Crypto Basics

10 Best Crypto Trading Strategies for Traders in 2023

Learn the best cryptocurrency trading strategies and how to use them in this descriptive guide.
Marcus K
8 minutes
MIN

Crypto trading has emerged as a popular and lucrative form of investment over the past few years. As the crypto market continues to grow and evolve, more and more traders are turning to various strategies to help them navigate the market and increase their profits.

A successful crypto trading strategy requires a deep understanding of the market, technical analysis, risk management, and a willingness to adapt to changing market conditions.

In this post, we will explore the best crypto trading strategies to use in 2023.

Top 10 Crypto Trading Strategies

Let's explore some of the most popular crypto trading strategies, their advantages and disadvantages, and how to implement them effectively. Whether you're a seasoned trader or a beginner, understanding these strategies can help you make informed decisions and achieve your trading goals.

Here are the 10 crypto trading strategies that traders commonly use:

1. HODLing an asset

HODLing, as it is commonly known in the cryptocurrency world, refers to the practice of holding onto a cryptocurrency for the long term, rather than selling it for a short-term gain. The term originated in 2013 when a user on a Bitcoin forum misspelled the word "hold" as "hodl" in a post encouraging others to resist the temptation to sell during a price drop. HODL also commonly come to stand for "hold on for dear life" among crypto investors.

The basic idea behind HODLing is that cryptocurrencies are still in their early stages of development and have the potential for significant long-term growth. By holding onto a cryptocurrency for the long term, investors hope to benefit from its potential future value, rather than just its current market price.

However, HODLing does involve risks, as the cryptocurrency market is highly volatile and can experience significant price swings in a short amount of time. Therefore, it's important to conduct research and due diligence before deciding to HODL a particular cryptocurrency, and to have a solid understanding of the market trends and the underlying technology and fundamentals of the cryptocurrency in question.

2. Swing Trading Strategy

Swing trading consists of buying and holding a cryptocurrency for a short period of time, usually a few days or weeks, with the aim of profiting from price movements within that time frame. The goal is to capture short-term price swings or "swings" in the market.

Swing traders often use technical analysis to identify potential entry and exit points for their trades. They look for chart patterns, such as trend lines, support and resistance levels, and moving averages, to determine the direction of the market and the optimal time to buy or sell a cryptocurrency.

3. Scalping Trading Strategy

Crypto scalping is a trading strategy that involves making small, quick profits by buying and selling cryptocurrencies within a short time frame, usually a few minutes to an hour. Scalpers aim to profit from small price movements, taking advantage of short-term volatility in the market.

To be successful at crypto scalping, traders need to be able to quickly identify opportunities and act fast. They often use technical analysis to identify short-term trends and support and resistance levels to determine entry and exit points for their trades. Scalpers may also use trading bots or automated algorithms to execute their trades quickly and efficiently.

Furthermore, scalpers need to be disciplined and patient, as it can take time to identify profitable trades and execute them quickly.

4. Technical Analysis

Technical analysis is a trading strategy that involves studying historical market data, such as price charts and volume, to identify patterns and trends that can help predict future price movements of a cryptocurrency. It's based on the idea that past market behavior can help inform future market behavior.

In technical analysis, traders use various tools and indicators to analyze market data and make trading decisions. Some of the most commonly used indicators include moving averages, trend lines, support and resistance levels, and relative strength index (RSI). Traders may also use chart patterns, such as head and shoulders, triangles, and flags, to identify potential price movements.

Technical analysis can be useful in predicting short-term price movements of a cryptocurrency, but it does have limitations. It cannot account for unexpected events, such as regulatory changes, technological advancements, or other external factors that can affect the cryptocurrency market.

5. Fundamental Analysis

Fundamental analysis is a basic yet powerful trading strategy that promotes studying the underlying factors that influence the value of a cryptocurrency. These factors can include the technology and development of the cryptocurrency, the market demand for it, the regulatory environment, and other macroeconomic factors that can affect the cryptocurrency market.

