Six Cryptocurrencies Suitable for Position Trading
Is position trading profitable? The answer to this question is yes. This strategy made the top 25 highest-earning hedge fund managers generating $17 billion in profits in 2017.
Position trading involves hodling of positions or crypto assets for an extended period, usually months or years. Position traders ignore short-term price movements to profit from longer-term trends.
This trading technique is suitable for various trading markets ranging from cryptocurrencies, stocks, bonds, commodities to forex. In the crypto-verse, the strategy has seen tremendous success over the years. Various whales have benefited from this strategy, and they can attest to that.
Let’s look at some of the suitable cryptocurrencies for position trading.
Apart from bitcoin mining, investors also earn money through the hodling of this ever-growing crypto asset. When bitcoin was introduced in 2019, very few people knew what it was all about. Its impact has been felt all over the crypto-world after its recent surge in 2021. Its first boom came in 2011-2012 when the price reached $1000. The asset saw a tremendous rise in 2017, making many people multimillionaire after crossing the $20,000 mark.
Cryptocurrency trading remains one of the most lucrative ways to earn money if one knows how to read and analyze trends and patterns. However, it’s important to note that learning how cryptocurrency prices behave could be difficult, time-consuming, and frustrating.
The good thing is, there is a software known as Bitcoin Profit. This software uses market trends and signals to perform trades by buying and selling cryptocurrency at the right time. The effectiveness of this software has an estimated percentage of 92%. The Bitcoin Profit trading system uses “signals” to detect market trends. Experienced cryptocurrency traders use the “signals” to formulate trading strategies.
Bitcoin Cash (BCH)
Bitcoin Cash is an altcoin created in 2017. Bitcoin Cash processes transactions more quickly than the bitcoin network, making transaction fees lower and waiting time shorter. This network handles around 25,000 transactions per block than the bitcoin network that operates between 1,000-1,500 transactions per block.
Bitcoin Cash is considered one of the most secure networks with remarkable security that no hacker has ever hacked since its launch. For an investor looking for a suitable crypto asset for position trading, Bitcoin Cash should be one of the first choices to consider.
Often referred to as digital silver, Litecoin shares many similar attributes to bitcoin. Litecoin is one of the oldest cryptocurrencies in the market. It exists in the top ten cryptocurrencies by market capitalization. This attribute alone places Litecoin in the topmost cryptocurrencies suitable for position trading.
Litecoin digital scarcity makes it more valuable. Its on-chain transactions show a healthy Litecoin network that has over 100,000 active addresses. Additionally, this crypto asset processes 40,000 transactions every 24 hours.
Litecoin price prediction
An insight into Litecoin price prediction will help investors make a more informed decision if Litecoin is suitable for position trading. A top cryptocurrency research firm, Crypto Research Report Group, predicts Litecoin to reach $1,200 in 2025 and a possible surge of $2,250 in 2030. This prediction makes Litecoin one of the most suitable crypto assets for position trading in 2021.
The Ethereum network has seen its miners bank serious profits. According to the latest long-term forecasts, by the end of 2021, Ethereum price will hit a $5,000 mark. Additionally, by the middle of 2022, Ethereum will have reached 10,000 and 20,000 within the year 2024. By the time we get 2030, Ethereum will be hitting the $50k mark.
For any investor looking to hodl this crypto asset, now it’s high time to do so. Ethereum looks like one of the best cryptocurrencies to position trade.
Binance Coin (BNB)
This cryptocurrency functions as a trading currency and pays fees on the Binance cryptocurrency exchange. This coin came into the limelight in 2017, where it used to work on the Ethereum blockchain with the token ERC-20 before becoming the native currency of Binance’s blockchain, the Binance chain.
BNB is considered one of the top utility tokens in 2021. In January 2021, Binance Coin had $6.8 billion in market capitalization, with one BNB going for $44.26. The live Binance Coin Price today is $256 with a 24-hour trading volume of $1,896,155,625. This coin is one of the suitable cryptocurrencies worth position trading.
Tron is a decentralized virtual platform similar to Etherium. Tron enables Dapps developers to utilize smart contracts that live on its native blockchain. Tron price is $ 0.060455 with a 24-hour trading volume of $3,304,722,339. The TRX in circulation has an estimated value of between 72 billion to 101 billion. Tron owners mostly trade it in the Binance trading platform. Tron is worth considering for any investor looking to position trade in a particular cryptocurrency considering its current low price.
Although position trading is considered one of the most profitable strategies, position traders need to be keen when choosing an asset to position trade. It’s essential to look at the market volatility of any cryptocurrency one intends to hodl. Additionally, “when to choose” a cryptocurrency for position trading is also an important factor worth considering.
The above cryptocurrencies are the best to position trade in 2021, considering their remarkable history in the crypto world. Considering these cryptocurrencies’ market Cap, the above cryptocurrencies will gain tremendous profits in the future.
Any investor equipped with the above knowledge can choose the best cryptocurrencies for position trading. Additionally, when selecting these cryptocurrencies, the information on “when to choose” will give anyone confidence to step into the position trading world.