Top 10 Cryptocurrency Trading Strategies

For those of you out there keen to a grab a slice of the Bitcoin pie, it is important to know how to trade well. The crypto market and stock market is not one and the same thing; they behave differently. So, crypto market price speculation is not governed by regular financial norms and theories. With an overwhelming number of trading strategies to choose from, a beginner may feel intimidated and confused.

Top crypto trading strategies to consider:

  1. Scalping: This is one of the most popular crypto trading strategies which focus on smaller trades for set time-periods. For those who can follow this strategy properly the yields are consistent and substantial. Ideally, trades should not be open for more than an hour. It relies on trade volumes as the numbers are more important than profits. As a scalper, your job is to focus on smaller profits by exploiting small market movements. Scalping is safe because of limited time-periods but you need to be patient and disciplined.
  2. Swing Trading: In this, you will hold a trade position for more than day, but not longer than a month. This crypto trading strategy uses a combination of fundamental and technical factors. Decisions less hasty and based on reason unlike day trading that demands super-fast decisions and execution.
  3. Reverse trading: This is an advanced crypto trading strategy based upon the market’s general reversal trend. So, you have to identify the moment the trend reverses and this demand paying attention to details. As a crypto trader, you have to wait for the trend to reverse when a crypto is in bullish market. Reverse trend traders can also make predictions of high and lows during a day to make profits.
  4. Momentum trading: This is a pretty straightforward strategy where traders have to figure out the market momentum and ride the wave accordingly. This is however a risky strategy where the key component is the trade volume.
  5. Hodling: This may be fruitful for beginners who buy Bitcoins and hold onto these for the long term to make profits when the prices escalate. This is relatively safe and does not demand trading expertise or experience.
  6. Buy dips and hold: When market is down, you may think you should step away from it. But, in reality, this is the time to make an entry as cryptos are strong and they will invariably bounce back in price even after a crash. To use this strategy you do not need software, but it is a long-term strategy and you cannot make quick profits.
  7. Day Trading: This is of course a popular strategy where you enter and exit trades within a single trading day. Thus demands constant monitoring and is an active trading strategy.
  8. Trend following: This strategy is averse to risks as you cannot be sure if a trend will exist or not. So, here a trader will trade with a trend and not market swings. It means you should open long trades only when market is trending and short ones when it is falling.
  9. Fade Trading: This is for those keen to bet against the prevailing market trend. It is risky as chances of losses are high when prevailing predictions are incorrect. But, the good thing is you can make a lot of money when volatility is high.
  10. Range Trading: This is dependent upon concepts like support and resistance. You should ideally know how to read the candlesticks chart to buy at support levels and sell at resistance levels.