Trading strategies for aspiring Solana owners and why Twitter can make a difference
One of the most popular cryptocurrencies to date with a market cap of over $116BN by press time remains in high demand as 2024 draws to an end. This year’s final is one of the most promising year ends to date as it’s bound to finalize with a massive rally that’s anticipated to turn into an unshakeable bull run that will persist well into 2025. Bitcoin’s price finally breached a level that seemed a far-fetched dream once, hitting $99K in November and taking numerous cryptocurrencies up with it. Solana is one of them, as market experts suggest.
With the asset’s recent surge to a fresh all-time high (ATH) of a bit over $263 per coin, the market regained its optimism and confidence in the asset. Numerous investors now revise their price forecasts for the upcoming weeks, daring to look into the Solana price prediction 2030 more confidently since it finally blasted earlier this year. As the trends unfold, new waves of aspiring crypto owners ponder the strategies that could help them cash in on Solana investments. If you’re among those late to the table and want to jump on the train, learn that the best recommendation to keep in mind is to make well-informed decisions when trading.
To help you overcome the rookie’s concerns and ride the Solana wave more safely, we’re breaking down some of the wisest strategies for new and inexperienced traders of cryptocurrency. Read this article, or any other guidelines teaching you a thing or two about trading, before committing to any big-ticket crypto purchase!
The trading strategies you have
Purchasing SOL at a point and selling it later is known as trading and is indefinite of the times of the orders. The whole process boils down to your monitoring and understanding of the market and recorded price fluctuations, indices without which you wouldn’t normally know when to buy and when to drop.
Generally, you can trade Solana on a number of online crypto exchanges, difference-making the platform’s cyber security, safety, and user-friendliness. Let’s now break down some of the most common and helpful strategies for trading Solana so you can determine what suits you.
Dollar-cost averaging (DCA)
The dollar-cost averaging strategy implies investing a pre-established amount of money into Solana, no matter the market price. For instance, you can invest $30 monthly or bi-weekly, spreading out buy points instead of forecasting Solana’s future price fluctuations. You’ll avoid timing the market and the possible risks associated with this practice since you won’t dump in the whole funds once and wait for Solana to break higher points. Through this strategy, averaging the coin value and preventing volatility is possible. You buy more SOL at discount prices and less when its price climbs. For those looking to make the most of Solana without stressing about the market’s inherent volatility, dollar-cost averaging can be one of the best approaches.
HODLing
Possibly one of the most common and encouraged crypto trading strategies, holding comes down to keeping your assets intact for as long as it makes sense. The accent is now placed on long-term profits instead of short-term, daily, or weekly price swings, so it’s not about obsessing over the market statuses and being involved in active trading. This approach crayons the assumption that those adopting the HODLing strategy have confidence in a price surge in the future, mainly triggered by the network’s expansion.
Day Trading
As the name suggests, day trading means buying and selling SOL on the same day, as is the case with any other cryptocurrency. This approach’s bedrock is making full use of the rapid price fluctuations and slashing the possible risks created by the instant swings occurring during nighttime. As this operation implies monitoring the market closely, you’ll need to keep an eye on charts and indicators like the MACD and RSI to stay updated.
Swing Trading
You’ll need to hold SOL for a few days or even weeks to catch short- to medium-term profits, which is the underlying proposition of swing trading. The fact that these price fluctuations are more substantial than daily swings enables traders to capture bigger gains. This strategy is perfect for those looking to cash in on Solana’s price swings but can’t monitor the market constantly due to time restrictions or other inconveniences.
Breakout trading
Breakout trading means cashing in on big price fluctuations when Solana or any other crypto breaks through critical resistance or support levels. This context can emerge when Solana’s price escapes the range it’s been trading in. As experts predict the asset’s price to rise in the coming weeks, trading activity is likely to rise in Solana’s ecosystem.
Twitter for investor sentiment assessment
With crypto’s stellar surge in popularity, Twitter has emerged as a helpful resource for investors to get a feel for what’s going on in the market thanks to its live feed of data about crypto and the community’s active engagement. From celebrities to some of the world’s wealthiest people to politicians, the platform serves as the commentators’ go-to place to share views that can impact investors’ behavior to a certain extent in an attempt to become opinion leaders – or to exercise this already attained role.
Some examples of A-listers with unshakeable power to push cryptos up or down are Tesla CEO Elon Musk, Ethereum developer Vitalik Buterin, and MicroStrategy CEO Michael Saylor, but the list is endless. Even better, there are heavy names like Anthony Pompliano and Andreas M. Antonopoulos who use their voices to spread knowledge about crypto, blockchain, trading, and so on. If Solana intrigues you and you’d like to learn more in-depth info about the ecosystem, following gurus famed for onboarding masses into the industry by breaking it down in easy, digestible ways is a good approach.
Last words
After you learn to orientate yourself in this complex system, keeping updated via the world’s most prominent opinion leaders can be a helpful way to make sense of crypto price fluctuations and anticipate the trajectory of Solana depending on the bigwigs’ online activity. Choose your trading strategy wisely and your information resources even more attentively.
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