Crypto Trading for Beginners: Strategies, Copy, Swing Trading | How to trade crypto?
Bitcoin is trending over $100k as of writing this article. You may even have heard friends talking about it, and you’re wondering what it’s all about!
By
Blackcat team
21.08.2025
5 min
Bitcoin is trending over $100k as of writing this article. You may even have heard friends talking about it, and you’re wondering what it’s all about! Well, going into cryptocurrency trading for beginners headfirst can feel overwhelming, especially with a flood of complex charts, new terminology, and conflicting advice. Where do you even begin?
We believe the best way to learn how to trade crypto is by learning the fundamentals in a clear & simple way. This guide is designed for beginners keeping that in mind. We'll break down four of the most common crypto trading strategies without the hype or any confusing jargon. Our goal is to give you a solid grasp of the pros, cons, and risks of each strategy, allowing you to make your own informed decisions.
Important Disclaimer: This article is for educational purposes only and should not be considered financial advice. The crypto market is volatile, and trading involves significant risk. You could lose all of your invested capital. Please do your own research and consider your risk tolerance, and prioritize safe crypto trading before getting involved.
4 common crypto trading strategies
Each trading style suits a different goal, time commitment, and risk tolerance. Use this table to quickly compare them.
| Strategy | Time commitment | Risk level | Best for... |
|---|---|---|---|
| Day Trading | High (several hours per day) | Very high | Traders who can dedicate significant time to technical analysis. |
| Swing Trading | Medium (a few hours per week) | High | Patient traders who can wait days or weeks for a trend to play out. |
| HODLing | Low (minimal active time) | Medium-High | Long-term believers in a cryptocurrency's fundamental value. |
| Copy Trading | Very low | High | Beginners who want to learn by observing others in the market. |
Keep reading if you want to know more about these strategies.
Strategy 1: Day trading
It is a high-activity strategy that involves making multiple trades within a single day. The goal is to profit from small, short-term price movements. For example, a day trader might buy an asset in the morning and sell it a few hours later via spot, aiming to make a small gain, and then repeat the process several times.
- Pros: If it works, you can make money quickly. There is no need to worry about overnight market volatility since all positions are closed by the end of the day.
- Cons: Extremely time-consuming and can be very stressful. Transaction fees can add up quickly, eating into your profits. That said, it carries a very high risk of loss, particularly for beginners.
Strategy 2: Swing trading
It is a mid-term strategy. A swing trader holds an asset for several days or even weeks in order to profit from larger price "swings". They typically use technical analysis to identify potential upward or downward trends and then try to capture a significant part of that price differential.
- Pros: Less time-intensive than day trading. It can generate comparatively higher profits while avoiding the "noise" of tiny price movement.
- Cons: Swing trading crypto needs a solid understanding of chart patterns and technical indicators. Plus, holding assets overnight exposes you to risks that can occur while you're not watching.
Strategy 3: HODLing
There’s an interesting fact about this strategy. The term "HODL" started as a typo on a crypto forum and is now a popular term for holding an asset for the long term, despite short-term price dips. Essentially, HODL strategy is less of a trading strategy and more of an investing philosophy based on the belief that the asset's value will increase significantly over months or years.
- Pros: By far the simplest and least stressful strategy. It needs little time investment and has traditionally been an effective strategy for big cap coins like Bitcoin.
- Cons: Your capital is tied up for a long time. It takes a lot of patience and emotional control to not panic-sell during market dips.
Strategy 4: Copy trading
Many platforms like Binance let you automatically copy the trades made by other, more experienced traders. When you engage in copy trading crypto, you allocate a certain portion of capital, choose a trader to follow, and the platform replicates their trades in your account in real-time.
- Pros: Very low barrier to entry and saves a lot of time on research.
- Cons: You are trusting someone else's strategy, and their past performance is no guarantee of future success. So, you are still exposed to all the risks of the trades they make.
Your first step into crypto trading
Understanding these different kinds of trades is your first step. The journey into crypto should be taken carefully and thoughtfully. There's no need to rush or invest more than you are willing to lose.
With Blackcat, we make that first step simpler and safer.We focus largely on four major cryptocurrencies, making Bitcoin trading (BTC), Ethereum (ETH) trading key focus points, alongside Tether (USDT), and USD Coin (USDC). These assets are well-established, widely used, and provide a more stable entry point for beginners.
FAQ about crypto trading
What are the different kinds of trades I can make?
When exploring the types of trading markets, you might hear about products like CFDs, short for ‘Contract for Difference’. It involves speculating on price movements without actually owning the underlying asset. This is a complex derivative product. The strategies discussed in this article, however, focus on a simpler approach: buying and holding the actual asset in your own wallet, giving you direct ownership.
How do I choose the best trading style?
Choosing from the many types of trading depends entirely on your personal situation. There is no single "best" way. Ask yourself these questions:
- How much time can I commit? (Hours per day for day trading, or just a few hours a week for swing trading or HODLing)
- What is my risk tolerance? (Am I comfortable with the possibility of fast losses, or do I prefer a slower, steadier approach?)
- What is my goal? (Am I looking for potential short-term gains or long-term growth?)
- Do I enjoy analysis? (Day and swing trading require chart analysis, while HODLing requires belief in the fundamental project)
How much money do I need to start trading crypto?
You don't need a large amount of capital to start. Many platforms and wallets, including Blackcat, allow you to buy small amounts of major cryptocurrencies like Bitcoin or Ethereum. It is wise to begin with a small sum that you are fully prepared to lose as you learn.
Is crypto trading safe for beginners?
Crypto trading carries significant risk due to volatility and market unpredictability. Beginners should start small, educate themselves, use secure platforms, enable two-factor authentication, and never invest more than they can afford to lose.
How do I avoid scams and fraud in crypto trading?
Always use reputable, regulated exchanges and wallets. Be cautious of “guaranteed returns” or unsolicited investment offers. Verify information from multiple official sources and never share your private keys or passwords. Educate yourself on common scams like phishing and fake ICOs.
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