Having a well-thought-out trading strategy is a very important factor in becoming a successful crypto trader. But, because there are so many strategies available in the market, it is only natural for beginner traders to get overwhelmed and find it hard to choose a trading strategy that fits their needs.
Every Forex trader is different with their own unique needs and interests in the market. But, there are several strategies that are simply better than the others. Today, we are going to discuss the top 3 trading strategies for crypto trading that you can use right now.
The three best trading strategies for crypto traders are Smart Trading, Automated Trading, and HODL. While different, these strategies have many things in common, which make them very helpful for crypto traders.
Today, we are going to discuss each of these strategies one by one and see what makes them so special and unique. You can choose the one that fits your needs the best once you understand how they actually work.
Smart Trading Strategy in Crypto Trading
A smart Trading strategy is truly a smart idea for making good profits while trading digital coins. The main idea behind this trading strategy is to combine smart orders to make sure that you are ready for any situation in the market.
Many traders using this strategy are combining Stop Limit and Stop Loss orders to trade cryptocurrencies. Both of these orders are very helpful for crypto traders to control their risks, while also making sure that they do not miss out on major opportunities in the market.
This trading strategy gives traders amazing risk and rewards control, making it a perfect fit for crypto traders. You can create numerous different combinations of smart orders based on your personal preferences. For example, you can combine take profit and stop loss, which is the easiest way to use a Smart trading strategy. With this option, you are only required to place 2 orders.
You can use take profit to make sure that you earn profits when the price hits the target zone you have chosen. On the other hand, you can make sure to not lose money over a certain limit by using the stop-loss order in case something goes wrong in the market.
You can even take this strategy to a whole new level by combining several take profits and stop-loss orders at the same time. Unlike the previous example, this method provides you with more flexibility, however, it might be a bit hard for total beginners to execute.
Trading Automation in the Crypto Market
With the unprecedented increase of crypto trading robots, automated crypto trading has become very popular in the market over the past few years. Thanks to crypto trading robots like Bitsgap, trading is accessible for everyone around the world, even for those who do not have much experience in trading.
If you are someone looking for stable and consistent daily returns in the crypto trading market, using trading robots is a great option for you. Trading bots are able to analyze the market 24/7, which means that you can continue earning profits wherever you are at all times. Just set up the bot, connect it to your exchange, enable smart orders, and you are good to go.
For example, the main aim of the Bitsgap trading robot is to make profits in a quote currency. While doing so, the trader is exposed to the volatility of the base currency. For example, if you are trading BTC/BNB, you will be making profits in BNB automatically.
Trading automation makes everything easier for beginner traders as the robots are able to analyze the price movements in the market in a matter of minutes.
HODL Strategy in Crypto Trading
Out of the many strategies available in the market, HODL is known for being the riskiest yet among the most popular strategies in the market. While it comes with many risks, it can also be very rewarding for traders.
By using this strategy, you are risking losing almost all of your funds. You might wonder why anyone would use such a risky strategy, but the answer is simple – the chances of generating unlimited profits. This is a very simple trading strategy to execute. All you do with this strategy is buying digital coins and holding them without having to set any of the take profit or stop loss, or any other smart orders.
This is mostly a long-term trading strategy aimed at making huge profits in the future. As long as you understand the actual risks associated with this strategy, you have the opportunity to use it successfully for your trading ventures.
Which One Should You Use?
Choosing which strategy to use out of the three that we have listed might be a bit hard. All of these three strategies are really good and they offer numerous opportunities for making great profits.
The best thing to do is to find a perfect balance between these strategies and use them all. This type of diversification is a very important step towards safeguarding your investments. You can allocate more money to the strategy that is less risky, and less money to the riskier strategy.
This way, you can be sure that you do not miss out on major profitable opportunities, but you do not lose more money than you can afford.