Trading strategy: successful crypto strategy

Trading strategy: successful crypto strategy

Anyone who is interested in becoming a profitable trader of cryptocurrencies merely needs to spend a few minutes online to find terms such as “plan your trade; trade your plan” and “maintain your losses to a minimum.” This information is readily available. These insights may seem more like a distraction than actionable guidance to new traders who are just starting. If you’re just starting in trading, you probably want to know how to make money as quickly as possible with a trading strategy.

Although the following strategies should alone be considered significant, their combined impacts are significantly more powerful. Keeping them in mind might greatly increase the likelihood that you will be successful in the markets.


What is a trading strategy

A crypto trading strategy is a set of rules and techniques used by traders to make decisions on when and how to buy or sell a particular asset. Traders use different strategies in order to maximize their profits from market movements. Some strategies are long-term, while others are short-term; some involve taking risks, while others involve minimizing risk; some focus on technical analysis, while others are based on fundamental analysis. The strategies used in crypto trading vary depending on the type of asset being traded and the trader’s goals.

Some common types of crypto trading strategies include day trading, swing trading, scalping, trend following, scalp-and-hold, position trading and counter-trending.

Why is a trading strategy important

Trading strategies are important because they help traders to manage risk and maximize potential profits. Strategies also provide an organized approach to trading and can help limit losses when cryptocurrency markets move in unexpected directions. By implementing a sound trading strategy, traders reduce their chances of making costly mistakes or emotional decisions during volatile market conditions.

A well-designed trading strategy can also help traders, especially crypto traders to identify and take advantage of opportunities that may not be apparent to the untrained eye. By utilizing technical indicators and chart patterns, traders can spot emerging trends and capitalize on them by entering or exiting positions on time. Having a strategy in place helps traders stay disciplined throughout their trading journey.

Finally, having a strategy in place also allows traders to have greater control over their trading capital. By having a clear plan of action, traders can ensure that they are not over-exposing themselves to the risk and making rational decisions based on market conditions. Having a definite strategy helps create a structure for trades and keeps order in the markets.

Trading strategy

Who uses a trading strategy

Trading strategies can be used by a variety of investors, from novice traders to experienced professionals. They are often employed by those looking to profit from market movement or manage risk. Strategies may also be used by both active and passive investors and retail and institutional investors.

For example, a long-term crypto trading strategy such as buy and hold may be used by cryptocurrency investors who want to profit from the long-term appreciation. On the other hand, short-term strategies such as day trading or scalping may be used by traders looking to take advantage of short-term price movements.

Additionally, hedging strategies may be employed by investors seeking to reduce the risk of their portfolio. This can be done by either buying coins that are inversely correlated to the rest of the portfolio or by taking out a derivative such as an options contract.

Trading strategy do’s en don’ts


1. Do your due diligence

Take the time to do your research and analyze the markets, understand the history and develop a trading strategy that works for you.

2. Use risk management strategies

Understand and use tools such as stop-losses to help manage risks when trading in volatile markets.

3. Monitor the markets

Stay up to date with market movements and use technical analysis tools such as indicators and chart patterns to identify potential opportunities.

4. Take profits when available

Don’t let profits slip away; take them when they are there!

5. Diversify your trades

Spread out your investments across different asset classes and currencies to reduce the risk of losses.

More information via an intake?

Schedule a free intake with Jaron and find out more about the possibilities at Thriven.

Trading strategy
Trading strategy

More information via an intake?

Schedule a free intake with Jaron and find out more about the possibilities at Thriven.


1. Don’t trade without a plan

Understand the markets you are trading in and create a strategy with clear entry and exit points before entering a position.

2. Don’t over-trade

Be disciplined when it comes to trading, don’t overextend yourself or trade too much.

3. Don’t make emotional decisions

Keep your emotions in check, and don’t be influenced by the excitement of the market or your own optimism.

4. Don’t follow trends blindly

Take time to understand why a trend is moving in a certain direction and use technical analysis to make your trading decisions.

5. Don’t forget to review

Take time to review your trades and analyze how you could have done better or if any mistakes could’ve been avoided. This will help you improve your trading performance in the future.

