Trading Strategies for Beginners
Scalping 5-10 trades per day. Scalping involves closing positions within minutes or hours to lock in profits from minor price fluctuations. Real-time analysis is critical for this strategy.
Tools:
Real-time charts with a timeframe of 1-5 minutes.
Support/resistance levels.
Order book (Level 2) for liquidity analysis.
Work only with highly liquid cryptocurrencies, such as Bitcoin or Ethereum, to reduce the risk of getting stuck in a trade. Set a stop loss (an order to automatically sell an asset when a certain price is reached) at 0.5-1% of the deposit to limit potential losses. For scalping, choose exchanges with minimal fees, such as Binance or Bybit, as frequent trades can “eat up” profits. How to lock in profits correctly? Set goals in advance and close the deal according to plan, without giving in to emotions.
Swing trading holding positions for 2-5 days. Swing trading is focused on medium-term trends. It is important to combine technical and fundamental analysis. Study charts on H1-D1 timeframes (time intervals on which price movements are analyzed, for example: 1 hour, 1 day, 1 week), use indicators such as EMA (50/200), RSI and MACD to confirm signals. Consider the news background: announcements of hard forks (radical updates to the blockchain, after which the network can split into two), listings (placing cryptocurrency on the exchange to start trading) on large exchanges or changes in regulation.
The arbitrage method is based on buying an asset on one exchange and selling it on another, where the price is higher. In 2025, automated arbitrage platforms and tools have simplified the process: for example, the ArbiScan platform analyzes 50+ exchanges and shows profitable opportunities. Bots monitor rates in real time and execute trades in milliseconds.
Cryptocurrency arbitrage is a strategy for making money on the difference in prices of the same cryptocurrency on different exchanges or on the same exchange, but on different pairs with the same asset. If we talk about inter-exchange (the most popular) arbitrage, then its essence is to buy an asset on one platform at a lower price and sell it on another at a higher price, thereby making money on the difference. Cryptocurrency prices can differ on different exchanges due to many factors: trading volume, liquidity, supply and demand at a particular point in time.
If we talk about intra-exchange triangular arbitrage (a more complex type of such trading), then this strategy is that the trader uses price discrepancies between three different cryptocurrency pairs on the same exchange. The process begins with the trader buying one cryptocurrency for another, then exchanging it for a third, and eventually returning to the original cryptocurrency, while making a profit from changes in the rates between these assets. The essence of the strategy is that temporary discrepancies between the prices of different trading pairs may occur on one exchange.
However, arbitrage itself is a complex earning strategy, finding arbitrage opportunities can be very time-consuming and, as a rule, it is very difficult to achieve success “by hand”, so arbitrageurs usually use automated trading bots or programs to find and execute opportunities.
Types and markets of crypto arbitrage
Inter-exchange arbitrage
The most common type of arbitrage trading is inter-exchange arbitrage. Inter-exchange arbitrage is a trading strategy that allows traders to profit from the difference in prices of the same cryptocurrency on different exchanges. If you study the order book of the same asset on different exchanges, you will see that the prices at the same time almost never match.
This is where arbitrage traders come in, looking to take advantage of these small price differences to make money. Market inefficiencies here can offer opportunities to make money. How does this happen in practice? Let's say the price of BTC differs between the WhiteBIT exchange and another platform. An arbitrage trader will look to buy BTC on an exchange where it is cheaper and sell it where it is more expensive. Speed and reaction time are especially important in this process.
However, it is important to understand that inter-exchange arbitrage can have its own limitations and risks. Some of these include delays in trade execution, limited liquidity, and price changes in the market. Careful research and understanding of each exchange and market conditions, as well as effective risk management, are required.
Intra-exchange arbitrage
Intra-exchange arbitrage is a trading strategy that allows traders to profit from price differences between the same cryptocurrency on the same exchange due to price de-correlation. If you find a difference in the price of the same cryptocurrency, you can perform buy and sell operations on different trading pairs. For example, if the price on the BTC/USD pair is higher than the BTC/EUR pair, you can buy BTC on the BTC/EUR pair and sell it on the BTC/USD pair to make a profit in fiat. When performing intra-exchange arbitrage operations, do not forget to take into account the fees and expenses that may arise when making trades. This will help you accurately calculate the potential profit.
Triangular arbitrage
Triangular arbitrage is a trading strategy that is used in financial markets to profit from the difference in prices between three different assets. It is based on the principle that on different exchanges or currency platforms, asset prices may differ, and traders can take advantage of this difference to make a profit.
Advantages of cryptocurrency arbitrage
One of the main advantages of arbitrage is that there is no need to predict future price movements. The arbitrageur already knows where the prices of the selected asset differ. He only needs to correctly execute the transaction. Speed of action and speed of reaction to price changes are critical for successful arbitrage. The faster the purchase and, more importantly, the sale of an asset, the higher the chances of completing the transaction with a profit.
