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The past few years have seen an explosion in the appeal of cryptocurrency and crypto trading. And as we move into a new bull cycle, expect to hear more about the crazy gains from traders across the internet.
Crypto’s volatility and high profit potential have lured casual traders globally, seeking to benefit from the cryptocurrency ecosystem. Many of these crypto traders make it look easy – Hey, I made a million overnight, you could too!
However, the truth is that full time crypto trading is complex. It can feel like a walk through a maze for many, raising the all-important question: what’s the best and easiest way to make money with crypto?
We’re going to look at the potential for making some lift changing money in this post. And while we’ve picked out the easiest crypto trading strategies, easy is a relative term here.
All financial trading carries huge risks, which means you could easily lose all your money, just as easily as make it. This article is intended as a guide, so please make sure to do your own research (DYOR) before you take the plunge and trade.
Is Crypto Trading Profitable?
Yes, crypto trading can be very profitable, but it’s not a guarantee. The volatility inherent in cryptocurrencies is a double-edged sword, bringing lucrative gains but also significant losses. Success in crypto trading hinges on making educated decisions, understanding market dynamics, developing a trading strategy, and having an inherent risk tolerance.
But that being said, plenty of casual crypto traders make a significant income from their trading strategies. While you do need patience and some analytical skills, as well as a good mindset, even easy crypto trading can net you some good profits if you have the eye for a good project.
What Do You Need To Trade Crypto?
To trade crypto, several essential elements should be in place. First of all…
Crypto trading platform
The most popular is Binance, which is the most best known and one of the most comprehensive platforms out there. However, Binance isn’t always available in every country, so you might need to pick another option.
Good crypto trading platforms include:
- CoinSmart
- Kucoin.com
- Nexo.io
- Gate.io
Understanding of the markets
You will need a strong understanding of the cryptocurrency market and trading styles. This means knowing how to interpret price behaviours and patterns, and knowing how to do a mixture of fundamental and technical analysis.
Yes, even using an easy trading strategy will require some knowledge and expertise, so don’t short yourself on this.
Adequate capital to invest
While you can start with any amount, you really need a few thousand USD or GBP to be able to see the fruits of your efforts. £1000 is pretty much the absolute minumum you should be trading with, but we recommend more.
£5000 and upwards is a good starting point and will allow you the freedom to trade and make potential profits which could be significant.
These are just the basics. The secret sauce to profitability lies in the strategies you employ, which we dive into next.
Which Are The Easiest Crypto Trading Strategies?
While there are many trading strategies for professional crypto traders, from day trading to scalp trading, these are the trading styles most suited to casual trading. All of these will still require some fundamental trading skills and understanding. However, they may require less time commitment or focus that some of the more professional crypto trading styles.
1. HODL’ing
“HODL” in the cryptocurrency world stands for “Hold On for Dear Life”. This strategy is all about buying and retaining cryptocurrency for the long-term, regardless of market fluctuations. This is especially useful if you just want to accumulate cryptocurrencies during a lull or a bear market with an eye to future gains.
Typically, HODL’ing is done by identifying where you think an asset can go in the long run. For example, if Bitcoin is priced at $40,000 and you think it will eventually hit $100,000 or more, you could buy as much BTC as you can afford and then wait until your sell point arrives.
By investing and leaving your assets untouched, you expect their value to increase over time.
You can also use a strategy called DCA, or Dollar Cost Averaging. This is where you buy crypto currency whenever you can afford to over a long period of time. For example, you might be able to afford $50 of ETH today, then add $100 of ETH to your portfolio next week, and then another $50 a week later.
This can be done on any platform easily, and can even be automated using some tools such as Cornix.
Cornix offers trading bots, but they also allow you to DCA over a period of time and build a portfolio with a view to selling at a set point.
Key Steps:
- Research and identify promising cryptocurrencies.
- Buy and retain them.
- Exercise patience.
HODL’ing is arguably the simplest and most passive crypto trading strategy. It doesn’t require any technical trading skills or constant monitoring of market trends. However, it calls for significant patience.
2. Copy Trading
Copy Trading is a strategy where traders mimic the operations of experienced traders. By following the actions of successful traders, novices can profit from cryptocurrency trading without being versed in market analysis.
The trick is to find a good trader that has a proven track record and then copy them. You can also diversify and copy multiple traders, or use different trading styles with different traders.
Copy trading is often confused with paid signals, which we will look at shortly. But with copy trading, the trades are normally placed automatically on your behalf, whereas with paid signals, you need to place the trade.
