What probably needs to be mentioned at the outset is that cryptocurrency trading is a high-risk activity. Therefore, if you decide to go in this direction, it is important to mention that, like everywhere else, there is no guaranteed money in cryptocurrency trading and if someone tells you otherwise, that you are guaranteed to make money with them or their strategy, you should take it with a big grain of salt.

Basic cryptocurrency trading strategies.

As I mentioned in the introduction, cryptocurrency trading is a high-risk activity as cryptocurrencies are associated with high volatility. Of course, high risk also brings with it the possibility of high earnings, but it is not for everyone as the volatility is sometimes really high.

High price fluctuations, dips or pumps, all of these are associated with cryptocurrencies. For someone it may be too risky, but during such fluctuations well adjusted traders can make very good money, but they have to follow a clear strategy, without emotional trades and with a level head, knowing exactly what they expect from that trade.

Experienced traders can make good money even during a bear market, when the market is "full of blood" and inexperienced investors panic and sell their cryptocurrencies at very low prices. This post should show you the opportunities and the most common trading strategies related to cryptocurrencies.

Technical analysis

If you want to get into cryptocurrency trading, you should learn at least the basics of technical analysis. Yes I know it looks hard and boring but believe me knowing at least the basics of charting is very beneficial and will save or make you interesting money. I myself didn't give it much weight at the beginning and then I regretted it.

Although looking at charts, drawing lines and identifying key price levels may seem silly at first, it is one of the best tools you can have at your disposal and it is certainly better than having nothing. At the very least, being able to find supports and resistances in the chart...

Although it may seem complicated, cryptocurrency trading combined with adequate TA methods can lead to many high-profit opportunities. If you are smart and vigilant in your trades and strategy, you are likely in for an attractive and profitable ride.

Tools to make good use of:

• Tradingview - charts and various tools for technical analysis
• Coinmarketcal - calendar for crypto events
• Coinmarketcap - possible tracking of crypto portfolio and projects
• Tabtrader- phone app for tracking the development of cryptocurrencies or your own portfolio

You also have the option of using a broker such as Etoro, which offers a social trading feature and offers a wealth of resources, tools and guides to learn the details of both cryptocurrency and traditional trading.

Strategy #1: Hodl

Hodl is a basic long-term cryptocurrency trading strategy for any beginner. It requires the least amount of trading skill and experience and can be mastered by literally anyone who studies the project. Then buy it and then just feast (hold). You may think that the word is misspelled and that it should be HOLD, but the term originated in crypto in 2013 and has caught on.

The basic principle of the HODL cryptocurrency trading strategy is to buy a cryptocurrency with potential and hold it safely and long-term in the hope of selling it for more later. Selling can happen after a year, a few years or even a decade, depending on your strategy and how much you want to make from the trade. Basically, with this strategy, you only need to know where to buy the cryptocurrency in question and how to store it safely. As for "storing" cryptocurrencies, I wrote a separate post where this is all broken down more extensively: Crypto Basics: Why it's dangerous to hold cryptocurrencies on exchanges and how to store them safely

Of course, this strategy also comes with some risks. Firstly, there is no guarantee that the value of your assets will appreciate. The project may go bankrupt, the network may experience failures or other problems, or there may be better alternatives in the future. Second, you may lose your private keys, so storing them securely should be your priority.

In addition, you can always reinvest your profits when the market bottoms out. Yes, the long-term play is still the focus here, but remember to take profits whenever possible, or at least after big price increases. Just holding and not taking profits tends to lead people to make unnecessary irrational decisions further out in time, which was my problem with not determining what I wanted to get out of a given investment. I didn't take profits and Bitcoin fell from $69,000 to $18,000. So don't be greedy and set goals for that investment, as there are cycles in this market that come with big crashes.

Strategy 2: Swing Trading

This is where charts and technical analysis (TA) come in. To be good at swing trading, you need to be at least somewhat familiar with the basics of technical analysis. This will help you follow the markets and develop a sixth sense for significant price movements.

Demonstration using technical analysis

Swing trading is about making the right move at the right time. The goal is simple - to make as much profit as possible during crypto market fluctuations. Whether prices are rising or falling, you are always trying to capture a portion of the potential price movement. Successful swing traders try to capture part of the expected move and then keep moving to the next opportunity, but this can also mean only a few trades per week, so you need to have significantly more time to do this than with the HODL strategy.

The key is to set specific entry points, stop losses and reach profit levels before each trade and stick to them. STOP-LOSS is also often used in this type of trading - a feature where you set an acceptable loss for you on a given trade, which should be based on money management.

Strategy 3: Daytrading

At the outset, it should be mentioned that this is already such a top level of trading and it's certainly not for everyone. Daytraders are people who trade cryptocurrencies for a living and spend most of their time trading. Whether it is buying or selling assets, trading on margin or exchanging perpetual contracts, they make many different trades every day in order to capture favorable price movements.

It's not easy and I certainly wouldn't recommend it for beginners, as it can take months or years of learning and losing trades to become a successful and profitable daytrader.

Daytraders need to stick to the charts daily and keep a close eye on price fluctuations and also keep track of the various fundamentals associated with a given project that can affect its price. As a daytrader, you have to make friends with cryptocurrency price fluctuations and literally live off them no matter what direction the market is heading. For every price movement, there is also a counter trade at the turning point - an excellent opportunity to increase your profits. Day trading is all about making quick decisions to minimize your exposure to risk and maximize your profits. Of course, no trader is always 100% right, so you must be prepared to close positions even with significant losses. It's not just about successful trades.

With this type of strategy, I would already recommend paying to read various universities from successful traders who create such universities in the form of video content that is easy to understand. And during these universities, it is usually the case that the traders in question also provide you with support in terms of answering your questions.

These are the main cryptocurrency trading strategies that you can use. They all differ in the level of involvement, experience required, technical analysis skills, fundamental analysis, decision making and risk mitigation skills. Therefore it is up to you which strategy you choose, I personally go with the HODL strategy. I prefer to invest my time and study the project well and invest for the long term.

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