An investor or a trader in the cryptocurrency world often looks out for ways to earn more even with little investment capital, irrespective of whether they are beginners or expert traders. This is only achievable by knowing and using the right trading strategies to get the desired results from the investment.

There are quite a lot of different trading strategies that are found on different online cryptocurrency communities (forum) where people share strategies that have worked for them in the past, as well as the ones that they currently use. However, care has to be taken when deploying these strategies as some are just plain untested ideas or baseless methods rather than strategies built on historical or current data that is properly analysed to help traders earn more with their investments. This is the essence of going into any kind of trade or business in the first place— to make a profit.

Successful trading is not possible if you are not ready to commit to the time that is required to invest in studying the markets constantly and looking out for trading opportunities. Want to start trading? These are the cryptocurrency trading strategies for beginners.

1. Purchase coins when the initial coin offering is introduced

The is one the oldest and basic trading strategies. Using the right tools, you would be able to track ICOs. Then do a proper background check on each to know which coin would have the potential to increase its value over a period of time. The price of ICOs is usually cheap and it has the potential to blow up its value. Buying cheap when there is a surplus is not enough to guarantee a profit. There is a need to know how profitable it would be in the future when you want to sell or hold.

2. Copy the trading strategies of seasoned and experienced traders

This is one of the smartest things you can do as a beginner. Spend a lot of your time researching online about those who have had good years of experience in the cryptocurrency trading world and evidence to back up their trading strategies success claims. It would save the beginner a lot of stress and aches that come with randomly sampling different strategies online from different people. Find someone with a proven record of success and follow that person, study and copy the person’s trading strategies and deploy it for your investments. Doing this helps you discover their trade secrets, skip those regular trading potholes that most beginners fall into; instead, create your own luck by copying a cryptocurrency trading veteran.

3. Follow major happenings all over the world

At certain unpredictable times, very promising and profitable assets could plummet as a result of a negative event like mass deaths, sickness, natural disasters and so on. This is always a good time to buy and hold to sell when the prices shoot up again. However, there is a need always to check the historical background of the coin to see how it has performed in time during such unpredictable negative events.

4. Buy and sell daily as often as possible during peak periods

There are tools that you can use to monitor various exchanges on a daily basis, especially the top performing coins. There are certain times when you can buy cheap and sell high to get more profit. This profit might not be a lot but it would be very reasonable for a beginner who is very cautious about losing his or her capital. Buying assets and selling them the same day is a good and less risky trading strategy for beginners. However, the trick here is to know when to fold up and sell. The exit strategy for this kind of short term day trading is very critical to ensuring that you get good profit at least between one to three per cent.

5. Maximize returns on investment by spreading acquired assets

This is also another smart trading strategy for beginners. When you have identified the right time to buy and the right exchanges to buy from, you can buy various assets with reasonable predicted value and spread your profit over all the assets rather than buying just one and hoping to make your desired profit from that. So, if an asset is traded successfully you may be expecting about one to three per cent, now imagine having about three to five assets, you would be making between three to fifteen per cent in total.

Another advantage of this trading strategy is that if there is going to be a fall in the value of the asset, it is very unlikely that all your assets would experience that fall at the same time. This could also serve as a warning or head start to quickly sell assets that still have a higher value before it falls.

6. Analyse the crypto-coin and be alert to price changes

This tip is key if you want to be a successful cryptocurrency trader. You must be ready to invest time in understanding and analysing the coin you want to invest in before putting down your hard earned money. In the cryptocurrency world, it is expected that traders would experience loss and gain, which is true of any other business venture. So to minimize the losses, you need to be alert to price changes of the coins, understand the coin you want to invest in, find people who have in-depth knowledge of those coins and follow them (ask questions too). You can install a price checker on your phone, so you can be updated about fluctuating prices. Don’t let the fear of missing out on a trading opportunity scare you into investing. Know what you are investing into, that is a grand and timeless investment rule.

7. Keep all cryptocurrency credentials safe and easily accessible

As a beginner, you might be carried away with the wave of cryptocurrencies on the market and forget important things like protecting your account with 2-factor authentication and making sure that your private keys are easily accessible to you so you don’t miss out on an opportunity (if you lose your password).