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6 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 generate billion in profits in 2022.
Position trading involves HODLing 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, and 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.
Bitcoin
Apart from bitcoin mining, investors earn money by hodling this ever-growing crypto asset. When bitcoin was introduced in 2009, 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 multimillionaires 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. Then, 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 faster than the bitcoin network, lowering transaction fees and waiting times. This network handles around 25,000 transactions per block than the bitcoin network, which 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. Therefore, for an investor looking for a suitable crypto asset for position trading, Bitcoin Cash should be one of the first choices.
Litecoin
Often referred to as digital silver, Litecoin shares many similar attributes to bitcoin. For example, Litecoin is one of the oldest cryptocurrencies in the market. In addition, it exists in the top ten cryptocurrencies by market capitalization. This attribute alone places Litecoin in the topmost cryptocurrencies suitable for position trading.
Litecoin’s digital scarcity makes it more valuable. Its on-chain transactions show a healthy Litecoin network with over 500,000 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 decide 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.
Ethereum
The Ethereum network has seen its miners bank serious profits.
For any investor looking to hodl this crypto asset, 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 2024. Therefore, this coin is one of the most suitable cryptocurrencies worth position trading.
Tron (TRX)
Tron is a decentralized virtual platform similar to Ethereum. Tron enables Dapps developers to utilize smart contracts that live on its native blockchain. Tron owners mostly trade it on Binance. Tron is worth considering for any investor looking to position trade in a particular cryptocurrency considering its current low price.
Conclusion
Although position trading is considered one of the most profitable strategies, position traders must 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 important.
The above cryptocurrencies are the best to position trade in 2023, considering their remarkable history in the crypto world. Considering these cryptocurrencies’ Market Cap, the above cryptocurrencies will gain tremendous profits.
Investors 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.