Like any market, the cryptocurrency market undergoes stages of upward and downward trends. Several investment strategies were developed following price cycles, and we will discuss the most popular of them in this article.

Technically, buying cryptocurrency is not tricky. You can use any large crypto exchange for it, for example, WhiteBIT or Binance, and follow simple steps on purchasing any digital asset you wish. On the other hand, successful investment is a much more difficult case, requiring the awareness of the market trends (cycles) and the ability to react to them appropriately.

A crypto investment strategy is a pattern to follow when buying and selling crypto.

The most common strategies:

  • buy and hold;
  • dollar-cost averaging;
  • Elliott wave theory.

Buy and Hold Strategy

It is one of the most common and simple strategies for crypto trading beginner investors tend to use. It is clear from the name that this strategy implies buying digital assets and holding them long-term, regardless of the market fluctuations. It requires patience and risk tolerance, as well as research of the market and external factors that can impact it. This crypto investment strategy is similar to a conventional stock market.

Once in one crypto enthusiast’s chat, someone made a typo and wrote “hodl” instead of “hold”. It started the trend to call this strategy “hodl”, meaning that an investor should hold coins even if the market collapses.

If you pick this strategy, you should take care of the way to store your coins. It is recommended to keep them in cold wallets, for example, a ledger or any other external device that is not connected to the Internet.

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If you decide to trade frequently and not invest in crypto in the long term, we recommend using a credible crypto exchange WhiteBIT. It allows you to buy and sell cryptocurrency using all existing trading strategies and tools while providing high protection for your funds. The platform offers a convenient wallet for trading and storing your assets.