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3 Common Trading Strategies For Cryptocurrency Investors



Trading strategies for cryptocurrency investors
Image Credits: The Balance

Cryptocurrency has been one of the most popular sources of investment in the past decade. This feat is largely as a result of its independence from government and regulatory clutches. Similarly, Bitcoin’s recent price surge, also increased investors’ thirst for cryptocurrencies. In late 2017, a Bitcoin reached as high as over $19,000, thereby, recording a rise of about 1,270% compared to its price at the beginning of the year.

Just as it is with basic laws of demand and supply, where the demand for cryptocurrencies exceed the rate at which they can be produced, the prices of such cryptocurrencies would increase; and vice versa. This gives potential investors the opportunity to make substantial profits in the cryptocurrency market, depending on their risk tolerance and ability to seize an opportunity for investment.

Before evaluating the investment options in cryptocurrency, it is pertinent to keep a number of factors in mind:

  1. Perform an in-depth research on the cryptocurrency you decide to invest in.
  2. Try to understand the risks and dangers of your chosen investment option.
  3. Study the market trends and follow experts’ opinions before investing.

There are different strategies an investor may apply whilst investing in cryptocurrency. These strategies may range from day-to-day currency trading to a long-term, hands-off approach to cryptocurrency— that is, buying coins and holding on to them for months or years, in the hopes of gaining returns. These strategies are basically classified into three:

  1. Day Trading.
  2. Swing Trading
  3. Long Term Holding

Day Trading

Day trading is short-term trading, and it could connote holding an asset for just a few seconds or even a couple of hours. It often involves trying to take advantage of the cryptocurrency price volatility which typically occurs everyday. The main idea is selling your asset as quickly as possible, whenever there is a chance to make a quick profit.

This strategy holds potentials for huge returns (often by accumulating small profits over time). However, it involves a lot of work, the most prominent being the need to constantly watch the markets. This strategy also carries its own risks. A bad prediction on a cryptocurrency’s price, could trigger a huge loss on a significant investment.

To effectively conduct day trading, investors need to be able to keep track of the relative values of different cryptocurrencies, and how each of these values may change over time.  One useful resource for this is, which provides a price history for various cryptocurrencies.


  • Hold potentials for huge profits.
  • Could effectively function as a viable income stream.
  • More exciting than a long-term holding.


  • Carries higher risks than a long-term holding.
  • You could end up holding a useless coin when it dumps.
  • Abundance of inexperienced traders participating in the markets.
  • Exchanges being staffed by largely ignorant or unreliable personnel.

Swing Trading

Swing trading is an extended form of day trading. It involves the practice of buying and selling (often in stages), after a certain degree of movement in the charts, over a period of several hours, days, or even weeks.

The main idea here is to exit the trade with profits, before the market makes a reverse move and wipes out your gains. This strategy is ideal for people who do not have hours to spend on day trading. These people often fall into the category of persons with full-time jobs.

Swing trading often requires a basic understanding of technical and fundamental analysis. This can help in setting up additional options such as a stop-loss, a service that automatically helps stop your losses before they become astronomical.


  • Easy to learn and execute.
  • Less stressful than day trading.
  • Unlimited options in trading multiple coins.
  • Ability to minimize risks due to lower number of trades within a fixed time frame.
  • Similar to a stock market, hence, knowledge about stock market operations is an added advantage.


  • Markets can make dramatic moves overnight.
  • When trading stocks, swing trading rarely provides the same amount of leverage as day trading.
  • Swing trading involves holding trades overnight. With this, margin requirements tend to be higher.

Long-term Hodl

Long-term hodl is another option for cryptocurrency investment. It involves believing in the eventual appreciation of a cryptocurrency, over a particular period— usually a year or more.

Generally, most cryptocurrencies start with low values until they either prove to be legitimate, or function to offer value to potential holders or investors. This limits their adoption rates and user base, especially during the early stages. However, where widespread adoption persists, successful cryptocurrencies can overtime, increase by several hundred times in value. This presents an opportunity for long-term investors willing to take some risk with their investments.


  • Gives room for cost averaging.
  • More hands-off than short-term trading.


  • You may miss out on large gains.
  • Not as exciting as day trading.
  • More difficult to make daily profits.

There are also several measures that people often apply whenever they trade. These measures may include speculation or chart analysis. Speculation occurs when a trader believes that a price would either increase or reduce as a result of a certain event, whilst chart analysis connotes a situation where traders study the price movement of a particular cryptocurrency and try to guess what way it would go, based on historical price movements.

Just as it is with every other form of investment, investing in cryptocurrency carries risks; and there is really no accurate way to guarantee that your investment would be profitable.

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Bitcoin gets hacked, scammers run BTC giveaway scam



Earlier today,, the oldest cryptocurrency website registered by the founder of Bitcoin, Satoshi Nakamoto, recently got hacked. Scammers ran a BTC giveaway scam with a promise to return double the amount users send to the named address. In the end, the scammers were reported to have collected $17,764 before the website was taken down. The website was inaccessible for a few hours after the incident, but normal service has been resumed.

To bring users’ attention to the hack, a pseudo-anonymous Twitter account with the name Cobra took to Twitter to reveal the news and claimed that the website may be offline for some days. He also clarified through his tweets that has never been hacked and that the breach must have been due to a lapse on the part of Cloudflare- the web provider that the website is hosted on.

“ hasn’t been hacked, ever. We move to Cloudflare, and two months later we get hacked. Can you explain where you were routing my traffic too? Because my actual server didn’t get any traffic during the hack” he tweeted.

