Many US citizens are turning to the complex world of cryptocurrency as a way to secure an additional and reliable profit. Crypto trading is usually done using one of two strategies, one in the long term (known as HODling) and one in the short term (known as Intraday. In this article we’ll explore some of the short-term strategies that could help you turn a profit with crypto.
What makes short-term trading an appealing option for crypto traders?
Crypto Volatility
Paying attention to crypto volatility, and knowing how to respond to it, is an essential way to make an effective profit when investing in cryptocurrency. Volatility refers to the tendency that digital assets have to rise or fall in value over time. One good example of this comes from Bitcoin. In 2009, when it first launched, Bitcoin had a value of less than $0.1, now it is worth over $80,000. Paying attention to cryptocurrency volatility can highlight to you what the best crypto to invest in is, and when. Ines S. Tavares has highlighted some of the best new crypto investment options of 2025.
On the other hand, potential investors must bear in mind that volatility means that cryptocurrencies can also decrease in value, sometimes rapidly. As such, crypto trends that have been followed and banked upon by short-term investors can suddenly turn on their heads and lead to significant losses.
Accessibility
Unlike many other forms of investment, all individuals need to get started in crypto trading is internet access and a small amount of funds. This means that these trading strategies have a global reach and are not restricted to particular geographical or time-related constraints.
However, crypto trading and cryptocurrencies in general are not yet fully accepted on a global scale. As such, there are many countries where investing, trading, or selling digital assets is not a legal activity. It is important to always check the legal regulations of the country you are based in before deciding to invest.
The best strategies for short-term crypto trading
Day Trading
Day trading is a short-term investment strategy that involves buying and selling digital assets within the same day. This strategy is often referred to as intraday trading and comes with numerous benefits for crypto traders. The reasons for this come from the way investors can take advantage of minor price movements experienced by digital assets. Those who incorporate this strategy often have various tools, such as candlestick charts and patterns to identify their price targets.
Scalping
Like day trading, scalping involves investors buying digital assets and selling them on the same day. However, the difference lies in the amount of trades the investor is making. When scalping some investors make trades in the hundreds, hoping that doing so will enable them to profit from price movements that are even smaller than regular day trading. These investors are driven by liquidity and speed and will open and close positions quickly. To increase their yield from small price shifts, they will often utilize marginal trading.
Swing Trading
Swing trading does not involve buying and selling digital assets on the same day, but rather investors who engage in swing trades are able to take advantage of the broader price moves and market trends that take place over a more extended period of time. Investors usually hold their position for several days in order to take advantage of the price swings between market cycles. However, they rarely hold their assets for longer than a month.
Alongside day trading and scalping, swing trading can cause quite an intense emotional burden on the investor. They have to give their investments a significant amont of attention, sometimes over a sustained period of time. If you are thinking about using these short term crypto investmernts make sure to take care of your emotional state and avoid making impuslive or reckless decisions.
Momentum Trading
Investors who engage in momentum trading purchase digital assets when they are trending upwards, meaning their value is steadily increasing. When the trend is showing the first signs of weakening, they will sell at a much higher value than what the currency was when they purchased it. This strategy relies on the idea that digital assets in motion stay in motion.
However, one drawback that can affect all short-term investment strategies, but especially momentum trading, is its reliance on technology. Although anyone with a device and internet access can participate in short-term trading, doing so does require reliable technology able to keep track of these trends and allow the investor to respond quickly. If this technology fails by crashing, lagging or simply stops responding, the investor could lose their money.
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