5 Best Crypto Trading Strategies

[maniacmusic]

Let’s compare different crypto strategies: hodling, crypto portfolio, arbitrage, scalping, and mirror trading.

Hodling
The strategy is designed for a long-time period. The point is very simple: you buy a cryptocurrency and wait until the price is significantly higher than it was initially.

To use the strategy, one has to study the market carefully, pick a currency with both a low price and prospects for growth, and be patient. The letter, given the notorious volatility of the market, is a matter of special importance since it is extremely hard to resist the temptation to get rid of the assets at a time of a sharp falling.

You’d better figure out the exact price to wait for and not pay any attention to all inevitable unpredictable fluctuations.

Building a Cryptocurrency Portfolio

Crypto Portfolio. Investment, which can bring you a lot of profit, if you diversify well.

This crypto strategy is based on a balanced trading, which means that the assets are allocated among several cryptocurrencies.

It is assumed that the rises of some currencies compensate for the falls of others. For example, Bitcoin and altcoins can act like this. Dogecoin and Monero, Ripple and Ethereum have proven to be useful in the creation of a crypto portfolio.

Statistical Arbitrage
Statistical arbitrage is a more complex modification of the previous strategy. The scheme is the following: you buy a currency on an exchange, change it to coins on another and, eventually, sell for fiat.

The point is to use a price correction lag between those exchanges, getting a 5% profit.

Arbitrage

Sometimes crypto traders choose arbitrage as a financial investment strategy.

Using the strategy, one takes advantage of price differences between exchanges.

For example, you buy some crypto on Bitfinex, then go to Poloniex and sell it at a higher price.

The shortcoming of the strategy is that a fee should be considered since it can be high enough to eliminate the profitable differences. Generally, a price discrepancy of 2% or more is a sign of a lucrative deal.

Scalping
The essence of the strategy is an immediate profit. For example, you buy 100 XRP at $0.23. After a few minutes, the rate grows up to $0.24, and you sell. The profit is just $1, but It didn’t take much time.

The strategy is good for trading in small volumes — the risk is minimum.

Crypto Copy Trading — Bonus Strategy

At Coinmatics company there are plenty of top cryptocurrency traders to follow. Btw, you can join this crypto copy trading platform today and try it for free!

You pick a successful trader and copy his trading operations.

There two questions arising: where can I find such a crypto trader? And how can I get to know about his deals?

For these purposes, special crypto trading platforms were designed.

Traders can register on and start providing information via these web-services, while others can subscribe to the best of them, according to the chart, and copy after them.

Coinmatics is one of such platforms, providing cryptocurrency copy trading services. The company has launched the auto trading service automating the process of copying deals after traders, which makes trading accessible and profitable even for beginners.

Crypto social trading can be really beneficial and time-saving (especially when we talk about automatic copy trading). Moreover, at Coinmatics you can test Binance copy trading for free and estimate its performance without high risk.

We hope that the article will help you to choose an efficient crypto strategy. Good luck, crypto investors!
Coinmatics. Trade with The Best.

[perla]

I don't think holding is a good idea, well many user said it's a good for long term but I think you would be able to miss some opportunities to earn and probably you will miss you chance to cut your losses and invest to some other profitable coin.

[xSkylarx]

Hodling can't be considered a strategy IMO. You don't trade by hodling but you're just investing for the long term. It doesn't need any strategy or deep knowledge to be done so anyone can do that.

For me, the best trading strategy is controlling your emotions properly when trading. There are times you get liquidated then you try to recover it out of frustration but you'll just end up losing more. If you can control your emotion at that time, you can plan where to enter properly and start recovering your losses.

[cryptoaddictchie]

I don't think holding is a good idea, well many user said it's a good for long term but I think you would be able to miss some opportunities to earn and probably you will miss you chance to cut your losses and invest to some other profitable coin.

Not agree. If you are an sentimental person, for example holding bitcoin you could feel the profits on holding maybe you are thinking its quite boring but there are plenty of holders who love to use this method.

Scalping is a good way to earn on a daily basis there are good coins or tokens that you could do this. What you only need is patience and good analysis. Scalp up to 10% is already good profit for short term goal.

[Fesatmas]

holding? still can't be effective if you only rely on holding and wait for the price to increase continuously. This is not a guarantee precisely, because the market is moving all the time, what if you buy to hold, but the price is getting worse? not an advantage, quite the opposite. and this is a principle that is not recommended for those who rely on one trade.
it's better to trade daily, besides not missing the latest updates where crypto hype is good, of course we will see for ourselves the trading volume and can take advantage of it right away.

[sarmrakib]

I don't think holding is a good idea, well many user said it's a good for long term but I think you would be able to miss some opportunities to earn and probably you will miss you chance to cut your losses and invest to some other profitable coin.

Its ok that we have the opportunity by trading and invest our capital but it still a great chance of earning for holding long term .Look at btc he who invested when it was fall down at 4000$ now lets see there already paid of their patience .So i think it will be great to hold coins but you have to select top coin  or token which have much potentiality to rise up .

[Jawhead999]

I think you need to understand first about long term and short term.

1. Holding is investing an asset for long term and you wait until you reach the profit/goals you have been set up before.
2. Trading is activities of buy low and sell high to get exact profit, you don't need to wait specific time to buy or sell... the important thing is profit.

So Holding ≠ Trading

[sana54210]

How could you list out 5 best crypto trading strategies and not put out DCA in there. It is literally the best method that has made more money to people than any other one and has the lesser risk than any of this and you wanted to omit that?