Tools such as Cornix offer copy trading as well as bot trading.
Key Steps:
- Choose a reliable trading platform with a copy trading feature.
- Identify and select successful traders you want to emulate.
- Adjust the settings to automatically mirror the trader’s moves.
This strategy requires a degree of trust in the trader whose strategies you’re copying. While it makes trading easier for beginners, it also carries the risk of copying incorrect strategies. Research your traders before you trust them with your money.
3. Bot Trading
Bot trading involves using automated software to perform trades. Crypto trading bots analyze market trends and execute trade orders based on predefined parameters. While this sounds like an easy strategy for crypto trading, it still requires some knowhow.
You’ll be able to get started with the standard settings for bot trading, or customize as you need.
Most crypto trading exchanges feature trading bots these days, including Binance, Kucoin, Gate and more.
Key Steps:
- Select a reliable trading bot software.
- Set your trading parameters.
- Let the software perform trades on your behalf.
While bot trading alleviates the burden of constantly monitoring market trends, it necessitates a strong understanding of how trading bots operate, which can be technically challenging.
4. Using Signal Groups
Crypto signal groups provide detailed trading recommendations sourced from expert analyses or AI algorithms. The idea is that the expert has done the research for you, you simply need to decide whether to execute the trade yourself.
Many crypto influencers offer paid trading signals, often hooking you in with a basic option of one or two free signals to start with. We think one of the best value paid crypto signal groups is Getting Started in Crypto, run by Lisa Edwards.
Her group has a strong pedigree in high quality signals with a high return. I’ve also used GSIC several times, and come out with a high return every time.
Check out Getting Started in Crypto here.
By following these signals, traders can potentially make profitable decisions.
Key Steps:
- Identify legitimate and reliable signal groups.
- Follow the trading advice and adjust your strategies accordingly.
While easy to follow, blindly trusting signal groups can lead to losses. It’s highly recommended to combine signals with your own personal research and to use these signals as a foundation for your own trading.
However, this is one of the easiest crypto trading options.
5. Swing Trading
Swing trading is a strategy that banks on capturing short to medium-term gains in a cryptocurrency over a period of a few days or weeks.
The thing that makes this an easy trading strategy is that you don’t necessarily need to monitor your trade. Simply do your research and buy at your identified level, then set your sells and wait.
So long as you have your stop losses set, you don’t need to focus on the movements of the market too much. This can be a set and leave style, if you do it right. Of course, the effective results rely on your research.
This is a good strategy to pair with paid signals.
Key Steps:
- Develop an understanding of trend analysis and chart patterns.
- Identify entry and exit points for your trades.
Although it can be profitable, swing trading often demands considerable time and knowledge of market trends.
6. Staking
Staking involves holding a cryptocurrency in a digital wallet to support a blockchain network’s operations. As you stake your coins, you earn rewards.
Most crypto exchanges offer access to staking and will offer rewards of anything from 1% to over 50% for staking the right amount of coins over time. With a good investment, you can earn an interest rate well above the traditional market average.
For example, Nexo offers staking rewards of up to 33% on idle assets. Or projects such as Verasity ($VRA) offer rewards of 18%.
Key Steps:
- Identify profitable cryptocurrencies that offer staking.
- Hold the identified crypto and earn rewards over time.
Staking is relatively easy but requires an understanding of suitable crypto for staking and patience for rewards. It’s also available on a wide variety (ie. almost all) crypto exchanges and platforms.
7. Value Investing
Value investing involves identifying undervalued cryptocurrencies and holding them until their price appreciates.
While this sounds like an easy trading strategy, it does take some time to analyse and identify potential opportunities. However, as an easy form of speculating, it can be one of the most straightforward trading approaches.
Key Steps:
- Develop a deep understanding of cryptocurrency fundamentals.
- Identify undervalued assets.
While it requires a high level of expertise, value investing can bring substantial returns.
In Summary
Making money from crypto is not as daunting as it seems. With the correct strategy, tools, and a willingness to learn, you can quickly turn your crypto trading experience into a profitable venture. From HODL’ing to swing trading and staking, you can exploit these strategies based on your time commitments, risk tolerance, available capital, and overall grasp of crypto trading.
A useful tool to manage all of your crypto trading strategies is Vestinda. With a library of different strategies, a porfolio tracker and automated trading tools, Vestinda is a powerful tool that makes your trading that much easier.
Sign up for Vestinda for free.
In conclusion, the easiest way to make money with crypto brings us back to an essential element: knowledge — a knowledgeable investor equates to a profitable investor, so never stop learning.
