DASH and CEX trading strategies: Trading strategies for DASH on WhiteBIT
The first two articles of the series examined in detail the characteristics of one of the top cryptocurrencies on the market and the scope of its application. We dedicate the final piece to trading DASH, namely on our platform.
How to buy DASH on WhiteBIT?
There are many platforms to buy DASH, and centralized exchanges (CEX) are among the most popular options. Let’s consider buying DASH on WhiteBIT:
- Create an account. On WhiteBIT, the registration process takes three minutes. Provide your personal information and email address to set up an account.
- Verify your identity. Most exchanges require you to verify your identity (KYC) before you can start trading. This involves providing a copy of your government-issued ID and a selfie of yourself holding the ID.
- Add funds to your account. Once your account is verified, you will need to add funds. This is typically done by depositing funds from your bank account or credit card. Some exchanges also allow you to deposit other cryptocurrencies, such as Bitcoin or Ethereum.
- Buy DASH. Once you have funds in your account, you can buy DASH by placing an order on the exchange. To complete this, navigate to the DASH trading page and select the “Buy” option. You can then enter the amount of DASH you want to buy and place your order. You can also use an Exchange option, which allows you to exchange the funds on your balance for DASH.
What should you know before choosing a strategy?
In order for DASH trading to bring results, sufficient time should be devoted to preparation, in particular, the basics of technical (TA) and fundamental analysis (FA). As part of FA, a trader pays attention to macroeconomic factors that affect pricing, such as news. Cryptocurrency is characterized by relatively high volatility, so fluctuations in the price of a digital asset can be affected by any events associated with it. Therefore, watching official sources of information, analytical platforms, and industry leaders is the golden rule of a responsible trader.
You should also pay enough attention to the basic economic characteristics. It’s no secret that supply and demand indicators are among the first to be considered. An increase in demand and a decrease in supply pushes the price up, while the opposite situation causes it to fall. While fundamental analysis shows the general situation, the elements of technical analysis include characteristics that illustrate the picture in more detail, namely moving averages, relative strength index, volume, chart patterns, etc.
Trading strategies overview
There are several popular strategies for trading DASH on a centralized exchange (CEX). Let’s consider some:
The strategy involves receiving income from small price fluctuations. It is suitable for traders who make several small trades within a short period.
This popular trading strategy involves holding positions from several days to several weeks. Traders use technical analysis to identify potential entry and exit points and set stop-loss orders to manage risk. This strategy may be suitable for traders who want to take advantage of the medium-term fluctuations in the DASH price.
The strategy involves determining the general trend of the market and positions in the direction of the trend. TA elements, such as moving averages, can be used to detect trends. This strategy suits traders who want to take advantage of long-term DASH price fluctuations.
HODL (hold on for dear life) is the strategy that involves holding a certain amount of an asset for a long period. The bottom line is to buy an asset at one price and sell it at a higher price over time. It also suits those wishing to diversify their trading portfolio by keeping their funds in different cryptocurrencies. An alternative option is to store cryptocurrencies at interest. This method of holding assets is available on centralized crypto exchanges. On WhiteBIT it is realized as part of the WhiteBIT Earn investment tool, which includes Crypto Lending. Users can choose a holding period from 10 to 360 days and receive their profit percentage after closing the plan. You can choose a DASH holding plan for 30 or 90 days.
Each asset is unique and brings its benefits to the owners. By choosing DASH, you can not only improve your trading skills and manage risks but also profit from it.