The scam on the website was perpetrated through a giveaway. Visitors on the website were greeted with a popup, asking them to send crypto to a Bitcoin wallet via a QR code and receive double the amount in return. The fake message showed that the Bitcoin Foundation was giving back to the community and that the giveaway will be limited to the first 10,000 people. This was made to draw more people into the scam.   According to an analysis on the scam address done by Reddit Sleuth, it was presumed that a chunk of the 0.4BTC came from the scammers themselves to add an element of credibility to the claim. At the time of writing this report, is once again, back to life.

How popular is the Bitcoin giveaway scam?

Bitcoin giveaway scam is quite popular among hackers as it allows them to make fast money without tampering with anyone’s wallet. In 2020, Twitter handles of top crypto celebrities, politicians and influencers were hacked to run Bitcoin giveaways. While the scammers were apprehended, the value of Bitcoin was not affected.

Today’s scam on did not affect the price of the coin either. Despite the Evergrande debt crisis and the fluctuations bedevilling the crypto market within the week, Bitcoin increased by 2.05% within the last 24 hours, thereby moving from $42,789 to $44,378.

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Crypto Assets

Crypto prices drop as global market fear increases



Top cryptocurrency prices have fallen amidst a drop in stocks and fears over China’s Evergrande debt crisis. In the last 24hour, Bitcoin dropped from $47,772 to $42,630 shedding about 8.58%. this is the lowest in price since another bull run began on Sept 5 after the April crash.

El- Salvador’s President, Nayib Bukele sees the fall as an opportunity to invest more. Recall that the country adopted Bitcoin as a legal tender on September 7. Despite the adoption, the price of Bitcoin has fallen by almost 14% since then.

Other coins have experienced dramatic crashes within the last 24hours. Solana, a coin that has experienced 355% growth within the last 3 months fell from $162 to $130 shedding about 11.39% within the last 24hours. Solana’s fall may be categorized by the 17-hour outage which the founder, Anatoly Yakovenko said was caused by bots “flooding the networks”

Ethereum fell by 9.37% while Dogecoin and Axie Infinity fell by 11.22% and 14.14% respectively within the last 24hrs hours. While crypto experiences dark Monday, El-Salvador keeps investing more money in Bitcoin.

A look at the global market

The global market is experiencing fear due to the Evergrande debt crisis. A report published by the University of Michigan shows that consumer’s sentiment is beginning to decline. This trend alone may impact the crypto market as well.

On the other hand, the global market downturn must have been spurred by the Evergrande debt crisis. The company grew to be one of China’s biggest companies by borrowing more than $300bn. Last year, Beijing made rules to control the debt owed by big real estate developers. This led Evergrande to offer its properties at major discounts to raise more money to keep the business afloat. Right now, the company is struggling to meet the interest on payment of debts.

Why would it matter if Evergrande fails?

The collapse of the multi-million dollars company would affect the global market; including the crypto market. Many people bought properties from Evergrande and they expect to make gains. If Evergrande falls, crypto investors will be forced to withdraw more money to keep their business running without the means to invest more. When one business fails, the other gets affected indirectly. This also applies to other firms that do businesses with Evergrande.

The potential impact on China’s financial system is another effect of Evergrande’s fall. In his statement to BBC, Mattie Berkink, the Economist Intelligence Unit (EIU), said that “the financial fallout would be far-reaching. Evergrande reportedly owes money to around 171 domestic banks 121 other financial firms” if the company fails, other lenders or businesses may be forced to lend less. Thereby leading to a credit crunch- a situation where companies struggle to borrow money.


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El Salvador’s Bitcoin adoption – What you need to know



El Salvador made history (and headlines) after becoming the first nation to endorse and approve the world’s most popular cryptocurrency, Bitcoin, as a legal tender. The move makes Bitcoin acceptable for transactions within the Central American country alongside the U.S dollar, which has been serving as the paper currency since 2001. This comes after the so-called “Bitcoin Law” came into force after passing legislation in June of 2021. El Salvador’s government announced that it had purchased 400 Bitcoin in 2 tranches of 200 each and plans to get more in the future.

The move to adopt Bitcoin has been justified by the government’s need to boost financial inclusion in the country. It is estimated that 70% of El Salvadorans do not have access to financial services and the government believes that Bitcoin can help close the gap. The Bank of America has outlined a few benefits that they believe will result from El Salvador’s bitcoin adoption. These include promotion of financial digitization, streamlining remittances as well as opening the country to digital currency miners. However, not all agree that the move is a step in the right direction.

Amongst the detractors of the scheme are the International Monetary Fund and the World Bank, each having warned El Salvador about the risks of Bitcoin’s use as legal tender. The World Bank has been irked by what it described as “environmental and transparency shortcomings” with bitcoin, while the IMF cited “economic and legal concerns” in relation to the move.

Other than the push back from these international bodies, there has been some internal opposition to the adoption of Bitcoin. Citizens had held protests over Bitcoin’s adoption in August and about 67.9% of respondents in a poll said they disagreed with the government’s decision to adopt crypto. The results of the poll showed that 8 in 10 people had little confidence in the use of bitcoin as the currency.

In spite of the criticism, El Salvador’s government is moving forward and has reportedly installed 200 Bitcoin ATMs across the country. And in response to the World Bank’s environmental concerns, El Salvador’s president, Nayib Bukele, has said the country plans to power mining activities using renewable energy from the country’s volcanoes. In order to incentivize the use of Bitcoin in the country, any citizen who signs up for the country’s “Chivo” wallet will get 30$ worth of bitcoin.

All in all, the adoption of a cryptocurrency by a sovereign nation is seen as a testing ground for many, as this is a use case Bitcoin has never experienced in its 12-year history. Countries such as Brazil and Panama seem to be watching the move to draw insights on whether to follow suit.

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