May 30, 2024

Crypto Trading Strategies You Need To Know

Crypto trading is the process of buying, selling, and exchanging cryptocurrencies, such as Bitcoin, Ethereum, and others, on various crypto platforms.


The popularity of crypto trading has increased because of the potential for high returns and the increasing prevalence of digital currency. As the number of people interested in the market has increased, the importance of effective trading strategies has become more significant. Using strategies that are well-researched and have been proven can greatly affect one's success in the crypto market and help to mitigate risks and maximize potential profits.


Trading Strategies Overview

Day Trading

Day trading is the practice of buying and selling cryptocurrencies within the same day, with the goal of making a profit from short-term price changes. Traders actively observe the prevailing trends in the market and make decisions about capitalizing on price changes quickly.


✅ Benefits: the ability to make quick money, taking advantage of daily price changes.

⛔ Drawbacks

- requires significant time and effort; 

- high risk due to the volatile nature of the crypto market;

- the potential for significant loss if the trades are not executed timely.


Range Trading

Range trading is the process of recognizing price ranges in which a cryptocurrency's value changes, and conducting transactions based on these anticipated patterns. Traders typically purchase at the low end and sell at the high end, taking advantage of the price changes within the typical range.


✅ Benefits

- profit from the defined price ranges;

- lower risk associated with this strategy;

- appropriate for less experienced investors.

⛔ Drawbacks

- a limited potential for profit;

- may need to be patience in order to wait for price changes that are within the typical range.



Scalping is a method of day trading that involves making numerous small transactions over the course of a day in order to capitalize on small price changes. This strategy is predicated on quick decision-making and a focus on short term price changes.


✅ Benefits

- the potential for quick, frequent profits;

- does not require significant market shifts.

⛔ Drawbacks

- requires quick decision-making;

- high costs of transaction;

- psychological stress associated with rapid trading.


High-Frequency Trading (HFT)

High-frequency trading (HFT) is the use of cutting-edge technology and powerful computers to execute numerous transactions in milliseconds. Traders seek to capitalize on small price disparities and imperfections in the market. This strategy is advanced and requires significant knowledge of the market's dynamics.


✅ Benefits

- the ability to take advantage of small price differences;

- fast execution;

- automated trading.

⛔ Drawbacks

- requires significant technical proficiency and infrastructure; 

- regulatory and ethical concerns;

- potential for market disruption.


Dollar-Cost Averaging

This strategy is concerned with committing a specific amount of money to a particular cryptocurrency at specific intervals, regardless of the price. This decreases the damage caused by market fluctuations to the overall investment.


✅ Benefits

- reduces the effects of market instability;

- a disciplined approach to investing;

- lowers the average cost per unit over time.

⛔ Drawbacks

- may not have the opportunity to purchase during market declines;

- requires consistent investment devotion.


Building a Balanced Portfolio

This strategy promotes diversity in investments across different cryptocurrencies in order to spread the risk. By holding a combination of assets, investors attempt to mitigate the effects of price changes in any single cryptocurrency.


✅ Benefits

- reduces the exposure to a single cryptocurrency;

- the potential for more consistent returns;

- hedges against specific risks in the market.

⛔ Drawbacks: requires ongoing portfolio management.


Avoiding Hype-Based Decisions

This strategy is centred around making decisions about investment based on research that is thorough and instead focuses on the hype or speculative nature of the market.


✅ Benefits

- more informed and mature investment decisions;

- decreases the probability of being sucked into investment bubbles.

⛔ Drawbacks

- the potential to not achieve short term gains that are speculative;

- requires patience and consistency.


Primary Research

Having knowledge of the latest developments, technological advances, and regulatory changes in the cryptocurrency space is crucial to making informed decisions about trading. Conducting primary research can have a significant impact on the understanding of market trends and the potential for investment.


✅ Benefits

- a greater understanding of the investment;

- increases the long-term value of the investment;

- decreases the need for external approval.

⛔ Drawbacks

- time-consuming; 

- requires expertise in cryptocurrency analysis;

- the potential for information overwhelm.



Arbitrage is the practice of taking a different cryptocurrency's price and using it to purchase the same cryptocurrency on another exchange. Traders exchange the cryptocurrency for smaller amounts at a lower price on one exchange, and for larger amounts at a higher price on another. They make a profit from the difference in prices.


✅ Benefits

- the potential for risk-free profits;

- exploits inefficiencies in the market.

⛔ Drawbacks

- execution must be quick;

- limited opportunities exist; 

- may involve high costs associated with transaction.


Betting on Bitcoin Volatility

This strategy is based on the expected variety of Bitcoin. Traders may utilize options, future contracts, or other derivative products to take advantage of the anticipated price changes in the Bitcoin market.


✅ Benefits

- the potential for significant profits during periods of high volatility;

- various derivative products that are available for hedging and speculating.

⛔ Drawbacks

- high risk associated with the Bitcoin price's volatility; 

- the potential for significant loss if the market is unpredictable;

- requires expertise in derivatives trading.


Integration of Nonbank

Nonbank has a significant role in providing alternative financial services that are not part of traditional banking. The platform proposes great solutions to address the financial management and transactions associated with crypto, and they have the potential to have a significant impact on the efficiency and accessibility of this type of trading.


By combining several services (i.e. banks, wallets, and exchanges) into one app via multiple Spaces, Nonbank is contributing to reducing the complexity of financial management and improving the efficiency of trading for crypto traders. This comprehensive approach can facilitate informed decisions and execute effective trading strategies.


This helps to contribute to a more organized and efficient experience of trading crypto, ultimately benefitting traders in the dynamic and rapid paced world of blockchain technology.



Employing strategic methods of crypto trading is crucial to traversing the complex and turbulent cryptocurrency markets. By utilizing strategies that are well-thought-out, traders can effectively manage risks and maximize their potential for profits.


It is crucial for crypto traders to have access to powerful financial management tools that can simplify their transactions. Nonbank is the very platform that facilitates the management of various financial assets, including banks, wallets, and exchanges. This integration not only help with the financial management, but also increases the efficiency of trading, allowing traders to concentrate on their financial decisions without having to manage multiple accounts or platforms.


The combination of strategic approaches to trading and the support of innovative financial solutions like Nonbank can have a significant impact on the success and long-lasting nature of crypto trading.

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