Top 5 Efficient Crypto Trading Strategies

Cryptocurrency is one of the favourite investment forms right now. Bitcoin alone handles $6 billion in daily online transactions, but there’s plenty more when adding other coins.

If you don’t plan ahead of time and employ the appropriate tactics, you will have lost all of your investment money. Let’s look at some of the methods that can assist you on your path to success.

Day trading

As a digital asset investor, you’ll want to be conversant with several tools and methods. The two sorts of trading strategies are as follows. Passive is a more hands-off type of monitoring that consumes less time and attention, while active is more laborious and time-consuming.

In recent years, weekend trading has become a well-known active trading technique, and it’s one of the most common. If you utilize this method, you’ll be required to make and cancel bets on the same day.

Traders who trade intraday are attempting to capitalize on recognized changes during a trading day or intraday price movements. Day traders exploit the market by combining technical and price volatility to establish their trade ideas. This is why seasoned traders prefer day trading since it allows them to utilize these principles.

Trend trading

One of the most popular approaches, trend trading, is a strategy in which an investor keeps their position for longer durations, generally several months. If you choose to trade based on trends, you must stay up with directional trends and utilize them to your advantage.

Fundamental analysis is a style of investing that involves examining significant events to forecast the long-term outcome. To succeed, the underlying assets must continue to trend in the future direction they think will occur.

Trends, on the other hand, might shift throughout time. Every trader must be aware of this and be ready for a trend reversal at any moment. This is why traders frequently use several technical indicators in their approach, including trend lines and moving averages, to improve their chances of success.


Scalping is the last of our ten recommended strategies. It focuses on small fluctuations repeated over and over, taking advantage of market inefficiencies, such as gaps in liquidity. Scalpers liquidate and replenish their positions in a matter of minutes, if not seconds.

This might be a highly lucrative technique if the trader knows where to find these market inefficiencies and how to use them. When they discover inefficiencies, they can earn a modest profit every time, which may grow into a significant sum if they find many inefficiencies over time.

Scalping isn’t a suitable strategy for novices since it’s extremely tough, necessitates detailed understanding and comprehension of how the market operates and demands substantial liquidity.

Buy and hold

If none of the active ideas appeal to you, passive options like the buy and hold method could be worth exploring. In this method, investors acquire a significant quantity of assets and store them for an extended period without paying attention to market movements.

In a long-term investment portfolio, it’s typically employed. Traders involved in it have no regard for timeliness or entry price; they want to go into the market. People who use this approach believe that if they are patient enough, the entry price will not matter, nor will the time.

There are a lot of differences between fundamental analysis and technical indicators. You won’t have to monitor the performance of your portfolio very often if you pick it, just from time to time.

However, because cryptocurrencies are high-risk assets, this technique should only be used for a trustworthy currency like Bitcoin.

Final thoughts

Many potential investors turn away because cryptocurrencies are a risky game, which is a reality that scares many people away. If you know the right tactics and can use good judgment when following the market, nothing stops you from achieving success. Especially with a trading agency like Saxo markets by your side.