An equally important skill in the medium term is the ability to wait out failures and drops in quotations: it is necessary not to panic and not to sell an asset, even if it is rapidly getting cheaper. The most important thing is to follow the chosen strategy and not to make a decision under the influence of emotion. Moreover, you can compensate for the lack of experience by combining several strategies at once.

For this purpose, even investments in one type of altcoin can be divided into long-term and medium-term: the first one should not be touched in case of any market fluctuations, and the second one should be traded depending on the rate fluctuations. Experienced traders also fix profits in installments. For example, it is possible to divide investments into three parts and at the expense of selling each of them when the exchange rate grows to fix profit – 10%, 20%, 30%. This strategy does not allow to maximize profitability, but helps to minimize losses. To an experienced trader, medium-term trading can give from 10% to 40% of profitability per week – this is a very high indicator, but to achieve it, you must necessarily follow the news and analyze the charts of quotes.

As experienced investors say, medium-term trading develops a trader’s discipline and accustoms him to the detailed realization of the adopted strategy. If a trader has decided to initially sell a third of the total volume of a particular cryptocurrency when reaching the level of return of 10%, he must do so – otherwise there is a high risk of not recovering his investment. At the same time, the trader learns to develop a trading plan, which allows him to think globally and after some time to move to long-term trading. By following the fluctuations of several currency pairs, a trader gains the necessary experience and learns to predict trends. Moreover, he gains the skill to place take profit and stop loss orders correctly.

LONG TERM TRADING

Unlike medium-term trading, long-term trading usually lasts from several months to several years. This approach always involves investing in a fairly serious volume of instruments to maintain open positions. First of all, long-term forex trading, like long-term stock trading, means buying undervalued assets, such as IBM stock at the dawn of computers or Tesla stock before the demand for electric cars grew. Long-term trading in the cryptocurrency market works in a similar way.

First of all, long term trading involves investing in some undervalued currency. For example, a trader can be sure that sooner or later the full legalization of bitcoin will lead to reaching the level of $20,000 per BTC. In this case, he may well buy the world’s main cryptocurrency for $9,000. Another approach involves investing in a certain altcoin, which by its technical characteristics can “shoot” after some time. In any case, long-term trading is primarily characterized by a lack of reaction to current rate fluctuations. The reason to exit the asset and fix profit will be only a sharp change in the situation. For example, long-term trading in the stock market often means that the investor exits the asset after the IPO.

A long-term strategy in the stock market involves several mandatory factors at once. First, the potential investor must have the resources for long-term investment, i.e. he must have sufficient funds. Secondly, he must have experience in identifying long-term trends, i.e. the skill to find an undervalued asset. Thirdly, a trend for long-term trading in this market must be formed, i.e. the asset must have some trading history, and also the fundamental factors that determine its changes in the future must be determined.

Based on these factors, analysts most often say that long term is the prerogative of experienced investors. As Warren Buffett once described his approach to investing, one should first find an undervalued market, then find an undervalued company in it and invest for several years. Long-term trends are much more seriously influenced by fundamental factors than by momentary market fluctuations, i.e. the investor is required to identify a truly valuable asset.