There are many ways to make money in the world of digital assets, especially if you want to invest in cryptocurrency. To do well in this market, you need more than just a guess about which cryptocurrency to invest in.
You need a clear and disciplined plan. If you want to make quick money with crypto or build a long-term crypto portfolio, it’s important to know about the different ways to invest in it. This guide goes over advanced techniques and philosophical ideas for people who want to invest in cryptocurrency, building on the basics. Let’s start to explore crypto trading strategies!
Moving Average Crossovers
Moving Average Crossovers are a basic tool that traders use to find changes in momentum and the beginning of new trends. Plotting two Moving Averages (MAs) on a price chart is necessary for this strategy to be effective.
A “golden cross,” which is a very powerful indication to buy crypto, occurs when the short-term moving average (MA) rises and crosses above the long-term MA. This indicates that the recent average price of the asset is increasing.
Conversely, a “death cross” may indicate the beginning of a downward trend or the imminence of a bear market. This useful signal is something that traders often use to help them make decisions for crypto investments.
This method can help you figure out when to buy and sell your investing in crypto for the most profit. When you think about your crypto investments, it’s important to have access to fast and safe payment systems so you can act quickly when a crossover signal appears.
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Relative Strength Index (RSI)
The Relative Strength Index (RSI) is a key momentum oscillator that is used in crypto investing to accurately measure how fast and how far recent changes in asset prices have gone. Its main job is to carefully look at whether the market is currently too cheap or too expensive.
The indicator shows numbers from 0 to 100 and gives actionable signals. For example, a reading of 70 or higher strongly suggests that an asset is overbought, which usually means that a price correction or sell-off is about to happen.
On the other hand, an RSI value of 30 or lower means that the market is oversold, which is often a sign that the market is about to bounce back or change direction. The RSI is an important tool for traders who want to find cheap opportunities and guess where prices will go in the short term.
Anyone who wants to be an active crypto trader needs to know how to read and understand the RSI correctly. It’s just as important to be able to quickly fund your trading account and protect your capital as it is to do the analysis.
Event-Driven Trading
Event-driven trading is all about taking advantage of how the market reacts to certain events that are planned or expected. This method uses basic knowledge to guess how the market will move, which is different from technical analysis.
Some examples of these events are big software updates, new partnerships, or announcements about rules. A trader who uses this strategy will look into an event and take a position before the news comes out, guessing how the market will react.
This needs a lot of knowledge about the project and good research skills. If the prediction is right, this very analytical method can lead to big crypto profits. Also, to take advantage of these event-driven opportunities, a well-managed portfolio needs to be able to move money safely and quickly.
Scalping
Scalping is a type of high-frequency trading that tries to make money from small, gradual changes in price. Scalpers usually get in and out of trades in a matter of minutes, taking advantage of very tight spreads.
This strategy needs a lot of focus, a traded asset that is very liquid, and a trading platform that is very powerful and has low fees. Instead of trying to catch big price swings, the goal is to make a lot of small crypto profits throughout the day.
This plan is stressful and takes a lot of time, so it’s not a good idea for beginners. Scalping is the opposite of a long term crypto holding strategy because it focuses so much on short-term gains.
DCA (Dollar Cost Averaging)
Dollar Cost Averaging (DCA) is a powerful, passive strategy for those who want to invest in cryptocurrency for the long term. It involves regularly investing in crypto a fixed amount of money into a specific crypto asset, regardless of its current price.
This method lowers the risk of putting all of your money into crypto at the top of the market. DCA lowers the average price of your holdings over time, making it a stress-free and long-term way to build a crypto portfolio.
Many people think that this is one of the easiest and best ways to make sure you get the best crypto investment over the long term.
- DCA is a great way for beginners to invest because it makes market fluctuations less of a problem and takes away the need to time the market.
- It is a strategy that doesn’t involve emotions and slowly and steadily builds wealth by taking advantage of the long-term growth of the best cryptocurrency to invest in.
- This method works very well for big things like Bitcoin and Ethereum.
Access to capital and instant deposits is absolutely necessary for successful crypto trading.
Day Trading
Day trading is a fast-paced crypto investment strategy in which traders buy and sell assets on the same day. This keeps you from having to worry about big, unexpected price changes overnight.
Day traders use a number of tools to find opportunities, such as short-term moving averages and price action analysis. The goal is to take advantage of short-term price swings and make steady profits in crypto without holding positions for more than 24 hours.
You need to know a lot about how the market works and be able to carry out this plan well. Based on hourly charts, day traders are always looking for the next best crypto investment.
- You shouldn’t day trade unless you are always watching the market and have a lot of experience with crypto investments.
- The strategy usually includes setting strict stop-loss orders to keep losses on any trade to a minimum and save money for future chances.
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What Is the 1% Rule in Crypto?
The 1% rule in crypto is a basic rule for managing risk that all crypto investors should follow. It says that a trader should never risk more than 1% of their total trading capital on one trade. This rule is very important for investing in crypto responsibly.
This rule is meant to keep a trader from losing a lot of money and protect their capital. A trader can stay in the market even if they have a string of bad trades, because the drawdowns will only be small. The 1% rule is probably the most important thing for anyone who wants to make money with crypto to do.
What Is the 80 20 Rule in Crypto?
The 80 20 rule in crypto is a way to manage your portfolio and your risk in crypto. According to the rule, you should put 80% of your crypto investment portfolio into assets that are low-risk and have a high market cap.
You can then use the last 20% for speculative plays that are riskier but could pay off big. The big, stable part (the 80%) usually focuses on holding onto crypto for a long time, with the goal of steady growth.
