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| Meta Title | Finding The Right Crypto Strategy For Your Investment Goals |
| Meta Description | Explore various crypto strategies from holding to trading, ensuring you choose the best approach for your financial aspirations. |
| Meta Canonical | null |
| Boilerpipe Text | From buying and holding long-term to actively trading, there are multiple ways to engage with cryptocurrency. If youâre interested in getting started, the first step is understanding different approaches and considering which might align with your interests and level of involvement.
No two strategies are the same. Your approach will depend on your circumstances, risk tolerance and financial goals.
Buying & holding for the long term is a common strategy that some investors choose.
You donât have to follow a single approach. Some individuals incorporate a blend of strategies.
Dollar-cost averaging (DCA) is a method that allows for incremental purchasing over time.
Active trading requires a higher degree of risk and involvement than long-term investing.
Here are the
3 main
investing strategies in crypto:
âBuy and holdâ is a well-known approach where individuals purchase and hold cryptocurrencies over an extended period, often using
Dollar-cost-averaging (DCA)
to buy in gradually.
This method is suited for those who:
Prefer a hands-off approach
Are comfortable with market fluctuations
Are focused on long-term industry trends
Example:
Daisy is interested in cryptocurrency and decides to regularly purchase Bitcoin, Ethereum, Cardano, and Chainlink through a reputable exchange like Digital Surge. She sets up recurring purchases to build her portfolio over time, rather than making a single large investment.
Note: The buy and hold approach often involves fundamental analysis rather than short-term price movements. Those new to crypto may find this method easier to start with before exploring other strategies.
Swing trading involves taking advantage of price movements over a period of days to weeks. Some traders use a combination of fundamental and technical analysis to identify potential opportunities.
This method may appeal to those who:
Have an understanding of market trends
Can tolerate fluctuations in value
Are willing to actively monitor investments
Example:
Paul observes that Cardano has been trending upward for several months and anticipates further movement due to upcoming announcements. He buys during a dip and later sells a portion of his holdings when the price increases, while keeping a percentage in case of further gains.
Day trading involves frequent buying and selling within short time frames. This method requires extensive market knowledge, technical analysis skills, and a high tolerance for risk.
This approach may be suited for those who:
Have a strong understanding of market movements
Are comfortable making rapid trading decisions
Have time to dedicate to active trading
Example:
John identifies a cryptocurrency that is about to be listed on a major exchange. He anticipates a short-term price increase and sets a sell order in advance. Later, he monitors market activity to assess whether further trading opportunities arise.
Note: Day trading is complex and requires significant experience. Many traders who enter without a strong understanding of market movements face challenges.
On a good day. John has plenty of other days that have left him in tears, wondering what he is doing with his life.
Dollar-cost averaging (DCA) is a strategy where individuals invest small amounts over time rather than making a single purchase. This method can help smooth out the impact of short-term market fluctuations.
Benefits of DCA:
Reduces the risk of buying at market peaks
Can help manage the impact of volatility
Allows for gradual portfolio building
Digital Surge offers an automated recurring buy feature, making it easy to implement a DCA strategy.Â
Hereâs an example:Â Â
Rather than buying your portfolio all at once, you instead buy parts of it at intervals. Every week you might want to purchase 50 dollars of Bitcoin and 30 dollars of Ethereum, while playing around at buying some other altcoins you like when they are at reasonable prices. Â
Â
While this will take longer to assemble your total portfolio, it is a strategy we recommend. You might decide to buy 10% of your portfolio every month, or 5% every week if you are in a rush to get your portfolio assembled. Â
Note: Digital Surge allows you to trade with as little as $10 per trade â so if youâre looking at entering the market gradually, weâve got you covered!
âBuying the dipâ refers to getting a coin when the market is in a dip and prices are lower than usual. While it can be nerve racking to invest in a coin thatâs dropping in value, if you have faith in the tech and long term potential of the project, this is an extremely lucrative strategy.
