Your Complete Guide to Cryptotrading Strategies (Relevant for 2025)

You scroll through YouTube or TikTok in search of content about cryptocurrencies and come across videos where people claim to earn thousands of dollars a day trading. It sounds great, and your interest is growing. But what is trading really? Let’s figure it out step by step, as if you’ve never heard of it.

Perhaps you think that trading is just “day trading” (intraday trading). However, this is just the tip of the iceberg! The world of trading is huge and diverse. It includes a variety of approaches, from ultra-fast trades in seconds (“scalping”) to asset purchases for years or even decades (“investing”). That is why there are countless strategies that determine when, how often, and on what basis to buy and sell assets.

Although strategy is important in any investment, it is critically necessary in cryptocurrencies. Why? Because the crypto market is notorious for its extreme volatility – prices can rise and fall at a tremendous rate. For many, this causes tremendous stress, unless you have thought in advance how you will act in different market conditions and, most importantly, how you will manage risks.

Risk Management: Your Foundation and Lifeline

Before diving into strategies, let’s lay the cornerstone of success – Risk Management. Without proper management of the Risk/Reward Ratio, trading becomes meaningless. You can make a good profit at first, but sooner or later you will lose the entire deposit (“account drain”). This is especially important for those who trade on short timeframes (minutes, hours), because you make a lot of trades and are guaranteed not to win them all. However, with the right risk-to-profit ratio, it will be enough for you to win only a fraction of the trades to stay in the black.

 

 

Explanation on the fingers:

• Risk: How much money are you willing to lose in one trade if the price goes against you. This is usually a small percentage of your total deposit (for example, 1-2%).
• Profit (Reward): How much money do you plan to earn in one trade if the price goes your way.
• Risk/Reward Ratio (R:R): This is the ratio of the planned profit to the planned risk. For example, if you risk $25 to earn $50, your R ratio is:R = 1:2 (the profit is 2 times the risk).

A concrete example (very important!):

Imagine that you have completed 100 transactions in a certain period. In each trade, you risk the same amount (say, $25) and always set up a take profit (TP is the profit–taking level) so that the potential profit is twice the risk ($50). Let‘s say you won only 50% of the trades (50 wins) and lost the other 50. Let’s calculate:

• Profit from winnings: 50 deals * $50 = $2500
• Loss from losses: 50 deals * $25 = $1250
• Total result: $2500 – $1250 = $1250 net profit!

 

 

How to apply it?

Many trading platforms (such as TradingView or built-in exchange tools) make it easy to set a stop loss (Stop Loss, SL – loss limit level) and take profit (TP) immediately upon entering a trade. This automates risk management. For example, if you bought bitcoin for $60,000, you can put SL at $58,500 (risk of $1,500) and TP at $63,000 (potential profit of $3,000). The R ratio:R = 1500:3000 = 1:2.

Critical Warning: Be Realistic! Don’t put a take profit “on the moon” just to make the R:R ratio look attractive (for example, risking $25 for a profit of $500 is a 1:20 ratio, but the chance of reaching TP is extremely small). If it is impossible to find a realistic TP level with a good R:R for an asset in the current situation (at least 1:2, and preferably 1:3), it is better to skip this trade. The market will provide other opportunities. Discipline is more important than excitement here!

A Variety of Trading Strategies: Choose Your Own Path (or Several!)

Now let’s move on to the strategies themselves. But before you start, remember three important things.:

1. Don’t limit yourself to one strategy! Do you prefer fast trading (day trading)? Great! But this does not prevent you from simultaneously allocating part of your capital for long-term investments in projects in which you sincerely believe. Conversely, if you are a long-term investor, try to set aside a small amount to study swing trading. Using several strategies, you diversify your risks, which is always useful.
2. This is not an exhaustive list! There are dozens, if not hundreds of strategies. Especially in specialized fields (for example, arbitration, statistical). There is a lot of information on the Internet, but be careful – look for reliable sources (we’ll talk about them at the end).
3. The strategies are not ordered from best to worst! Each one has its pros and cons, and it fits a certain type of personality and amount of free time. Read on and look for something that resonates with you.

