Here is a simplified guide to the key strategies used in the crypto market:
✅ First: Understand the market
Before any strategy, you must understand that the cryptocurrency market is very volatile and is influenced by many factors such as:
Global economic news and legislation
Technical updates for projects (like Ethereum upgrades)
Whale movements (large wallet holders)
🔍 Common strategy types
1. Long-term investment (HODL)
You buy a currency with a strong project and hold it for a long time (months or years).
Depends on strong fundamental analysis.
Example: Investing in Bitcoin or Ethereum for the long term.
2. Day Trading
Opening and closing positions throughout the day to take advantage of short market fluctuations.
Requires precise technical analysis and quick decision-making.
Suitable for experts or full-time traders.
3. Swing Trading
Opening positions for several days or weeks.
Depends on trends and technical analysis.
Less stressful than day trading.
4. Dollar Cost Averaging (DCA)
Buying small amounts of the currency at regular intervals, regardless of the price.
Reduces the impact of volatility and helps build a good investment position over time.
5. Fundamental + Technical Analysis
Fundamental analysis: Understanding the project, the team, the roadmap, market size.
Technical analysis: Using charts, indicators like RSI, MACD, support and resistance.
🛠 Tools to help you:
CoinMarketCap / CoinGecko (Market Information)
TradingView (Technical Analysis)
Glassnode / CryptoQuant (On-chain analysis)
⚠️ Important tips:
1. Do not invest what you cannot afford to lose.
2. Diversify.
3. Use stop loss.
4. Continuously follow news and updates.
5. Beware of high leverage.