Top 5 Crypto Trading Strategies

DCA (dollar cost average)

If you are looking for a crypto trading strategy that does not involve indicators, then Dollar Cost Average (DCA) might interest you. DCA is a popular strategy for both novice and expert traders.

Instead of investing all your money in a specific asset at once, you split your investments into smaller amounts. These amounts are then spread over a predetermined time frame and are regularly invested at a particular time and day of the week – and only on that day and time.

What does it look like in execution? Let’s say you decide to invest in bitcoin. You have set aside $15,000 for this purpose and decide that a DCA strategy will be the best way forward. So, you would then divide your initial amount by the number of weeks you want the strategy to work.

For the purposes of this example, we’ll say you’d like to invest your $15,000 over six months. You would then divide the original amount by 24 (the number of weeks in six months), which would give you $625 per week. For the next six months, every Tuesday at 2 p.m., you invest your $625 in bitcoins – until your initial amount is exhausted.

Why invest like this? Buying an asset at regular intervals helps to lessen the impact of market volatility, which means that you will generally receive more currency from your final investment than if you had invested all your money at once.

It is important to note that to take full advantage of this strategy, you must trade the specific coin through an exchange – and, with us, you can only trade derivatives through CFDs.

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