Top 4 Effective Cryptocurrency Trading Strategies

Top 4 Effective Cryptocurrency Trading Strategies

Table of Contents

The cryptocurrency trading is gaining popularity rapidly. Cryptocurrencies like Ethereum, Ripple, Litecoin, Bitcoin and EOS, are a rising money related innovation and computerised resource class. Much like stocks, commodities, or forex currencies, these cryptocurrencies can be traded in financial markets on cryptocurrency exchanges or expert trading platforms.

Consistently, somebody becomes weary of sitting at a work area and chooses to turn into a trader. Numerous individuals imagine that the Cryptocurrency market is an extremely simple speciality in any case. This is the first and principal reason behind their failure. Be that as it may, numerous individuals figure out how to trade. After getting essential information, they comprehend the need for methodologies. Traders can’t win with technical investigation or principal examination alone. It is an unquestionable requirement to learn various strategies and figure out how to execute them. 

A cryptocurrency trading strategy is a lot of activities pointed toward making enthusiasm on the cryptocurrency market. Nobody can give you a 100% assurance that you will consistently have profit. Somehow, a trading strategy will ensure that you will not fail and gain some profits.

Top 4 Profitable Crypto Trading Strategies

There are several crypto trading strategies, but out of them, we are stating some of the top 4 profitable cryptocurrency trading strategies.

  • Day Trading Strategy
  • Swing Trading Strategy
  • Position Trading Strategy
  • Scalping Trading Strategy

Here is a brief overview of these strategies

1. Cryptocurrency Day Trading Strategy

A day trading cryptos involves the practice of buying and selling the cryptos on a single trading day. Traders will have to take the benefit of the volatile nature of the crypto market and gain the profits from small price fluctuations by executing several different trades. Trade with heaps of unmistakable sets is the main thing that traders should discover. Day trading cryptos is the best strategy compared to other markets as the crypto market is live 24/7, so traders can get extra time benefit.

Traders need to investigate a ton of data and be prepared to interface each trap with bearish or bullish patterns. As a trader, you should dive deep into understanding value changes of cryptocurrencies and use them for profitable trading.

All the time, individuals attempt to relate day trading with a simple way to riches. Indeed, this seldom occurs. It is a challenging and long way to a billion dollars in your financial balance. SEC cautions: ” investors will in general face genuine financial losses in the primary month of trading”. They will have to practice the strategy thoroughly so that they can avoid such losses. Day trading may give both enormous profits and losses.

Some tips for day trading in cryptocurrency

  • Traders should always choose the cryptos with high volatility and high trading volume.
  • Always try to implement a money flow index indicator.
  • Always try to trade in the first part of the trading session as price movement will be higher at starting.

2. Cryptocurrency Swing Trading Strategy

Swing trading is the short cum medium-term trading strategy which is executed by holding the cryptos for a longer period of time like a week or sometimes a month. This strategy is executed by taking the benefits of the volatility waves, which can take a time span of the several days to roll out. Swing traders typically use the combination of fundamental and technical factors. 

Swing traders typically gain the profits which are based on the price action trends or the technical indicators. The main focus of swing trading is to catch the valuable price movement. Traders always look for the cryptos, which are highly volatile and have high trading volume. Swing traders always try to take advantage of daily charts for opening and closing the positions and also for applying the stop loss.

Some tips for Swing Trading in Cryptocurrency

  • Trade when all the trading indicators show the same signals.
  • Look for the long term positions in a bullish market while the short term positions in bearish markets.
  • Try to avoid short term indicators and charts.

3.  Cryptocurrency Position Trading Strategy

Position trading is also called trend trading. It is a strategy where the cryptos are held for the long term like for several months as it’s known as the trend trading traders always look to take the benefit of the directing trends. Position traders open the long position in an upward movement and short position in the downward movement.

Position trading is done typically using the fundamental analysing. In position trading, traders assume that the cryptos will move in the same direction of the trend. Some of the common strategies used in position trading are range trading, support and resistance, pullback trading, etc.

Some tips for Position Trading

  • Avoid short term price movements.
  • Open the long if the price breaks above the high resistance level.
  • Always keep the proper trading plan.
  • Always try to set stop loss 1 ATR at the down level of the buildup.

 4. Cryptocurrency Scalping Trading Strategy

Scalping is the best cryptocurrency trading strategy which involves the practice of making the profits from small price movements. Scalper makes several trades during the single trading day. They buy the cryptos and sell them within the time of some minutes. Scalpers always look for the volatile cryptocurrency. Scalping reduces the risk of attracting colossal loss. It is described as High-Frequency Trading. 

Scalping is the advanced crypto trading strategy due to its complexity. It requires a high understanding of the dynamics of the crypto market. Scalping is usually suitable for big traders as the profits are always of a small amount; therefore, they execute a larger lot size.

Some tips for the Scalping Trading

  • Always focus on the high volatile cryptos
  • Square off the position in a lower time frame.
  • Try to identify the price trend before opening the position.

Advantages of Cryptocurrency Trading:

1.Cryptocurrency market operates 24/7 365 days.

The cryptocurrency market is not regulated or controlled by any government bodies; therefore, the market is open 24/7 for trading. Traders can trade the cryptocurrencies at any time this helps traders in managing their trading schedule. The automated bitcoin trading system is the best software which can trade the cryptos automatically on behalf of the traders even if they are sleeping.

2. Fast and Accessible

Cryptocurrencies are transferred from one to another person digitally within no time as there is no mediator. Traders can exchange the cryptos directly with each other across the globe.

Cryptocurrency is the best investment option for people from underdeveloped countries where there are no other financial markets. They can trade cryptos directly from their smartphones using the internet.

3. Low Transaction charges.

Cryptocurrencies are attracting peoples rapidly as there are relatively low trading fees compared to other financial markets. Short term traders who trade cryptocurrency through CFD are also more beneficial by the low trading costs.

Bottom Line:

Cryptocurrencies are highly volatile; therefore, traders can earn a good profit, but at the same, it includes the high risk also. Traders have to understand the dynamics of the crypto market thoroughly to master it. There are several crypto trading strategies among them; we have stated some of the most profitable strategies. Executing these strategies correctly definitely will help the traders to earn money and reduce the loss. Here we would like to give some of the crucial tips for trading cryptocurrency.

Invest wisely as the crypto market is highly volatile in nature; thus, there are both risks and rewards.

  • Always try to diversify your portfolio at regular intervals.
  • Don’t look for significant gains, sometimes go for small profits.
  • Don’t invest while the crypto market is bursting.
  • Invest in different coins, don’t put all your funds in the same coin.
  • keep the proper trading plan when to enter and exit and stop-loss timing.
  • Always keep an eye on the bitcoin if you are willing to go high in the market as many currencies are correlated with the bitcoin.
  • Last but not least, choose the right broker because the trading platform and services are the keys for executing the crypto trading correctly. Here are some of the top crypto brokers which offer high leverage and relatively less commission and also the safest trading platform.
Broker Name Min. Deposit Leverage 

Tradable Assets




Commodities,currencies,cryptos, stocks, etc.



Commodities,currencies,cryptos, stocks, etc.



Commodities,currencies,cryptos, stocks, etc.



Commodities,currencies,cryptos, stocks, etc.

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