1. Day Trading: Fast, Technical, Intense

Let’s start with the most famous form. Day trading is the purchase and sale of an asset during the same trading day. You close all positions before the end of the session and do not leave them “overnight”. Many novice traders start here and… often end up here, having lost money. Not because the strategy is bad, but because it is much more complicated than it seems.

• The basis: Almost always technical analysis (TA). This is an analysis of historical price and trading volume data using charts, indicators, and patterns to predict future price movements. For a beginner, it may seem difficult. Many people think, “I’ll draw a couple of lines and I’ll get rich!” Yes, it often involves “drawing lines” (support/resistance levels, trend lines), but knowledge and practice are needed for their correct construction and, most importantly, interpretation.
• How does it work? The trader looks for short-term price movements (up or down) on intraday charts (5-minute, 15-minute, 1-hour). Entry and exit occur during the day based on TA signals. Profits are generated through a variety of small transactions.
• Hypothesis: By trading intraday, you reduce the risk of “black swans” – unexpected global events (major news, stock market hacks) that can occur while you are not following the market and sharply bring down the price. Therefore, day traders often focus less on the fundamentals of the project (technology, team, roadmap), and more on the pure price movement on the chart.
• Suitable for whom? People who can devote a lot of time to the market during the day have stress tolerance, quick reactions and like to analyze charts. If you prefer to invest in what you believe in “for years,” day trading may not be for you.
• Risks: High exchange fees (due to frequent transactions), emotional burnout, a high probability of mistakes for beginners, and the need for constant attention.

2. Scalping: Extreme Day Trading

Scalping is a subspecies of day trading, its fastest and most intense form. The goal is to make a very large number of transactions (dozens or hundreds per day), each of which brings a tiny profit (often fractions of a percent). These micro-profits, accumulating, should give a significant total income. In scalping, you hold an asset for literally seconds or minutes.

Logic: By holding a position for a few moments, you practically eliminate the risk of “black swans” even during the day. Price movements in such short periods of time are considered mostly “technical” – driven by current supply and demand on the stock exchange, rather than fundamental news.

Key requirements:

• Ultra-low fees: Since the profit from one transaction is minimal (0.1%-0.5%), the exchange commissions for each transaction (both for entry and exit!) they become a critical factor. Relevant for 2025: Binance, previously the leader in low fees, has significantly increased them. Nowadays, exchanges with competitive commissions such as By beat, OK, Ku Coin or MEXX are often chosen for scalping. Always check the fees for commissions before starting!
• Deep knowledge of TA: You must instantly read the chart, understand micropatterns and the Order Book (a list of current buy/sell orders). Without it, scalping turns into pure gambling.
• Iron nerves and discipline: Transactions go one after another, decisions are made in a split second. The risk of the transaction should be minimal (for example, 0.5% of the deposit).
• Fast and stable platform: Any delay in order execution can turn a profit into a loss.

Tip: I strongly do not recommend trying scalping without serious preparation and practice on a demo account. Without knowledge– this is a guaranteed way to lose your deposit quickly. Even with the skills, this is a very difficult and risky style.

3. Breakout Trading: Catching A Strong Movement

The basis: The most basic technical analysis is to find Support and Resistance levels.

• Support: The price level below which it is difficult for an asset to fall (the price seems to “push” up, meeting increased demand). On the chart, it looks like several lows on approximately the same line.
• Resistance: The price level above which it is difficult for an asset to rise (the price “pushes” down, encountering increased supply). The chart shows several highs on approximately the same line.

A “range” or “Channel” is formed between them: The price fluctuates between support and resistance, without having a clear direction (“sideways”). The breakdown strategy assumes that sooner or later the price will break one of these levels and a strong movement will begin.

How to trade?

