Crypto trading strategies for beginners

Day Trading

This strategy involves entering and exiting positions on the same day. For example, if you trade Bitcoin, this strategy involves selling and buying Bitcoin during one-day trading hours to profit.

The point of following this strategy is to benefit small price movements. Even though this strategy may be pretty rewarding, it is not recommended for complete beginners but for those who understand more or less the market. 

HODL

This strategy involves buying an asset that may grow in value over time and holding this asset until it actually grows in value, thus generating profit. 

While this strategy may deliver significant income if an asset to hold is selected properly, it is also risky due to the fact that cryptocurrency is still young and it is difficult to forecast what assets will eventually grow in value.

Event-driven trading

Some events can impact the price of a coin in both the short- and long-term. The event-driven trading strategy is about benefiting from these events. For example, if you see that Elon Musk is tweeting about DOGE, it may be the right time to buy some coins because the DOGE price may grow. 

DCA (Dollar Cost Averaging)

This strategy is popular among beginners and expert traders. It is about dividing your funds available for trading into smaller amounts. These amounts are divided to be invested without a specific timeframe at a specific time and on a specific day. 

For example, you are investing in Bitcoin, and you are going to spend $15,000 for this purpose. You want to use this strategy for 10 weeks. So, you divide your $15,000 by ten (the number of weeks) and get 1,500. Then, you invest $1,500 weekly on a specific day in Bitcoin.

This strategy helps to alleviate the impact of high volatility. 

Conclusion

There is no perfect strategy for trading crypto. That’s why we recommend studying them all, picking several that suit you most, and combining them for better results.