Top 5 Altcoin Trading Strategies
- Technical Analysis
- Day Trading
- Dollar-Cost Averaging
- Arbitrage Trading
- HODLing
Finding Altcoins with 100x Potential Using Moralis Money
Out of all the various altcoin trading strategies you’re using, you’ll want to leverage Moralis Money.
Moralis Money is the easiest and best way to get irrefutable, real-time, on-chain data. With this tool, you can effortlessly monitor market activity and find tokens suited for your altcoin trading strategy in no time.
Try Moralis Money and the Token Explorer feature for free directly in the interactive widget below. Apply one of the preset filters or create one of your own by adding the metrics of your choice.
Our team of traders who built Moralis Money managed to find several promising opportunities before they exploded. Two great examples are EGLD and MATIC crypto:
- We discovered MultiversX (EGLD) at only $9.18. About a year later, we sold for a 5,800% return at the price of $524.58:
- Our team found MATIC when it was trading a just $0.003. A few years later, the price peaked at $2.9 – giving us an incredible 96,400% return:
If you’d like to find similar coins and make similar gains, try Moralis Money immediately!
Also, for the complete experience, consider the Moralis Money Pro plan. Subscribing to Moralis Money Pro gives you access to more narrow timeframes for all search queries. As a result, you can base your crypto predictions on weekly, daily, and hourly market data updates!
If you want to learn more about how Moralis Money works, jump straight into the ”Supercharge Your Altcoin Trading Strategy with Moralis Money” section.
Altcoin Trading Strategy – Top 5 Crypto Trading Strategies
There are many different altcoin trading strategies you can choose from, and we can’t cover them all in this article. Thus, we’ll focus on some of the most popular strategies. More specifically, we’re going to take a closer look at the following five:
- Technical Analysis
- Day Trading
- Dollar-Cost Averaging
- Arbitrage Trading
- HODLing
So, without further ado, let’s jump straight into the first strategy: technical analysis (TA).
Technical Analysis
Technical analysis (TA) is a common strategy in both conventional and altcoin trading alike. What’s more, the fundaments of a TA strategy don’t differentiate between these various markets. After all, TA revolves around looking at trading charts to analyze an asset’s past trading activity and price fluctuations.
TA is applicable to any asset with historical data. This includes stocks, futures, commodities, currencies, cryptocurrencies, etc. Furthermore, it’s used to forecast the price movement of any trading instrument subject to supply and demand forces.
Traders use hundreds of signals and patterns to support technical analysis. These signals and patterns are called technical analysis indicators. Here are five commonly used technical indicators:
- Chart patterns
- Moving averages
- Price trends
- Momentum and volume indicators
- Oscillators
If you’d like to learn more about TA and how it works, check out our crypto trading for dummies guide!
Day Trading
Day trading is another commonly used altcoin trading strategy. This strategy involves purchasing and selling assets within the same day. Day traders, therefore, look to capitalize on short-term price fluctuations occurring during a trading session or a day.
In the traditional stock market, traders execute multiple trades in a day with the goal of making a profit. Exactly the same principles apply in the cryptocurrency market. However, it’s essential to know that day-trading crypto is riskier. But it also provides a higher potential for higher rewards!
If you’re interested in this strategy, check out our guide on day trading crypto!
Dollar-Cost Averaging
If you’re looking for a solid strategy that doesn’t involve indicators, then dollar-cost averaging (DCA) might interest you. This strategy is popular among new and more experienced traders alike. So, what exactly is DCA?
Instead of investing all your money into an asset at once, you divide your investments into smaller fractions with a DCA altcoin trading strategy. Your investment amounts are then spread out over a given time period where you regularly purchase an asset at a particular time and day.
A DCA altcoin trading strategy reduces the impacts of market volatility. By investing regularly, you’ll most likely hit both ups and downs in the market, generally giving you a more stable average price.
Arbitrage Trading
The fourth strategy is arbitrage trading. When arbitrage trading crypto, you want to capitalize on slight price discrepancies across markets and exchanges. In its simplest form, arbitrage altcoin trading is the process of purchasing an asset on one exchange and almost simultaneously selling it on another where the price is higher.
Arbitrage trading can be advantageous as the process involves little or no risks at all. What’s more, you don’t need to be a professional trader with an expensive setup to start arbitrage trading.
HODLing
The last altcoin trading strategy is HODLing. “HODL” is a misspelling of “hold” that originated from the crypto community back in 2013. As the name indicates, this is an altcoin trading strategy that involves buying and holding on to an asset for an extended period.
A HODLing strategy helps investors avoid losses from short-term market volatility. As such, unlike day trading, the HODL strategy seeks to draw value from the long-term value appreciation of altcoins.
HODLing does, in theory, have less risk than other altcoin trading strategies. With that said, HODLing is definitely not without risk. As such, we recommend that you always do your own research in great detail before making an investment decision.
Picking the Best Altcoin Trading Strategy for You
Now, with an overview of five prominent altcoin trading strategies, you might ask yourself, “which strategy should I opt for?”
Unfortunately, there isn’t a straightforward answer to the question above, and there isn’t a “one-size-fits-all” strategy. It all depends on your preferences. As such, you’ll need to consider the time you can spend, the level of risk you’re comfortable with, your experience, etc.