1. Determine a clear level of support and resistance on the chart (preferably on a daily or 4-hour chart for greater significance).
2. Wait for the breakdown: When the price closes with a candle (or a series of candles) above the resistance (breakout up) or below the support (breakout down). It is the closed breakdown that is important, and not just the price touching the level inside the candle.
3. Entry: When breaking up, you open a long (buy position). When breaking down, you open a short (sell position, if your exchange allows it).
4. Exit: You can exit when the price reaches the next significant resistance level (for long) or support (for short), or when there are signs of a trend reversal (for example, a strong counter-candle). Be realistic! Don’t expect historical highs right away.

Variations: Breakouts are traded not only in horizontal ranges (“sideways”), but also in ascending/descending channels and especially in wedge-like formations (Wedges).

• Wedge: The price moves between two converging support and resistance lines (they are either both ascending, both descending, or one horizontal). A breakout from the wedge often leads to a very strong movement in the direction of the breakdown. An ascending wedge breaks down more often, while a descending wedge breaks up more often.

Critical Warning: Beware Of False Breakouts! This strategy is so popular that large players (“whales”) can intentionally “knock out” the stop losses of small traders by making false breakouts. How to protect yourself?

• Request confirmation! Do not enter immediately when you first touch the level. Wait for a strong candle to close behind the level, preferably with a large trading volume. This indicates a real market interest.
• Use “filters”: Wait for the price to test the broken support/resistance level from the reverse side (it now becomes resistance/support) and bounce off it in the direction of the breakdown.
• Be patient: Yes, you can skip some of the traffic, but this is a price to pay for reducing the risk of false entry. Remember point 1 – risk management!

4. Range Trading: Making money on Fluctuations

If a breakdown is a bet to break out of the range, then trading in the range is a bet that the price will continue to fluctuate between support and resistance. The strategy is simple in theory: buy from support, sell from resistance.

How does it work?

1. Define a clear horizontal (or inclined) trading range (channel).
2. Purchase Entry (Long): When the price is approaching the support level and there are signs of a rebound (for example, an absorption pattern – see below, or just a slowdown in the fall).
3. Entry for sale (Short): When the price is approaching the resistance level and there are signs of a pullback.
4. Exit: Take profits when approaching the opposite boundary of the range or when early signs of a breakdown appear.

Risk: The main danger is a true breakdown. If you bought from support, and the price breaks it down, your trade turns into a loss. If you sold at the resistance, and the price breaks through it, the same thing happens.

Entry Strategy: Engulfing Pattern
To reduce the risk of entering before the breakdown, use confirmation signals. One of the best is Bullish Engulfing at the long entry support:

• Candle 1: Descending (red/black), showing the continuation of the fall to the support.
• Candle 2: Ascending (green/white), the body of which completely overlaps (absorbs) the body of the previous descending candle. This is a strong upward reversal signal!
• Entry: At the end of the absorption candle formation or at the beginning of the next candle.
  To enter a short at the resistance, look for Bearish Engulfing – an ascending candle followed by a descending one that completely absorbs its body.

Relevance: Range trading remains very relevant, especially in the crypto market, which often consolidates after strong movements. It is important to be able to distinguish a stable range from the zone before a large breakdown.

5. Swing Trading and Position Trading: For the Patient

These strategies are for those who don’t like the constant strain of day trading or scalping.

• Swing trading: Holding positions for several days to several weeks. The goal is to catch a “swing” (swing) – a significant part of the trend movement.
• Positional Trading: Holding positions for weeks to months or even years. Focus on major market trends.
• The basis: A combination of analysis! Here, you can and should use not only technical analysis (TA) to determine entry/exit points, but also fundamental analysis (FA) to select promising assets. The FA is an assessment of the project “from the inside”: technology, team, tokenomics (token distribution and use), partnerships, roadmap, competitors, the general state of the market and industry.
• How does it work? A swing/position trader looks for assets with strong fundamental prospects and enters a position when IT shows a favorable entry point (for example, a rebound from long-term support, the beginning of a new uptrend). The exit occurs when profit targets are achieved, fundamental conditions change, or technical reversal signals appear.
• Pros: Requires less time for daily monitoring, less stress, and allows for broader analysis.
• Cons: Positions are subject to the risk of “black swans”, they require more patience, the profit per trade is usually higher, but there are much fewer transactions than in day trading.

