Top 4 Cryptocurrency Trading Strategies

Unfortunately, there are many glib analysts that promise heaven and deliver hell. While mitigation measures are present, cryptocurrency trading experts recommend caution. For the observant, there is a big disclaimer warning traders of risks. The truth is no one knows what the future holds—except of course Nicolas Cage in that classic 2007 movie, Next.

And how traders wish they could have a glimpse of what the future holds. As a trader, I know for sure that settling on a fitting trading strategy largely depends on cognitive, social and emotional wiring. This is proven science.

The Best Cryptocurrency Trading For You

Moreover, being discipline—sticking to one trading strategy– increase chances of being in the green—at least in most trades. I also guarantee that you will experiment on all these strategies—and even listen to snake oil salesmen hoping for a miracle after a pounding.  Nonetheless, testing each is part of the mandatory self-discovery and character development that will no doubt come in handy. Thereafter, after several months or years, you will understand all tricks and perhaps define what trading is all about. But, the onus is upon you to adopt a strategy that best suits your “wiring”.

Day Trading

If you have all the time to sit in front of your five trading screens 24 hours a day, seven days a week this is the best strategy for your adoption. Day trading is best suited for full-time traders and when day trading your positions don’t stay overnight. Before the day closes, day traders exit their positions and wait for other opportunities to print the next day. To cushion themselves against counter trends or to enter at favorable rates, they make use of stops and limits. You will also need to analyze and even open several market positions on a regular basis.

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Same as Day Trading, scalpers have to watch their trading screen. The only difference is that instead of holding a position for less than a day, scalpers will open and exit their positions in minutes if not seconds. Besides, scalping demand that the prices of the underlying accept is moderately volatile with a clear trend. This strategy demands to exit a bad position instead of riding the slump– profits can evaporate as quickly as they were gained.

Swing Trading

Unlike Day Trading, Cryptocurrency Swing Traders take advantage of price swings. This trading strategy takes into consideration the potential effects of fundamental events and technical candlestick arrangement to advice a trading position. Upon picking a potential price swing stemming from a macro event, a swing trader will analyze candlestick arrangements to fine tune entries. More often than not, swing traders hold their positions for a couple of days until a counter-trend or swing is picked up.

Automated Trading

Algo, Auto or Mechanical Cryptocurrency Trading systems is a fairy tale for many traders. Won’t it be ideal if a simple or complex code do the donkey’s work while you mint coins? But there is a barrier here. Like trading is a skill so do auto or algo trading fail because you need to set all the conditions for trade execution from available technical indicators. Moreover, the system demands elementary codebase knowledge of the underlying trading platform. Besides, you will also need to tap your data straight from your exchange and subscribe to a VPN service if you plan to switch off your internet.


All in all, every cryptocurrency trading strategy demands knowledge. There is no short-cut in developing a skill. Before you perfect it, you will need to dedicate man-hours. That is why I recommend patience. Ensure that you thoroughly understand each strategy. Only risk what you can afford to lose.

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1 Comment

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