Crypto Trading Strategies That Every Crypto Trader Needs To Know

Let’s start by clarifying that cryptocurrency trading is not a guaranteed ‘shortcut’ to wealth. So if you still have this notion, we want you to understand that cryptocurrency trading is not always as easy and pleasant as you might think.

In this article, we are going to introduce and break down four (4) cryptocurrency trading strategies that you can utilize. By the end of this article, you would be accustomed to four types of cryptocurrency strategy and be able to choose one that suits you. Enjoy your reading.

A brief introduction to cryptocurrency strategies 

Cryptocurrency strategy is a detailed and systematic plan for engaging; carrying out trades or investing in the cryptocurrency market.

Effective cryptocurrency strategies are derived from continuous use and effective results after use over the years in the cryptocurrency market. 

Before we introduce you to the four (4) strategies we have selected we want you to understand that the use of cryptocurrency strategy is important because they help traders effectively manage risks, they help traders to easily diversify their cryptocurrency portfolio, and cryptocurrency strategies offer the best rewards.

Having said that, let’s take a look at four (4) cryptocurrency trading strategies you can use. 

Four (4) cryptocurrency trading strategies

People’s interest in trading cryptocurrencies assets keeps increasing yet the rate of losses in the market is disheartening too. 

The volatile and inconsistent nature of cryptocurrencies is enough reasons why you need to have a solid strategy before you trade. So, let’s see four (4) cryptocurrency strategies you can use.

  1. Crypto day trading
  2. HODL 
  3. Automated trading 
  4. Crypto range trading
  • Crypto day trading

Cryptocurrency day trading or intraday trading is an effective and profitable strategy. This strategy is popular among short-term traders. It involves entering a position and exiting the position in the market that same day. The essence of opening and closing trades within a day is to generate profits within a short period. 

This strategy is volatile and if you are interested in using this you have to understand technical analysis as well as fundamental analysis. 

Cryptocurrency day traders observe fundamental news and cryptocurrency developers updates that could influence an asset price within a short period, day traders also use indicators like chart patterns, volumes, and price action to note entry and exit possibilities to carry out their trades.  

  • HODL

HODLing is an effective way to evade the volatility of the crypto market and short-term or unexpected price movements.

This strategy is very popular, this strategy can help you make a huge amount of money or lose your entire capital.

To use this strategy all you need to do is to buy cryptocurrency assets and keep them without setting a stop-loss or taking profit. Most HODL traders buy assets when the prices are drastically low and keep them in the hope that they increase over time.

  • Automated trading

Unlike other strategies, automated trading offers a stable source of making profits. This trading strategy involves the use of cryptocurrency trading robots.

There are numerous cryptocurrency robots in the market, once you choose a reliable robot it would help you analyze the market round the clock in search of favorable market opportunities. So if you want to trade smartly, automate your trade and allow robots to earn profits for you.

  • Crypto range trading

Most times, cryptocurrency assets are traded in a particular range for a lengthy period. Sometimes the key players could control the value of an asset up and down to create range profits. 

If you notice situations like this you can take advantage. How can you notice this?

All you have to do is to look out for the overbought and oversold zones. The overbought means that buyers are delighted with their demands and there is a possibility that the asset would be sold. Oversold is the opposite.

You can find either of these zones with chart indicators like Relative Strength Index and Stochastic Oscillator.

Two strategies that cryptocurrency day traders use are:

  • Scalping crypto strategy:

This is intraday trading where traders try to capitalize on boosted trading volume. So scalp traders exit trades within a few minutes of getting in.

This strategy aims to make profits, so they scalp the market searching for opportunities. 

This strategy requires huge capital to trade because the profits are minimal.

  • Arbitrage crypto strategy:

This trading strategy involves purchasing an asset on one crypto platform and then selling it on another platform using different prices. This strategy also offers minimal profits just like scalping.


Nothing beats a good strategy, which is why you should have one. Also, you don’t need to rely on one strategy right away. Be flexible. You can try every strategy before you decide to settle on one that fits your trading needs. There’s more to learn about, continue reading to learn more popular crypto trading strategies on

Frequently Asked Questions (FAQs)

  • Why is cryptocurrency trading strategy important?

The cryptocurrency market is a risky one. This is why cryptocurrency trading requires resilience, a well-thought-out strategy, and a user-friendly trading platform. 

A solid strategy will allow traders to have a profitable crypto trading experience.

  • How can I make my first cryptocurrency trade

Making your first trade is easy, you just have to follow these five (5) steps:

  1. Open an account with a cryptocurrency trading platform or log into an existing one.
  2. Select the coin you are interested in trading.
  3. Research the coin and select a trading strategy that suits your needs, personality, and risk tolerance.
  4. Open a demo account and practice with your chosen strategy. 
  5. Fund your wallet, then open your trade, closely monitor the market then close your position.