In addition, unlike traditional trading, cryptocurrency arbitrage allows traders to minimize the risks associated with price changes in the market. Since transactions are carried out almost simultaneously. To make it easier to make and find arbitrage opportunities, special automated bots have been created that can effectively perform most of the analysis and monitoring of the cryptocurrency market, finding the best arbitrage opportunities. However, such bots usually cost money, and their cost is usually high.
Spot trading on exchanges
This is the basic method for those who want to start earning on the difference in rates. Unlike futures (earning on changes in the price of an asset in the future using leverage), spot trading is less risky: you buy assets at the current price without leverage.
Choosing a reliable crypto exchange. Before registering on the platform, pay attention to three key factors:
Licenses and regulation. Regulated platforms (for example, MiCA in the EU) comply with strict security standards.
Trading volume. Exchanges with a turnover of $1 billion per day provide liquidity, which is important for fast order execution.
Insurance fund. Having reserves in case of hacker attacks reduces the risk of losing funds.
Copying traders' trades
Trading is an extremely popular way to earn money, millions of people open trading terminals and make trades every day. Among them, there are indeed professionals who have spent years honing their strategies and automating them. At the same time, the market is full of people with money who would like to trade, but cannot or do not want to study. This is how the idea of copying trades (copy trading) appeared - a mirror transfer of a professional trader's trade to the accounts of those who want it (for a fee, of course).
To start copying trades, you first need to create and fund an account on a cryptocurrency exchange. Then you need to register on one of the copying services and link your exchange account. Next comes the most important point - choosing a trader to copy. Everyone has different views on this point, but personally, based on many years of experience investing in PAMM accounts (a similar way of earning), I set the following criteria:
at least 2 years of successful public trading;
maximum drawdown up to 50%;
no Martingale (graph is a straight line).
It is important to remember the risks: all traders use leverage, and their real skills are proven only by time and results. If you make an unsuccessful choice, you can easily lose your entire deposit.
Automatic trading with bots
Not only people can trade for you. Trading bots (robots, advisors) are special algorithms that help in trading. The most advanced programs can completely replace a trader and execute all elements of a trading strategy. Today, more than half of the transactions on exchanges are made by trading robots. They are able to monitor the market 24/7 and immediately open transactions when the right conditions arise.
This code can automatically place orders to buy and sell bitcoins through the exchange API, however, there is no trading strategy here and in practice, much more complex programs are used. The market is constantly changing, so to earn money on algorithmic trading, you will also need regular trading skills - market analysis, risk management, reading indicators, etc.
If you want, you will find dozens of offers to buy trading bots on the Internet. In my opinion, this is a very dubious way to earn money - licenses are expensive, and no one really gives any guarantees. After all, why sell a quality product if you can earn money on it yourself? The best way to make money with crypto bots is to develop them yourself.
7 Best Cryptocurrency Trading Strategies
Below we have collected some of the best cryptocurrency trading methods that most successful traders use. After you try the suggested trading strategies, cryptocurrency will no longer be a mysterious asset with frightening volatility for you.
Positional Trading
This trading strategy involves holding open positions for a long time. In the cryptocurrency world, it is called HODL (hold on for dear life). In fact, this is an entire philosophy of the investor, his belief on the verge of religious faith in a bright and prosperous future for everyone who keeps their cryptocurrency in their wallet no matter what. In the classical sense, positional traders explain their decisions by the long-term performance of assets. Potential growth is based on fundamental factors, macroeconomic analysis, and long-term market cycles associated with the Bitcoin halving. Positional trading involves holding assets for a long time. Therefore, traders do not pay attention to short-term market fluctuations and are more focused on the global trend.
Swing Trading
This strategy is used to profit from price fluctuations in the short and medium term. Swing traders hold positions for several days to weeks. The strategy is based on the idea of cyclical price movements, with periods of growth and decline. Market participants use chart patterns in their analysis, and sometimes fundamental analysis, to identify potential entry and exit points. Traders look for signs of a strong trend and try to enter the market at the most favorable prices to maximize profits. This approach requires a deep understanding of trend indicators, as well as patience and discipline.