For coins such as Bitcoin and Ethereum, which are relatively stable and safe long term bets, you can build a tidy stack of both by capitalising when the market is in a temporary downtrend. This is a strategy ALL crypto investors should know about and is undoubtedly one of the best ways to turn a profit in the crypto markets.
Some of the biggest gains in all of crypto come from taking profits when things are good, and then buying back during a bear run or major dip when the market has crashed and people are too scared to invest. Be fearful when others are greedy, and greedy when others are fearful.
When it comes to investing strategies, some people want the
best of both worlds
. A common situation is a buy and hold investor also wanting to play around a little to see if they can make some short term profits during a bull run.
Using a blend of long term/short term investing strategies can looks like this: You might have 80 percent of your portfolio allocated to established coins like Bitcoin, Ethereum and Polkadot and now want to use the remaining cash to gamble on a few low or mid caps that are being hyped to pump very soon. Check out our article on
how to diversify a crypto portfolio
to get started on the right foot!
While it is advisable to leave most of your crypto portfolio alone if you are in it for the long term, another example would be taking a 5-10% profit the next time Ethereum or Bitcoin spikes, and then using that money to try your hand at swing/day trading.
Youâll have the stability that you wanted, plus the potential for short term gains. Thatâs just one way you can blend a few strategies together. Itâs also a great way to learn about different approaches (in a relatively low risk way), so you can know what type of trader/investor you want to be in the future.
Day traders aim to capitalise on very short term price moves, while swing traders look for moves that occur over a number of days, weeks and sometimes months. Day trading is a more active and stressful strategy, requiring near constant monitoring of the market to open and close positions within the day.
Swing traders can take a more passive approach (but still nowhere near as passive as buying and holding). They are looking at longer time frames, which means they can check the market less frequently and can often bring in sizable returns from just a few trades over a period of months.
Day traders almost exclusively useÂ
technical analysis
, while swing traders will typically use a combination of technical analysis andÂ
fundamental analysis
. However, both require some knowledge of technical analysis, chart interpretation and how the crypto markets work.
You basically have to dedicate a whole bunch of time to learning and understanding the crypto markets, plus all the bells and whistles of technical analysis. While the returns (especially during bull runs and times of volatility) can be significant, this approach is not for the faint of heart.
You will have to learn about things like candlesticks, bar charts, moving averages, trend lines and support and resistance levels if you are to win at day trading over the long term. If you are interested, there are plenty of guides and courses online that will help you learn the ropes of this high-risk-high-reward strategy.
This type of trading is
NOT
for beginners and carries a great deal of risk. Margin trading is an advanced method of trading assets using borrowed funds provided by an exchange or third party.
When compared to regular trading, margin trading allows you to access greater sums of capital so you can leverage your trades and amplify the profits you make from successful trades. But the same goes for losing trades. It is a high-risk-high-reward kind of trading that day/swing traders often use if they are extremely confident. But beware, many people get into trouble trading this way, so unless youâre a market wizard we donât recommend this kind of trading.
While the terms trading and investing are often used interchangeably, there is a distinction that all beginner traders should understand.
If you are looking toÂ
invest
, it usually refers to aÂ
longer-term strategy
 and you should not expect to see quick returns on your investments. This is usually a low-risk strategy that involves choosing a few coins that you think will perform well over a number of years.
On the other hand, aÂ
traderÂ
speculates on the market and price movements over aÂ
short period of time
. This is a more involved approach which requires a stronger stomach, risk tolerance and the ability to stay composed in high-pressure situations.
It is generally recommended that you should have a
well-diversified portfolio
with a blend of small, mid and large-cap investments (with the majority of your portfolio being more stable, established coins). That way, you minimise your overall risk while still having the possibility of big gains in the short-term.
We hope this article has taken you one step closer to finding the right investing strategy for you. As always, these are just guidelines, and the best approach will probably take some time to work out.
If youâre ready to get started and are looking for the easiest way to buy cryptocurrency in Australia, check out
Digital Surge
â an exchange that makes buying, selling and storing over 420+ cryptos simpler and easier-to-understand than ever before.