In fundamental analysis, traders look at a cryptocurrency's fundamentals, such as its whitepaper, development team, partnerships, adoption rate, and market share, to determine its long-term value and potential for growth.

One of the key advantages of fundamental analysis is that it can provide insights into the long-term value and potential of a cryptocurrency, beyond just short-term price movements. It can also help traders identify undervalued or overvalued cryptocurrencies and make informed investment decisions based on their analysis.

6. Arbitrage Trading Strategy

Arbitrage is a trading strategy that involves taking advantage of price differences between different cryptocurrency exchanges or markets to make a profit. In the context of cryptocurrency, arbitrage involves buying a cryptocurrency on one exchange where it is priced lower and simultaneously selling it on another exchange where it is priced higher, thereby profiting from the price difference.

To successfully execute an arbitrage trade, traders need to be able to identify price discrepancies quickly and act fast. This often involves using trading bots or automated algorithms to scan multiple exchanges simultaneously and identify potential arbitrage opportunities.

7. News Based Trading Strategy

News-based trading is a trading strategy that involves using news events and announcements to make trading decisions. This strategy involves monitoring news sources, such as financial news outlets, social media, and official announcements, to identify events or news that could potentially impact the cryptocurrency market.

When a news event is announced, traders will analyze the information and try to predict how it will affect the price of a particular cryptocurrency. Based on their analysis, traders may enter or exit positions in anticipation of the market's reaction to the news.

News-based trading can be a profitable strategy if done correctly, as news events can have a significant impact on the cryptocurrency market.

For example, a positive announcement from a major company about adopting a cryptocurrency can lead to an increase in demand and drive up prices. Conversely, negative news such as a security breach or regulatory crackdown can lead to a decrease in demand and drive down prices.

8. Market Making Strategy

Market making is a trading strategy used by professional traders to provide liquidity to the market. In the context of cryptocurrency, market makers buy and sell cryptocurrencies with the goal of making a profit by buying at a lower price and selling at a higher price, while also providing liquidity to the market.

Market makers do this by placing limit orders on both sides of the order book, buying at a lower price and selling at a higher price than the current market price. By doing so, they provide liquidity to the market, ensuring that buyers and sellers can easily execute their trades without significant slippage.

Market making can be yielding profits as market makers earn a profit from the bid-ask spread, which is the difference between the highest price that a buyer is willing to pay for a cryptocurrency (the bid) and the lowest price that a seller is willing to sell for (the ask).

9. Position Trading Strategy

Position trading involves holding a position in a cryptocurrency for an extended period of time, typically weeks, months, or even years. Position traders aim to profit from long-term trends and market movements by taking a position in a cryptocurrency and holding it for an extended period, regardless of short-term fluctuations in price. 

Position traders typically use fundamental analysis to identify cryptocurrencies with strong long-term potential and then hold the position for an extended period of time, waiting for the market to move in their favor.

This strategy can be used to capture long-term trends and take advantage of long-term market movements, potentially resulting in significant profits. In addition to this, traders can monetize from reinvesting their profits to increase the size of the position. 

10. Algorithmic Trading Strategy

This is one analytical trading strategy that uses computer programs to execute trades based on pre-programmed instructions, also known as algorithms. In the context of cryptocurrency, algorithmic trading can be used to buy and sell cryptocurrencies based on market conditions, technical indicators, or other factors.

Algorithmic trading programs can be customized to suit a trader's specific needs and can be used to automate the trading process, allowing traders to execute trades more quickly and efficiently. These programs can analyze market data in real-time, making trading decisions based on predefined rules and criteria.

When done correctly, it can help traders to react quickly to changing market conditions and take advantage of short-term opportunities. Also, algorithmic trading programs can help to remove emotions from the trading process, allowing traders to stick to their trading plan and avoid making impulsive decisions.

How Token Metrics Can Help Strategize Your Trading?

Strategizing your crypto investments can now get easier with the Token Metrics TradingView Indicator.

