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Top 5 Crypto Trading Strategies

Feb 27, 2023
9 min read

This blog post will cover:

  • Benefits and drawbacks of crypto trading
  • Top strategies
  • Conclusion

Dynamic and unpredictable, with prices constantly changing, the crypto market can both help and become a problem for traders who wish to earn some coins. To thrive in crypto trading, it’s significant to own a well-devised plan that corresponds with your investment aims, risk awareness, and current market conditions. 

There are multiple ways to trade cryptocurrencies, each with its unique perspective. Some traders prefer to retain their digital assets for an extended duration, whereas others want to enter into multiple trades daily. However, to achieve success with crypto trading, a person must possess discipline, enough knowledge and comprehension of the market. In this Blog post we’ll observe the most popular strategies and check out their positive and negative aspects.

Benefits and drawbacks of crypto trading

Before we dive into the topic, it's important to consider the benefits and drawbacks of trading in general. It's particularly useful to have an understanding of both good and bad aspects if you're new to the world of crypto. 


  • Potential for high profitability
    Investors and traders have seen exceptional returns on their investments in cryptocurrencies, particularly during periods of upward market momentum. This has resulted in substantial profits for many traders. 
  • Decentralization and security
    Cryptocurrencies are decentralized, which means they are not subject to the control of any central authority or government. This makes them more secure and resistant to government interference or inflation. 
  • 24/7 market
    Unlike usual stock markets that operate during specific hours, the crypto market is open 24/7. This provides traders with the flexibility to buy and sell cryptocurrencies at any time, making it more accessible. 
  • Lower fees
    In general, trading fees for cryptocurrencies are lower than those of traditional stock exchanges. As a result, traders can make more trades with less capital.


  • High volatility
    One of the biggest risks associated with cryptocurrencies is their high volatility, which can result in significant price fluctuations and even market crashes. This makes it a particularly risky investment for those who are not well-versed in this type of trades. 
  • Lack of regulation
    Cryptocurrencies are not subject to regulation by any central authority, which leaves them vulnerable to fraud and market manipulation. This can bother traders from making informed decisions and avoid potential scams. 
  • Technical complexity
    Cryptocurrencies can be difficult to understand, often requiring traders to have a deep understanding of blockchain and the market in general. This might be a significant barrier to entry for new traders who lack technical expertise. 
  • Security risks
    As cryptocurrencies are stored in
    special wallets, they can be vulnerable to hacking and cyber attacks. As a result, traders need to take extra measures to secure their wallets and protect their investments, which can be both time-consuming and challenging.

Top strategies

Now when we know about the advantages and disadvantages of crypto trading, it’s time to discover the most popular strategies that traders use. We have highlighted 5, but of course, there are more. However, the ones you will see below are more common nowadays.


HODL is a long-term investment strategy that involves buying a cryptocurrency and holding it for a long period of time, with the belief that the cryptocurrency will increase in value over time. This strategy can be particularly effective for cryptocurrencies with a strong track record of growth and long-term potential. We’ve talked about HODL in our previous article

  • Advantages: HODLing can be a simple and low-maintenance strategy, particularly for investors who don't want to actively trade on a daily basis.
  • Disadvantages: this strategy is not ideal for short-term gains, and it is not suitable for all types of cryptocurrencies. Additionally, it can be difficult to predict long-term price movements with certainty.

Day trading

It involves buying and selling cryptocurrencies within the same day, with the goal of making quick profits from short-term price fluctuations. This strategy requires a good understanding of trends and the ability to react quickly to changes in price.

  • Advantages: day trading can be an effective way to make quick profits, particularly for experienced traders who can identify short-term market trends.
  • Disadvantages: it can be risky, particularly for inexperienced newbies who may not be able to react quickly enough to sudden price movements. Day trading can be time-consuming and require a significant amount of research and analysis.

Swing trading

This type involves buying and holding a cryptocurrency for a few days or weeks, with the goal of making a profit from price movements that occur during that time period. This strategy is based on the idea that short-term price movements are more predictable than long-term trends.

  • Advantages: it can be less time-consuming than day trading, while still providing the opportunity for short-term gains. Additionally, this strategy can be less risky, since it allows for a longer time horizon.
  • Disadvantages: swing trading requires a good comprehension of trends and the ability to predict short-term price movements with some accuracy. Additionally, it can be difficult to know when to sell crypto in order to maximize profits.

Arbitrage trading

This strategy involves buying a cryptocurrency on one exchange and selling it on another exchange, taking advantage of price differences between the two exchanges. This strategy requires the ability to quickly identify and act on price discrepancies.

  • Advantages: arbitrage trading can be a low-risk way to make profits, since it involves taking advantage of price discrepancies between exchanges. Also, this strategy can be less time-consuming than other strategies.
  • Disadvantages: arbitrage opportunities may be limited and may require a significant amount of research and analysis to identify. Moreover, this strategy may not be suitable for all types of cryptocurrencies.

Trend trading

This one is all about analyzing market movements and making trades based on them. This strategy is based on the idea that cryptocurrencies tend to follow certain trends and that these trends can be predicted with some accuracy.

  • Advantages: it can be a low-risk way to make profits, particularly for experienced traders who can accurately predict the trend fluctuations. Additionally, this strategy can be less time-consuming than other trading strategies.
  • Disadvantages: this strategy may not be suitable for all types of cryptocurrencies, and it may be difficult to accurately predict long-term trends.


So these were the most popular approaches to crypto trading. Now you know the difference between them, you can decide whether you want to enter the world of trading or not, and which strategy to pick. 

It's important to note that each strategy has its own risks and rewards, and traders should carefully consider goals, risk tolerance, as well as market conditions before choosing a strategy. It's also critical to have a solid understanding of the market and technical analysis to make informed decisions. Try to not get obsessed with trading, remember that there’s a real life waiting for you to experience. If you are already trapped by the crypto addiction, do not worry — there are crypto rehabilitation centers ready to heal your body and soul.   

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.

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