With an incredibly user-friendly interface,
extremely low fees
& a customer-support team you can rely on, getting involved in crypto has never been easier. Â
Sign up today
and enjoy safe, stress-free trading.Â
At
Digital Surge
, we believe crypto is the finance of the future. Which is why weâve created
Crypto Simple
, a Crypto Education Hub that demystifies cryptocurrency, giving everyday people like yourself the knowledge they need to make the most of this exciting new resource.
See you around! |
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April 2, 2023
# Which Crypto Strategy Fits Your Goals?
April 2, 2023
Which Crypto Strategy Fits Your Goals?
From buying and holding long-term to actively trading, there are multiple ways to engage with cryptocurrency. If youâre interested in getting started, the first step is understanding different approaches and considering which might align with your interests and level of involvement.
### Key Takeaways
- No two strategies are the same. Your approach will depend on your circumstances, risk tolerance and financial goals.
- Buying & holding for the long term is a common strategy that some investors choose.
- You donât have to follow a single approach. Some individuals incorporate a blend of strategies.
- Dollar-cost averaging (DCA) is a method that allows for incremental purchasing over time.
- Active trading requires a higher degree of risk and involvement than long-term investing.
Here are the **3 main** investing strategies in crypto:
#### Buy & Hold â Long term
âBuy and holdâ is a well-known approach where individuals purchase and hold cryptocurrencies over an extended period, often using [Dollar-cost-averaging (DCA)](https://digitalsurge.com.au/education/what-is-dollar-cost-averaging-dca/) to buy in gradually.
This method is suited for those who:
- Prefer a hands-off approach
- Are comfortable with market fluctuations
- Are focused on long-term industry trends
**Example:**
Daisy is interested in cryptocurrency and decides to regularly purchase Bitcoin, Ethereum, Cardano, and Chainlink through a reputable exchange like Digital Surge. She sets up recurring purchases to build her portfolio over time, rather than making a single large investment.
*Note: The buy and hold approach often involves fundamental analysis rather than short-term price movements. Those new to crypto may find this method easier to start with before exploring other strategies.*
#### Swing trading â Short-Medium term
Swing trading involves taking advantage of price movements over a period of days to weeks. Some traders use a combination of fundamental and technical analysis to identify potential opportunities.
This method may appeal to those who:
- Have an understanding of market trends
- Can tolerate fluctuations in value
- Are willing to actively monitor investments
**Example:**
Paul observes that Cardano has been trending upward for several months and anticipates further movement due to upcoming announcements. He buys during a dip and later sells a portion of his holdings when the price increases, while keeping a percentage in case of further gains.
#### Day trading â Short term
Day trading involves frequent buying and selling within short time frames. This method requires extensive market knowledge, technical analysis skills, and a high tolerance for risk.
This approach may be suited for those who:
- Have a strong understanding of market movements
- Are comfortable making rapid trading decisions
- Have time to dedicate to active trading
**Example:**
John identifies a cryptocurrency that is about to be listed on a major exchange. He anticipates a short-term price increase and sets a sell order in advance. Later, he monitors market activity to assess whether further trading opportunities arise.
*Note: Day trading is complex and requires significant experience. Many traders who enter without a strong understanding of market movements face challenges.* *On a good day. John has plenty of other days that have left him in tears, wondering what he is doing with his life.*
#### Crypto Investing strategies FAQ
#### How does Dollar-cost-averaging (DCA) work?
Dollar-cost averaging (DCA) is a strategy where individuals invest small amounts over time rather than making a single purchase. This method can help smooth out the impact of short-term market fluctuations.
**Benefits of DCA:**
- Reduces the risk of buying at market peaks
- Can help manage the impact of volatility
- Allows for gradual portfolio building
Digital Surge offers an automated recurring buy feature, making it easy to implement a DCA strategy.
