3 Crypto Investment Strategies You Should Know

There’s a lot of excitement around the crypto market right now. While the industry is still experiencing its second winter, new developments – such as the PayPal stablecoin and the rumors of X expanding into a financial, crypto-driven platform – are beginning to get investors tingling with anticipation. 

The world’s biggest cryptocurrency, Bitcoin, is sitting at around $22,000 today, but experts are still projecting a price rise to $69,000 by 2030. With new altcoins joining in on the fun and blockchain technology becoming more integrated into everyday life, the next few years could certainly push the industry into another bull market. 

So it seems like a good time to get involved! But before you do anything drastic, it’s important to take a step back and consider your options. This is especially true when it comes to your trading strategies. While it can be invigorating to simply jump straight into crypto and hope that you make all the right decisions, it’s not exactly feasible. 

What you need is a trading strategy that is safe, and secure, and puts you on the right path for success. With this in mind, here are 3 of the most popular crypto investment strategies and why they might work for you:

Hodling

A highly popular crypto investment strategy is known as “hodling”. This refers to investors who buy crypto tokens and then hold onto them until the price rises significantly. This, of course, can be very lucrative in the long term. Just think, anyone who decided to hodl their BTC back in 2014 and then sell in 2021 saw a profit of $68,680 – the closing price of BTC in 2014 was $320, while the peak price in 2021 was $69,000. 

This is certainly a low-stress option, for people who are interested in the potential of crypto in the long term and are okay with holding out. It’s important to note, however, that a lot of effort should be put into buying the right coin. This means reading into the market, checking reviews, and absorbing as many guides as possible – check out cryptosoho.com as an example.

Day Trading

Day trading is basically the opposite of hodling. Instead of buying and then waiting, you buy and then sell, sometimes within seconds! Most of these traders will make multiple trades in a day, attaining small profits that steadily build up. 

It’s important to note, however, that day traders need a good technical analysis of the crypto market and should keep on top of all the latest price moves. This means following price fluctuations and keeping track of volume trading all day long. As well as this, you need to be okay with putting yourself in a high-risk, high-stress situation. Day trading is fast, and that means there’s high chance of success, but also a chance of failure.

Swing Trading

Swing trading is a little like day trading, only the investor will keep track of price movements and sell within a few days or a few weeks. Everyone involved in the market will know that there is a lot of crypto volatility. This means that large price swings happen pretty regularly and with a number of patterns that can be recognised if a trader puts their attention into them. Swing traders will therefore notice when certain trends are repeating themselves – or about to repeat themselves – through market sentiments and trading volumes. 

They will then take advantage of these trends by moving in their direction and selling their tokens for short-term profit. This is a great option for traders who want to take a bit of a risk, but are not prepared to analyse the market all day – as you would have to as a swing trader. Whether it’s hodling, day trading, or swing trading, however, there is always risk involved, but also a potential to take advantage of an ever-changing market!

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