You can look into micro-cap coins or use high-risk strategies in the smaller, more aggressive part (the 20%). This rule helps you build a balanced portfolio, which is the best way to find the best crypto to invest in across the board.
What Is the Fibonacci Rule in Crypto?
In crypto, the Fibonacci rule means using Fibonacci retracement levels as a main technical analysis tool to find possible support, resistance, and key turning points in a price trend that is already in place.
The Fibonacci sequence is a series of numbers in which each number is the sum of the two numbers before it. These levels come from the mathematical ratios that are in the sequence. On a price chart, these ratios are usually shown as percentages.
The most common and powerful ones are 38.2%, 50%, and 61.8%. Traders use the Fibonacci retracement tool by choosing two important points on the price chart: the highest and lowest points of a clear price movement, whether it is going up or down.
The horizontal lines that are automatically drawn at these important percentage levels show where the price of a digital asset is most likely to stop, consolidate, or bounce back before continuing in the same direction as its main trend.
These levels basically serve as anchors for predicting how the market will behave. The 61.8% ratio is often called the “golden ratio” and is usually seen as the most important and important level.
If the price of an asset goes back to the 61.8% level and finds strong support (in an uptrend) or resistance (in a downtrend), it means that the main trend is still strong and is likely to keep going.
However, if this level is not held or rejected, it could mean a deeper correction or even a complete trend reversal. This makes it a very important signal for making decisions about risk management and when to enter a trade.
Should I Invest in Cryptocurrency for the Long Term or the Short Term?
Whether you should use a long term crypto strategy (“HODLing”) or a short-term trading strategy depends on how much risk you’re willing to take, how much time you can spend on it, and what your financial goals are.
HODLing is an investment strategy that means buying and holding cryptocurrency to invest in for a year or more because you believe in the underlying blockchain technology and how it will be used in the future.
- Pros: Less stress, fewer fees, and historically, major coins have made big gains over periods of several years.
- Cons: You missed chances to make money in the short term and had to deal with huge price drops. For beginners, this is often the best crypto investment plan.
Short-term strategies, like scalping or day trading, involve buying and selling assets in a matter of minutes, hours, or weeks to take advantage of changes in the market.
- Pros: The chance of a quick crypto profits and the chance to make money in both rising and falling markets.
- Cons: Higher transaction fees, more stress, and the need to keep an eye on the market and time things perfectly, which raises the risk.
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How to Apply Strategies in Your Crypto Trading?
Choosing a strategy that fits your personality and risk tolerance is the first step to using strategies in your crypto trading. To be successful with crypto investing, you need to use both technical analysis and risk management rules.
Don’t just look at one signal, like a moving average crossover. Instead, use more than one indicator. For example, use the Relative Strength Index (RSI) to confirm that a buy crypto signal is oversold.
You can automate tasks on many platforms, like setting up automatic sell orders at certain price targets or recurring buys for consistent dollar-cost averaging (DCA). Always use stop-loss orders to protect yourself from losing too much money on each trade. For example, you should only risk 1–2% of your capital on each trade.
What Is the Best Strategy to Make Profits in Crypto?
The best way to make money in crypto is to have a plan, stick to it, and take small steps. This will stop you from making emotional decisions that hurt your profits.
- Plan Your Goals Ahead of Time: Before you invest in cryptocurrency, set a price or a goal for your profit margin, like 50%. You close the position when the target is hit, no matter what the market is saying.
- Selling in small steps (the Ladder Strategy): Instead of selling all of your shares at once, sell a set amount (like 25% or 30%) at set price levels that go up. This makes sure you keep making money while still being able to make more.
- Use Trailing Stops: A trailing stop automatically raises the sell price as the asset price goes up. However, if the price drops by a set percentage, the trade is closed, protecting the gains that have already been made.
- Diversify Your Gains: Once you’ve made money with crypto, turn some of it into stablecoins or traditional investments to protect your profits from future market swings.
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How Do You Maximize Crypto Investment?
To get the most out of your best crypto investment, you need to do basic research, manage your risks, and use investment tools in a disciplined way.
Don’t buy crypto just because everyone else is. Look into the project’s whitepaper, the experience of the development team, the token’s usefulness, and its advantages over other tokens. First, put your money into well-known, stable assets like Bitcoin and Ethereum.
DCA lets you make small, regular purchases on a set schedule. This method reduces the effects of volatility and makes it unnecessary to perfectly time the market, which over time leads to a better average purchase price.
Because this asset class is high-risk, you should only put a small amount of your total investable assets (for example, 5%) into crypto investments. This way, any losses won’t hurt your overall financial health.
To keep your digital assets safe from hacking and other security risks, use safe storage methods like cold wallets. Being able to manage your portfolio across borders and in different currencies is one of the most important things you can do to get the most out of your investments.
Wrapping Up
There’s no single best strategy in crypto investing—success depends on your goals, risk tolerance, and how actively you want to manage your assets. Whether you prefer long-term holding, diversified portfolios, or more dynamic approaches, having the right financial tools makes every strategy easier to execute and monitor.
As crypto markets evolve, flexibility, transparency, and secure asset management become just as important as timing and research. This is where having a reliable digital finance ecosystem matters.
Turn strategy into action with Jeton Wallet. It is a single account designed to help you manage funds seamlessly alongside your crypto journey. Add, send, exchange, and organize multiple currencies in one app, while moving money across Europe using 50+ payment methods in over 25 countries. Fast execution, clear fees, and secure transactions give you more control as markets move.
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