***Hereâs an example:***
*Rather than buying your portfolio all at once, you instead buy parts of it at intervals. Every week you might want to purchase 50 dollars of Bitcoin and 30 dollars of Ethereum, while playing around at buying some other altcoins you like when they are at reasonable prices.*
*While this will take longer to assemble your total portfolio, it is a strategy we recommend. You might decide to buy 10% of your portfolio every month, or 5% every week if you are in a rush to get your portfolio assembled.*
Note: Digital Surge allows you to trade with as little as \$10 per trade â so if youâre looking at entering the market gradually, weâve got you covered\!
#### What is buying the dip?
âBuying the dipâ refers to getting a coin when the market is in a dip and prices are lower than usual. While it can be nerve racking to invest in a coin thatâs dropping in value, if you have faith in the tech and long term potential of the project, this is an extremely lucrative strategy.
For coins such as Bitcoin and Ethereum, which are relatively stable and safe long term bets, you can build a tidy stack of both by capitalising when the market is in a temporary downtrend. This is a strategy ALL crypto investors should know about and is undoubtedly one of the best ways to turn a profit in the crypto markets.
Some of the biggest gains in all of crypto come from taking profits when things are good, and then buying back during a bear run or major dip when the market has crashed and people are too scared to invest. Be fearful when others are greedy, and greedy when others are fearful.
#### How do you use a blend of trading strategies?
When it comes to investing strategies, some people want the **best of both worlds**. A common situation is a buy and hold investor also wanting to play around a little to see if they can make some short term profits during a bull run.
Using a blend of long term/short term investing strategies can looks like this: You might have 80 percent of your portfolio allocated to established coins like Bitcoin, Ethereum and Polkadot and now want to use the remaining cash to gamble on a few low or mid caps that are being hyped to pump very soon. Check out our article on [how to diversify a crypto portfolio](https://digitalsurge.com.au/education/crypto-portfolio-diversification-with-examples) to get started on the right foot\!
While it is advisable to leave most of your crypto portfolio alone if you are in it for the long term, another example would be taking a 5-10% profit the next time Ethereum or Bitcoin spikes, and then using that money to try your hand at swing/day trading.
Youâll have the stability that you wanted, plus the potential for short term gains. Thatâs just one way you can blend a few strategies together. Itâs also a great way to learn about different approaches (in a relatively low risk way), so you can know what type of trader/investor you want to be in the future.
#### What is the difference between swing trading and day trading?
Day traders aim to capitalise on very short term price moves, while swing traders look for moves that occur over a number of days, weeks and sometimes months. Day trading is a more active and stressful strategy, requiring near constant monitoring of the market to open and close positions within the day.
Swing traders can take a more passive approach (but still nowhere near as passive as buying and holding). They are looking at longer time frames, which means they can check the market less frequently and can often bring in sizable returns from just a few trades over a period of months.
Day traders almost exclusively use [technical analysis](https://digitalsurge.com.au/education/what-is-technical-analysis-in-crypto/), while swing traders will typically use a combination of technical analysis and [fundamental analysis](https://digitalsurge.com.au/education/example-of-how-perform-a-fundamental-analysis-in-crypto/). However, both require some knowledge of technical analysis, chart interpretation and how the crypto markets work.
#### How do you become a successful day trader?
You basically have to dedicate a whole bunch of time to learning and understanding the crypto markets, plus all the bells and whistles of technical analysis. While the returns (especially during bull runs and times of volatility) can be significant, this approach is not for the faint of heart.
You will have to learn about things like candlesticks, bar charts, moving averages, trend lines and support and resistance levels if you are to win at day trading over the long term. If you are interested, there are plenty of guides and courses online that will help you learn the ropes of this high-risk-high-reward strategy.
#### What is margin/leverage/futures trading?
This type of trading is **NOT** for beginners and carries a great deal of risk. Margin trading is an advanced method of trading assets using borrowed funds provided by an exchange or third party.