Head over here to explore → www.tokenmetrics.com/trading-view-indicator

Start analyzing your assets by getting hold of the right metrics such as:

  • Identifying bullish/bearish trends
  • Adaptive trend line indicator
  • Short term support and resistance range
  • Clear long/short signals
  • Market movements

And so much more…

The Bottom Line

Remember that trading cryptocurrencies can be risky, and it's important to do your research, understand the risks involved, and develop a sound trading strategy that suits your goals and risk tolerance.

Disclaimer

The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such.

Token Metrics does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

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Token Metrics API

Best Crypto Prices API: Accurate, Real-Time, and AI-Enhanced

Sam Monac
8 min
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Why Price Data Is the Core of Every Crypto App

No matter what kind of crypto app you’re building—a trading bot, a DeFi dashboard, or a research tool—the foundation is always accurate price data. Without it:

  • Traders miss entry and exit points.

  • Bots execute late or incorrectly.

  • Dashboards lose credibility with users.

  • Researchers can’t properly backtest models.

The best crypto prices API ensures:

  • Live, accurate prices across thousands of tokens.

  • Deep historical data (OHLC, tick-level) for research and backtesting.

  • Reliable updates even during volatile market swings.

  • Flexibility to support both real-time trading and long-term analytics.

📌 Example: An arbitrage bot relying on stale or inaccurate data won’t just underperform—it could lose money on every trade.

What Makes the Best Crypto Prices API

Not every API marketed for prices is built for precision. Key factors to consider include:

  • Accuracy – Are prices aggregated across multiple exchanges and validated?

  • Latency – Do you get sub-second updates with WebSocket streaming?

  • Historical Depth – Can you access years of OHLC and tick-level data?

  • Coverage – Spot markets, DeFi tokens, stablecoins, and derivatives.

  • Scalability – Rate limits that grow with your application’s user base.

  • Developer Experience – SDKs, documentation, and active support.

📌 Tip for developers: Start by asking, “Do I need accuracy, speed, or depth the most?” The answer often determines which API fits your project.

Comparing Leading Crypto Price APIs: Strengths & Trade-offs

  • CoinGecko & CoinMarketCap


    • Strengths: Excellent breadth—tens of thousands of tokens covered.

    • Trade-offs: Updates refresh more slowly; historical depth limited. Best for tickers and retail dashboards.

  • CryptoCompare


    • Strengths: Solid historical trade-level datasets for backtesting.

    • Trade-offs: Real-time speed is weaker than competitors.

  • Glassnode


    • Strengths: Advanced on-chain insights.

    • Trade-offs: Pricing data isn’t their main strength; better for researchers than traders.

  • Kaiko / Amberdata


    • Strengths: Enterprise-grade accuracy, broad market coverage.

    • Trade-offs: Expensive, geared toward institutions.

  • Token Metrics API
    • Strengths: Combines real-time accuracy, deep history, and AI-enhanced insights—giving more than raw prices.

    • Trade-offs: Free tier has rate limits (higher throughput unlocked via X.402 or paid plans).

Why Token Metrics API Stands Out

Where many crypto APIs stop at providing raw price feeds, Token Metrics API enriches price data with context and intelligence.

  • Real-Time Prices – Sub-second updates for Bitcoin, Ethereum, and thousands of tokens.

  • Deep Historical Data – Tick-level and OHLC datasets ideal for research.

  • Exchange-Aware Accuracy – Prices aggregated from multiple sources and validated for reliability.

  • AI Trading Signals – Bull/bear indicators layered on top of raw prices.

  • Portfolio Ratings – Token Metrics grades and indices for added context.

📌 Most crypto APIs give you numbers. Token Metrics gives you numbers + insights.

Use Cases: From Crypto Trading Bots to Dashboards

  • Trading Bots – Execute trades with accurate, low-latency feeds.

  • Market Dashboards – Provide users with credible, real-time prices and charts.

  • Backtesting Platforms – Use multi-year OHLCV data for strategy validation.

  • DeFi Trackers – Monitor token values and liquidity with precision.

