Basics for Successful Crypto Traders

Colin Baseman

Investment is a confusing area and crypto investment is twice as complicated. It is new and unknown to many of us and there are beginners who still need an experienced guide to help them get through. Even if you’ve been around for quite some time, you can hardly feel sure enough to predict and foresee the future – you need to develop and learn new strategies to become more successful.

Investment and trade involve several basic rules. Follow them while dealing with the currency. Which one you choose depends on various factors, such as time it may take and risks it involves. Individual circumstances also play a certain role. The same strategy may have a different impact on every trader. Doing research is the first step. Find out what works best for you and invest as much as you can afford to lose.

The article you are reading is no recommendation or advice. Use the information for further research and analysis.

HODLing and Ceypto-Cost Averaging

HODLing is a purchase of cryptocurrency for potential long-term growth. It is effective considering Bitcoin’s sudden rise in value since the very start. Look through the statistics to find out how its value changed throughout the years.

We cannot deny the fact that HODling involves risks. Your optioned are limited. Watching or cutting your losses is a stressful experience for most traders. We insist you should never invest more that you can afford.

Crypto-cost averaging decreases possible risks. Here the point is to perform regular investments. You invest the same amount at repeated intervals without taking into consideration daily fluctuations.

Day Trading and Scalp Trading

Day trading involves more nuance. However, this approach is more time-consuming than HODLing. Your investment is short-term with an intention to sell your investment for greater price. Movements can be predicted by those who employ various tactics and base their knowledge on analysis.

Scalp trading is about taking short-term positions (seconds, minutes). Gains are relatively low. More attention is needed. Since more trades can be made within the day, potential profits can be higher than those you have when applying other strategies.

Swing Trading ad Automated Trading

Swing trading can be compared to day trading. This strategy allows you to hold longer positions. How long it runs depends on the market ‘swing’. It is a less time-consuming approach. Less attention is needed yet you still should keep an eye on the latest trends. Price shifts can bring greater profits. However, the ‘swing’ may bring losses and work against you.

Automated trading is a short-term approach. Trading processes are automated so that they could react to market conditions without your constant interference.

This strategy is mainly based on software, the so called trading bots, which keep trading for you. Bidding is performed without your participation, however, you can always control over the processes by choosing and using some certain options and functions.

Trading bots have nothing to do with artificial intelligence. It cannot think or draw conclusions. It cannot choose the right strategy to help you gain. When trusting a trading bot you mainly trust on its creator. Bots are programmed and function like any other machines. The human mind, intuition and research your do are more trustworthy and effective than what software can offer. You can never rely on trading bots simply because they are no economists or market analysts.


The strategies we have mentioned and briefly described in our review are some of the most common. They are well-known to traders and frequently employed at Luno. If you wish to find out more option, we suggest you should continue to do your own research to decide on the most effective approach. New strategies are being developed since the market itself and participants find out new tactics and approaches. Smart financial decisions can be made by those who invest time in thorough research and analysis. Remember that even after years of studies and practice, there is no guarantee you will always gain and never lose.