Common strategies to day trade crypto

Investing in Bitcoins

Cryptocurrency is a volatile market, but that doesn’t mean you can’t make money in it. There are many ways to trade cryptocurrency that can help you earn a profit. Here you’ll explore some of the most popular strategies for day trading cryptocurrencies on the Australian cryptocurrency exchange in 2022 and beyond.

Leverage Trading

This is a risky approach to investing that can be profitable if you know what you’re doing. When you use leverage, you borrow money from your broker and use it to invest; the amount of money that’s actually in your account is less than the total amount of assets purchased with it.

It’s important not to allow unsecured borrowing to get too high because this could lead to margin calls. This is when your balance drops below some threshold determined by your Australian cryptocurrency exchange. They might ask for more collateral so they don’t lose their shirt if things go south quickly.

Short Selling

It is a way to profit from falling markets. It involves selling something you don’t own and hoping to repurchase it later at a lower price. For example, if you think the price of bitcoin will fall, you can short-sell one bitcoin by borrowing it from someone else. If the price does indeed fall and you’re able to buy back that bitcoin for less than what you sold it for, then your profit will be equal to the difference between those two prices minus any fees involved with borrowing/lending bitcoins.

News Trading

This strategy involves the trading of a security based on news events. It’s very risky and not for beginners. News traders are typically risk-averse, so they only trade well-established securities likely to be affected by news events from established sources such as central banks or government agencies and not anonymous Twitter accounts. News traders also tend to use technical analysis to confirm their decisions because it’s easier to judge how the market will react when there isn’t much time before an event occurs.

Technical Analysis (TA)

TA is a form of trading that uses historical data to predict future price movements. It’s a strategy used by investors to predict the future price movements of an asset. The idea behind TA is that history tends to repeat itself. Therefore, analysing past trades can be used to predict future ones.

Traders use charts and graphs to examine historical trends in prices (or other market data). According to these charts, they’ll look for patterns indicating where prices may go and then place their trades accordingly.

Volatility Trading

It is a strategy traders use to profit from the price fluctuations of a security, commodity, currency or other financial instruments. Volatility trading is also known as swing trading.

Volatility traders look for significant volatility in the price of an asset and then try to trade it within those volatile periods. They will use limit orders placed at prices below or above current market levels (depending on whether they are shorting or going long). The idea is that if you enter your order at this level and your prediction about where the stock will go is correct, you stand to make big profits due to its high volatility.

Cost Averaging

Another strategy that can help you increase the number of coins you own is cost averaging. This means purchasing a fixed amount of crypto over time and then averaging the price over that period. The result is that even though there may be some dips in price, your overall investment will be higher than if you had just bought one lump sum at one point in time. Cost averaging can work well with buy-and-hold strategies too


While some of these strategies might seem more familiar, each has its benefits and drawbacks. Some require more time or skill than others do, but everyone will be able to find a strategy that works for them.

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