  • AI Agents – Train ML models using validated, exchange-aware price data.

Best Practices for Working With Crypto Price Data

  1. Cross-Verify Prices – Use multiple APIs in parallel during testing.

  2. Cache Effectively – Cache non-volatile data to reduce API load.

  3. Use WebSockets – REST-only setups can introduce delays.

  4. Monitor Latency – Benchmark APIs during volatility (e.g., CPI announcements, Fed decisions).

  5. Plan for Failover – Integrate a secondary API as a backup if your primary feed fails.

📌 Example: Production apps can combine Token Metrics for intelligence + CoinGecko for breadth to balance reliability with insights.

Beyond Token Metrics: Other Crypto Price Data Resources

Developers often mix and match APIs to cover specialized needs:

  • DefiLlama API – For DeFi protocol yields and TVL.

  • Dune Analytics – Run SQL queries for custom blockchain metrics.

  • TradingView Widgets / Webhooks – For embedding charting into front ends.

  • Santiment – Adds sentiment data to complement price feeds.

Pairing Token Metrics with these resources gives developers a multi-layered data stack—accurate prices, predictive signals, and extra DeFi/social context.

How to Get Started With the Best Prices API

  1. Sign Up Free – Create a Token Metrics account.

  2. Generate Your API Key – Available instantly in your dashboard.

  3. Access Price Endpoints – Fetch real-time and historical datasets via REST or WebSockets.

  4. Start Building – Bots, dashboards, or backtesting frameworks.

  5. Upgrade When Ready – Scale throughput and unlock advanced endpoints.

👉 Get Your Free Token Metrics API Key

FAQs on Crypto Price APIs

Which crypto API has the best price accuracy?
Token Metrics validates data from multiple exchanges, ensuring cleaner and more reliable price feeds.

Can I get historical prices with Token Metrics API?
Yes—OHLC and tick-level datasets are available for multi-year backtesting.

Is the Token Metrics API free?
Yes, there’s a free tier for prototypes. Paid plans unlock higher request rates and advanced data.

How fast are Token Metrics updates?
Sub-second latency with WebSocket support for real-time responsiveness.

Scaling Beyond Free: Paid Plans & X.402

As your project scales, Token Metrics makes upgrading simple:

  • Pay-Per-Call (X.402) – From $0.017 per call, unlimited usage, no commitment.

  • Advanced Plan ($999.99/year) – 20,000 calls/month, indices & indicators, 3 WebSockets.

  • Premium Plan ($1,999.99/year) – 100,000 calls/month, AI agent & reports, 3 years of historical data.

📌 Why X.402 matters: Instead of locking into annual costs, you can pay as you grow—ideal for startups and experimental apps.

Build With the Best Crypto Prices API

In crypto, price accuracy is trust. Whether you’re building a bot, a dashboard, or a research tool, Token Metrics provides more than just numbers. With validated prices, deep history, and AI-enhanced insights, you can build applications that stand out.

👉 Start Free With Token Metrics API

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Research

Why Crypto's New Rules Demand Strategic Crypto Trading?

Talha Ahmad
9 min
MIN

The cryptocurrency market has fundamentally changed, and investors clinging to outdated strategies are being left behind. The traditional "buy and hold" approach that created millionaires in previous crypto cycles is no longer viable in today's narrative-driven, attention-economy market. Understanding these new dynamics isn't just advantageous—it's essential for survival.

The Narrative Economy: How Attention Drives Price Action

Modern crypto markets operate on attention cycles that move faster than ever before. Projects gain momentum not through gradual adoption but through sudden narrative capture, social media virality, and ecosystem developments that spark immediate interest. This shift has created what analysts call "crypto's shiny object syndrome," where market attention rapidly moves between tokens based on trending topics and emerging narratives.

The evidence is clear in recent market performance. Tokens that dominated headlines just weeks ago—Pendle, Zora, Aerodrome, and BIO—have all lost momentum despite strong fundamentals. These weren't failed projects; they were victims of attention rotation. Pendle, for instance, had significant technical advantages and partnerships, but once market attention shifted elsewhere, price action followed suit.

