5 Beginner Strategies for Successful Cryptocurrency Trading

The world of crypto trading might seem foreign and complicated in the beginning. Still, after understanding the different trading strategies and the tools at hand, it is not that hard after all.

In this post, we will discover the top 5 cryptocurrency trading strategies which you can quickly learn and apply to your trading at many cryptocurrency exchange platforms.

5 Beginner Strategies for Successful Cryptocurrency Trading

1. Scalping

When appropriately executed, Scalping can be the best cryptocurrency trading strategy that you have adopted in your lifetime. Scalping is all about making small trades with a minimal time duration while taking in small profits each time.

The time duration must be short, ideally less than an hour. The biggest asset for scalpers is volume; the number of trades is more important than the profit in one transaction. Scalpers will never aim for big profits as they do not have time to wait for the markets to reverse. However, Scalping should never be done during uncertain times, and the best market for a scalper is a calm market with limited volatility.

2. Reverse Trading

Reverse trading is considered one of the best trading strategies for cryptocurrency and is based on the reversal of the general trend in the market. To understand this in detail, the strategy is all about finding the exact moment when a trend is about to be reversed. Basically, if a coin has been bullish for some time, a reverse trader will wait for the perfect time when the coin begins to reverse price trends.

3. Momentum Trading

Momentum trading is all about understanding the momentum of the market/coin and then riding the wave. This is also considered as one of the riskiest and the most challenging strategies to master because predictions can go both ways.

Traders ride the wave until the moment the volumes remain above a particular level and then these traders exit. The hard part is of judging the right moment to exit the market and analyzing the volumes changes based on various numerical indicators.

4. Fading Trading

Fading is the strategy of betting against the trend in the market. It is also one of the riskiest strategies in crypto as making the wrong predictions can result in huge losses. Contrary to that, making the right move will result in huge profits, and this strategy is about betting on a few trades to make significant profits.

The best time to execute this strategy is when there is a lot of volatility in the market. This usually happens before significant news or some countries talking about implementing or banning the use of cryptocurrency.

5. Day Trading Using Volatility

Volatility in cryptocurrencies gives birth to a lot of opportunities for traders. Volatility in the market exists for a reason, and during this time, the direction of the market can go any way. Because of this, many small daily trades in this period can result in big profits.

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