When compared to regular trading, margin trading allows you to access greater sums of capital so you can leverage your trades and amplify the profits you make from successful trades. But the same goes for losing trades. It is a high-risk-high-reward kind of trading that day/swing traders often use if they are extremely confident. But beware, many people get into trouble trading this way, so unless youâre a market wizard we donât recommend this kind of trading.
#### Whatâs the difference between trading & investing?
While the terms trading and investing are often used interchangeably, there is a distinction that all beginner traders should understand.
If you are looking to **invest**, it usually refers to a **longer-term strategy** and you should not expect to see quick returns on your investments. This is usually a low-risk strategy that involves choosing a few coins that you think will perform well over a number of years.
On the other hand, a **trader** speculates on the market and price movements over a **short period of time**. This is a more involved approach which requires a stronger stomach, risk tolerance and the ability to stay composed in high-pressure situations.
It is generally recommended that you should have a [well-diversified portfolio](https://digitalsurge.com.au/education/crypto-portfolio-diversification-with-examples) with a blend of small, mid and large-cap investments (with the majority of your portfolio being more stable, established coins). That way, you minimise your overall risk while still having the possibility of big gains in the short-term.
#### Final Words
We hope this article has taken you one step closer to finding the right investing strategy for you. As always, these are just guidelines, and the best approach will probably take some time to work out.
If youâre ready to get started and are looking for the easiest way to buy cryptocurrency in Australia, check out [Digital Surge](https://digitalsurge.com.au/) â an exchange that makes buying, selling and storing over 420+ cryptos simpler and easier-to-understand than ever before.
With an incredibly user-friendly interface, **extremely low fees** & a customer-support team you can rely on, getting involved in crypto has never been easier. [Sign up today](https://digitalsurge.com.au/sign-up) and enjoy safe, stress-free trading.
At [Digital Surge](https://digitalsurge.com.au/), we believe crypto is the finance of the future. Which is why weâve created [Crypto Simple](https://digitalsurge.com.au/education/), a Crypto Education Hub that demystifies cryptocurrency, giving everyday people like yourself the knowledge they need to make the most of this exciting new resource.
See you around\!
## Learn Crypto with Confidence
We provide clear, straightforward education, making it easy to understand and navigate the world of crypto.
[View all articles](https://digitalsurge.com.au/learn-crypto/)


#### What is Blockchain?
[Read article](https://digitalsurge.com.au/education/what-is-blockchain/)


#### Crypto Tax Guide 2024
June 24, 2024
8 mins read
[Read article](https://digitalsurge.com.au/insights/crypto-tax-guide-2024/)


#### What are altcoins?
[Read article](https://digitalsurge.com.au/education/what-are-altcoins/)


#### What are Stablecoins?
[Read article](https://digitalsurge.com.au/education/what-are-stablecoins/)


#### What is a Bitcoin halving?
[Read article](https://digitalsurge.com.au/education/what-is-a-bitcoin-halving/)


#### What is a Bull/Bear Market?
[Read article](https://digitalsurge.com.au/education/what-is-a-bull-bear-market/)
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| Readable Markdown | From buying and holding long-term to actively trading, there are multiple ways to engage with cryptocurrency. If youâre interested in getting started, the first step is understanding different approaches and considering which might align with your interests and level of involvement.
- No two strategies are the same. Your approach will depend on your circumstances, risk tolerance and financial goals.
- Buying & holding for the long term is a common strategy that some investors choose.
- You donât have to follow a single approach. Some individuals incorporate a blend of strategies.
- Dollar-cost averaging (DCA) is a method that allows for incremental purchasing over time.
- Active trading requires a higher degree of risk and involvement than long-term investing.
Here are the **3 main** investing strategies in crypto:
âBuy and holdâ is a well-known approach where individuals purchase and hold cryptocurrencies over an extended period, often using [Dollar-cost-averaging (DCA)](https://digitalsurge.com.au/education/what-is-dollar-cost-averaging-dca/) to buy in gradually.