The Trending Token Strategy: A New Approach for New Markets

Professional traders have adapted to this environment by developing systematic approaches to narrative trading. Rather than picking long-term winners based solely on fundamentals, successful investors now track trending tokens—projects capturing current market attention regardless of their long-term prospects.

This approach requires discipline and timing. The most effective strategy involves monitoring tokens gaining traction, entering positions when momentum indicators align, and exiting before attention cycles complete. It's not about finding the next Bitcoin; it's about riding successive waves of market interest across multiple projects.

The time horizon for these trades has compressed dramatically. Where previous cycles might have rewarded six-month to two-year holding periods, today's successful trades often last days to weeks. This compression reflects the market's increased efficiency in pricing narrative value and the accelerated pace of information flow in crypto communities.

Gaming and Creator Economy: The Next Frontier

While traditional DeFi projects struggle with attention retention, two sectors are showing sustained growth potential: gaming and creator economies. The gaming narrative, often dismissed after previous disappointments, is experiencing a quiet renaissance backed by substantial venture capital investment and improved product development.

Projects like Star Atlas, previously written off after the FTX collapse, have continued building and recently released gameplay elements that demonstrate genuine progress toward AAA-quality gaming experiences. This persistence during bear market conditions positions gaming tokens for significant upside when broader market sentiment improves.

Simultaneously, the creator economy is evolving through platforms like Pump.fun, which recently distributed $2 million in fees within 24 hours of launching new creator tools. This represents a 20x increase from previous daily averages, indicating massive untapped demand for creator monetization tools in crypto.

The Stablecoin Infrastructure Play

Beyond gaming and creators, the stablecoin infrastructure narrative presents perhaps the most compelling long-term opportunity. Unlike attention-driven meme coins, stablecoin infrastructure addresses genuine utility needs while benefiting from regulatory tailwinds and institutional adoption.

Projects like Plasma, which enables zero-fee USDT transfers, directly compete with established players like Tron while offering superior user experiences. The $1 billion in testnet deposits demonstrates real demand for these services, not just speculative interest.

This infrastructure development occurs alongside broader tokenization trends. Traditional assets—from stocks to treasuries—are increasingly moving on-chain, creating new opportunities for projects facilitating this transition. The convergence of stablecoin infrastructure and real-world asset tokenization could define the next major crypto adoption wave.

Risk Management in the New Paradigm

Success in narrative-driven markets requires sophisticated risk management that extends beyond traditional portfolio allocation. Investors must monitor momentum indicators, social sentiment, and attention metrics alongside fundamental analysis. The goal isn't to predict long-term winners but to identify and capture successive narrative cycles efficiently.

This approach demands emotional discipline that many investors find challenging. Exiting profitable positions while momentum remains positive contradicts natural holding instincts, yet it's essential for consistent returns in attention-driven markets. The most successful traders treat each position as temporary, focusing on momentum preservation rather than conviction-based holding.

The Bottom Line: Adapt or Fall Behind

The crypto market's evolution from speculation to narrative-driven trading represents a maturation process that rewards adaptability over stubbornness. Investors who recognize this shift and develop appropriate strategies will thrive, while those clinging to outdated approaches will struggle.

The new crypto paradigm isn't necessarily better or worse than previous cycles—it's simply different. Success requires understanding these differences and adjusting strategies accordingly. In a market where attention is currency and narratives drive price action, the most important skill isn't picking winners—it's staying flexible enough to ride whatever wave comes next.

The death of "buy and hold" doesn't mean the end of profitable crypto investing. It means the beginning of a more sophisticated, dynamic approach that rewards skill, timing, and market awareness over simple conviction. Those who master these new rules will find opportunities that dwarf traditional investment returns, while those who resist change will watch from the sidelines as markets evolve beyond their understanding.

