Here is a simplified guide to the most important strategies used in the crypto market:
✅ First: Understand the market
Before any strategy, you must understand that the cryptocurrency market is very volatile and affected by many factors such as:
Global economic news and regulations
Technical updates for projects (like Ethereum upgrades)
Whale movements (large wallet owners)
🔍 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
Open and close trades throughout the day to take advantage of short market fluctuations.
Requires precise technical analysis and quick decision-making.
Suitable for experts or those with full-time dedication.
3. Swing trading
Open trades for several days or weeks.
Depends on trends and technical analysis.
Less stressful than day trading.
4. Weighted average cost (DCA - Dollar Cost Averaging)
Buy 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, team, 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.
