Following trends. Traders who follow the trends are going to buy assets when the prices go up and sell them when the prices drop. This day trading cryptocurrency approach is based on the assumption that if the prices are changing steadily, they will most likely continue the same way.
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Counter investing is based on the assumption that the price increase will change and eventually drop. Traders that apply this strategy will buy assets during the drop, hoping that the trend changes.
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Scalping. Although the name of this strategy sounds frightening, it is simply based on the speed of making a decision. When applying this strategy, the trader uses gaps in prices that are created by the bid-ask spread (the maximum price the buyer can pay and the minimum price the seller can accept). Usually, this strategy takes a few minutes, or even seconds, so this is not a good example of day trading for dummies who don’t have enough experience to make quick decisions.
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News trading. When the news is good, investors will tend to buy and when the news is bad, they will quickly sell assets. The drawback of this strategy is that it creates market volatility, which can increase both profits and losses. In addition, you will always have to pay day trading cryptocurrency taxes and will ultimately earn less.
