How to create a trade strategy for Ethereum (ETH): Beginner’s Guide
The cryptocurrency trade has increased the potential of digital currencies such as Ethereum. Ethereum is one of the most valuable and widespread cryptocurrency, with a market value of more than $ 400 billion. In the article we deliver a step -by -step guide
Understanding Ethereum Basics
Before you can create a trade strategy, it is necessary to understand the basics of Ethereum:
* What is Ethereum?
* How does Ethereum work? : Ethereum operates in a work certificate consensus algorithm, which requires miners to solve complex mathematical puzzles to validate events. This process is called a mine.
* The main characteristics : Ethereum’s core properties include its original gas charges and intelligent contract functions for the processing of transaction processing.
Trading Strategies
There are several types of trading strategies when you visit the Ethereum Trade:
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- Station Trading : Selling ETH at one stage and buying it another profit from price differences.
A step-by-step guide to creating an Ethereum trading strategy
Here is a step-by-step guide to creating your Ethereum trading strategy:
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- Set a trading account
: Create a new account with your selected broker and fund it with the ether (ETH).
- Understand Market : Study of Ethereum Price Chart, Trends and Technical Indicators to understand its behavior.
- Define risk management rules : Define how much you are
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- Develop a trade plan :
Example Trade Plan
Here is an example of a simple Ethereum trading strategy:
* Entry Point : Buy ETH/USD for $ 400 with a 10%position size.
* Stop loss : Sell ETH for $ 380 to limit losses (10%).
* Winning target
: Sell ETH $ 420 profit for a price increase.
* Risk Management Rule : Limit general risk per day to 5 %.
tips and tricks
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conclusion
Creating a successful Ethereum trading strategy requires careful planning, research and implementation.
