Bybit Copy Trading Gold&FX offers effortless diversification into gold and FX markets, passive income opportunities, and a transparent profit-sharing model.

 has emerged as a great way to become quickly profitable, even in markets one may not be intimately familiar with, by replicating the orders and strategies of experienced Master Traders. And for experienced and successful Master Traders, it has created unique opportunities to efficiently earn additional profits.

Recognizing the growing popularity of copy trading, Bybit has introduced a new product, Copy Trading Gold&FX, which allows traders to seamlessly follow the market moves of experienced Master Traders and leverage their expertise to earn profit in 

 (FX) markets. Skilled gold and FX trading pros can now share their moves in real time and earn income based on profits they generate for their Followers.

Beyond the usual benefits of copy trading, Bybit’s Copy Trading Gold&FX allows traders to diversify their investments into the established, high-liquidity gold and FX markets. For many crypto traders, such diversification is key to hedging against the high volatility and risks associated with the 

 is Bybit’s latest innovative copy trading product targeted at the high-liquidity lucrative markets of gold and FX. 

Thanks to Copy Trading Gold&FX, Master Traders can monetize their trading expertise by helping their Followers turn a profit, while Followers without prior trading experience can effortlessly derive passive income through replicating professional strategies. The product focuses on gold, FX pairs and market indices.

 (MT5) platform. Bybit’s MT5 provides traders with access to various markets and products, including FX pairs, metals and other commodities.

Bybit Copy Trading Gold&FX operates differently from 

 For example, Copy Trading Gold&FX allows trading in gold, FX products and market indices. In contrast, Copy Trading Classic is designed for futures trading. Another highly important distinction is in the way profits are shared.

While both Bybit Copy Trading Classic and Copy Trading Gold&FX allow Master Traders to earn a portion of the net profits generated by their Followers, Copy Trading Classic calculates the net P&L daily, with the profit-sharing ratio based on the Master Trader’s rank. On the other hand, Copy Trading Gold & FX utilizes a High Water Mark (HWM) mechanism for profit sharing where Followers' profits are shared with Master Traders only when the net profit, which includes both realized and unrealized PnL, surpasses its previous peak. This is designed to ensure that Master Traders are rewarded for consistent profitability. A percentage of up to 15% can be shared.

Trading fees on the Copy Trading Gold&FX account vary by type of asset traded and are charged per lot. FX and gold are charged $6 per lot, and market indices are $3 per lot.

Trading volume within your Copy Trading Gold&FX account counts toward qualification for 

. This is a set of VIP grades for Bybit accounts that provide additional benefits and fee discounts commensurate with the VIP level achieved. However, note that volumes from Copy Trading Gold&FX are subject to a 10x multiplier for VIP level qualification to ensure that volume calculations for FX/Gold and the standard futures products are equalized, despite the typically large differences in trading lot sizes.

Unlike the standard copy trading account, which is based on daily profit sharing, profits from Copy Trading Gold&FX are shared once per week. The MT5 platform automatically calculates weekly distributions, and seamlessly shares the profits from Followers to their Master Traders using the HWM principle mentioned above.

For Master Traders,a copy trading account offers the valuable opportunity to monetize their trading expertise. Meanwhile it provides Followers a passive way to earn, with profits shared only if their Master Trader consistently achieves and beats their best results.

Bybit Copy Trading Gold&FX allows traders to diversify into the highly liquid, stable and well-established markets of gold and FX. Such diversification away from relying on crypto can be a great hedge against the volatility of the crypto market, or any potential prolonged bear markets in it. Thanks to the copy trading mode, even traders new to these lucrative markets can reap the benefits of diversification by copying the moves of FX and metal commodity pros.

Followers can learn from the trades and strategies of top performers in the FX and gold markets. Besides easy profitability, this provides an outstanding experience for learning and skill development.

Bybit’s MT5 platform provides a user-friendly interface, with functions and tools for traders at all levels to derive the best from their copy trading experience. An MT5 Copy Trading Gold&FX account ensures that the entire trading experience is as seamless as possible by providing advanced options, such as automatic trades and over 

90 indicators for thorough market analysis.

