What is the Best Strategy for Crypto Trading? Top 5 Recommendations

The best trading strategy is usually the result of many years of crypto investing experience, and in this article, you will get acquainted with the most moderated trading strategies.

So, What is Best Strategy for Crypto Trading in Details?

Before we get started, here are some obvious but important steps that shouldn’t be overlooked.

If you have decided to trade crypto, start from the strategy. Manage your risk, invest specific amount in crypto and don’t forget to use stop loss. Diversify crypto portfolio; Don’t put all your eggs in one basket.

Consider long-term investments (the crypto market isn’t going away, it’s here). Leaving your money on the crypto market for months at a time can give you the best rewards. That should be enough for the basics. Now let’s check out the cryptocurrency trading strategies.

Main Ideas of Best Strategy for Crypto Trading

  • Having a well-designed and proven strategy when trading cryptocurrencies is very important to make a profit in the crypto market.
  • A day trading strategy is a style of trading that opens a buy or sell position during the day and is closed at the end of the day.
  • If you are more interested in steady and regular daily profits from trading cryptocurrencies, then automated trading might be right for you.

Cryptocurrency Trading Strategy

If you think crypto investing is a short path to wealth then stop, it’s not as simple as you think.

Having a well-designed and proven strategy when trading cryptocurrencies is very important to make a profit in the crypto market.

Depending on your risk tolerance and ultimate trading goals, you can choose the strategy that best suits your trading goals and projects. Profiting with cryptocurrency trading is making accurate predictions about price movements in the market. For this, a strict set of rules and guidelines can be a good rule of thumb.

Cryptocurrency trading of the day

Cryptocurrency day trading strategy involves entering and exiting a position in the market on the same day. It is also referred to as “day trading”, reflecting that trades are usually opened and closed on the same day.

Day trading in the cryptocurrency market is especially profitable because the range of fluctuations in cryptocurrencies is very strong. Of course, day trading strategy is more than just guesswork.

You must have the right crypto day trading strategy and understanding of fundamental and technical analysis. Most day traders rely on technical analysis to formulate suitable trading ideas.

They apply price action, volume, chart patterns, and other indicators to identify entry and exit opportunities for investment decisions. They also monitor fundamental news and other developer-related updates that may affect digital asset prices, especially in the short term.

Here are the strategies that can help you increase your profits from day trading in the markets:

1. Crypto Scalping Strategy

Scalping is a cryptocurrency intraday trading strategy, investors find assets that increase their total value in trading volume. They can exit the position within minutes of opening the trading position, every time there is a profit.

Ideally, scalpers aim to make small profits. They scalp the market looking for small opportunities. Scalpers need huge capital to make a profit because the profits from this strategy are usually very small.

2. Arbitrage Strategy

Arbitrage is one of the most popular trading strategies in the market. In fact, buying a coin on one exchange and selling it on another. Like scalping, arbitrage is usually less profitable. Thus, the larger the amount, the higher the profit.

Crypto Trading in Channel

In many cases, cryptocurrencies trade within a certain range for a long time. In some cases, the big players will systematically manipulate the price of the coin up and down to profit within the range. If you notice these patterns, you can also take advantage of them. Therefore, you should pay attention to the overbought and oversold zones.


Overbought means that buyers have satisfied their needs and the stock is likely to be sold; Oversold means vice versa. The charting indicators included in any reputable charting program can help you find these areas. Popular indicators used for this purpose include the Stochastic Oscillator and the Relative Strength Index.

Best Strategy for Crypto Trading

Cryptocurrency day trading can be quite profitable, especially for short-term traders. If you have the right crypto day trading strategy in place, you should have no problem. Remember technical and fundamental analysis, focus on technical analysis, as historical price analysis can tell a lot about when to enter and exit a position.

Smart Transaction

This is quite common, it is a combination of different smart commands like Stop-Limit and Trailing Stop-Loss. This strategy provides good risk and return control, helping to better plan the positions you are entering and exiting. With this strategy, you only need to place 2 orders. Stop loss is used to limit losses if something goes wrong.

On the other hand, take profit is used to ensure that you make a profit whenever the market reaches certain conditions. You can also combine multiple take profit and stop loss orders to take your strategy to another level.

When you use 2 or more take profit orders, you can spread your trading risk, which will help maximize your profits. Although this method is very similar to the previous one, it is simpler and less risky.

You will need to test the strategies first to see which works best for you then you can have your own answer for what is the best strategy for crypto trading.

Automation Trade

If you are interested in profit and steady profit from cryptocurrency trading, then trading automation might be right for you. There are many cryptocurrency trading robots available in the market.

Cryptocurrency trading robots can analyze the market 24/7 and look for the best trading opportunities.

Smart trading orders can be activated which will increase efficiency. This will make it easy for you to invest in the cryptocurrency market. You can do other work during the day and let the robot make money for you.

HODL Strategy

HODL is used by many electronic convenience traders every day. With this strategy, the risks and possibilities are endless. With this strategy, you can lose everything or make huge profits. One of the best things about HOLD is that all you need to do is simply buy digital currencies without placing take profit or stop loss orders.

This trading strategy can result in huge profits or heavy losses, so it is very important to really think about the risks before deciding to use it. Let’s say you buy BTC, and the price goes up 15% 2 or 3 days after you buy it.

You will make good profits even in a short time. But if the price then plummets, you will lose. However, the majority of crypto traders use the HODL strategy since the price is very low and profit when the price rises sharply.

Because it is very risky, it is very important for traders to have a special mindset while trading. Basically, you are required to be able to trust your own instincts and decisions, otherwise it will be difficult for you to make good profits with this strategy.

Note: invest money that you are not afraid to lose when applying the HODL strategy.

With this strategy, you will be able to avoid market volatility and survive short-term fluctuations when trading cryptocurrencies.

While all of these strategies are really good, they each have their own advantages and disadvantages. For best results, it is better to use all these strategies once you have gained enough experience.

Diversification is a very important step to success in any market and cryptocurrency trading is no exception. You can allocate capital to each strategy according to your personal preferences.

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