Best Crypto Trading Strategies (2021)

In 2021, there are hundreds of different individual crypto trading strategies that are being executed every day by traders around the world and the variety of ways that people are making money in the crypto market continues to increase year on year.

Selecting the right trading strategies to use in the crypto market can be the difference between generating significant profits and significant losses, and therefore it is important to understand the range of different ways that money can be made before selecting which path to go down.

This guide will break down on the best crypto trading strategies in 2021, taking a look at the importance of selecting good strategies, the best crypto and some of the best crypto trading strategies in 2021 as well.

Good Strategies Can Lead to Better Outcomes and Lower Risk

There are many traders in the cryptocurrency market today that have simply chosen the strategy and stock with it for months or years without analyzing whether or not that strategy is actually the optimal way that they could be using that capital to generate more.

This is particularly relevant with the continual increase in innovative new ways to be able to engage with the cryptocurrency market, and therefore by always keeping an open mind as to what else could be done instead there are some traders that are taking advantage of these new ways to trade.

Not only can certain strategies open up ways to increase the number of positive outcomes that happen in the market, but also the risk surrounding cryptocurrency trading can be dramatically reduced by them as well.

Best Crypto Trading Strategies in 2021:

Use Covesting for Improved Outcomes

Covesting is one of the fastest growing ways to engage with the cryptocurrency market in 2021, following its launch in 2017 as the world's first form of cryptocurrency copy trading and its exponential growth since then until now.

The basic structure of how PrimeXBT's Covesting module works is that experienced crypto traders will create peer-to-peer investment funds that are tied to the strategies and that other traders can invest the capital into, and then all of the capital of the followers will be put towards copying the same trades they execute, with that followers of then sharing in the same ROIs as the leading trader.

In return for the services they provide, the leading trader will be rewarded with a 20% success fee on all the profits that are able to generate for their followers, with this creating a mutually beneficial and symbiotic relationship between the two parties.

Use Margin Trading to Profit From Drops

One of the best ways to use margin trading is to use shorting in order to profit from the drops in the price of cryptocurrencies when they clearly become overbought and directly follow pumps.

While there are many platforms in the cryptocurrency market in 2021 that provide margin trading services, PrimeXBT is the world's leading multi-asset margin trading platform, managing up to $7 billion of global trade each and every day, and listing the widest range of cryptocurrencies and traditional assets to be able to trade with margin.

PrimeXBT is also renowned for its security and its ability to protect its users funds and has never been hacked throughout the past years of its operation as a result of the implementation of a range of bank-grade security measures including cold storage of digital assets with multi-signature technology and hardware security modules with rating of FIPS PUB 140-2 Level 3 or higher.

Diversify Your Trades

The final way to implement a better crypto trading strategy than many others are doing is to diversify the kinds of trades and assets that are being traded in order to spread risk across a number of different revenue sources.

Instead of executing a trading strategy with 100% of your capital behind it, it is often a good idea to create multiple different trading strategies and to spread capital across all of them, with the risk that your capital will be catastrophically affected by a problem with the strategy being dramatically reduced by diversifying.

There are many ways to diverse fiber the most common are to spread capital across different platforms, spread capital across different assets, and particularly to spray capital across different strategies.

In Conclusion

The cryptocurrency market is a place where there is a large amount of opportunity for the ability to generate profit and wealth, however it is important to use the right strategies to be able to get at these opportunities otherwise the efficiency of your capital will be substandard.

Using Covesting for improved outcomes, using margin trading to profit from drops, and diversifying your trades at three of the most powerful trading strategies that can be executed by anyone today easily.

If you like to learn more about these three strategies and how to get started with any of them, check out PrimeXBT, Covesting, and diversification.