Crypto investing is finally picking up speed, and today, anyone can create a crypto portfolio. As trading gains popularity, it’s common to come across articles that present “the best advice” for new crypto investors, only to discover that the title was clickbait.
As more and more traders are joining the community, it gets tougher to find strategies that actually work wonders for beginners. Take a gander at some online articles yourself. Countless promote high-frequency trading, swing trading and range trading – strategies we would recommend to advanced traders. So today, we want to present you with a few alternative strategies that can truly help you start earning crypto today!
The Best Place to Purchase Crypto
There are hundreds of crypto exchanges and brokerage companies you can sign up with to start buying crypto. Some, as you might imagine, are better than others. For example, many would go for the popular Binance exchange without knowing about the company’s alleged securities violations.
Countless illegitimate websites pose as exchanges and try to scam you out of your money. Therefore, choosing where you get your crypto is equally as important as selecting a token and strategy. That’s why, before we introduce you to some trading strategies, we want to recommend a popular platform you can trust, which will help you connect with an established crypto broker.
Consider joining Immediate Edge, a matching site that uses automated processes to find you the best crypto broker. Here, you can work together side by side and build an investment portfolio. You can discuss your preferred crypto trading strategies, cover topics like your risk tolerance, and ask any questions that pop to mind. Of course, you will get access to trading tools such as Meta Trader, for example, and educational materials to help kickstart your journey into trading.
The best part? You can pick a trading strategy for beginner traders today and discuss how to best apply it to your portfolio and start earning! Signing up is free, so don’t hesitate to give Crypto Genius a try.
Crypto Trading Strategies for the Risk-Averse
We decided to divide our strategies into two lists. In the first part, we’ll focus on easy, low-risk cryptocurrency trading strategies that you can apply today. They are perfect for traders with low-risk appetites who aren’t keen on putting their money on the line. The strategies also differ depending on your budget. Some may be more useful to traders with a large investment, while others fit those on a fixed budget. Let’s get started!
1. HODL-ing: Keep Calm and Watch Your Investment Grow
You have likely heard of HODL-ing before. It’s a term in the crypto community that refers to “holding on for dear life.” It started as a typo by an angsty crypto trader who sold all his Bitcoin assets just before their price skyrocketed. With HODL-ing, you need to choose stable crypto assets, like Bitcoin or Ethereum, among others, and try to reap from their long-term price rise.
It’s a strategy that asks for the least involvement on your side, apart from checking crypto market prices related to your asset classes. It can be challenging because you need to control your FUD, fear, uncertainty, and doubt. As you know, crypto market volatility is what drives prices up and down.
There are times when your investment might drop, which might urge you to sell it and prevent further losses. But as we saw from the example with the disappointed trader, it’s sometimes best to wait out the storm. After huge drops, prices also tend to go up, and here is where HODL can be beneficial.
2. Crypto Staking: Earn Rewards for Your Support
Next on the list of trading strategies is crypto staking. It’s suitable for investors looking to set aside a large sum of money that they’re not going to withdraw for an extended period. Staking is very similar to HODL-ing but comes with passive rewards. In essence, you can stake a portion of your crypto assets to support a certain blockchain.
For example, you can stake Ethereum, which means you would lock your Ethereum holdings for a specific time. In return, you will receive a percentage of your stake in crypto every month. Of course, each staking contract is different, and some may reward on a 6-month or yearly basis. But the bottom line is that you get free crypto in exchange for HODL-ing.
It’s worth mentioning that while crypto staking can be a lucrative strategy for some, it comes with a set of Terms and Conditions that you need to consider. Overall, you will be locking your assets and won’t be able to sell them if the crypto network collapses. Be mindful of the information in your staking contract and read it carefully.
Here are the most popular cryptocurrencies you can stake:
- Ethereum (ETH)
- Solana (SOL)
- BNB (BNB)
- OKB (OKB)
- Cardano (ADA)
3. Dollar-Cost Averaging: Slow and Steady Wins The Race
This cryptocurrency trading strategy may sound complex at first glance, but it’s actually pretty simple. It’s all about how you start trading. Let’s say you have a budget of €6000 for your crypto investment. If you want to employ dollar cost averaging, you will divide that budget into portions and invest the money gradually, as opposed to all at once.
