryptocurrency prices can change a lot, and that’s where crypto trading strategies come in. These strategies assist you speculate on crypto price changes without owning the actual cryptocurrency. One effective strategy is called Moving Average Crossovers.
Moving Averages (MAs) are indicators that show the average price of a crypto over time, helping to spot trends. By using crossovers, you can see when the price crosses above or below an MA, indicating a potential trend change.
To trade using this strategy, you wait for a crossover and then make your move, either buying or selling cryptocurrency. You can also use two MAs – a short-term and a long-term one. When the short MA crosses above the long one, it’s called a golden cross and can be a buy signal. When the short MA crosses below the long one, it’s a death cross, suggesting a trend shift downwards. These are the basics of using moving averages for crypto trading.
