• April 15, 2024

Top 10 Crypto Trading Strategies For Beginners

If you are anxious and recall the cryptocurrency market turbulence a year ago and the challenges you encountered and conquered, the following article might be helpful. But remember, if you use the proper Crypto trading strategies, the future of cryptocurrencies will live up to your expectations.

The foremost experts concur with our assessment that this year is an excellent time to invest in cryptocurrency and that the value of the digital currency may drop below $10,000 but will ultimately rise far more than was predicted.

Simple reasons why the price may increase: An increase in the US dollar’s value, which would devalue cryptocurrencies, and an increase in interest rates by the Federal Reserve Board. However, now is the time to purchase additional cryptocurrencies.

You may rejoice while others mourn when the Federal Reserve changes its direction and reduces interest rates as cryptocurrency prices will rise too. Additionally, just like in 2008, prices return once inflation takes hold.

The experts guide us through the beginner’s crypto trading tactics so that we may profit from the present situation and improve our financial stability when the cryptocurrency market returns.

  1. Dollar Cost Averaging

The wisest course of action at this time is “Dollar Cost Averaging” (DCA), given the circumstances. It is essential to believe that timing the market is close to impossible when trying to discover the ideal entry and exit points in a crypto market. DCA is thus a relatively reasonable strategy for investing in cryptocurrencies.

Regardless of price, the DCA technique entails recurring investments of a predetermined sum. For long-term investors with a consistent strategy, it might be a valuable alternative to lessen the effects of price swings.

Using this method, investors may avoid the laborious task of market timing and create long-term riches. Exit strategy, however, might be challenging in the DCA approach, necessitating a knowledge of industry trends and a comprehension of market cycles.

  1. Day trading

This trading approach opens and closes positions in one day. When engaging in such a transaction, traders aim to flip and book gains during intraday price fluctuations in their chosen cryptocurrency.

  1. Mine-and-hold

The tactic is called HODLing. The word “hold” was misspelled intentionally. It is an investing strategy where individuals acquire cryptocurrencies and hold them over a lengthy period. The method allows investors to gain from a rise in asset value. You may also mine for free Bitcoin (the king of cryptocurrency) using the Best Bitcoin mining software and use the same strategy.

HODLing enables investors to benefit from long-term value growth when investing for a long time. The HODL approach offers advantages to investors as it allows them to avoid short-term volatility and the risk of selling low and purchasing high.

  1. The Whale

Large investors (or “whales”) disproportionately influence market trends. It is very uncommon for whales to act as “market makers” or middlemen who establish the bidding and asking prices on both sides of an asset’s market.

Knowing which technical analysis (TA) indicators are most popular among whales is crucial for any cryptocurrency trading approach. The simple fact is that whales usually know what they’re doing. If a trader can correctly guess the behavior of whales, they may use their knowledge to their advantage.

  1. Speculator

Cryptocurrency markets may be affected by the media attention paid to a specific crypto or crypto exchange. Taking advantage of such “events” is the only objective of this cryptocurrency trading method. For beginning traders, this is a common approach.

Ordinarily, you would wait for the market to show signs of consolidation before an anticipated news release (such as an earnings report), and then you would move as soon as the market showed signs of breaking out.

Due to cryptocurrency volatility, you may need to wait for a news release before completing the trade. When good news is released, you will purchase your cryptocurrency of choice; when bad news is released, you will sell your cryptocurrency short.

  1. Background Analysis

One of the most crucial trading strategies is primary research. It doesn’t need the expertise to research the value of the cryptocurrency you wish to purchase.

Before investing in cryptocurrencies, you must thoroughly research them by reading their white papers and other relevant material, which the Best Trading App in India lets you do quickly.

  1. Scalping

Scalping is a trading method that relies on higher trade volumes to realize profits. Although trading is not without its share of risks, a savvy investor will adhere to the margin requirement and other guidelines to limit losses.

Scalpers use historical patterns, volumes, and price activity to purchase and sell cryptocurrencies on the same day.

  1. High-Frequency Trading (HFT)

Quant traders utilize the algorithmic trading approach known as HFT. The method entails creating trading bots and algorithms that provide speedy entry and exit from a cryptocurrency asset. Such bots need the development of complicated market ideas and a solid foundation in mathematics and computer science.

  1. Golden cross/death cross

Reading technical charts aid in making trading choices. To study stocks and markets, technical analysts employ a ton of data, sometimes in the form of charts. Technical traders get familiar with these typical patterns and what they can indicate about a stock or cryptocurrency’s potential future performance.

A death cross and a golden cross are opposed, and a death cross denotes a long-term down market, whereas a golden cross predicts a future long-term bull market. Both terms allude to how a short-term moving average crossing over a significant long-term moving average solidly confirms a long-term trend.

  1. Call-And-Put

Cryptocurrencies are notoriously volatile. Recently, the price of cryptocurrency changed by around 30% in a single session. Trading Cryptocurrency futures allow you to place a bet on volatility.

The best course of action is to purchase both a call and a put option simultaneously. Additionally, the strike price and expiry date must be comparable. You must sell the call and put options simultaneously to get out when cryptocurrency values fall or climb sharply.

The Final Word

In a very unpredictable market like cryptocurrencies, you must be ready to absorb losses no matter what technique you choose. Before entering a transaction, always consider your potential exit strategies. Don’t blindly follow the herd; instead, invest in cryptocurrencies you trust — even for a day.

It’s important to remember that the hot tips crowd isn’t always looking out for your best interests when they give you advice. Don’t forget that the market is full of possibilities. So don’t gnaw off your skull if you’re too careful and miss, and don’t waste your time chasing after gazelles that have long since fled the farm.

More than anything else, trading is an emotional adventure. Therefore it’s essential to maintain a level mind and commit to your plan no matter what comes your way.

Shabbir Ahmad


Shabbir Ahmed is a professional blogger, writer, SEO expert & founder of Dive in SEO. With over 5 years of experience, he handles clients globally & also educates others with different digital marketing tactics.