This method is suited for those who:
- Prefer a hands-off approach
- Are comfortable with market fluctuations
- Are focused on long-term industry trends
**Example:**
Daisy is interested in cryptocurrency and decides to regularly purchase Bitcoin, Ethereum, Cardano, and Chainlink through a reputable exchange like Digital Surge. She sets up recurring purchases to build her portfolio over time, rather than making a single large investment.
*Note: The buy and hold approach often involves fundamental analysis rather than short-term price movements. Those new to crypto may find this method easier to start with before exploring other strategies.*
Swing trading involves taking advantage of price movements over a period of days to weeks. Some traders use a combination of fundamental and technical analysis to identify potential opportunities.
This method may appeal to those who:
- Have an understanding of market trends
- Can tolerate fluctuations in value
- Are willing to actively monitor investments
**Example:**
Paul observes that Cardano has been trending upward for several months and anticipates further movement due to upcoming announcements. He buys during a dip and later sells a portion of his holdings when the price increases, while keeping a percentage in case of further gains.
Day trading involves frequent buying and selling within short time frames. This method requires extensive market knowledge, technical analysis skills, and a high tolerance for risk.
This approach may be suited for those who:
- Have a strong understanding of market movements
- Are comfortable making rapid trading decisions
- Have time to dedicate to active trading
**Example:**
John identifies a cryptocurrency that is about to be listed on a major exchange. He anticipates a short-term price increase and sets a sell order in advance. Later, he monitors market activity to assess whether further trading opportunities arise.
*Note: Day trading is complex and requires significant experience. Many traders who enter without a strong understanding of market movements face challenges.* *On a good day. John has plenty of other days that have left him in tears, wondering what he is doing with his life.*
Dollar-cost averaging (DCA) is a strategy where individuals invest small amounts over time rather than making a single purchase. This method can help smooth out the impact of short-term market fluctuations.
**Benefits of DCA:**
- Reduces the risk of buying at market peaks
- Can help manage the impact of volatility
- Allows for gradual portfolio building
Digital Surge offers an automated recurring buy feature, making it easy to implement a DCA strategy.
***Hereâs an example:***
*Rather than buying your portfolio all at once, you instead buy parts of it at intervals. Every week you might want to purchase 50 dollars of Bitcoin and 30 dollars of Ethereum, while playing around at buying some other altcoins you like when they are at reasonable prices.*
*While this will take longer to assemble your total portfolio, it is a strategy we recommend. You might decide to buy 10% of your portfolio every month, or 5% every week if you are in a rush to get your portfolio assembled.*
Note: Digital Surge allows you to trade with as little as \$10 per trade â so if youâre looking at entering the market gradually, weâve got you covered\!
âBuying the dipâ refers to getting a coin when the market is in a dip and prices are lower than usual. While it can be nerve racking to invest in a coin thatâs dropping in value, if you have faith in the tech and long term potential of the project, this is an extremely lucrative strategy.
For coins such as Bitcoin and Ethereum, which are relatively stable and safe long term bets, you can build a tidy stack of both by capitalising when the market is in a temporary downtrend. This is a strategy ALL crypto investors should know about and is undoubtedly one of the best ways to turn a profit in the crypto markets.
Some of the biggest gains in all of crypto come from taking profits when things are good, and then buying back during a bear run or major dip when the market has crashed and people are too scared to invest. Be fearful when others are greedy, and greedy when others are fearful.
When it comes to investing strategies, some people want the **best of both worlds**. A common situation is a buy and hold investor also wanting to play around a little to see if they can make some short term profits during a bull run.
Using a blend of long term/short term investing strategies can looks like this: You might have 80 percent of your portfolio allocated to established coins like Bitcoin, Ethereum and Polkadot and now want to use the remaining cash to gamble on a few low or mid caps that are being hyped to pump very soon. Check out our article on [how to diversify a crypto portfolio](https://digitalsurge.com.au/education/crypto-portfolio-diversification-with-examples) to get started on the right foot\!