Research

The Great Crypto Rotation - Why Smart Money is Moving from Bitcoin to Ethereum

Talha Ahmad
8 min
MIN

The cryptocurrency market is experiencing a seismic shift that most investors are missing. While Bitcoin has long been the undisputed king of digital assets, institutional money is quietly rotating into Ethereum at an unprecedented pace, signaling a potential altcoin season that could reshape the entire market landscape.

The Numbers Don't Lie: Ethereum's Institutional Takeover

Recent data reveals a striking trend that should have every crypto investor's attention. In August alone, Ethereum ETFs attracted a staggering $3.69 billion in inflows, marking the fourth consecutive month of positive institutional investment. This stands in stark contrast to Bitcoin, which saw $800 million in outflows during the same period.

This isn't just a minor adjustment in portfolio allocation—it's a fundamental shift in how institutional investors view the crypto ecosystem. The rotation from Bitcoin to Ethereum represents more than just diversification; it's a bet on the future of decentralized finance, smart contracts, and blockchain utility beyond simple store-of-value propositions.

The Stablecoin Revolution: Ethereum's Secret Weapon

Behind Ethereum's surge lies a powerful but often overlooked driver: the stablecoin economy. Currently, 3.4% of Ethereum's total circulating supply is held by treasury companies, with this percentage accelerating rapidly since July. This trend reflects a broader recognition that stablecoins represent crypto's "ChatGPT moment"—the application that finally demonstrates blockchain's real-world utility to mainstream users.

The stablecoin narrative extends far beyond simple transfers. New Layer 1 blockchains like Plasma are emerging specifically to facilitate zero-fee USDT transfers, directly challenging Tron's dominance in this space. With over $1 billion in USDT deposits on its testnet alone, Plasma demonstrates the massive demand for efficient stablecoin infrastructure.

Technical Indicators Point to Altcoin Season

Market technicals support the institutional flow narrative. The Bitcoin versus Altcoin season chart shows that 58% of returns are currently coming from altcoins—a surprising figure considering the market's neutral-to-bearish sentiment. Historically, true altcoin season occurs when nearly 90% of returns flow to alternatives, as seen in August 2022 and May 2021.

This data suggests the market hasn't yet experienced the full-blown altcoin euphoria typical of cycle peaks. The implication? The current cycle may extend well into 2026, providing extended opportunities for strategic investors willing to look beyond Bitcoin's dominance.

The Political Crypto Play: World Liberty Financial's Market Impact

The launch of World Liberty Financial (WLFI) adds another layer to the evolving crypto landscape. Amid the ongoing selling pressure, the token's ability to hold above $0.20 will determine its strength in the coming days. The same level where treasury companies accumulated positions indicates underlying institutional support. With the Trump family reportedly owning a third of the supply and generating approximately $3 billion in value at launch, WLFI represents the intersection of politics and crypto in unprecedented ways.

This political backing could provide regulatory tailwinds for the broader crypto market, particularly as other politicians consider similar token launches. California Governor Gavin Newsom's rumored meme coin plans suggest that cryptocurrency fundraising may become a standard tool for political campaigns, bringing mainstream legitimacy to digital assets.

Strategic Implications for Investors

The Ethereum rotation story isn't just about ETH itself—it's about the entire ecosystem of projects built on Ethereum's infrastructure. Base-layer tokens, DeFi protocols, and Ethereum-native projects have already begun showing strength, with tokens like Aerodrome and Zora experiencing significant runs during Ethereum's rally from $2,300 to nearly $5,000.

However, this market requires a different investment approach than previous cycles. The old "buy and hold" strategy shows diminishing returns in today's narrative-driven environment. Instead, successful investors are adapting to shorter holding periods, focusing on trending tokens with strong fundamentals and clear catalysts.

The key insight? We're witnessing the maturation of cryptocurrency from a speculative asset class to a functional financial infrastructure. Ethereum's institutional adoption, stablecoin integration, and smart contract capabilities position it as the backbone of this new financial system. Investors who recognize this transition early stand to benefit from one of the most significant shifts in crypto market dynamics since Bitcoin's inception.

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