Trading Strategies in Cryptocurrency

If you prefer a fresh and unique investment, you can opt for cryptocurrency. It can offer you a satisfying return for your trading. However, you need the best strategies to make the best of your crypto investment. To help you with this, the following are the essential strategies that can use.

Active Trading Strategies 

Active trading strategies need attention and time. Thus, it requires regular portfolio management and constant monitoring. 

Swing trading 

It is a long-term trading strategy that enables you to hold positions longer than one day. However, it is not longer than a month or a few weeks. In this trading strategy, you can get benefits from the volatility waves that can occur in weeks. You can apply fundamental and technical factors to formulating your trade ideas. This strategy can be ideal for beginners. You can have more time to make decisions for your trading. 

Day trading 

It is the most popular active trading strategy. It includes exiting and entering positions in a day. Here, you can capitalize on intraday price movements. Day traders use technical analysis and price action when it comes to the formulation of their trading ideas. It can be more profitable. But it is also more demanding and stressful and is associated with high risk. This strategy is advisable for advanced traders. 


It is the fastest trading strategies in the market. This technique mainly focuses on using small moves repeatedly. In this trading strategy, you don’t hold positions for a longer period. It is also a complex strategy, so it is not recommended for beginners. 

Trend trading  

This active trading strategy is also called position trading. In this trading, you hold positions for a long time. It usually takes about a few months. You can take advantage of directional trends. Meanwhile, you must also take note that there can be a trend reversal. It can be good for beginners. However, you must know how to manage risk. 

Passive Investment Strategies 

Unlike active trading strategies, passive investment strategies need less attention and time. 

Buy and hold 

This passive investment strategy allows you to buy an asset and aim to hold it for a longer time despite the market fluctuations. It is commonly used in long-term investment portfolios. It can be based on fundamental analysis rather than technical indicators. Meanwhile, you must also need to find a reliable trading app like Profit Secret to make the best of your crypto trading. 

Index investing 

With this passive investment strategy, you can buy indices and ETFs in traditional markets. 

Now that you have learned about the crypto trading strategies make sure to choose the right one for your financial status and knowledge in the cryptocurrency market. 

Importance of Trading Strategy 

Just like other markets, it is crucial to have a trading strategy when it comes to your cryptocurrency investment. An effective strategy is important to lower financial risk, which may disappoint you. More importantly, it can also guide you to make wise decisions to gain more profits with your trading. 

If you don’t have a strategic plan, you have more chances of bigger financial losses. If you want to avoid these problems, make sure to have an effective strategy that can help you earn more profits. You need indicators and tools you can use in your trading. You also need more patience in trading.        


Cryptocurrency trading needs essential strategies to provide you with amazing benefits. There are various trading strategies, as we have mentioned above. You must choose according to your financial goals. If you are a beginner, you need to choose the one that can best work for you. With that, you can reduce the potential risks of losing your assets. 

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