However, one thing is certain: you can leverage Moralis Money to make your life as a trader easier, no matter what strategy you choose.
If you want to learn more about Moralis Money and how this service works, join us in the next section!
Supercharge Your Altcoin Trading Strategy with Moralis Money
With Moralis Money, you can supercharge your altcoin trading strategy. Use Moralis Money to read market activity like never before via on-chain data to stay one step ahead of the masses and find crypto coins before everyone else.
But first, what’s stopping traders from making serious gains in the crypto market?
- Fear of Missing Out (FOMO) – Many crypto traders suffer from FOMO. They tend to trade emotionally in response to the fear of missing opportunities. In doing so, they often buy assets when it is too late, only to see the price fall shortly after.
- Cryptocurrency Scams – It becomes difficult to identify scams in a fast-paced market like crypto, especially when you need to take action quickly. This is why many traders struggle with issues like rug pulls and exit scams.
- Time Constraints – Trading crypto is a full-time job when you don’t have the right tools. Doing the research to find the next big crypto takes time, something most of us can’t afford.
How can Moralis Money help you avoid these pitfalls?
Well, Moralis Money has three central features designed to counter these challenges: Token Explorer, Token Shield, and Token Alerts:
- With Token Explorer, you can find the best cryptocurrency to invest in right now. As such, you’ll never again have to FOMO into buying a token.
- Token Shield provides a security evaluation of each coin. This means you’ll now be able to dodge scams efficiently.
- With Token Alerts, you can set up email notifications to get alerts whenever a new opportunity arises. As such, you can instantly act when the best cryptocurrency to invest in emerges. What’s more, you don’t even need to be full-time in crypto to do so.
Let’s explore these features in the following sections!
Find Coins for Your Altcoin Trading Strategy with Token Explorer
With Token Explorer, you can effortlessly find tokens suited for your altcoin trading strategy.
The Token Explorer feature leverages on-chain data, making it easier to read real-time market activity than ever before.
Let’s show you how it works!
The easiest way to get started is to launch Token Explore and use one of our preset filters:
However, the magic of Moralis Money is that you can create custom filters to find exactly the coins suited for your altcoin trading strategy. For instance, this is how you can find new coins gaining traction from other experienced buyers:
- Step 1: Add the Coin Age filter to get coins created in the last month:
- Step 2: Add the Experienced Buyers metric to get coins other traders are buying. Let’s also add Security Score to get tokens that are most likely not crypto scams:
- Step 3: Combine the filters above with additional metrics to find tokens perfect for your altcoin trading strategy!
You can read more about the top three coins from the GIF above right here: the PEPE token, the WOJAK token, and the CHAD token.
Also, if you want to trade like a pro, consider the Moralis Money Pro plan. With the Pro plan, you can narrow the timeframe for each metric. This means you can get market data on a weekly, daily, and even hourly basis. As a result, you can make more accurate short-term crypto predictions and find tokens tailored to your altcoin trading strategy!
Remove Scam Coins with Token Shield
With Token Shield, you can protect yourself from scams you would have otherwise missed. You just need to identify the shield symbol attached to each coin:
The numbers featured on the shields are the coins’ DEXT Score. This is a measure of a project’s confidence, and it’s calculated using several factors, including the number of holders, liquidity, social aspects, etc.
For more information on what the DEXT Score is and how it’s calculated, you can click one of the shield symbols when using Token Explorer.
Also, if you want to filter away coins with a low score, add the Security Score metric and specify ”Greater than” 70:
Get Notified in Real-Time with Token Alerts
When using Token Explorer and creating your own search queries, you can save your custom filters. To do so, click on the “Save Query” button and name your filter:
From there, you can set up an alert by going to the ”Account” tab and hitting the bell button:
In return, you’ll receive real-time email notifications whenever a token emerges, matching the filter in question.
Summary – Altcoin Trading Strategies
There are many altcoin trading strategies you can choose from. We weren’t able to cover them all, which is why we focused on the following five in this article:
- Technical Analysis
- Day Trading
- Dollar-Cost Averaging
- Arbitrage Trading
- HODLing
So, which of these strategies is the best, and which one should you opt for?
All the strategies above have their own advantages and disadvantages. As such, there isn’t a “one-size-fits-all” strategy, meaning we can’t give you a straightforward answer. Instead, you need to consider factors like time limitations, the risk you’re willing to take, experience, etc.
However, no matter the strategy you opt for, you can always leverage Moralis Money to make your strategy successful!
Moralis Money has three central features: Token Explorer, Token Shield, and Token Alerts.
With Token Explorer, you can effortlessly find the tokens suited for your altcoin trading strategy. With Token Shield, you can avoid annoying crypto scams. Lastly, with Token Alerts, you can set up email notifications to act fast when the best altcoins to invest in with 100x potential emerges!
Also, if you want to start trading like a professional, consider subscribing to the Moralis Money Pro plan. This will give you access to shorter timeframes (weekly, daily, and hourly) for all metrics, allow you to save more search queries, collect more Moralis Money beans, and much more!
