## Crypto Trading Strategies

Are you wondering which is the best cryptocurrency to trade? This question comes up all the time among online investment communities, and the answer isn’t always simple to determine. 

Since there are so many different cryptocurrencies available on the market today, not to mention numerous exchanges through which you can purchase them, finding the right one for your portfolio can be a challenge. 

Here’s an overview of some popular cryptocurrencies you might want to consider investing in, along with some helpful tips on how to pick them based on your personal needs and goals.

## How to Trade Cryptocurrency for Beginners

To learn how to trade cryptocurrency, we need first to understand how it’s exchanged and what cryptocurrency is. Cryptocurrency is not just a regular currency like dollars, euros, or pounds. 

It’s a digital currency that can be used in different kinds of trading operations with other currencies, products, or services.

If you’re an absolute beginner, it may be smart to start with a fiat-based exchange. Many fiat exchanges allow you to buy and sell Bitcoin, Ethereum, and other cryptocurrencies directly with USD. 

These exchanges offer more convenient fee structures than trading crypto pairs directly (although they charge higher fees). For example, Coinbase offers a 1.49% fee on credit card purchases and 2.99% on bank account purchases. 

You can also use these exchanges to trade between different cryptocurrencies. This is another way of avoiding fees—if you want to diversify your portfolio but don’t want to use multiple wallets or 
accounts.

## How to Select the Best Cryptocurrency to Trade

Consider the following questions before you select which crypto to invest in: 

* How much you’re willing to spend 
* How frequently do you plan to trade 
* Whether you want to trade in large amounts of crypto (more than $500) or small amounts ($20)  
The good news is that it doesn’t take long to set up an account on most crypto trading platforms—and once your digital wallet is established, it will only take minutes before you can start trading. 

Once you’ve opened an account, connect it to your bank account via wire transfer or credit card payments. Once that’s done, use the platform’s app or website to buy crypto using one of the given exchange options. 

## Learn to Trade Cryptocurrency

The best way to trade cryptocurrency is via a platform that allows you to do so. There are several benefits to trading cryptocurrency as well as drawbacks such as volatility, so keep in mind that you may not make a profit on a smaller investment. 

Crypto trading can be risky; there are no guarantees, and it takes time to master. Thus, it is important to learn how to trade cryptocurrency for profit. Check out how below: 

1. Get yourself a good exchange  
It doesn’t matter where you get your cryptocurrencies from, but at some point, they need to end up in an exchange platform. Some exchanges will let you use fiat currency (such as USD) to buy cryptocurrencies or vice versa, while others only deal in crypto-to-crypto transactions. There are plenty of exchanges out there, and new ones are popping up all the time; find one that suits your needs and has low transaction fees. 

2. Use online resources 
Once you have money on an exchange, buying and selling cryptocurrencies is easy enough. But how do you know when to buy it? How much should you invest? And when should you sell? Day trading isn’t easy; fortunately, there are resources available online that can help guide your decisions. For example, Investopedia has a great introductory guide to day trading.

3. Learn technical analysis 
Technical analysis involves studying charts of price movements over time to predict future price trends based on historical data. Most trading apps provide charts to help you make investment decisions, but you will need knowledge of the abovementioned online resources to help you decipher these charts. 

## Short-Term Trading

When traders are looking to make short-term trades (less than a few days), they should look at using their favorite exchange or broker. 

You’ll want to put your money in an exchange or with a broker that has low fees and low spreads, so you can keep as much of your profit as possible. Check out the best ways to trade crypto in the short run: 

### Scalping

Scalping is a trading method that focuses on benefitting from small price movements and reselling for a quick profit. Scalping necessitates a tight exit plan because a single major loss might wipe out the many little gains the trader has worked so hard to achieve.

### Momentum Trading

As an inexperienced trader, you should keep things simple. You can try out a simple momentum trading strategy with only two indicators: RSI and MACD. These indicators show you when to buy or sell cryptocurrency. 

The rules for both are straightforward: When RSI goes above 50, it’s time to buy, and when it goes below 50, it’s time to sell. Similarly, when MACD crosses 0 (zero), it means it’s time to buy, and when it crosses -0 (negative zero), that means it’s time to sell. 

### Medium-term Trading

This strategy involves buying coins and holding onto them for at least a week, but usually much longer. Traders who employ medium-term trading usually aim to buy low and sell high, taking advantage of price volatility in an attempt to generate quick profits. 

Popular medium-term trades include:

* Day trading: Day traders hold positions for anywhere between six hours and a few days before closing out their positions or switching strategies 
* Swing Trading: Swing traders hold positions for several days to several weeks, sometimes even months

### Reverse Trading

Many cryptocurrency exchanges don’t charge a transaction fee for buying and selling. In some cases, you may have to pay a deposit or withdrawal fee when you transfer fiat into or out of your account. 

However, if you set up an account at Binance and then buy some cryptocurrency on another exchange, you can use that other exchange to trade your cryptocurrency for free as long as Binance doesn’t charge a withdrawal fee. 

