High-Frequency Trading: High-frequency trading, or HFT, is a trading method that employs computers to conduct a large number of transactions in fractions of a second. Computers use complex algorithms to analyze the markets and execute transactions based on conditions in them.
Low-Frequency Trading: As opposed to high frequency trading, low frequency trading means that very few trades are taken over a monthly cycle, usually because these trades are constructed on long term charts (such as the daily charts), and take more to evolve but end up delivering better returns on investment.
Trend Trading: Trend trading is a trading style that attempts to capture gains through the analysis of an asset's momentum in a particular direction. When the price is moving in one overall direction, such as up or down, that is called a trend.
Range Trading: Range trading is an active investing strategy that identifies a range at which the investor buys and sells at over a short period. For example, a crypto is trading at $35 and you believe it is going to rise to $40, then trade in a range between $35 and $40 over the next several weeks. You might attempt to trade it by purchasing the crypto at $35, then selling it if it rises to $40. You’d repeat this process until you think the crypto will no longer trade in this range.
Breakout Trading: Breakout trading is a strategy that takes advantage of potential price movements during a breakout. The essence is to anticipate when a breakout is likely to occur and profit from the ensuing trend. A breakout trading strategy consists of three parts: finding the breakout, entering the trade and exiting at the right time, with finding the breakout being the key.
Reversing Trading: Reversal trading strategy aims to profit from the reversal of trends in markets. Most of the time, when a trend ends, the market ends up consolidating in a range for a period before a new trend begins. At the end of an uptrend, you typically see a loss of steam and volume, as well as lower highs before the market settles into a tight range. It’s commonly after the downside break of this range that we see the actual “reversal” that many traders are looking for.
Swing Trading: Swing trading has been described as a type of fundamental trading in which positions are held for longer than a single day. Traders attempt to capture short-term profits by using technical analysis to enter into positions, hold for several days or weeks, and exit soon thereafter.
Grid Trading: Grid trading involves setting multiple predetermined price levels to which buy or sell orders are automatically executed when the price touches such levels. Since it is a systematic strategy, crypto grid trading does not involve human judgement, except when setting the initial predetermined price levels.
News Trading: News trading is a technology based on breaking news from the market as a strategy. News is an important component of the market as it has the potential to drive market volatility.
DCA Trading: Dollar-cost averaging (DCA) involves investing the same amount of money in a target security at regular intervals over a certain period of time, regardless of price. When dollar-cost averaging, you invest the same amount at regular intervals and by doing so, hopefully lower your average purchase price. You will already be in the market when prices drop and when they rise. For instance, you'll have exposure to dips when they happen and don't have to try to time them. By investing a fixed amount regularly, you will end up buying more when the price is lower than when it is higher.
Divergence Trading: Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence warns that the current price trend may be weakening, and in some cases may lead to prices changing direction. Divergence trading is the method of using the divergence between price action and technical indicators to find a harbinger of the future market, buying at the lows of the trend or selling at the highs of the trend to make consistent profits.