The HWM profit-sharing model ensures that Master Traders are motivated to maximize their Followers’ profits by consistently achieving profitability and surpassing their previous bests. Additionally, all trading moves of Master Traders are transparently visible, which helps to foster trust in the platform. Potential Followers can also view the leaderboard of the most profitable Master Traders, and choose their preferred trading 

There are, of course, risks associated with a Copy Trading Gold&FX account. First, there’s the risk of reliance on third parties outside of Bybit’s control, as Copy Trading Gold&FX is linked to the international forex and commodities markets. Secondly, masters’ past performances are not an ironclad guarantee of their future profitability. 

Additionally, Followers and Master Traders might initiate the same order based on different entry prices, due to factors like network delays or sharp, quick fluctuations in the asset’s price at the time of order execution. These price discrepancies may result in distinct outcomes. Finally, despite its unique benefits, the HWM profit-sharing model could motivate some Master Traders to adopt increasingly risky strategies in order to maintain their profit cuts.

Bybit Copy Trading Gold&FX is an excellent option for traders looking to become profitable from gold and FX markets. It also provides numerous other benefits, such as diversification away from crypto, a great learning experience and the transparent nature of this trading mode. The innovative HWM profit-sharing mechanism ensures that Master Traders give their best to maximize their Followers’ profits. 

With all of these advantages for Master Traders and Followers, Copy Trading Gold&FX is 

 for traders at any levels of experience.

Intermediate

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Benefits of Bybit Copy Trading Gold&FX: Unlock Your Profits With Ease

An MT5 demo account is a risk-free trading environment that simulates live market trading on MetaTrader 5. Read our article to get started with Bybit Gold&FX.

Want to master trading cryptocurrencies, forex and CFDs (metal, oil and indices) without risking your own capital? Bybit's 

 demo trading platform provides a simulated environment in which users can practice trading strategies, test automated systems and gain hands-on experience with professional trading tools.

In this guide, we'll explain what an MT5 demo account is, how it works and its key benefits, and provide step-by-step instructions for setting up your own demo account. We'll also help you decide if creating a demo account is right for your trading journey.

An MT5 demo account is a risk-free trading environment that simulates live market trading with MetaTrader 5. It lets traders use virtual funds to practice trading crypto, forex and CFDs while accessing all platform features and tools.

The Bybit MT5 demo account works by creating a 

 to give traders hands-on experience without financial risk. Operating on its own dedicated server (Bybit-Demo), the platform delivers real-time market data with intentional price variations to maintain a clear distinction from live markets while preserving realistic trading conditions.

Traders access the environment through Bybit's Testnet platform, where they can experiment with virtual funds and test trading strategies risk-free. Every aspect of the trading experience mirrors the live platform — from order execution mechanics to position management tools — ensuring traders develop practical skills that transfer directly to live market trading.

The MT5 demo account comes with the same professional tool kit found on standard MT5 accounts:

The platform maintains leverage settings and margin requirements identical to those in live trading accounts. These authentic market conditions allow traders to experience true market dynamics, build proper 

 habits and perfect their position-sizing strategies before trading with real capital.

Here's what makes the MT5 demo account an essential tool for traders.

Live market trading involves real capital and significant financial risk, often creating intense pressure that can impair learning and decision-making. The MT5 demo account eliminates this stress by providing a zero-risk environment in which traders can open positions, test aggressive strategies and learn from mistakes without monetary losses.

The MetaTrader 5 platform offers sophisticated trading tools that require time and practice to master effectively. By using the demo account, traders can thoroughly explore these features without pressure or time constraints.

Traders can spend time learning different chart types, testing various technical indicators and mastering complex order executions. This hands-on experience with the platform's tools builds the confidence and competency needed for successful live trading.

Successful trading requires well-tested strategies that perform consistently across different market conditions. The demo account serves as a laboratory where traders can methodically test their trading ideas, refine entry and exit points and optimize position sizing rules.

The platform provides detailed trading history and performance metrics for thorough strategy analysis. This allows traders to identify and fix weaknesses in their approach before risking real capital in live markets.

