3 short-term cryptocurrency investment strategies


Cryptocurrency trading and investing requires proper knowledge and planning before you get started. It is necessary to be aware of the principles behind its operations, it is also necessary to have a unique strategy to make your trading experience smooth knowing that it is associated with many risks.

The short term investment method is simply when the trader holds their stock for less than a year, they usually buy and sell more often, they are known as “active traders”. Especially when your goal is to win something huge over a short period of time.

However, you need to be prepared to take greater risks and also be prepared for a tendency to lose your investments. It is simply the truth behind it knowing that the cryptocurrency market is unusable.


Short-term trading can be termed “aggressive” trading. Why is that? The reasons being that there is the possibility of losing your investments and also because you have the hope of making more profits. Fortunately, this short term trading can be classified based on how quickly profits are generated. It varies from a few hours to a few days or even weeks. It should be noted that the shorter the period, the greater the risk of trading.

This article aims to shed light on some of the short term investment strategies in crypto. Also, check out VantagePointTrading for more information on how to buy stocks, trade stocks, investment guides, and even economic and business updates.

1. Trading day


This is a strategy used by short term traders, it involves the process by which the trader closely and actively monitors the crypto market to be able to know and judge how to complete their trade. This is usually done with a lot of commitment and dedication to allow the trader to monitor market trends.

In this system, the trader aims to make small profits to add a bigger one. Knowing that the cryptocurrency market is open 24/7, trading can be very risky most of the time, so there is no guaranteed profit. Despite this, day trading is a great way to make money online, so you can make up to 5% to 10% profit on your investments knowing that it is capitalizing on the instability of the market. stock.

This process of speculating on financial products and assets keeps traders up to date with what is coming out in the market, they also place many orders in a single day.

2. Scalping

In this model of short-term trading strategy, the trader buys and sells very quickly in one day, resulting in multiple transactions of shares during the same day. Investors trade in penny stocks so that they can buy and sell very quickly, which can happen in a matter of minutes, depending on the case.

Any trader who wants to use this cryptocurrency strategy should have at least one free commission brokerage so that if you buy and sell within minutes it will not reduce your profits. When scalping, the trader should try to focus on a currency pair or position at some point in time to give it more chance for success.

As stated earlier, the technique can earn you small profits per trade and the risk is also very minimal. It is a good tool for novice crypto traders, to allow them to learn and gain more experience. It is advisable to invest little money to begin with. In addition, scalping uses less funds and a smaller volume of coins to note as many changes can occur.

3. Swing Trading

Swing trading involves the use of a graphical representation of instability and price movement to identify the current trending stock in a particular time frame. We know that the prices of these different stocks move back and forth, which can cause them to go up or down.

Swinging in the stock market means identifying a repeating period of price behavior, then capitalizing on the stock by buying or selling it.

Unfortunately, this particular trading system is only for experienced traders, especially those who are well versed in identifying and understanding charts and indicators. Mobile apps and graphics are essential tools in this strategy. The user of this strategy must also understand the peaks and declines to use the model effectively. Binance is a good example of a swing trading strategy.

Final thought

In the article above, we have looked at some successful short term investing strategies depending on the timing of your profit making. In addition, in this short-term strategy, the following points are valid;

● Short-term investors are generally very active.

● Always up to date on the market value of the stock.

● Passive profit in a short time.

● It also has a risk factor.

● Consumes a lot of time.

● Comes with many requirements.

This article is for information only and does not constitute investment advice.


About Chris McCarter

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