Intraday Trading
Probably the best cryptocurrency trading strategy and definitely the most popular. The essence of the strategy: traders open trades and exit the market on the same day. Such strict time frames did not arise by chance. Initially, this strategy was developed for trading in traditional markets, where activity is observed only at certain hours of the day (exchange opening hours). Intraday participants never left open positions overnight - there is no trading at this time. Day trading strategies for cryptocurrency futures and cryptocurrency pairs are based on the fact that crypto exchanges operate around the clock. Therefore, the term "day trading" means short-term trading with a transaction lifespan of no more than 24 hours. To generate crypto trading ideas, participants use technical analysis, graphical and candlestick patterns, and other methods. Due to the high volatility of cryptocurrency pairs on small timeframes, day trading can bring significant profits, but the risk is also very high. Almost all cryptocurrency pairs are suitable for intraday trading.
Intraday trading
Day trading using the MACD indicator. At the end of the previous day, we get a bullish reversal signal on the hourly chart - the indicator line crosses the signal line from bottom to top. Therefore, at the close of the candle, we open a long position with a stop loss at the nearest local minimum (red line). At the end of the day, a reverse signal is formed. Considering that MACD generates signals with a delay, and the chart shows all signs of a correction, we close the position at the green line.
Range trading
Range trading in cryptocurrency is aimed at making a profit in non-trending markets and during flat periods. The purchase of assets occurs during the oversold period, and the sale - during the overbought period.
Range trading algorithm:
Determine the support and resistance level.
Buy the asset at a price close to the support level.
Sell when the price reaches the resistance level, but does not cross it.
To effectively trade in ranges, traders use volume data as an indicator of market sentiment. Often, an increase in trading volumes precedes a price movement. This pattern can be used to confirm a rebound from support/resistance levels.
Range trading
Let's look at an example of trading in ranges. The purple lines mark the support and resistance levels. As soon as the price approaches the lower limit, a rebound occurs. The volume chart shows growing activity of market participants. We can conclude that the price will rise: we open a long position at the close of the candle (blue line).
Then, as the chart approaches the resistance level, trading volumes fall. Consequently, most market participants are not interested in further price increases. These signals provide grounds to close positions at the level of the green line.
Scalping
Scalping is preferred by traders who are not afraid to use risky Bitcoin trading strategies to make a profit from minimal price fluctuations. This method is best suited for trading highly volatile cryptocurrencies. To do this, you need to analyze the market on minimal timeframes. Profit is fixed with a movement of only a few points, so take into account commission fees in your strategy. A signal to open a position can be the intersection of the moving average chart or a rebound from support/resistance levels.
Scalping
On the five-minute ETHUSD chart, the price crossed the moving average from the bottom up. This means that we can open a position at the close of the candle, as soon as the breakout is recorded. The entry point into the market is marked with a blue line. Stop loss can be set at the opening level of the candle, just below the EMA. Then we wait for the moment when the price stops moving up. After two candles, a correction begins in the form of a red candle. After it closes, we fix the profit and exit the market (green line).
High-frequency trading (HFT)
HFT is a class of quantitative strategies implemented using algorithmic trading methods. High-frequency traders use complex algorithms to make money on market changes that last seconds or even milliseconds. It is best to use a high-frequency strategy on volatile assets with monitoring of several trading platforms at once. This type of trading is not available to all traders - to implement it, you need to write and test an algorithm. You will need good knowledge of mathematics and programming, as well as skills in analyzing the effectiveness of trading bots.
Arbitrage
Arbitrage is a popular strategy for selling and buying cryptocurrency among those who trade on several exchanges at once. Its essence is to make a profit on the difference in the price of the same asset on different platforms. Earning money on arbitrage has become possible due to the fact that the crypto market is not regulated in any way. The difference in coin quotes on different exchanges can be very significant. The only drawback of this strategy is that it is difficult to detect the possibility of making money. It is necessary to analyze dozens, if not hundreds of pairs on dozens of trading platforms. It is difficult to do this manually, so experienced traders usually use special software.
Cryptocurrency trading strategies - mistakes to avoid
To trade cryptocurrency with profit, you need to have more than just a well-thought-out strategy. It is important to avoid mistakes that beginner traders often make:
FOMO (Fear of Missing Out);
Overtrading and changing ideas quickly;
Trading with funds that you cannot afford to lose;
Superficial market analysis;
The desire to take revenge on the market;
Excessive trust in the opinions of other traders.
FOMO Trading
You may have encountered people who are constantly afraid of missing out. This happens to beginner traders all the time. It is called FOMO (Fear of Missing Out). It manifests itself in a strong and sometimes uncontrollable fear of being out of the market even for a short time. Such people practically constantly follow quotes and news and make deals at the first opportunity. Of course, the prospects of such deals, as well as the quality of analysis, leave much to be desired.
Overtrading
This mistake of novice traders is somewhat similar to the previous one. However, if FOMO is driven by the fear of being left out of the action, then overtrading is caused by the desire to constantly buy or sell some assets. Such traders try to make their trading continuous, without paying attention to the prospects of the positions they open and the level of risks. Trading is, first of all, deep analysis and patience. And opening positions is a natural consequence of the opportunities identified through analysis. Some trading strategies involve opening only a few transactions per week or even per month. However, the profit from such transactions often exceeds the achievements of traders who make dozens of transactions daily.