While it is advisable to leave most of your crypto portfolio alone if you are in it for the long term, another example would be taking a 5-10% profit the next time Ethereum or Bitcoin spikes, and then using that money to try your hand at swing/day trading.
Youâll have the stability that you wanted, plus the potential for short term gains. Thatâs just one way you can blend a few strategies together. Itâs also a great way to learn about different approaches (in a relatively low risk way), so you can know what type of trader/investor you want to be in the future.
Day traders aim to capitalise on very short term price moves, while swing traders look for moves that occur over a number of days, weeks and sometimes months. Day trading is a more active and stressful strategy, requiring near constant monitoring of the market to open and close positions within the day.
Swing traders can take a more passive approach (but still nowhere near as passive as buying and holding). They are looking at longer time frames, which means they can check the market less frequently and can often bring in sizable returns from just a few trades over a period of months.
Day traders almost exclusively use [technical analysis](https://digitalsurge.com.au/education/what-is-technical-analysis-in-crypto/), while swing traders will typically use a combination of technical analysis and [fundamental analysis](https://digitalsurge.com.au/education/example-of-how-perform-a-fundamental-analysis-in-crypto/). However, both require some knowledge of technical analysis, chart interpretation and how the crypto markets work.
You basically have to dedicate a whole bunch of time to learning and understanding the crypto markets, plus all the bells and whistles of technical analysis. While the returns (especially during bull runs and times of volatility) can be significant, this approach is not for the faint of heart.
You will have to learn about things like candlesticks, bar charts, moving averages, trend lines and support and resistance levels if you are to win at day trading over the long term. If you are interested, there are plenty of guides and courses online that will help you learn the ropes of this high-risk-high-reward strategy.
This type of trading is **NOT** for beginners and carries a great deal of risk. Margin trading is an advanced method of trading assets using borrowed funds provided by an exchange or third party.
When compared to regular trading, margin trading allows you to access greater sums of capital so you can leverage your trades and amplify the profits you make from successful trades. But the same goes for losing trades. It is a high-risk-high-reward kind of trading that day/swing traders often use if they are extremely confident. But beware, many people get into trouble trading this way, so unless youâre a market wizard we donât recommend this kind of trading.
While the terms trading and investing are often used interchangeably, there is a distinction that all beginner traders should understand.
If you are looking to **invest**, it usually refers to a **longer-term strategy** and you should not expect to see quick returns on your investments. This is usually a low-risk strategy that involves choosing a few coins that you think will perform well over a number of years.
On the other hand, a **trader** speculates on the market and price movements over a **short period of time**. This is a more involved approach which requires a stronger stomach, risk tolerance and the ability to stay composed in high-pressure situations.
It is generally recommended that you should have a [well-diversified portfolio](https://digitalsurge.com.au/education/crypto-portfolio-diversification-with-examples) with a blend of small, mid and large-cap investments (with the majority of your portfolio being more stable, established coins). That way, you minimise your overall risk while still having the possibility of big gains in the short-term.
We hope this article has taken you one step closer to finding the right investing strategy for you. As always, these are just guidelines, and the best approach will probably take some time to work out.
If youâre ready to get started and are looking for the easiest way to buy cryptocurrency in Australia, check out [Digital Surge](https://digitalsurge.com.au/) â an exchange that makes buying, selling and storing over 420+ cryptos simpler and easier-to-understand than ever before.
With an incredibly user-friendly interface, **extremely low fees** & a customer-support team you can rely on, getting involved in crypto has never been easier. [Sign up today](https://digitalsurge.com.au/sign-up) and enjoy safe, stress-free trading.
At [Digital Surge](https://digitalsurge.com.au/), we believe crypto is the finance of the future. Which is why weâve created [Crypto Simple](https://digitalsurge.com.au/education/), a Crypto Education Hub that demystifies cryptocurrency, giving everyday people like yourself the knowledge they need to make the most of this exciting new resource.
See you around\! |
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| Unparsed URL | au,com,digitalsurge!/education/which-crypto-investing-strategy-is-right-for-you/ s443 |