Most profitable crypto trading strategy you need to know and apply in order to avoid losses. Crypto is a volatile-type of investment, meaning the increase and decrease in price can reach tens of percent a day. So with this series of strategies, you don’t need to guess and face losses during trading.
7 Most Profitable Crypto Trading Strategy (Mostly Not for Beginners)
Arbitrage
The arbitrage strategy can be applied by buying crypto at a low price in one market but not holding it. You must immediately sell it in another market by setting a much higher price to reduce the risk of loss. In addition, this method has the potential to provide greater profits than you expect.
The good news is, arbitrage is a strategy that has minimal market risk so it is worth trying. Although the transaction costs are quite high with the risk of transfer time delays, the profit is relatively fast. This isn’t a strategy for beginners that’s done manually, because it requires capital as well as speed and bot assistance.
Swing Trading
When buying crypto at a low price and then selling it when the price is high, it’s called swing trading. If the arbitrage process strategy requires speed, then this one can be done quickly (only in days) or later. It all depends on whether the high price is right for you to sell crypto immediately.
The best trading strategy for crypto includes swing trading with a period of several days to several weeks to sell. This strategy is suitable for people who are still in college or already working without monitoring prices all the time. Although it requires technical analysis, this method is more relaxed with the potential for quite large profits.
High-Frequency Trading (HFT)
Another strategy that’s also recommended is HFT, although it requires an algorithm as well as a fast server and bot. This strategy isn’t to be done manually, especially by beginners because it requires high speed with large capital. Ordinary traders aren’t advised to try because this method is expensive and complex, suitable for companies/individuals with IT teams.
However, if you look at it in terms of profit, of course this strategy brings you much greater profits. With the help of automation and a professional IT team, the system can trade 24/7 by itself. Therefore, this strategy is more recommended for large institutions because its efficiency is higher and not for beginner training.
HODLing
Crypto trading strategies also include HODLing, if you believe crypto will be an important part of the future financial system. Traders use this strategy because they don’t really care about the price going down today or tomorrow. So if you believe that the value of crypto will rise much higher in the future, HODLing can be used.
Although the risk is that the price can fall quickly, even up to 50-80%, many still choose this strategy. As long as you have large capital with smooth and stable finances, you can try HODLing without monitoring every day. The profit will be quite large as long as you’re patient, suitable for those of you who aren’t FOMO.
Dollar-Cost Averaging (DCA)
DCA is another strategy which is buying the same amount of crypto assets per week or month. This method has minimal risk and you still make a profit when the price goes up in the long term. Beginner traders can apply this strategy, but it requires high consistency and discipline without skipping when the price goes down.
Day Trading
Most profitable crypto trading strategy for your portfolio is day trading, although it is active and high-risk. On the same day you need to buy and sell assets because of their short-term price fluctuations. It takes high accuracy, discipline, and the right way to play so that the profit obtained is high.
Scalping
Aside from being fast, scalping strategy is a short-term trading process so it can be done several times a day. It requires a large capital because the profit is smaller than other strategies so that it’s expected to be stable. For those of you who like fast and accurate analysis types, scalping is the right strategy.
Most profitable crypto trading strategy ideas mentioned above are very diverse with their respective advantages and disadvantages. In terms of purpose, it’s done so that you do trading not emotionally but have a rational plan. With the right strategy, you can consistently profit even though it’s not always right.
