Wed, April 17, 2024

Crypto trading strategies

crypto trading

The current state of the crypto market means there has been no better time to trade in it. The market is new and holds a great amount of promise. True, it is highly volatile, but that is what makes for potentially great profits. You could just as easily lose money as you could gain it. This is why trading in cryptos has become so popular over the last few years. The volatility means that some cryptocurrencies are still bound to find new price points. Regulations on the market are still pretty lax, and new currencies are appearing all over the place. This means now is the perfect time to take advantage of the market before it becomes firmly established. You can gather crypto coins now before they may become too pricey in the future.

If you are careful in your trading, you should be able to maximise the chances that you will see profits. For this, you will need to devise a game plan or strategy. In the crypto world, there are several factors to consider when devising a strategy. In this article, we hope to inform you of some of the most important of these. Furthermore, we hope to enlighten you on some of the strategies you can employ.

Following the news

Keeping tabs on the news may be the most essential component for keeping yourself informed on the market. Maybe a promising new cryptocurrency arises, offering many valuable new features. Maybe a country expresses support for certain crypto or gives sets new regulations. The crypto world is still in the early stages, so what may seem like small news now can have a big impact in the future.

crypto trading

Keep an eye out for economic news. This is the most important source of information for you and should relate directly to your interests. The behaviour of the market at large could affect the crypto market, even if it does not seem immediately obvious. For example, say the dollar starts to suffer due to some event. Many people rely on the dollar as a safe haven in times of distress. However, if the dollar appears to be an unstable choice, the market may look elsewhere. Cryptocurrencies could be a great solution for some, as they are not as directly tied to the world economy. So in this situation, you could see support start to muster up for crypto markets.

The most important thing to keep in mind is that other traders are also paying attention to the news. The crypto trading market is totally shaped by their emotions and opinions. Therefore, if you believe that some news released may not be entirely accurate, stop, and consider. How many people will see this news? Will this cause an emotional reaction? How much panic could it cause?

Market sentiments

You have to keep in mind the sentiment of the general public, as well as well known traders, have an effect on the market. You have to keep in mind how far entrenched cryptocurrencies have become in the general public. If they continue to be a fringe form of currency, they will likely remain unstable. However, if positive opinions about them are expressed, on any specific ones, you can be sure It will do well. Overall, keeping track of the hype around crypto is important.

Crypto safety

Keep an eye on any events surrounding crypto safety. The safety of the crypto market remains its most valuable asset. Without it, investors have a lot more to worry about, as there is little that these currencies base their value on. Therefore it would be best to keep track of how safe certain currencies are, their features. You should also check for any major hacker attacks that occur. Major attacks could seriously spell doom for a cryptocurrency, as confidence in its safety is likely to drop immediately.

Online activity

A less immediately obvious and traditional source to keep track of market sentiment is internet forums. Cryptocurrency, being a relatively new and entirely digital form of payment, found its initial support among young forum posters. Places like Reddit have been keeping an eye on the performance of cryptocurrencies from the get-go. Some studies have shown that trading activity in the crypto market very often follows discussions on online forums.

Therefore, if you want to get a feel for the current sentiment of the market, these places are ideal. They will react to each news article, so you can see people’s responses before it affects the market.

Common strategies

The strategies for trading in cryptos are quite similar to any other financial market. The first type of strategy you will see is scalping.


Scalping involves taking a close look at the charts almost every minute and making your trades accordingly. You want to take advantage of every tiny opportunity that presents itself. The trades you make will be incredibly fast. Each trade will result in a small sum, but they soon add up. This type of strategy is best for people who may not have a great number of funds to invest, but are good at keeping track of charts.

Day crypto trading

Day trading is your next option. Trades in day trading tend to last a little longer, usually under an hour. This gives you time to look at any patterns appearing in the charts and keep track of the news alongside it. For this extra breathing room, it is best that you have a slightly larger amount of funds.

crypto trading

Range crypto trading

Following this, you have range trading. In range trading, you should be looking for where the support and resistance of a cryptocurrency is. So basically, the idea is to buy when the support is reached, and sell when the resistance is met. It quite closely follows the common advice you will have doubtless heard ‘buy low and sell high.’ To do this, more attention has to be paid to influences not immediately available on the chart. The news can have a large effect on the value of a cryptocurrency on this scale. These types of trades sometimes take days or weeks to complete.

Swing crypto trading

After this, you have swing trading. This has a lot in common with range trading. Here, you are also waiting for large changes in the price of a crypto value. Swing trading puts more emphasis on finding possible breakout assets. For this, you will absolutely have to keep track of the news and forums. The information for up and coming currencies will not be conveyed to you directly through the charts. This is the sort of speculative information you will have to seek out yourself.

Position crypto trading

Finally, you have position trading. Position trading takes place over a large amount of time, sometimes months or even years. They will have to ignore small trends that may oppose their position. They are looking for long-term trends. Traders doing this usually have large funds and do it as a side gig. The large funds are needed as the losses can be very large, so they have to have something to fall back on.

Which broker is the best for scalping? Check which broker is the best broker for scalping at the moment.


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In the first quarter, Plus500 reported a $215.6 million revenue, marking a 4% rise Y-o-Y and a 14% increase Q-o-Q. Customer income was $169.6 million, with $30.6 million coming from customer trading performance. The