The "best" thing to trade in crypto depends a lot on your risk tolerance, trading style, and market conditions. Here’s a
### Example Trading Strategy for ARB or OP
**Step 1: Research & Fundamentals**
* Follow official announcements about protocol upgrades, partnerships, or ecosystem growth. For instance, Arbitrum’s launch of a new bridge or OP’s integration with major DeFi apps can boost the price.
* Monitor on-chain metrics like active users, TVL (Total Value Locked), and transaction volumes. Rising usage often signals growing demand.
**Step 2: Technical Analysis (TA)**
* Check the price chart on Binance or TradingView. Identify key support and resistance levels. For example, if ARB has recently bounced at the $1.50 support multiple times, that might be a good entry point.
* Use indicators like RSI (Relative Strength Index) to identify oversold conditions (below 30) for potential buys or overbought conditions (above 70) for possible sells.
* Look for moving averages, such as the 20-day and 50-day MA crossovers, as they can signal trend changes.
**Step 3: Plan Your Trade**
* If ARB is at $1.60, holding above $1.50 support, and RSI shows oversold at 28, you might enter a long position near $1.55 with a stop-loss at $1.45 to limit risk.
* Target a price near recent resistance, like $1.90, to take profits.
* Adjust your position size based on your risk tolerance, for example, risking 1-2% of your portfolio.
**Step 4: Monitor News and Price Action**
* If OP announces a major partnership or upgrade, watch for price spikes; consider scaling out profits.
* Stay alert for market-wide trends; even strong tokens can fall if Bitcoin or Ethereum experiences big moves.
