Another crypto trading strategy that is suitable for someone who is just getting started, and may lack the technical understanding and time commitment is Momentum Trading also known as Position Trading.

Momentum Trading is essentially a more sophisticated version of hodling. A hodler will buy and hold – that is it. Momentum or Position Trading will be looking for entry points based on significant points of momentum change in the market. This might mean identifying the start/end of specific cycles. 

The most obvious are bull/bear cycle or halving periods, but can include calendar based cycles – such as the significance of March and the end of the financial year – or anything from political cycles (due to elections), weather and its impact on hydro-electric mining.

Ark are a good example of an investment firm that are specifically focused on taking positions within emerging technologies.

Pros

• Potential for significant Return on Investment (ROI)
• Passive/Not time sensitive
• Fundamental analysis ore intuitive than Technical Analysis based strategies

Cons

• Requires funds to be locked up for long periods
• Risk of significant losses as doesn’t suit a Stop-loss approach

Day/Swing Trading

Within traditional stock markets Day Trading relates to trading within the specific hours that markets open and close. Of course crypto markets never close, they trade 24/7/365, so the concept of Day Trading really means someone who is actively trading the markets on a day-to-day basis, opening short term positions, based on Technical Analysis of price movement. The aim is to capitalise on small swings in price that don’t reflect fundamental changes in the underlying market, rather movement within trends.

Swing Trading requires a good grasp of technical indicators, very clear trading plans and the discipline to wait for the right opportunities, rather than simply trading what is in front of you.

Pros

• Doesn’t require continual commitment so can suit hobby traders
• Focuses on small gains/loses so you are less likely to get rekt

Cons

• Requires a grasp of technical indicators and how to recognise them
• Needs a lot of discipline
• Not going to provide sexy returns

Having €1,000 worth of Bitcoin in your Hard Wallet doesn’t really need a spreadsheet, but as the frequency of your trading increases and the time which your trades are open for decreases, you need to put a lot more effort into planning and documenting what you do.

As your trading becomes more sophisticated this should mean keeping a Trading Journal.