Beyond technical platform knowledge, the demo account helps develop essential professional trading skills. Traders learn to interpret market dynamics, understand how economic events affect prices and develop the emotional discipline needed for consistent trading.

The platform's real-time feedback helps traders understand their decision-making processes and improve their market analysis abilities. This practical experience creates a solid foundation for successful transition to live trading.

How to Get Started With an MT5 Demo Account

: Log in to your account. If you have a new account, fill in your email address and create a secure password. Click on 

 and verify your email if prompted. Only a Bybit Main Account holder can activate a Bybit MT5 Account.

: Congratulations! Your account has been created! Your 

 tab. You can also view your details when you click on 

. Keep the following login credentials (provided in the pop-up window) safe, as you'll need them to access the MT5 demo platform:

 in the drop-down menu, and select the amount of demo funds you would like to receive. You can choose from 

: Now that your demo account is funded, scroll down the page to download the MT5 platform based on your device’s operating system. For computers, you can download MT5 for Windows or macOS. Mobile traders can find the app on 

Optional: Set Up Your Trading Preferences

: Customize your MT5 interface by clicking on 

: Configure your charts and trading workspace:

: The demo server time zone is set to UTC+2 by default, and changes to UTC+3 during daylight saving time (DST). This setting cannot be modified.

An MT5 demo account is worth considering if any of the following apply to you:

Whether you're just starting your trading journey, or are looking to enhance your existing skills, the MT5 demo account offers the perfect balance of professional tools and risk-free practice. Take advantage of this opportunity to build your confidence and expertise before transitioning to live markets.

A Bybit MT5 demo account serves as an essential stepping stone along every trader's journey. It combines the powerful features of the MetaTrader 5 platform with Bybit's robust trading infrastructure, allowing you to practice trading cryptocurrencies, forex and CFDs risk-free.

While demo trading can't completely replicate the emotional aspects of live trading, it provides an ideal environment in which to master the platform, test strategies and prepare for managing real capital. Take advantage of this free resource to help build your confidence and refine your trading approach before transitioning to live trading.

Beginner

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MT5 Demo Trading: How to Set Up Your Bybit MT5 Demo Account

President Trump announced a private-sector investment of up to $500 billion to fund AI infrastructure, aimed at advancing U.S. leadership in the technology.

The S&P 500 hit a record high, rising 0.61% on strong earnings and optimism about Trump's policies. Investors await more earnings and jobless claims data. Gold rose above $2,760, driven by uncertainty over Trump’s tariff policies. Investors focus on the Fed’s January meeting, with key resistance at $2,763 and downside support at $2,582. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 2.67%, with Bitcoin and Ether dropping by 1.75% and 2.26%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is WLD, which surged nearly 5.5% following the boost from Trump's AI investment plan.

Worldcoin (WLD), founded in 2019, is a blockchain project that uses biometric eye scans to create unique digital IDs, ensuring privacy. Participants receive Worldcoin tokens for verification, granting access to free money. Co-founded by Sam Altman, it aims to build a global ID system and facilitate transactions via the World App, with $115 million raised in its Series C funding. Worldcoin's price surged after Trump announced a major AI investment plan involving OpenAI. The news boosted the crypto market, with Worldcoin's market cap rising significantly. AI-related projects also saw gains as traders grew optimistic about AI's influence on crypto.

Check Out the Latest Prices, Charts, and Data of 

 a private-sector investment of up to $500 billion to fund AI infrastructure, aimed at advancing U.S. leadership in the technology. The initiative, led by OpenAI, SoftBank, and Oracle under the joint venture "

," will include the construction of 20 data centers and create over 100,000 jobs. The project, already underway in Texas, is expected to support AI advancements like electronic health record analysis. The investment comes after the rollback of AI-related regulations from the Biden administration. Shares of Oracle and other tech companies saw a rise following the announcement.

Yesterday, BTC Spot ETFs experienced total outflows of $95.6 million, comprising $47.9 million from GBTC and $47.7 million from non-GBTC sources.