Thus, reverse trading is the best way to trade cryptocurrency without fees. 

### Range Trading

One of the most efficient and profitable ways to trade cryptocurrency is range trading, which consists of buying coins once they’ve risen in value to a set amount and selling them when they fall back down. 
In other words, you go long on coins that are rising in value, then short-sell them once they’ve fallen again by at least a certain percentage. 
This strategy allows you to profit both from short-term financial market movements (when you buy low and sell high) as well as longer-term gains.

## Long-Term Trading

If you’re wondering how to trade cryptocurrency and make a profit, simply buy, hold, and HODL. The only strategy required for a long-term investment in crypto is to sit back and watch your holdings climb. 

Long-term traders can also play it safe by dollar-cost averaging: purchasing small amounts of cryptocurrency at regular intervals with a fixed budget. This can help protect against random price swings that could hamper profits or lead to major losses if left unchecked.

Here are a few strategies to help you maximize profits if you’re investing in crypto for long term gains: 

### Follow the Trend

The easiest way to make money with crypto is to follow the current trend. There are a few different strategies, but it all comes down to following another trader—and if they turn out to be a good one, you benefit from their knowledge and work. 

The best way to do that is by signing up for an account on one of several crypto-only exchanges, such as Binance or Bitfinex. You can also use technical analysis to see how many traders are buying and selling each cryptocurrency. 

For example, if there is high demand for a cryptocurrency, the price will automatically go up and vice versa. Thus, it is important to follow the trend to understand when to buy and sell. 

### Buy the Dips and Hold

One of the best ways to trade cryptocurrency is to buy coins on dips (or during a downturn). A dip in prices happens when there is bad news that causes investors to sell their holdings. 

This means that you can often buy coins at discounted prices, which translates into better profits if you hold onto them for a longer period.

### Fad Trading

In fad trading, you are predicting that a coin will go up in value because of some news event or other fad, and you buy it at its current price. 

If it goes up by more than you initially thought, you make money on your original investment, but if it does not go up by enough (or just goes down), then you lose money. 

However, this strategy can be very risky and is best suited for experienced traders who have market know-how.

## Conclusion 

There are a lot of options when it comes to trading cryptocurrency, so you need to decide which one is best for you. Before trading, make sure you do your research and know what your end goal is. 

If you are looking to trade Bitcoin but don’t have a lot of money, the best way to trade crypto in the US is to start with an exchange that doesn’t charge transaction fees.

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With the renewed interest in cryptocurrencies amid growth, trading cryptocurrencies has become more than just an alluring money-making activity. If you want to succeed in the volatile world of crypto trading, you must have ironclad strategies and a sensitive hand.

## Earn Passive Crypto Income

Cryptocurrency has been in the spotlight as of late, thanks to its meteoric rise in popularity and value over the past several years. 

However, it’s important to remember that while crypto can provide you with some pretty impressive returns on your investment, there are still some pitfalls that you’ll want to be aware of before diving in headfirst. 

Whether you’re thinking about using your cryptocurrency to build up passive income or you’re simply looking for something more stable than stock investments, here are some ways to earn passive income with crypto this year and into the future: 

## Staking

There are many different types of staking. Some popular proof-of-stake systems include PIVX, NXT, and PoS/Bitquence. I have been invested in POS systems for a while now, and my income has steadily increased as I am able to stake more and more coins. 

Note that staking can take a very long time – my passive income is derived from NXT, and it took over a year before I was able to reap any real rewards. 

The key here is patience! If you don’t want to wait months or years for your returns, you may want to consider other options.

## Proof of Stake (POS)

Proof of stake is a method by which cryptocurrency investors generate passive income. Under proof of stake, investors must stake their currency for a certain period of time in order to make money off it. 

Your investment has a sort of punishment if you don’t stake it or if you try to move your funds out early. The more coins you have staked and locked up, as they say, the more you can earn passive income with crypto over time. 

And while proof of stake isn’t necessarily better than other methods of earning cryptocurrency passively—for example, through mining—it does have its advantages. 

For one thing, there are far fewer barriers to entry with proof of stake than with mining: all that’s required is some cryptocurrency (and not much at that) and an internet connection. 

In addition, proof of stake doesn’t require any special equipment. If you have a crypto wallet, you can start earning passive income right away.		

## Validating Transactions

If you’re wondering how to earn passive income with cryptocurrency, another way you can do it is by validating transactions on the blockchain. Staking is a type of transaction validation that’s supported by many blockchains, and it rewards users with a small amount of cryptocurrency for verifying network transactions. 

But only certain blockchains support staking, so you must do your research before investing time and energy into something that may not be worthwhile. 

For example, Ethereum currently supports staking for its cryptocurrency Ether, but newer projects like NEO don’t yet have a working implementation. 

There are other ways to earn passive cryptocurrency income as well—you just need to learn which cryptocurrencies are best suited for each method. Sticking with a Proof-of-Work (PoW) currency allows you to mine or purchase those coins using a crypto exchange (if it’s available). 

