How to Invest in Cryptocurrency: 5 Strategies

As a beginner, you may ask how to invest in cryptocurrency? Having a strategy in crypto investing is very important for your success. Therefore, in this post, you will get five proven crypto investment strategies that can be easily implemented by beginners.

You might get successful without it  but having a strategy means you are literally prepared for the worst case scenario. For instance, you can take an example of planning a road trip. Here trading strategy in cryptocurrencies is like having a detailed map and itinerary. Without a strategy you will either decide your route impulsively or follow what others are doing.

For instance, having a cryptocurrency strategy could mean deciding to only invest a certain percentage of your savings, setting a target for when to sell (take profit), and establishing a point where you’ll cut losses to protect your investment. This way, you’re less likely to be swayed by emotions when the market gets bumpy, similar to how a well-thought-out road trip plan helps you stay on course despite unexpected detours.

Why Do You Need a Strategy?

Every person who is going to invest in cryptocurrency will have their own strategy but it is not necessary that they are going to be successful. In this article we will discuss those strategies that are known globally and those that have a real logic.

A cryptocurrency trading strategy is basically a set of rules or methods that are established by multiple successful traders over time. It is to note that these said traders were also beginners but overtime they became successful. Their trial and error led them to these successful strategies that became specific in crypto trading.

You will get help in following aspects if you are going to follow these strategies that we are going to be talking about in a while.

Monitoring The Performance: 

If you have a clear strategy in your mind then you can easily monitor your trading performance and make necessary changes where necessary. You will know whether what you are doing is working or not and what steps need to be taken to soar the results. 

Emotionally Prepared

We all know that anything can happen in a matter of minutes in the crypto world. If you will have set rules beforehand then you will not make any bad decisions during a downturn.

Trading Uniformity

A cryptocurrencies trading strategy makes sure that you will not make any decisions in a hurry by getting affected with current sets of events. It will also make sure that you will trade with greater uniformity.

Risk Management

If you will be following a strategy then you will not get greatly affected by a downturn because the strategy makes sure that all risks are noted while making any move.

Cryptocurrency trading strategies For Beginners

1. Buy-and-Hold (HODL)

The first strategy that early traders use is HODL. It literally means to purchase a certain coin to hold on for dear life. It means that if you are following this cryptocurrency strategy then you will not be doing any buying and selling, on the contrary you are going to keep the coin until it becomes famous and gains tremendous value. 

But you have to be very careful about choosing a coin here. You have to take a quite literally deep look into its white paper and dig out potential projects. The actual goal will be to find and hold on to these coins till they become mainstream.

2. Dollar-Cost Averaging (DCA)

If you want a long term investment then DCA is for you where you will purchase cryptocurrency with a fixed dollar amount regularly regardless of its price. It means that you will purchase more crypto while prices are low and vice versa, thus potentially lowering the average cost per unit over time, 

This approach will help you build an asset over time regardless of the volatility of the chosen amount.

3. Day Trading

If you are not the long term investor type and want to make quick sales and purchases then you might want to try day trading strategy, it involves buying and selling cryptocurrencies in a single day while taking advantage of their volatile nature. It is to be kept in mind that day traders are more exposed to risks therefore all the decisions regarding purchasing and selling must be based on technical analysis. 

Day trading requires quick decision making where traders have to constantly monitor the price charts, news, market trends so that they can make wise decisions on when to enter or exit the trades. It might be a high risk strategy but it provides high rewards if you have a good understanding of the market.

4. Swing Trading

Swing trading is just like day trading with a slight difference. Here traders capitalise on short to medium-term price fluctuations or ‘swings’. The traders usually buy crypto at lower price and sell at higher price. But unlike day trading where trade is made within a single day,here traders hold the currency for a few days. They do technical analysis, look closely at chart patterns and market trends to make informed decisions.

It is to be kept in mind that both day trading and swing trading are high risk strategies so one must only invest what he can afford to lose.

5. Trend Trading

In cryptocurrency, trend trading entails determining and adhering to the dominant market trend when making trade selections. Traders using this approach seek to capitalise on existing trends, whether they are bearish or bullish and moving in either direction. Buying in an uptrend or shorting assets in a decline with the expectation that the trend would continue is the notion.

Trends are frequently found using technical analysis and tools like trendlines, moving averages, and other indicators. Trend traders are usually long-term holders of positions that enable them to profit from large market movements. But it’s crucial to remember that markets can occasionally experience reversals or abrupt shifts in direction, so correctly spotting and tracking trends requires expertise and careful consideration.

Choosing The Right Cryptocurrency Strategy

Out of these 5 cryptocurrency trading strategies for beginners,  choosing the right one for yourself can be a daunting task. Before considering any one or a combination of them, define your risk tolerance, knowledge of capital market and most importantly time availability, 

If you are not sure and confused then do a fake trade or paper trade with different strategies to know what is best for you according to your trading skills and investment.


Cryptocurrency trading strategies are a great way to take emotions out. They help you to make decisions wisely and more importantly in difficult times where the market is facing a downturn.

If some gained success with a particular strategy, then it does not depend on the same work for you, it is all the game of how much risk you can afford, what is your market knowledge and how much you are willing to invest both in terms of assets and time.

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