1) Day trading
Day trading is the most common type of cryptocurrency trading strategy, but it also has its drawbacks. For example, if you’re not careful with your trades, day-trading can be very stressful and dangerous.
Day trading is a high-pressure job that requires you to make fast decisions about whether or not to buy or sell an asset. In crypto, day traders can also profit from arbitrage opportunities—buying low on one exchange and selling high somewhere else in order to take advantage of price differences across multiple exchanges.
Day trading is risky because it’s very easy for the market to turn against you if something goes wrong with your trades, so only experienced traders should consider doing this type of trading. If you’re interested in day trading but don’t have time for more than just a couple of hours per day (or if it’s something that requires too much focus), try using some automated bots instead!
2) Swing trading
Swing trading is a long-term strategy that involves holding an asset for a period of time. This can last anywhere from several days to several weeks, depending on how short-term or long-term your swing trade is going to be.
It’s important to note that swing traders are able to profit from both up and down swings in the market, which makes them ideal candidates for making money on cryptocurrency markets. The goal of this strategy is to get into an asset at its lowest point, sell it at its highest point (or vice versa), and then exit with profit if possible!
3) Scalping
Scalping is a trading style that involves the use of technical analysis and high-frequency trading. It’s also called intra-day trading, which means it happens during regular market hours (not overnight).
Scalpers typically use very short time frames when they trade, like 15 minutes or less! This means they have to be very quick in their decision making process so they can make accurate predictions about what will happen next.
As you might imagine, this type of strategy carries with it high risk and reward potential because if you’re wrong about an investment then your losses will be huge! However, if you’re right then there’s potential for big gains as well!
4) Algorithmic Trading
Algorithmic trading is a form of automated trading, which uses algorithms to match buy and sell orders automatically. The advantage of this method is that you don’t have to manually enter orders into your platform or keep track of what you’ve sold or bought. You also don’t need any knowledge about the market in order to use algorithmic trading strategies successfully—the program does it all for you!
Algorithmic trading can be used by both novice traders and experienced ones too; however, there are some rules related specifically with the crypto market that should be followed if you want your strategies working properly.
When using algorithms within crypto markets (i.,e., Bitcoin), make sure that all systems are secure so as not only keep them safe but also prevent hackers from stealing information about trades made through these platforms.
5) Cryptocurrency arbitrage
The idea behind cryptocurrency arbitrage is simple: if you can find two different cryptocurrencies that have a price difference, then you can make money by buying one and selling the other. For example, let’s say that Bitcoin has been trading at $10,000 while Litecoin has been trading at $300 (a 1,200% difference). You could buy LTC with BTC and sell it for USD on an exchange such as Binance or Coinbase to pocket your profit. This method works especially well when there are multiple exchanges available and they’re all filled with liquidity so you can easily execute trades whenever they present themselves as opportunities.
The risks associated with cryptocurrency arbitrage include Price differences between exchanges may vary over time depending on supply-demand conditions; therefore, not all opportunities will be available at any given point in time. If an arbitrage opportunity disappears before executing it successfully—for example due to insufficient funding from your account—you’ll lose out on potential gains!
Planning your trades is the best way to make sure you have the highest chance to be successful.
Planning your trades is the best way to make sure you have the highest chance of being successful. If you want to be a day trader, then it’s important to know what kind of trader you want to be and how much time you can spend on trading.
For example, if I’m looking at an exchange like Poloniex or 1k daily profit and my goal is just making money from day trading (and not taking into account any other goals), then I would probably use something like MetaTrader 4 or 5 as my platform of choice because it has support for multiple currencies so there’s less work involved in setting up an account for each currency pair that I want my portfolio composed of (like USD/BTC). That way I only have one set-up process instead of having many different ones depending on which crypto coin pair(s) each client wants us working with at any given time.