The best one I have ever used is DCA, it is better than all of this I could say, I didn't do scalping I suppose, I mean I kinda did when I was using a trading bot and the bot did it but that was it, I personally didn't use it. And I can say as a person who has done all of these so far, arbitrage is the hardest one, it sounds like it is easy money to make but the reality is that it is very hard to make any profit from it, because you do not have the kind of chances you hope you will get, which means less profits. DCA on the other hand is as easy as it gets and all you need is time, over time you will definitely profit from it.

[Dutchyyy]

It's good that the platform supports Crypto Copy Trading. This is the easiest option when you don't have the time or knowledge of less popular coins.

Do you know any good traders with longer history (6+ months) that we can copy profitable?

[jossiel]

I don't think holding is a good idea, well many user said it's a good for long term but I think you would be able to miss some opportunities to earn and probably you will miss you chance to cut your losses and invest to some other profitable coin.

I've been holding for years and it's such a wonderful strategy that others will definitely agree that it's a good strategy. That risk and opportunity doesn't belong if you've been doing DCA to bitcoin and you're cutting loss because you have invested into an altcoin.

It is the best strategy that don't need much effort to think of what you should do. You only have to think at what price you sell. This is the most ideal strategy for most bitcoin investors that's why HODLING is very much popular because it's very effective.

It's not good if you're into altcoins because they're much more volatile than bitcoin and you really will miss opportunity because you didn't do it on bitcoin.

While in scalping, been there done that, not an ideal trading strategy for me. It's resulted me into more losses that's why holding is better to me.

[nelson4lov]

I think you need to understand first about long term and short term.

1. Holding is investing an asset for long term and you wait until you reach the profit/goals you have been set up before.
2. Trading is activities of buy low and sell high to get exact profit, you don't need to wait specific time to buy or sell... the important thing is profit.

So Holding ≠ Trading

While I do agree with your arguments, I've always had double thoughts about the concept of buying and holding long term - whether or not, it should be called investing or long term trading. I do know that when you buy a certain crypto on spot market, then you transfer them to a personal wallet (or keep on the exchange which isn't advisable), then you are investing. On the other hand, there are trading strategies that span across higher time frames. For instance, I know some trades who don't trade on shorter time frames. Instead, they target higher time frames and make trades based on this. When they do make this trade, they keep it for an extended period of time.

[yhiaali3]

In fact, I use more than one strategy in investing in cryptocurrencies. I hold some coins in an Atomic wallet, where I bought them at a low price and wait for their price to rise well in order to sell them. I also do fast daily trading or the so-called scalping where I make several quick deals and reap some small but good profits in the end.
As for arbitrage, I used it sometimes and it succeeded with me only a few times, not only because of the high fees, but also because most exchanges close the coin wallet when it find there are big differences in prices.
As for mirror trading, I have not used it yet, but I liked the idea, and I might try it later.

[traderethereum]

I use holding and trading in crypto to make money. But I do not use scalping every time I trade because I am afraid to get in a trap to buy at a high price.
I do not try to arbitrage trading because I see that the time confirming will be the problem to sell the coin at the right time, but maybe other people will use it to profit.
I prefer to try to make a profit daily, and if I do not see that chance, I will not try it because I am trying to know my limit in skills.
And that is why I am still trying to learn trading to have better skills.

[hulla]

In fact, I use more than one strategy in investing in cryptocurrencies. I hold some coins in an Atomic wallet, where I bought them at a low price and wait for their price to rise well in order to sell them.

Thats a scalping strategy but it not good for an inexperienced trader or those that cant control their emotions whilst arbitrage trading is best profitable when have enough capital.
Having said that, i will advise you not to keep much coin on atomic wallet cause security seems not be high level.

[AakZaki]

Which strategy can be used depends on the trading skills a person has. When someone comes and wants to invest in crypto but has not fully mastered trading knowledge, then a good strategy is to do Holding. However, to enter the market, it must be precise, when the market is bearish and the price is below.

For people who are professional and know technical analysis and fundamentals, using scalping strategies can be counted on to get a little profit but it is done continuously.

The most important thing is how to do Capital Management and psychology, because these 2 factors can make your strategy succeed or fail.

[goaldigger]

Those are the most risky trading strategy in my opinion and Holding is not a trading strategy after all, not unless you play long and know when to sell not just holding base on the market trend. Anyway, we have to create our own strategies in trading, make a plan to win and do your best to learn everything in trading. This market will not always make you a winner, know the risk and accept that challenges.

[Issa56]

From the little experience am having in trading I still prefer holding, I think is still the easiest method of trading and you can make alot of profit, but when you are holding you just need alot patience and you have to make alot of research before buying a coin!!!

[nemey]

As a novice trader, of course the information and comments here are very useful for me too. And I did get new information and knowledge. I thank you in advance. And as a beginner trader I still often take advantage of the opportunity to be able to play safe with potential altcoins like Ethereum to hold. Because in my opinion this method is the safest, if it is applied to potential coins.

[Cryptoababe]

Hodling

I dont think hodling is a trading strategy. Simply because there is no trading activities carried out when hodling.

[Ryker1]

Hodling

I dont think hodling is a trading strategy. Simply because there is no trading activities carried out when hodling.

Well, you have a point.
If there is no regular transaction as a trader you cant call this a part of a trading strategy because holding is just waiting for a perfect time before selling you coins and that is all matters about. Arbitrage and scalping were my favorites before when I was in trading, but I realized of low making profit while it consumes a lot of time just to monitor your trading activity. I had chosen to hold for a long time and wait when my profit was there is a better decision, perhaps.