, with claims starting today at 1 PM UTC on the Arbitrum chain. The current pre-market price is $0.10. Eligibility includes Azuki NFT holders, top HYPE stakers, and holders of select tokens from platforms like Aave, Camelot, GMX, and Pendle. It's mainly targeted at whales, though some non-whales may qualify.

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Trump Unveils $500 Billion AI Infrastructure Investment to Boost U.S. Leadership

GoPlus is a web3 security provider whose user-driven security network provides protection for every step of the transaction lifecycle. Learn more here.

While online transactions offer a lot of convenience and speed, they do come with some potential security risks. Although problems like scams, hacks and data leaks are infrequent, some crypto traders end up having to deal with them. GoPlus hopes to solve these issues with its revolutionary security system. This project aims to be the first decentralized security layer for 

 builders. GoPlus has already managed to acquire many impressive customers, and has big plans for the future. 

What can users expect from GoPlus? Explore this guide to learn more about the system. 

 is a web3 security provider. Its user-driven security network provides protection for every step of the transaction lifecycle. GoPlus seamlessly integrates into products built on 

, Avalanche, TRON, Base and a variety of other chains.

Since its creation in 2020, GoPlus has been run by a group of three co-founders. The lead founder, known as Mike Lee, has also created other web3 startups, such as Delphy and Yixuan Tech. His experience working on decentralized markets demonstrated a need for better security services. Lee was joined by co-founder Allen Zhang, a former solution architect for Ant Group, and co-founder Eskil Xu, an economist who focuses on entrepreneurship and business.

Since its public launch in 2022, GoPlus has managed to attract a lot of positive attention. Its investors include Binance Labs, Animoca Brands, OKX Ventures and HashKey Capital. The platform has an average daily API call rate of 

, and it has protected clients from over 800,000 malicious threats.

GoPlus is tackling the issue of poor security in the web3 world. While blockchain products have significant inherent security, current setups make it quite easy for malicious actors to take advantage of customers. Industry reports suggest that the web3 industry loses 

GoPlus's focus is on addressing common security issues that can steal money from non-tech-savvy crypto users. However, the GoPlus team recognizes that the people most vulnerable to scams don't have the know-how to install their own security measures. Therefore, GoPlus aims to be a flexible system that can be added directly to web3 systems. Its team endeavors to create a helpful tool that any web3 project can connect to its network in order to keep users from falling for phishers and other scammers.

GoPlus is essentially set up as a decentralized software provider. The GoPlus ecosystem consists of a group of interested data providers, node providers, security developers and other contributors who provide computing power, store data and suggest changes to the GoPlus system. The trustless design requires contributors to stake tokens, so malicious actors lose money while valuable contributors earn it. 

GoPlus’s system then runs a comprehensive set of security features that any web3 developer can choose to install. Once GoPlus is connected to a 

 (DApp) or other part of a web3 ecosystem, user transactions are routed through various layers of the GoPlus architecture. Individual layers — such as data verification, anti-phishing and data security — provide security features as needed. Sophisticated security engines within the architecture can do everything from tracking common scammer IP addresses to dynamically testing smart contracts for vulnerabilities.

GoPlus has a robust suite of security features from which to choose. Following are the primary ways it provides value to web3 developers and users.

The GoPlus app is a comprehensive security module meant to combine all of GoPlus's features in one easy location. The app is accessible from a variety of devices, and enables users with full control over all their security needs. They can opt into and out of various security policies, and set their own risk levels.

The GoPlus Security API is a set of application programming interfaces that allow various applications to communicate with GoPlus and access its security features. The Security API suite from GoPlus has a modular design that allows users to choose from options, such as token security analysis, malicious address libraries, NFT security assessments and phishing site blockers.

GoPlus's Security SDK is a collection of software development kits that make it easy to integrate GoPlus features directly into any project. Interested developers can access a bundle of pre-coded security features that they can insert into their own designs.

 makes it easier to create and deploy secure cryptocurrency tokens. It includes open-source token contract templates, pre-audited designs and automated security checks. 

 chain that allows direct integration of security features into blockchain networks. The main benefit of SecNet is its on-chain firewall that monitors transactions in real time and stops high-risk transactions from running. 