Proven crypto trading strategies

Position trading

Position trading is a longer-term form of investing that involves taking a position in an asset and holding it for an extended period of time, from several weeks to many years. This allows the trader to benefit from not just short-term price fluctuations but also long-term trends.

Position crypto traders often use fundamental analysis such as earnings, financial statements, economic indicators and news to determine the direction of the asset’s price. They will also use technical analysis such as support and resistance levels, moving averages, and trends to help inform their positions. Position traders attempt to maximize profits over the long term by taking small but consistent gains across multiple trades.

Swing trading

Swing is a style of trading that involves taking trades over a period of days or weeks, instead of just holding a position overnight. It involves taking advantage of short-term market moves, rather than long-term trends. The swing traders will typically use technical analysis to help identify potential entry and exit points and risk management techniques such as stop losses and position sizing. A style like swing trading can be used to take advantage of the natural ebb and flow of the markets, allowing traders to capitalize on both upswings and downswings.

Swing trading is suitable for all types of traders, whether they are crypto traders or any other, but it is particularly advantageous for those who do not have enough time to monitor the markets on a daily basis.

Day trading

Day trading is an active strategy that involves buying and selling Crypto assets or any other assets on the same day and attempting to profit from short-term price movements. The day traders use the same strategies as longer-term traders but with shorter timeframes, looking to take advantage of small and frequent fluctuations in price.


Scalping is a trading strategy wherein traders make multiple trades over a short period of time, usually minutes or hours. This is done to make small profits on each trade. Scalpers look for opportunities in crypto or Bitcoin trading to buy or sell crypto assets such as Bitcoin and execute trades swiftly, hoping that the price difference between the entry and exit points is small enough to give them a profit.

Scalping requires considerable skills, knowledge, and experience to be successful. Crypto traders who scalp must stay abreast of the market and be prepared to act quickly in order to take advantage of the fast-moving market.

Auto investing: DCA strategy

Dollar-cost averaging (DCA) is an investing strategy that involves dividing up the total amount of cryptocurrency to be invested across periodic purchases of the same amount. This technique is used to reduce the impact of volatility on the overall purchase and mitigate market risk.

Due to market fluctuations, the DCA strategy attempts to minimize the risk of investing large amounts at once. By spreading out the investment over a while, investors can take advantage of the average price and minimize their risk. This is because market prices tend to fluctuate over a period of time.

A common problem of the DCA strategy is that the strategy is losing money in a falling market. This problem can be solved by selling as well. In addition, there is a lack of automatic investing in crypto. Are you curious how this can be automated? Read through our article on Smart Dollar Cost Averaging.

More information about Smart DCA?

Read about smart investing via smart DCA; a strategy that tries to improve DCA (periodic investing).

Crypto trading strategy

More information about Smart DCA?

Read about smart investing via smart DCA; a strategy that tries to improve DCA (periodic investing).

An automated crypto trading strategy

Manual trading strategies involve a trader manually placing trades based on their technical analysis and other market news. Manual traders must be able to interpret the market accurately in order to make the best decisions possible.

Automated trading strategies are based on a computer program that automatically executes trades based on predefined rules. This type of strategy is attractive to novice traders as it eliminates the need for manual decision making. Automated strategies offer improved speed and accuracy. However, they are limited by the complexity of their programming. For more information, read here what the best crypto trading bot could be for you.

The choice between manual and automated trading strategies will depend on the individual’s trading style and goals. Are you curious to know more about automated trading? Read more about automated trading here.

More information via an intake?

Schedule a free intake with Jaron and find out more about the possibilities at Thriven.

Trading strategie
Trading strategie

More information via an intake?

Schedule a free intake with Jaron and find out more about the possibilities at Thriven.

More related articles

Crypto bot

Crypto bots and crypto automation by Thriven

Read about Thriven's crypto bots and automations. Determine whether automatic investing or auto trading with a crypto bot suits you.
Automatisch investeren in crypto

Automatic investing in crypto: Why automation works

Read about automatic investing in crypto. This article discusses the 4 main methods for automatic investing in crypto.
Bybit crypto bot

Bybit crypto bot: How to use a Bybit bot?

Read about the Bybit crypto bot. Bybit offers a DCA and Grid toolbox bot. Discover the benefits, risks and an alternative crypto bot.