The crypto trading

Trading is a form of investment and searches for profitability that has become very popular in recent years thanks to the advance in technology and information systems.

What is trading?

Financial trading consists of the buying and selling of listed financial instruments (shares, companies, currencies, commodities) using an online platform, to obtain short-term economic profitability. Its operations are based, fundamentally, on buying an asset and then selling it at a higher price or selling an asset at a high price and buying others at a lower price.

Types of trading:

Day trading: It is a way of investing in the short term in which the stock market operations of buying and selling assets are opened and closed on the same day. In this type of online trading, you can trade currencies, stocks, commodities, or cryptocurrencies, among other assets.

Scalping: This is also a type of short-term investment in which actions are executed in a few minutes several times a day. The most popular is Forex scalping, a trading style in which large volumes are invested for very short periods (minutes or even seconds).

Swing trading: Unlike the previous modalities, it is a trading variant that allows you to trade in the financial markets in the medium term. Trades can be left open and last up to ten days. This technique uses charts that the stock price draws session by session to detect trends, taking advantage of them to make money both when the market is expected to rise and when it falls.

Trend or directional trading: This operation is very similar to swing trading, since, like swing trading, it uses market trends to design a strategy. Whether upward or downward, directional trading is positioned in the market by taking advantage of the behavior that the charts have been showing. The main difference with swing trading is that operations can last for weeks, months, or years.

Social trading: This is the name given to a new type of investment based on connecting users or traders by taking advantage of social networks. In this way, the most advanced traders share their strategies with beginners, who can follow, learn and copy the most experienced and successful investors.

Conclusion

It is important to know the types of trading that exist because these are concepts that we can find when talking about cryptocurrency trading since many times the same techniques and bases of traditional trading can be applied.