In 2024, GoPlus was able to achieve many of its road map goals, 

 SecNet, SecHub and the SecWare protocol. Now that the basic protocols for the GoPlus security ecosystem are in place, GoPlus is transitioning to improving its customer service features. The next focus of the

 entails implementation of the security gas service model that will let contributors use the GPS token to protect on-chain transactions. 

GoPlus also plans to open its developer platform and create an open-sourced playground where community members can tinker around with new features for GoPlus. The final plan on the 2025 road map is to add support for more blockchains. 

The GPS crypto token is designed to facilitate the decentralized operation of the GoPlus platform. People can use it to pay for transaction fees and security features from GoPlus, and to help manage the staking system that secures the GoPlus network. The token’s total supply of 

 will be distributed in the following manner:

Since its release on the open market, the GPS token has almost doubled in value. Coin prices initially started at around $0.05, and quickly reached an all-time high of $0.1199 on Jan 22, 2025. Since then, its price has mostly stabilized within the range of $0.1191 (as of Jan 22, 2025). However, GPS is still a fairly new coin with a lot of potential for price change.

Though it's still too soon to get exact pricing predictions for GPS, the future looks promising for this token. CoinMarketCap reports 

, and on social media people are calling it a 

Looking to trade GoPlus tokens? Bybit now offers the GPS/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

To celebrate this listing, Bybit is holding 

 for you to earn a share of a 19,000,000 GPS prize pool.

GoPlus appeals to the needs of modern crypto users. It provides security in a convenient manner, which has helped its token reach a respectable price. Investors who like working with new startups and tech-based companies may enjoy getting GPS tokens, especially during the current hype for the new token drop. Since the token has significant utility within the GoPlus ecosystem, its ability to maintain value over the long term is also promising.

However, GoPlus is still quite new, and it’s impossible to guarantee its success. The project relies on a small team, and anything that goes wrong could lead to a potentially major drop in the GPS token’s value. If GoPlus’s team fails to continue developing its product, enthusiasm and interest in the token could wane. Therefore, GPS investors need to pay close attention to market conditions and keep their portfolios diversified if they want to work with this token. 

GoPlus provides a valuable service for people looking to enhance web3 products. By implementing security features from the ground up, GoPlus addresses a lot of the common challenges that crypto users face. As long as it can continue to build on its current success, GoPlus has the potential to become an essential part of many other crypto systems.

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GoPlus (GPS): Your Gateway to Safer Crypto Transactions

Trading

Strategies

Not only does having the best crypto trading strategies help you maximize profits - it gives you peace of mind to trade BTC or altcoins despite the volatility. Here's what you need to know.

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If you are hoping to profit from trading cryptocurrency, then you’ll benefit from arming yourself with ample insight and a well-crafted crypto trading strategy. 

There are many viable approaches to trading crypto. From spot trades and exchange arbitrage, scalping to day trading and every cryptocurrency owner’s favorite buzzword, HODLing, traders have a wealth of options at their disposal. After choosing a reliable exchange, even a novice trader can start trading quickly. 

This guide will take you through the fundamentals of strategic cryptocurrency trading. We’ll give you an overview of active and passive trading methods, long- and short-term crypto trading strategies, and how to use these techniques to your advantage. 

What Is a Cryptocurrency Trading Strategy?

A cryptocurrency trading strategy is a plan for buying and selling cryptocurrency that minimizes risk while improving the chances of turning a profit. A well-defined trading strategy mitigates trading risks and dictates trading reactions to varying situations in the market. 

Having a trading strategy helps keep emotions out of trading decisions, in order to more strategically coordinate trades.

A comprehensive trading strategy may include:

With assets, trading configurations, indicators, entry and exit patterns, and other trading guidelines stipulated beforehand, you can create a comprehensive plan.

There are two basic types of trading strategies. Active trading strategies require your intervention and call for conscious, regular attention. Passive trading strategies use less time and don’t require frequent attention. Usually, you’ll be following a well-established method that does not require constant monitoring. We’ll be discussing both approaches presently. 