You can then hold onto those coins in hopes of seeing their value increase over time, though these types of cryptocurrencies generally take longer than others to appreciate in value.

## Earning Rewards

One of cryptocurrency’s great strengths is its ability to reward owners for being hodlers—that is, holding onto their coins. Several coins offer staking and master node rewards, which means that hodlers can earn a profit just by holding their currency of choice. 

Staking and master nodes are often associated with high levels of risk, but recent developments have decreased those risks for many coins. 

For example, PIVX has developed an innovative proof-of-stake algorithm called zPoS that allows users to stake from low-power devices such as smartphones or laptops. This makes it easier than ever before to earn cryptocurrency passive income. 

It also helps ensure that even if you’re not able to contribute much processing power, you can still earn rewards on your holdings. 

Other projects like Groestlcoin and ZenCash offer master node systems where users who own 1,000 coins receive an annual reward of around 10% annually. These types of systems make earning cryptocurrency as a passive income more accessible than ever before.

## Crypto Savings Accounts and Crypto Lending

There are two major passive-income crypto projects: savings accounts (also called staking, master nodes, and proof of stake) and lending platforms. 

Many experts believe that both types of tokens will continue to appreciate throughout 2022; it’s hard to predict which one will perform best. As for deciding between them, here are some quick thoughts: 

1. Savings accounts earn more interest than other methods of earning passive income with cryptocurrency but require users to hold their money for longer periods—in some cases, as long as a year or more.  

2. With crypto lending platforms, investors typically earn between 6% and 20% interest on their money each month by simply investing funds into loans issued by other people or businesses. The downside is that borrowers can default on these loans, so there’s an element of risk involved. For example, you might invest $100 into a loan issued by someone who promises to pay back $110 in 60 days—but what happens if they don’t? You lose your initial investment plus any additional gains.

That said, most crypto lending platforms offer automatic payments so that borrowers repay their debts automatically once they receive new capital from another investor. And while many platforms charge high fees, some charge low ones or even no fees at all. 

So even though crypto lending isn’t guaranteed to be profitable, it can still be worth checking out—especially since there are no minimum investments required. 

If you do decide to give it a shot, make sure you understand exactly how much interest you’ll be paid before committing any funds.

## Liquidity Pools and Yield Farming

One of the most powerful methods for earning passive income in cryptocurrency is staking. This method uses liquidity pools, i.e., groups of coin holders who combine their funds and stake them with a staking pool operator (SPO). 

The SPO keeps track of all users’ holdings and distributes payouts every few days. Yield farmers, as they’re known, earn income by providing capital to join SPOs and by participating in payouts whenever they reach certain thresholds. 

When you combine two tokens into a pool, liquidity tokens are created, which can be farmed to obtain more rewards. The platform's utility token is frequently used to payout rewards.

Certain crypto accounts, particularly new ones, may offer payouts of above 100% APY. That rate may seem appealing, but it comes with a number of risks. The best way to minimize these risks is to invest in selected cryptos that are doing well. 

In essence, yield farming involves using one token to generate another—with little effort on your part. If you have extra tokens sitting around, consider joining an SPO. This could be a good way to increase your passive income stream without much work. 

And best of all, many SPOs even allow you to participate if you don’t own a lot of crypto. For example, here are some good options: 

* Avesta 
* Constellation 
* GoBlock
* IntenseCoin
* StakeUnited
* MintcoinCommunityFund 

As always, do your research before choosing an SPO! There are lots out there that seem trustworthy but turn out not to be so great after all. Some of these platforms also offer services like staking via master nodes. 

Masternodes require a significant investment upfront—usually 100,000 coins or more—but they’re worth considering if you want to maximize your passive income potential while minimizing your time commitment. 

Here are some good masternode options:

1. Dash 
2. EOS
3. NavCoin
4. Particl 

Again, research is key; make sure any master node platform offers enough incentives for its investors. For example, Particl pays 45% of its block rewards to stakers and 10% to masternode owners. 

## Conclusion

The best passive income cryptocurrency is Bitcoin (BTC), followed by NEO and ARK. These networks all have unique strengths but share a common theme—in order to earn passive income on these networks, one must simply hold tokens. 

With BTC and ARK, there’s a secondary benefit—as more nodes pop up on their respective networks, throughput increases, and transaction fees decrease. This is true with any network that uses Delegated Proof-of-Stake (DPoS) or Delegated Byzantine Fault Tolerance (dBFT).

For example, if you stake your tokens on TRON, you can expect an increase in transactions per second as more people stake their coins. This translates into higher network utility and thus better price appreciation over time. 

While it’s too early to tell which token will be most successful from a passive income perspective, it seems clear that only holding is required. 

And while staking may be best suited for investors who want guaranteed returns, it does require some technical knowledge and understanding of how blockchains work. 

If you don’t know what DPoS/dBFT is yet, we recommend learning about it first before attempting to earn crypto passive income through staking.

Ways to Earn Passive Crypto Income in 2022

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Earning passive income on the side is one of the most compelling benefits of crypto. These methods can leave you earning in the background.

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