Most beginner traders will spend a lump sum on their first investment, but the DCA strategy invites you to consider the opposite approach. Instead, choose to invest the same amount of money weekly or monthly. The idea is that you will divide the volatility throughout your investments, potentially reducing its effects. As the adage goes, slow and steady wins the race.
4. Mining: A Surprising Way To Earn
Let’s not get ahead of ourselves. We don’t mean Bitcoin mining. We are talking about other small-scale mining methods that you can try. All you need for them is your smartphone. These various crypto trading strategies are excellent for traders on a low budget. Consider the following three options:
- Pi Network: By joining the Pi Network, you can start mining crypto by logging into their dedicated app once a day and pressing a button. That way, you maintain the network’s authenticity, show your support, and earn some Pi coins in the process.
- Fitcoin: If you work out several times a week and track your activity with a sports app such as Fitbit, you can convert your burnt calories into crypto. Download the Fitcoin app, and connect it to your Fitbit. Trading cryptocurrency has never been healthier!
- COIN app: The adventurous types who enjoy travelling long distances will appreciate COIN app. Switch it on during your next trip, and allow it to track your location. Drive around the countryside or simply commute to work and let COIN mine geoblocks along the way. The more you use it, the more tokens you can earn, which you can later convert into crypto or swap for nifty gadgets like VR sets or tablets.
Pro tip: Try mixing several of these crypto trading strategies together for ultimate results! That way, you are not putting all of your eggs in one basket, and you have several resources of passive income.
Crypto Trading Strategies for Risk-Takers
Some traders have a bigger risk appetite and like to take advantage of market fluctuations and volatility. If this sounds like you, and you are aware you might equally win and lose money by employing these crypto trading strategies, take a look below:
1. Trend Trading: Employ Asset History
Major coins like Bitcoin and Ethereum have been around for long enough for us to study their history and trends. You’ll see avid investors who try to predict the next price tendencies of major coins and tokens. This is called trend trading, a crypto strategy that tries to predict when a coin will gain momentum and experience an upward trend. Consider this helpful Guide on Trend Trading to understand more about the process.
2. ICO Investing: Big Risk With Huge Reward Potential
Next on our list of risky crypto trading strategies is ICO investing. While there is a fair amount of written work online on the possible risks of ICO investments, it can prove a lucrative gaining method for some traders. So, what does this tactic entail exactly?
It is all about supporting emerging coins and projects, buying their tokens, and hoping that your investment pays out in the future. One such example we have already introduced is the Pi coin. The project is only a few years old, and the price of Pi is still a huge mystery. The Pi Network will soon announce how much a single Pi is worth, and those who have been mining it might be in for a nice treat.
3. Day Trading: Benefit From Market Volatility
Perhaps the most complicated strategy in this article is day trading. We recommend it to beginners who can set aside a few days (and nights) from their week. It is a tiring strategy, but you could make a good investment, sometimes overnight.
It focuses on tracing the price difference of an asset over the course of a few days. Day traders exploit the inevitable market volatility and benefit from a rise in asset worth over a specific trading period. It does require you to be glued to your computer 24/7, as you might miss an opportunity even if you go away from the screen for a few hours.
The day trading strategy is a step up from the rest listed in this article. However, it is certainly possible for first-timers to make money using it. Just remember to only invest what you are comfortable losing, and never exceed this threshold. Let’s not forget that trading any crypto is a risky endeavour!
Let’s face it – crypto trading can be a fun hobby, but finding the right crypto strategy for you will involve some trial and error. That’s why we recommend that beginners work alongside a crypto broker, who can gradually introduce you to the crypto sector. Brokers can provide 24/7 support and answer any questions you might have. Of course, if you are a lone wolf and prefer to tread the twisted paths of crypto trading alone, there are plenty of strategies here that can help you.
Above all, consider your long-term goals and your appetite for risk. Based on this information, you can choose your first strategy and begin experimenting. Don’t give up if it doesn’t work out the first time. It might take a few tries before you discover your ideal strategy and make a profit!
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