Forex Trading vs. Crypto Trading: Differences

Cryptocurrency trading is the trading of cryptocurrencies across various cryptocurrency exchanges. Forex trading is the trading 

 Forex market. Here’s a brief breakdown of the main differences between Forex trading and cryptocurrency trading:

Forex markets are typically far more liquid and deep than cryptocurrency markets, with larger institutional and corporate players who buy and sell Forex for hedging and cross-border transactions. Cryptocurrency markets are still usually characterized by retail investors who are trading for individual portfolios.

Forex markets are regulated. They always go through centralized broker-dealers, exchanges and clearinghouses. Cryptocurrencies, on the other hand, can trade peer-to-peer directly through centralized or decentralized exchanges. 

Unlike cryptocurrency trading, where you have the option to buy cryptocurrency assets in the form of tokens or coins, Forex trades fiat currency pairs as contracts for differences (CFDs.) There is no ownership exchanged when trades are made, but rather simply profit or loss, according to the broker’s price movement. 

Trading cryptocurrency doesn’t require any brokers, and both CFDs and ownership-based trading are available. Unlike Forex, which operates on weekdays only, crypto markets never close. The volatility of cryptocurrency markets is also much higher than in the highly liquid and tradable Forex markets. 

Investors trade cryptocurrency across various crypto exchanges. Here is an overview of the definition of, and differences between, spot market trading and cryptocurrency derivatives markets. 

 is any market in which a cryptocurrency coin or token trades directly, essentially “on the spot.” Trading on a spot market is the most fundamental form of trading in which to exchange and settle a cryptocurrency for another asset. 

The process begins with traders depositing funds into an account held by a cryptocurrency exchange. Buy and sell orders are then placed and executed. 

Cryptocurrency spot markets involve makers and takers. Makers place orders, such as a limit order, that don’t get filled immediately. Takers place orders that get filled in their entirety, “taking” existing orders created by makers.

A derivative is a financial security that 

s its value from an underlying asset or group of assets. In the crypto market, these derivatives are typically futures contracts, options contracts, leveraged tokens and token swaps. For example, an option contract involves entering into an agreement to buy cryptocurrency at a predetermined date and value in the future.

Unlike spot markets, cryptocurrency derivatives exchanges can offer greater borrowing capabilities (leverage), which can magnify profits or losses. For example, Bybit offers crypto derivatives trading with up to 100x leverage. Derivatives contracts also offer the opportunity for advanced trading strategies like trading pairs, arbitrage, shorting the market and spread trading, to name a few. 

Short-term trading, otherwise known as active trading, involves more frequent transactions. Here is a breakdown of the main short-term trading strategies available. 

Day trading involves entering and exiting a position throughout and typically within the day, aimed at turning a profit. Even though crypto exchanges do not close, day trading still refers to a short-term trading style whereby traders attempt to secure profits from same-day price movements. 

Day traders devote their time to trading on favorable price movements within cryptocurrency markets as they happen. They may rely on a combination of 

, technical analysis and other analytical techniques to find inefficiencies in the market in hope for profits. For example, day traders might try to trade off of one-, five- or fifteen-minute price charts.

The volatility of crypto leads to many potential opportunities, but it takes keen market insight, significant trading experience and a bit of luck to rely on day trading for a predictable income. The truth is everyone can be a day trader but it takes time, effort, and it can be stressful at a time. Hence, day trading is recommended for advanced traders.

 focuses on extremely short-term trades to profit from small cryptocurrency price movements on high volumes. Scalpers can open and close positions within seconds or minutes, taking advantage of lucrative market inefficiencies to rack up small profits. Scalpers are quick on the move making small moves consistently profiting from the bid-ask spreads and general inefficiencies in the crypto market. That is why scalping is relatively similar to high-frequency trading (HFT). Mastering a scalping strategy takes both extensive knowledge of cryptocurrency and advanced analytical skills to take advantage of real-time volatility in the way that scalpers do.