6. Trend Trading: Riding the Wave

“The trend is your friend” is the main mantra of this strategy. The goal is to identify an existing trend (ascending – bullish, descending – bearish) and enter a trade in its direction, and exit when there are convincing signs of its reversal.

• Philosophy: Don’t try to catch the very bottom or the very top (it’s almost impossible), but take a confident part of the movement. You exit not when the price has reached your “dream”, but when the market itself shows that the trend has ended.
• The basis is mainly technical analysis (trend lines, moving averages, momentum indicators), but fundamental analysis helps to understand why a trend exists and how stable it is.

How does it work?

1. Identify the trend: Use trend lines (lines connecting successively rising lows in an uptrend or falling highs in a downtrend) or moving averages (price above the long–term SMA/EMA is probably an uptrend, below is a downtrend).
2. Entry: Look for opportunities to enter the trend on corrections (temporary price pullbacks against the main movement). For example, if there is an uptrend, buy on a pullback to a support level or to an ascending trend line.
3. Output: When strong trend reversal signals appear: a breakout of a key trend line in the opposite direction, a change in structure (for example, the price stops making higher highs and lows), confirming signals from indicators (for example, a divergence on the RSI – see below).

Advantage: It allows you to catch both short and long trends without being strictly tied to a holding time or a specific price target. Relevant for 2025: Trend trading works well in combination with the analysis of macroeconomic factors (central bank actions, inflation, geopolitics), which increasingly affect the crypto market.

7. Relative Strength Index (RSI): We Measure Momentum

What does he look like? The RSI is displayed in a separate window under the price chart as a line fluctuating between 0 and 100.

Basic levels:

• RSI < 30: Traditionally indicates oversold conditions. This may mean that the asset has fallen too much and quickly, and an upward rebound is possible. But this is not a signal to buy immediately!
• RSI > 70: Traditionally indicates overbought. The asset has grown too much and quickly, and a pullback is possible. But this is not a signal for an immediate sale!

Period: The standard period for calculating the RSI is 14 (candles/bars). But it can be customized! A shorter period (for example, 7) will make the RSI more sensitive and “nervous”. A longer period (for example, 25 or 50) will smooth out the indicator, making its signals less frequent, but potentially significant for longer timeframes.

How to use it in trading?

Classically: Buy when the RSI falls below 30 (expecting a rebound), sell when the RSI rises above 70 (expecting a pullback). But be careful! In strong trends, the RSI can remain in the overbought zone for a long time (>70 in an uptrend) or oversold (<30 in a downtrend). Blindly following these levels can lead to losses.

Divergence is a stronger signal.:

• Bullish divergence: The price makes a lower low, while the RSI forms a higher low. This is a signal of a weakening of the downward momentum and a possible upward reversal. A buy signal.
• Bearish divergence: The price makes a higher high, while the RSI forms a lower high. This is a signal of weakening of the upward momentum and a possible downward reversal. A sell signal.

Looking for pullbacks in a trend: With a strong uptrend, a drop in the RSI to the 40-50 level (rather than to 30) may be a good point to enter a long position to continue the trend. In a downtrend, a rise in the RSI to 50-60 may be a point to enter a short.

Relevance: The RSI remains one of the trader’s main tools for assessing momentum and finding entry points on all timeframes. Its value lies in simplicity and clarity.

8. Moving Average Crossover: Catching A Trend Change

Moving Averages (MA) are a basic but powerful TA tool. They smooth out price fluctuations by showing the average price of an asset over a selected period. It helps to see the main trend direction.

Types of Moving Averages:

• Simple Moving Average (SMA): A simple arithmetic average of prices over N periods.
• Exponential Moving Average (EMA): Gives more weight to the latest prices, so it reacts faster to new data.

Crossover strategy: Two (or more) moving averages with different periods are used.

