5 Ways to Increase Your Crypto Trading Performance

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Cryptocurrency has witnessed a massive boom in recent years, with a valuation expected to cross $23 billion by the end of 2024. Over 97% of the people who trade in cryptos have faith in its growth, according to the user index of 2024. The statistics point to the ever-increasing usage of alternate currencies, with prominent companies like Facebook, Rolls Royce, BMW, Google, and even UN agencies like UNICEF accepting it as a natural evolution of technology and a legal currency. The exponential rise of trading in these currencies has given rise to efficient and user-friendly trade platforms like bitcoincircuit.cloud to help them make intelligent decisions regarding trading in a volatile market.

What Is The Meaning Of Cryptocurrency Trading?

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It basically involves taking a side on the expected value of cryptocurrency based on the market trend. The traders have created and discovered some popular ways and strategies to engage in their trade. Some of them are as follows:

  • Scalping: The volatility of this area has given rise to this popular strategy. The goal is to accumulate small profits over a period of time, benefitting from minor ups in the market. The intervals usually used by traders are 1 minute, 5 minutes, and 30 minutes. There are times when the trade flow changes within seconds. The speed of the trader determines the profit/ loss at the end of the day.
  • Day Trading: this strategy is similar to the scalping strategy with the use of intra-day trading to earn profits. The time intervals are broader than scalping and require high technical knowledge to benefit from this strategy. The crypto market volatility enables traders to make windfall gains in intra-day movement.
  • Swing Trading: Swing Trading is also known as a medium-term strategy as the observation of market growth is for a more extended period of time compared to day traders. They use technical and fundamental knowledge to determine the market movement and make decisions accordingly. Day trading is a more frequent phenomenon in the crypto market due to its inherent volatility.
  • Position Trading: this trading style is suitable for those who do not have the time to stay glued to their screens and change decisions as per market speculations. This style is somewhat passive in nature, with periodic and frequent assessments of the holdings and the profit they generate. Historical patterns play a significant role in the evaluation by position traders.
  • Arbitrage Trading: This market strategy is used to benefit from valuation differences on different spot exchanges and gain profit.

The traders use a combination of these strategies based on the different cryptocurrencies’ history and demand-supply relations to benefit. It is essential to remember that trading in this market is complicated and needs an expert understanding to evaluate how to make profits.

How Can You Increase The Trading Performance Of Cryptocurrency?

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The volatility of this market isn’t something the traders are unaware of. Lack of uniformity in general trends can be a headache for those who enter trading for the first time. Here are some tips and mistakes to avoid to get the maximum out of crypto trading:

  • Portfolio Diversification- One thing stock markets and the bitcoin markets have in common is numerous options available for traders to invest in. Portfolio diversification helps traders gain in the end despite a few losses in some holdings. The risk factor is minimized when there are many holdings on hand. The overexposure to a single currency is what discourages investors the most.
  • Analyze the history and study fundamentals- meme stocks and social media hype bring a lot of speculation in the market, which is short-lived. If one falls into the trap, it can cause significant losses. It is essential to read factually correct information that analyzes the blockchain market for what it is rather than the market hype that leads to abrupt patterns. The study of fundamentals can help predict the possible market action or trend based on news or any other global event and save from losses.
  • Prefer long-term investment- the immediate profits might serve as bait for people to engage in scalping or day trading. However, long-term investments are said to be more profitable in the end. Moreover, short-term trading is highly risky and not recommended for new entrants in the field as it requires expertise and advanced knowledge.
  • Set risk limits- the speculative nature of the market makes it more prone to losses than the stock market. It can be described as a high-profit high-loss zone. For those having limited money to invest, it is essential to set how much risk one can bear to take to avoid windfall money losses. A risk limit ensures a limit to invest as well as choosing the secure cryptos with a history of profiting.
  • Choose Trustworthy Platforms- The market’s anonymity makes it susceptible to biases and incorrect information, and one wrong trend study can ruin a person’s investment. Trustworthy platforms are those which have intelligent people studying the trends and automated calculations that are directly updated from the market without distortions.
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Such platforms enable traders and even assist them in making their financial decisions by studying accurate charts rather than believing in social media suggestions and giving a comparative analysis of different holdings. The exponential penetration of cryptocurrencies has paved the way for scammers to dupe people of their hard-earned money. So people should be careful not only of the market trends and investment limits but also platforms that are not transparent when dealing with money.


Cryptocurrencies are here to stay for the long term. Investing a specific portion of their investment incomes can be a game changer with mass profits. However, one needs to exercise caution while dealing in the market and protecting money from falling into the hands of fake platforms or abrupt social media trends. If people undertake trading in a well-informed and intelligent manner, then cryptos can be an enormous source of profitability for a person.