Many day traders utilize scalp trading, devoting a portion of their trading budget to scalping. Experienced traders use technical analysis and extensive charting to find time-sensitive opportunities and decide quickly whether to implement their trading strategy. Traders also need well-defined goals associated with scalping, along with a clear exit strategy.

Scalping is relatively suitable for traders who aim to make more profits with larger positions. It makes the most sense for traders, institutions, or organizations that hold large amounts of crypto (whales) to scalp. 

 capitalizes on the price differences between cryptocurrencies across various markets. Arbitrage traders typically purchase a cryptocurrency from one exchange and then immediately sell it for a higher price on another, seizing the profit. While profits aren’t actually guaranteed, arbitrage trading holds the lowest risk and normally grants the slimmest profits. 

CoinMarketCap lists over 300 spot market exchanges, a tally that’s growing steadily. The vast range of trading platforms means many opportunities for short-term traders to find and capitalize on inefficiencies. Arbitrage trading is recommended for those who have prior experience in this type of trading style. It’s labor intensive and timing is everything. 

 considers a longer-term trading strategy in which traders attempt to capitalize on short-to-medium-term price trends, or “swings,” in cryptocurrency market activity. Most swing trades involve gains over a period of a few days to weeks at a time. As opposed to day trades, swing trades typically take longer than 24 hours, and can even last days or weeks. 

Swing traders identify the waves of volatility of a cryptocurrency coin or token that is likely to move, and then enter into a position for a variable period. If the move comes through, the trader captures a profit. 

Swing trading is beginner-friendly as it gives traders more time to devise reliable trading plans. Swing charting techniques include seeking highs and lows with the Gann swing method, reversal pinpointing with candlesticks and oscillators, relative strength index momentum indicators, and patterns like bullish and bearish engulfing patterns. 

Trend trading, also referred to as position trading, makes cryptocurrency investment decisions based on a coin or token’s momentum. It is normal for traders to hold a position over an extended period which can last up to a few months. Trend crypto traders analyze momentum, looking for upward or downward trends, and then enter into a trading position while speculating that the coin or currency will trend upward or downward. 

Trend traders often rely on fundamental analysis to enter into advantageous trades. However, they can also factor in a variety of technical indicators. Moving averages, relative strength index (RSI), moving average convergence divergence (MACD) and trend lines are four common trend trading indicators used to increase the success rate.

The two main ways to trade cryptocurrency over a short-term period are trading pairs and cryptocurrency derivatives trading. While trading pairs uses a combination of spot trading and arbitrage to net profits, derivatives trading involves trading contracts initiated based on trader speculation. Let’s take a closer look at both styles. 

Trading pairs in cryptocurrency takes advantage of the price difference between pairs of currencies or tokens exchanged across various markets. Traders may use arbitrage trading between crypto exchanges to secure a profit from the relative difference in value between pairs. 

A base currency is used to initiate a trade. For example, a BTC/USDT trading pair listing would exchange BTC for USDT. Cryptocurrencies can either be exchanged for one another or for fiat money like the U.S. dollar (USD) in the form of USD-backed stablecoins, such as BUSD, USDT, etc.

Derivatives trading uses financial instruments that determine their value based on an underlying asset. These instruments typically settle based on the spot value of a given asset. Derivatives add a layer of leverage and the ability to speculate on price action. 

Futures, options and perpetual contracts are the most commonly used derivatives. Let’s take a closer look at each type of cryptocurrency derivatives trading commonly available. 

Cryptocurrency futures are contracts between two parties agreeing to exchange a coin or token at a given price on a predetermined future date. Neither party is bound to hold the underlying asset. In fact, the contract is usually settled in USD or another fiat currency. 

Typically, the market offers a specific time frame or duration for the contract. After deciding to speculate that a cryptocurrency asset will increase in value, a trader can open a long position. Similarly, a trader who expects a decrease in value can open a short position, which means selling the contract without actually owning the asset. Every trading position is matched to another trader taking the opposite side.

At the settlement date, each trade will be settled against the settlement price. If you’ve chosen to go long and the price moves up, you’ll profit. If you’ve chosen to short and the price goes against you, you’ll then make a loss.