• Faster MA: Shorter period (for example, 10, 20, 50). It reacts faster to price changes.
• Slower MA: Longer period (for example, 50, 100, 200). It shows a longer-term trend.

Signals:

• Bullish Signal (Golden Cross): The faster MA crosses the slower MA from bottom to top. It signals the possible beginning of an uptrend. The classic scenario is that the 50-day EMA crosses the 200-day EMA upward.
• Bearish Signal (Death Cross): The faster MA crosses the slower MA from top to bottom. It signals the possible beginning of a downtrend. The classic scenario is that the 50-day EMA crosses the 200-day EMA downwards.

How to use it? Crossing signals are used as trend filters. For example:

• Consider only long (buy) trades when the fast MA is higher than the slow one (uptrend).
• Consider only short (selling) trades when the fast MA is lower than the slow one (downtrend).
• The intersection signal itself can be an entry/exit point, but usually requires confirmation by other signals (for example, volume, patterns).

Relevance: The MA crossover strategy remains fundamental and relevant. The “Golden Cross” and “Death Cross” on the daily BTC chart are still widely followed by the market as important signals. Important: The signals work on any timeframe! Scalpers can use the intersection of the 5-period and 10-period EMA on the 5-minute chart.

9. Convergence-Divergence of Moving Averages (MACD): Momentum + Trend

The MACD is a more complex and multi–functional indicator based on exponential moving averages (emas). It combines elements of a trend indicator and an oscillator.

How does it count?

• MACD line: The difference between the 12-period EMA and the 26-period EMA. MACD Line = EMA(12) – EMA(26)
• Signal Line: A 9-period EMA from the MACD line. This is a smoothed version of the MACD line.
• MACD histogram: The difference between the MACD line and the signal line. Histogram = MACD Line – Signal Line. It is visualized as columns above/below the zero line. Shows the strength of the momentum and the discrepancy between the lines.

How to use it in trading?

The intersection of the MACD and the Signal Line:

• Buy (Long): When the MACD line crosses the signal line from bottom to top.
• Sell (Short or take long profit): When the MACD line crosses the signal line from top to bottom.

Crossing the Zero Line: An additional signal of trend strength.

• Crossing the MACD line from bottom to top through zero is an increase in the bullish trend.
• The crossing of the MACD line from top to bottom through zero is an increase in the bearish trend.

Divergence: Similar to the RSI, the divergence between the price and the MACD line or histogram is a strong signal of a possible reversal.

Important warning: The MACD, especially on short timeframes, can give a lot of false signals (whipsaws). Therefore, it is highly recommended to use it in combination with other indicators or analysis! A great pair is the MACD + RSI. If they both give a signal in the same direction (for example, the MACD crossing upwards + the RSI moving out of the oversold zone), this increases the reliability of the signal.

Relevance: The MACD remains one of the most popular and universal indicators applicable on all timeframes.

10. Dollar-Cost Averaging (DCA): A Strategy for Calm and Persistent

Philosophy: “Time in the market is more important than market time” (Time in the market beats timing the market). You recognize that it is impossible to predict the exact lows and highs, and you relieve yourself of this burden.

How does it work?

• Choose the asset(s) you want to invest in for the long term.
• You define a fixed amount (for example, $100, $500) and an investment interval (for example, every week, every 1st day of the month).
• You strictly buy with this amount at the selected interval, without looking at the current price.

Why does it work? Due to the volatility of the crypto market:

• When the price is low, your fixed amount will buy more coins/tokens.
• When the price is high, your fixed amount will buy fewer coins/tokens.
• As a result, your average purchase price will be lower than if you had invested the entire amount at once at the peak. You automatically buy more on dips and less on rises.

Example (Basic, without reference to specific outdated figures): Let’s say you invest $100 in Bitcoin every month.

