We all have heard the expression “ Nobody plans to fail, but many fail to plan “ . Although this quote seems so obvious yet time and time again we find ourselves dealing with the consequences of not planning. 

How many of us can honestly say that when we started making our first crypto purchases actually had anything that resembled a plan ? If we had a plan it was probably “ to the moon ! “ 

Hopium which is a term used in the crypto community to describe a false hope or irrational optimism is not a viable trading plan so what does work ? 

Sentiment Analysis 

This strategy is similar to technical analysis because it involves predicting but it is based solely on human actions and reactions. Data is used from social media outlets and news to understand the social consensus on a specific cryptocurrency and predict people’s actions. There is a lot of “ noise “ on social media and AI can be used to sift through all the data. 

Technical Analysis 

TA refers to the use of previous market trends and historical data to predict the future outcome of an asset. Statistical measures are applied in technical analysis. Crypto technical analysis thrives on the assumption that assets tend to follow a certain trend and these trends often repeat themselves over time. Many investors conduct an extensive technical analysis to have an insight into the asset to be invested in and how it may perform. 

Trading Bots 

Bots use artificial intelligence software able to predict the rise and fall of cryptocurrencies and make relevant trades. They function independently and require minimal instructions to run on the platforms of your choice. There are lots of cryptocurrency bot trading strategies out there, you just need to pick one that works. Compared to manual trading these bots can catch the most profitable trades. Using a bot also removes all human emotion. 

Trend trading 

Trend trading is a crypto strategy that relies on the directional trend of the crypto asset. The concept is that the coin will keep moving in the same direction for a period of time always considering possible changes in the trend and risks associated. Advanced crypto traders usually use fundamental analysis which is an overall look at the health, value, and growth patterns of a crypto asset to predict trends. Moving averages, projected trend lines, and technical indicators can be additional data that can assist. 

HODL 

HODL’ing or buying and holding indefinitely is the most passive crypto strategy to employ. HODLing crypto involves buying an asset like Bitcoin or Ethereum, and not selling it through bull or bear markets. This strategy will remove emotion from investing and is best employed over a longer time frame.