Cryptocurrency options are derivatives contracts that don’t force the trader to settle after reaching the pre-specified future date. Instead, traders are given the option to buy or sell at that time and price. 

A call option gives the contract owner the right to buy a cryptoasset at a predetermined price when the contract reaches its settlement date. A put gives the contract owner the right to sell. Both scenarios leave the owner of the option with the choice to trade, according to the previously determined parameters at the expiration date. 

One of the most commonly used forms of cryptocurrency derivatives trading is a perpetual contract. 

 work similarly to other derivatives, but they don’t expire. Instead, perpetuals let traders keep their open position for an indefinite period. They require a margin, or minimum cryptocurrency balance, to be maintained. 

Perpetual traders must keep the funding rate in mind. The lack of a settlement date on perpetual contracts can lead to price deviation between the contracts and a cryptocurrency’s value. If a positive funding rate occurs from an imbalance of long positions, all long positions pay shorts. When a funding rate is negative, short positions pay longs. 

Leverage allows traders to trade on a larger position than the value of cryptocurrency held on their account. Essentially, leverage and margin trading lets you borrow from the crypto exchange so that you stand a chance to make a higher profit with that larger position. 

Leveraged trading requires the trader to retain an amount known as a margin, which is calculated according to the leverage offered. For example, if the broker or exchange requires a 1% margin for 1:100 leverage, the trader will need to retain a balance of at least $1,000 to open a $100,000 trading position.

Long-Term Trading (Passive Income Trading)

Long-term trading, also known as passive income trading, holds distinct advantages over short-term strategies for traders who do not have much time or advanced insight into crypto markets. Here’s a breakdown of the main long-term cryptocurrency trading methods. 

Buy and Hold, better known as the misspelled acronym “HODL,” is a trading strategy that involves holding onto investments in hopes of long-term gains. By buying and holding cryptocurrency and speculating on exponential growth, HODLers may disregard much of the volatility of cryptocurrency markets. 

By ignoring short-term swings, instead ”Holding On for Dear Life,” traders no longer suffer from Fear Of Missing Out (FOMO) and Fear, Uncertainty and Doubt (FUD). FOMO is the number one cause of buying at too high a price, while FUD leads to SODLing (or “selling at too low” of a value.)

A buy-and-hold strategy has additional advantages, such as cutting out short-term market noise, lowering transaction costs and relieving investors of the psychological burden of watching markets constantly.

Cryptocurrency index trading means investing in tokens or coins grouped together as an index. Indices are used to track collective movements of the assets. These grouped assets also usually have lower volatility than individual assets. 

Crypto indices group cryptoassets according to price weighting and market cap weighting. Price weighting is when the higher-priced coins and tokens influence the index’s movement more than lower-value assets. Market cap weighting groups cryptocurrencies by ranking them according to 

Index traders trade these instruments through derivatives products such as options, and futures. The goal of index trading is to gain broader exposure to more than one individual asset.

Proof-of-stake (PoS) blockchains use staking, instead of mining, to validate transactions. Blockchains operating on PoS reward cryptocurrency owners with staking rewards for validating transactions. This involves holding a specific amount of funds in a crypto wallet to support the security and operations of a particular blockchain network in exchange for set rewards.

Maintaining a minimum balance qualifies a wallet as a staking node. The value of the stake increases the chances that the node will be used to create the next block. If a block is created on the node, stake rewards are distributed to the validator. 

Trading in traditional financial markets shares similarities across asset classes, requiring discipline and defined strategies over the short or long term. Cryptocurrency trading is no different, and understanding various approaches offers investors frameworks to use in a competitive market.

Every trader will have a trading style and strategy that suits their individual personality and trading budget. The most successful crypto traders combine approaches while tracking their performance, changing methodologies as they gain experience. 

The more information and insight that you have regarding cryptocurrencies and cryptocurrency trading — for instance, fundamentals, analytics and trends, — the better you’ll be able to shape profitable trading strategies of your own.

A Beginner’s Guide to Cryptocurrency Trading Strategies

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