What Are The Three Main Types of Cryptocurrency Trading Strategies?

So, you are seeking cryptocurrency investment strategies that can help you amass a fortune through considerable trades? Well, you are at the right place because this post has brought three of the most used trading styles in the cryptocurrency investment and trading world. You may be one of the early traders who is trying to set their foot in the cryptocurrency investment markets. Therefore, you should know that there is no absolute trading strategy that will guarantee you profits or earn you millions of dollars overnight. In fact, it takes dedication and time before you are a professional cryptocurrency trader.

So, be sure to take a look at these short-term cryptocurrency trading strategies. Only by acquiring the right trading style as per your trading preferences will you be able to achieve your financial goals.

Day Trading

Day trading is one of the most common types of short-term trading strategies that traders use across the world. The main features of this trading strategy are that it allows you to be flexible and on-point with your trading routine. You don’t have to leave your trades and positions open overnight if you’re afraid that you may lose value while you’re not actively trading. That’s why day trading has become so popular among beginner and experienced traders worldwide.

In simple words, day trading refers to when you invest in the cryptocurrencies of your choice and leave the trades open throughout the day. You close and deal with trades as per the profit potential. However, the real distinction in this trading strategy is that no day trader leaves their trade position or orders open overnight. Since day traders don’t wish to leave their trades open overnight, they begin new trades every day and close them before midnight.

Swing Trading

This is another trading strategy that has become highly popular in the cryptocurrency trading market. This process is highly complicated and involves great sophistication due to the use of graphical representations and trend recognition. You should know that in swing trading, traders use graphs and charts to learn about the price trends of different cryptocurrencies. They make use of the information they gather by learning about the price instability and cryptocurrency value fluctuations to make trades.

In conventional trading, traders would acquire information from different time intervals to assess the price trends and market conditions to make trading decisions. Although the procedure is the same in cryptocurrency trading, the method becomes quite sophisticated depending upon the complexity of the graphical representations used. In easier words, swing traders use price patterns to learn when a price dip or peak is probable to place their orders and open up positions.


To explain short-term trading strategies, scalping is the perfect example. Scalping is very similar to day trading in the sense that the traders don’t keep trades open for much longer. They might sell the coins as soon as they buy them because that’s what scalping is. Scalping refers to using different crypto trading platforms to buy cryptocurrencies for the short term and selling them as soon as there’s even the slightest chance of gaining a profit.

For this type of trading, the main problem is that you may have to pay a high per trade commission if you don’t choose the right broker. While per trade profits through scalping appear extremely small, when you multiply them with hundreds of trades per day, you get a reasonable amount of profit.


Now you are aware of the best short-term cryptocurrency trading strategies that beginners, as well as experienced traders, are using across the internet. You should know that there is no end to how much profit you can make trading cryptocurrencies over the internet. However, being mindful and considerate in your decisions is the key to success rather than amassing a fortune in a short time. The market’s volatility bears massive price swings. Hence, you have to learn to read between the lines and trade accordingly.