Connect with us


3 short-term cryptocurrency investment strategies




We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. You can unsubscribe at any time.

Cryptocurrency trading and investments requires adequate knowledge and planning before going into it. One needs 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 lots of risks.

Short term investment method is simply when the trader holds on to his stocks for less than a year, they usually buy and sell more often, they are known as "active traders". Especially when your target is to earn something huge, in a short duration.

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

Short-term trading can be referred to as "aggressive" trading. Why is that? Reasons being that there's 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 depending on how quickly the profits come. It ranges from hours to days or even weeks. It should be noted that the shorter the time limit, the greater the trading risk.


This post aims to shed more light on some of the short-term crypto investments’ strategies. Also, check out VantagePointTrading to get more information on how to buy stocks, trading stocks, investments guides, and even updates on economics and business. 

1. Day Trading

This is a strategy that is used by short-term traders, it involves the process whereby the trader closely and actively watches the crypto market to be able to know and judge how to make his trade. This is usually done with lots of commitment and dedication to enable the trader to monitor the market trends.


In this system, the trader aims at making small profits to add to a bigger amount. Knowing that the cryptocurrency market is open 24/7 hour, trading can be very risky most times such that there is no guaranteed profit. Despite that, day trading is a very good way of making money online, such that you can make as much as 5% to 10% profits on your investments, knowing that it capitalizes on the instability of the stock.

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

2. Scalping

In this pattern of short-term trading strategy, the trader buys and sells very quickly in a day, resulting in multiple trading of stocks within that same day. The investors trade on penny stocks such that they can buy and sell very quickly which may happen within minutes as the case may be.

Any trader who wishes to use this cryptocurrency strategy should have at least a free commission brokerage so that if you are buying and selling within minutes it will not eat into your profit. When scalping the trader should try to focus on one currency pair or position at a particular time to give them higher chances of success.

As earlier said the technique can give you small profits per transaction and the risk is also very minimal. It is a good tool for newbie crypto traders, to enable them to learn and get more experienced. It is advised you invest little funds for a start. Additionally, scalping uses little funds and a smaller volume of coins to note as many changes may occur.

3. Swing Trading

Swing trading entails using a graphical representation of the prices instability and fluctuation to identify the current trending stock in a particular time interval. We know the prices of these various stocks vary in both directions, which may result in rising or falling.

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

Unfortunately, this particular system of trading is reserved for experienced traders, most especially those that are well-grounded in identifying and understanding charts and indicators. Mobile apps and charts are essential tools in this strategy. The user of this strategy needs to also understand peaks and drops to use the pattern effectively. The Binance is a good example of a swing trading strategy.

Final Thought

In the above article, we have successfully looked at some short-term strategies of investment depending on the time frame of how you want your profit to come. Also, in this short term strategy, the following holds;

●     Short-term investors are usually very active.

●     Always up to date about 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.

Share this article:

EU Reporter publishes articles from a variety of outside sources which express a wide range of viewpoints. The positions taken in these articles are not necessarily those of EU Reporter.