Cognitive errors
The psychology of trading is no less important than the ability to analyze the cryptocurrency market. Even the best traders can make psychological mistakes and lose money. For example, in pursuit of greater profits, traders often invest more money than they are willing to lose. It can be extremely difficult to close a losing deal in time and get away with minimal losses. After all, you can't part with your money without regret, continuing to hope that the market will turn in the right direction. As a result, the deal is still closed when there is no more hope, and the losses have grown many times over.
Not enough research
The information field is overflowing with analytics from experts and think tanks. Many novice traders do not even try to learn how to deeply analyze the market, hoping for forecasts appearing on the Internet. But think for yourself: if everything were so simple, how many millions of traders could receive a stable profit without wasting time developing their own crypto trading ideas? Therefore, the best option is to make trading decisions based on your own analysis. At the same time, you should not completely ignore analytical reviews: this is a good basis for research. In the forecasts of other traders, you will also often find missed signals. Taking into account other people's miscalculations, you can effectively adjust your own forecasts.
Making trading decisions during the hype
The hype has one significant problem - it can be empty. Even if most traders believe in the rapid growth of a coin, it may soon turn out that they were wrong or all the noise was a competent information campaign of the project. Do not believe that the popularity of a new token is forever. Be careful when investing in little-known projects.
Trading strategy for bitcoin - volatility
Cryptocurrency is several times more volatile than traditional assets. Therefore, the option bitcoin strategy with neutral market prices straddle shows good results on it.
Within the framework of the strategy, there are two types of positions:
A long straddle involves opening an option to buy and sell at the same strike price and expiration time of the contract. Regardless of which direction the market starts to move, you will be able to take advantage of your straddle position due to the increase in volatility.
A short straddle is the sale of a put and call option at the same price and with the same expiration dates. As a result of selling, the trader makes a profit at times of low volatility in the market. The lower the market's ability to move, the higher the profit.
It must be admitted that options trading in the cryptocurrency market is a very niche area and the domain of professionals. For ordinary speculators, Bitcoin volatility trading is most popular with swing traders. They often use indicators that measure volatility in their trading, such as Bollinger Bands, Average True Range (ATR), and Volatility Index (VIX).
Cryptobots and automated trading
Automation is a key trend for earning without experience. Bots analyze data and make trades according to specified algorithms. For example, the CryptoBot2025 service uses AI to predict prices with an accuracy of 83%.
Pros of automated trading:
Works 24/7. Bots react to market changes faster than humans.
Emotion-free. Algorithms follow a strategy without fear or greed.
Cons:
Technical risks. Failures in the bot or API can lead to losses.
High commissions. Some platforms charge up to 30% of profits for using their algorithms.
Recommendation: Start with a demo account. Test the bot on historical data before launching it with real money. Example strategy: The bot can be configured to buy Bitcoin when the price drops by 3% in an hour and sell when it grows by 2%. This allows you to earn on volatility without constant monitoring.
How to set up a trading bot for a stable income
Automated trading requires a clear algorithm and testing. Start by choosing a platform: popular solutions 3Commas/Cryptohopper (platforms for automated cryptocurrency trading) or developing your own bot via the Binance API.
Step 1. Defining a strategy
Choose an approach that matches your risk level. For example:
Trend following. The bot buys when the price rises by 2% per hour and sells when it reaches 3% profit.
Arbitrage. Automatic search for the difference in rates between exchanges taking into account commissions.
Step 2. Setting up parameters
Specify in the settings:
Take profit (fixes profit when a specified price is reached) 3-5% for short trades, 10-15% for medium-term ones.
Stop loss (limits losses by automatically closing the trade when the price falls). 1.5-2% of the deposit. Consider volatility. Exclude tokens with daily fluctuations above 20% — this will reduce the risk of stop loss being “kicked out”.
Step 3. Testing
Run the bot on historical data for the last 6 months.
Tips for choosing a reliable trading bot
Reputation. Check reviews on Reddit and Trustpilot. Avoid services with “100% profit” guarantees.
Demo mode. Test for 2-4 weeks. Key metrics: Sharpe Ratio>1, drawdown <20% — maximum decrease in the value of an asset or portfolio from peak to minimum.
Security. Data encryption (HTTPS/AES-256), access only to trading (no withdrawal of funds).
Flexibility. Ability to customize to market conditions (volatility filters, lot size).
Updates. Regular improvement of algorithms (for example, adding the Supertrend indicator, which helps determine the trend direction and entry/exit points).