The crypto trading space is a promising investment as you can make over 100x your investment in a short while. However, you don’t make that much when you have spent only a short time trading. And if you don’t trade strategically, you may never get any profit and lose everything, including your capital.
What are your options? Invest in a trading bot or learn how to trade like an expert. The distinguishing factor between you and a professional trader most of the time is the crypto trading strategies that each of you follows. Your knowledge determines how far you can go as a crypto trader.
ALSO READ: All You Need To Know About Crypto Copy Trading
This article is for you if you are trying out crypto trading for the first time or have already been doing it for a while without making significant progress. It will give you insight into the right steps to take to ensure that you are not at a loss.
Let’s dive in.
Table of Contents
Advantages of Using Crypto Trading Strategies
One of the best steps to secure financial freedom is being strategic. Firstly, you need a budget or a means of tracking your expenses. Then, you need savings or an investment portfolio. All these moves aren’t random – they are strategic.
This principle also applies to cryptocurrency. If you fail to make moves in the right direction, you will be preparing yourself to lose a lot of money. Here are some advantages of using crypto strategies:
● You get to map out your crypto journey, which means fewer distractions and more profit.
● You don’t trade without knowledge, so you won’t lose a lot of profit.
● You won’t follow the crowd as they can be misleading.
Using a crypto trading strategy can change your crypto trading game. You will complain of fewer losses and get more profits.
Crypto Trading Strategies for You
The crypto trading space is filled with many certified and unprofessional financial coaches. But one general piece of advice you will consistently get is to do your own research (DYOR). So even if you have a favorite crypto mentor, it’s essential to find a strategy that works for you. Therefore, here are some crypto trading strategies to help you make the most of your crypto investment portfolio.
Smart Trading
Smart trading is a popular crypto trading strategy that involves combining multiple smart orders to make a profit in the crypto space. With this strategy, you can combine stop-limits and stop-loss to minimize how much you lose while trading. This trading strategy offers reasonable risks and returns control.
Smart trading can help you position your trade in more profitable directions. How does it work?
As we mentioned earlier, this crypto trading strategy allows you to combine various intelligent orders. This article will show you two orders you can combine using this strategy. The first orders to combine are take-profit and stop-loss.
The take-profit aspect enables you to determine when you want to take in your profit. So when the market reaches a specific condition that you have probably predicted, you will start raking in profit. On the other hand, the stop-loss aspect of this strategy enables you to set a limit to how much you can lose on a particular trade.
Another strategy to try is combining multiple take profits with stop-loss. This move upgrades your crypto trading strategy to a new level because you will rake in even more profits than the former strategy. Using this strategy is easier and less risky.
When using Smart Trading, you only have to place two orders – stop loss and take profits. It’s straightforward and less risky.
HODL
One of the most effective crypto trading strategies is the HODL strategy. Many crypto traders use it every day, and it comes with its fair share of risks and profits. You may lose everything or get huge profits, and honestly, there are no limits.
This strategy enables you to buy any digital currency and just leave it in your wallet. You don’t sell it, set take profit, or even stop-loss. HODL is a straightforward strategy that requires patience.
Using this strategy can make or mar you. It’s high risk and requires proper orientation and deliberation before trying it out. Every “HODL” tweet comes with a “this is not financial advice” disclaimer. This disclaimer goes a long way in letting you know that it’s not for those looking for instant profit or weak at heart.
Sometimes, the slightest dip can make you lose every penny you have invested in a digital currency. For example, if you buy a coin like ETH (Ethereum) and it increases by 10-20% after a few days, you will make profit. However, if it dips, you will lose everything in a few minutes.
The major advice we can give you concerning this strategy is to trade with only what you are not scared of losing. This crypto trading strategy requires you to trust your instincts and decisions. If you don’t, this strategy probably isn’t the right one for you.
Day Trading
Day Trading is another trading strategy that involves buying a digital currency and selling it within the same day. With this strategy, you take advantage of the small price moves in the crypto space and make massive returns. However, it’s also a scary move for newbies or people who are not patient enough to strategize.
This strategy is not suitable for every trader, and you shouldn’t use it if you know that you can’t handle losses. However, if you are interested in this strategy, you should note that it requires knowledge. You have to constantly keep yourself updated with whatever is happening in the crypto market. So you have to constantly keep yourself in the loop with whatever is happening by checking the financial news at every point in time.
Also, ensure that you set aside funds for trading. Most traders don’t use more than 1% or 2% of whatever is in their wallets for each trade. Always ensure that you trade with what you aren’t scared to lose.
Automated Trading
Automated Trading is another effective strategy for trading cryptocurrency. It comes with risk but is ideal for people who don’t have the time to trade. Plus, if you are interested in making profits even while sleeping, it’s an ideal strategy. Here’s how it works.
You register with a broker that provides automated Trading services. Artificial intelligence has improved over the years, so be rest assured that your funds are in safe hands. Most times, you don’t even have to set a stop-loss or take profit because the bot will do everything for you.
The only input required from you is to fund your wallet. However, ensure you don’t get too money-conscious and stop trading when you have made the amount of profit you had in mind. Finally, ensure you trade with a trusted broker.
Wrapping Up
The crypto trading space is profitable for many reasons, including its volatility. In the market, you can make profits in minutes and lose everything in a short matter of time. However, you need the right strategies to make the most of the trading space.
Remember, the crypto trading space will not be favorable if you lack patience and analytical thinking. If you need help trading in the crypto market, you can check out our platform. We will provide you with various strategies to make your crypto journey worthwhile.
As a crypto newbie, you will make enough revenue if you utilize the right strategies. But, ensure you find what works for you before making a move. Additionally, ensure that only trade with what you are not scared to lose; otherwise, apply smart trading intelligently.
