Creating a Trade Strategy for Tether (USDT): Beginner Guide
In recent years, the trading of cryptocurrencies has become increasingly popular, and many investors and traders are trying to diversify their wallets and use the market fluctuations. The USDT (Tether) is one of the most commonly traded currencies, stablecoin placed on the US dollar. In this article, we will present a guide for beginners on how to create a commercial strategy for USDT using a technical analysis.
Understanding Tethe
Before you try to create a trade strategy, it is necessary to understand what Tether is and why you want to replace it. Tether to Stablecoin, which is designed 100% support of US dollars. It is placed on US dollar value, which means that its value remains relatively stable in relation to USD. This stability makes an attractive option for merchants who want to invest in cryptocurrency currency, but they are not ready or can keep them for a long time.
Technical analysis: The key element of each trade strategy
Technical analysis is a key element of any commercial strategy and is especially important in the case of a Crypto currency such as USDT. Technical analysis includes an analysis of historical data on the price identification of trends, patterns and potential support and resistance levels. Here are some key tools and techniques of technical analysis that can be used to create a commercial strategy for USDT:
- Graph samples : Graph samples, such as head and shoulder or reverse head and shoulder formations, may indicate potential purchases or sales signals.
- Horizers of support and resistance
: identification of support level and resistance is crucial when creating a trade strategy. These are the key price levels that can be used to determine the input points of the transaction.
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Creating a Commercial Strategy for USDT
Now, when you understand technical analysis and its importance in creating a trade strategy, let’s create a basic commercial strategy for USDT. Here are a few tracking steps:
- Select trading platform : Choose a reputable network trading platform, such as Binance, Coinbase or Etoro.
- Configure your account : Configure your account on the selected platform and fund it with enough money to cover potential losses.
- Download the tools for technical analysis : Download the tools for technical analysis such as the software to identify the graph samples, the trends line indicators and the RSI calculator.
- Identify a time box : Choose a time box for your transactions, for example 1 hour or 1 day.
- Create a trade strategy template : Create a basic trade strategy template that contains the following elements:
* Analysis of a chart sample
* Identification of support and resistance level
* Analysis of the trend line
* Risk management (eg custody order)
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Patteric Strategy Sample for USDT
Here is an example of a commercial strategy that uses a technical analysis to identify the purchase and sale signal:
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- Identification of support level and resistance: Identify support level at $ 1.00 (lowest price) and $ 2,50 resistance level (highest price).
- Analysis of the trend line: use a trend line to identify potential purchases or sales signals.