• Month 1: The price of BTC = $60,000. You buy: $100 / $60,000 = 0.001666 BTC.
• Month 2: The price of BTC dropped to $40,000. You buy: $100 / $40,000 = 0.0025 BTC.
• Month 3: The price of BTC rose to $70,000. You buy: $100 / $70,000 ≈ 0.001428 BTC.
• Total for 3 months: Invested $300. Purchased: 0.001666 + 0.0025 + 0.001428 = 0.005594 BTC.
• Average purchase price: $300 / 0.005594 BTC ≈ $53,629 per BTC.
• If you bought everything at once in Month 1: $300 / $60,000 = 0.005 BTC (less!).
• Even if you buy everything in Month 2 (the lowest): $300 / $40,000 = 0.0075 BTC (more, but it’s extremely difficult to guess this moment!).

DCA gain (Optional, but with caution): You may deviate slightly from the strict schedule.:

• Buy a little more during strong market falls (“crypto winters”, panic) if you have free funds.
• Buy a little less or suspend purchases for a short time during the obvious “hype” and overheating of the market (as it was at the end of 2021).

The key rule is: Don’t overdo it! The main strength of DCA is in discipline and elimination of emotions. If you try too often to “guess” the best time to buy, you lose the very essence of the strategy and risk missing out on profitable moments due to the expectation of an “even lower” price. Make adjustments only in really extreme situations.

Relevance: DCA remains one of the most reliable and recommended strategies for long-term crypto investors, especially in the face of ongoing volatility. It relieves stress from trying to “catch the bottom.”

Conclusion: Your Journey Begins Now

Hopefully, this expanded guide has given you not only an overview, but also a deeper understanding of the various paths in crypto trading and investing. You may not have found the perfect, detailed turnkey strategy yet, and that’s okay! The most important first step is to understand which approach (or combination of approaches) is closer to you in terms of nature, amount of free time, and risk tolerance.

If you are interested in day trading or scalping: The Internet is full of information, but be extremely careful! A huge number of “gurus” and “pros” sell expensive courses, signals or chats, which are often useless or even harmful. The irony is that real professionals know: simplicity and discipline (especially in risk management!) – the key to success. Relevant for 2025: Use free reputable resources:

1. Binance Academy: An extensive knowledge base in many languages.
2. CoinMarketCap Education / CoinGecko Learn: Good introductory and advanced materials.
3. Official TradingView blogs and Documentation: Learn how to work with charts.
4. High-quality YouTube channels with a focus on education (look for those who explain “why” rather than just bragging about profits).

Books on technical and fundamental analysis (Edwin Lefebvre “Memoirs of a Stock speculator”, Jack Schwager “Technical Analysis”, etc. – proven classics).
Study different sources, double-check the information and DO YOUR OWN ANALYSIS!

If swing/position trading or DCA are closer to you: There is also a lot of information here, although there is less “noise” than around day trading. The focus should be on the fundamental analysis of projects, understanding market cycles and macroeconomic factors. Use the same reputable sources, study the whitepapers of projects, analyze data from analytical services (Glassnode, Messari, Token Terminal).

The Most Important Advice Before Starting:

1. Develop a Written Trading Plan: Based on what you have learned, create a clear plan for your chosen strategy(s). What will you trade? On what timeframe? What are your entry rules? How will you set stop loss and take profit (Risk Management!)? What are the exit criteria?
2. Start with a Small Amount or a Demo Account: Never start with big money! Test your plan on a demo account (virtual money) or with a very small amount that you are not afraid to lose.
3. Keep a Trading Diary: Record every trade: Why did you enter? What were the signals? What emotions did you experience? Where was the SL/TP installed? What is the result? Diary analysis is invaluable for improving your plan.
4. Analyze and Adapt: No plan is perfect the first time. Regularly analyze the results in your diary. What works? What’s not working? Make honest adjustments to your plan. Finding a work strategy is a process of trial, error, and constant learning.
5. Discipline and Risk Management are your Main Allies: Let’s repeat once again: without strict adherence to risk management rules (limit loss per trade!) and discipline in following your plan, even the best strategy is bound to fail.

The crypto market is an exciting but complex space. Good luck along the way! Remember that sustained success comes with patience, training, discipline, and respect for risk.