The popularity of cryptocurrencies grows every day. No wonder, since they are safe, fast, decentralized, and anonymous. Plus, transactions with digital assets are often cheaper than your regular bank transfers even if you need to send crypto from one part of the world to another. Moreover, crypto investments offer high potential returns. According to Statista, the number of crypto users has surpassed 420 million worldwide. And some other sources claim that there can be more than 560 million users.

However, before diving into the cryptocurrency universe, you need to understand the fundamentals of trading. In this article, we will discuss crypto trading strategies that will help you to navigate the volatile crypto market successfully.

Gone are the days when cryptocurrency was only of interest to a few enthusiasts. Today it is already a full-fledged financial instrument. It is traded on stock markets, hundreds of millions of people around the world invest in it, and it is accepted as payment by large corporations and small businesses. The "Cryptocurrency for Beginners" guide will help you better understand the working mechanisms of cryptocurrencies and how they can be used in your interests.

Why it’s Important to Learn About Trading Before Investing

You won’t be able to make a profit by simply buying and selling assets without thinking. That’s why you need to understand all the intricacies first. You need to be prepared for high volatility and rapid market shifts to avoid risks. Learning the basics of trading will help you to make informed decisions.

Fundamental Analysis in Crypto

Fundamental analysis in cryptocurrency is the process of evaluating a cryptocurrency’s underlying value to determine its long-term potential. Its key metrics include:

  • Market Capitalization helps to understand a crypto’s market dominance.
  • Liquidity shows how easily an asset can be bought or sold without affecting the price.
  • Token Utility determines the practical use cases of an asset.
  • Network Activity focuses on the level of activity on a blockchain and a crypto’s potential for growth.

Technical Analysis in Crypto

Technical analysis allows traders to predict upcoming price movements of a cryptocurrency by evaluating historical price data and market statistics. Its key metrics include:

  • Candlestick Charts visualize a crypto’s price movements (for example, highs and lows).
  • Moving Averages help to average the prices from certain periods in order to identify trends.
  • Moving Averages help to average the prices from certain periods in order to identify trends.
  • MACD (Moving Average Convergence Divergence) shows a relationship between two Moving Averages.

Top 15 Crypto Trading Strategies for Beginners

Now, let’s take a look at the most important crypto strategies.

Strategy #1: Buy and HODL

Now, when you understand the pros and cons of meme coins, think twice if you should invest in meme coins or not. On the one hand, most of the coins on the market are just scams. On the other hand, if you find a gem, it can make you rich overnight. And even buying a bad coin at a good time, you can ride the wave and get a good profit. Let’s figure out how to do this.

Strategy #2: Dollar-Cost Averaging (DCA)

This crypto trading strategy requires investing a certain amount of money regularly regardless of market conditions. It helps to avoid volatility by averaging the purchase over time.

Strategy #3: Scalping

The third strategy focuses on smaller profits from minor price changes. It requires traders to make multiple trades per day with the goal to “scalp” profits.

Strategy #4: Swing Trading

Traders who use this strategy hold their positions for a few days or weeks to profit from expected market swings. They carefully analyze trends and find the right entry and exit points.

Strategy #5: Arbitrage Trading

This strategy allows traders to exploit price differences on exchanges. To make a profit, they buy a digital asset on one exchange for less and sell it on a different exchange for more. However, arbitrage trading requires quick reactions.

Strategy #6: News-Based Trading

The fans of this cryptocurrency trading strategy make their decisions based on the news that may affect cryptocurrency prices. Traders always monitor important updates to sell or buy a digital asset before it becomes less profitable.

Strategy #7: Trend Trading

When using this strategy, traders rely on identifying the prevailing trend in the market. They open positions in its direction and hold them until the situation changes.

Strategy #8: Range Trading

This strategy is all about finding the support and resistance levels and using this range to trade. Traders usually buy at the support level and sell at the resistance level. 

Strategy #9: Breakout Trading

Those traders who prefer this strategy usually enter the position when the price breaks through a significant level of resistance or support. They look for a profit in increased volatility that follows a breakout.

Strategy #10: Margin Trading

This option allows traders to use borrowed funds. If they succeed, their profit will be much higher. However, the risks are increased as well.

Strategy #11: Staking and Earning Interest

Many crypto exchanges offer staking tools. Traders who prefer this strategy deposit their funds to such exchanges and platforms to make a passive income from their holdings.

Strategy #12: Copy Trading

This strategy is often used by beginners. They replicate the trades of more experienced traders on the platforms that offer copy trading tools. It’s considered to be a great way to learn crypto trading from those who already know how crypto trading works.

Strategy #13: Grid Trading

Those who opt for this strategy regularly place buy and sell orders below and above a set price. It’s supposed to help profit from market volatility.

Strategy #14: Yield Farming

This strategy involves providing liquidity to DeFi protocols. In return, you can earn rewards. It can be very profitable, yet you need to understand the DeFi market and its risks.

Strategy #15: Liquidity Mining

In the case of Liquidity Mining, traders provide liquidity to exchanges and other platforms in order to earn assets. This strategy is quite popular but also quite risky.

How to Learn Cryptocurrency Trading

DUOCRYPTO is an educational platform that offers interactive cryptocurrency and AI courses. Their programs are created by experts and are aimed at turning you from a beginner to a pro. You can start from crypto fundamentals and work your way up while earning bonuses for hitting milestones and inviting friends. Check out their courses to learn crypto trading strategies!

Start Your Crypto Trading Journey Right

Crypto trading can be very lucrative when approached correctly. In this article we described fifteen main trading strategies that can help you with your crypto journey. However, you need to learn about each of them in detail before investing. How to learn crypto trading techniques? You can do it on your own or use the help of professionals from educational platforms like DUOCRYPTO.