Cryptocurrency Trading Strategy 2025: Bitcoin, Ethereum, and What You Need to Know

The cryptocurrency market (crypto) has become a popular investment field, but not everyone understands how it works and the best methods to participate. With the development of digital trading platforms, opening an account and starting to trade Bitcoin, Ethereum, or other coins now only takes a few simple steps. However, the important question is: how to trade cryptocurrencies smartly and efficiently in this volatile market?

This article will help you answer three main issues:

• Should I participate in cryptocurrency trading?
• What are the current methods of virtual currency investment?
• How to maximize profits from crypto?

Investment trends flowing into the cryptocurrency market

Bitcoin and Ethereum: “Safe” assets

Bitcoin is the first digital currency created, currently leading in market capitalization with a current price of $88.77K (24h increase +1.54%). Notably, Bitcoin has an important characteristic: the total supply is limited to 21 million BTC, creating scarcity and long-term value.

Ethereum, the second-largest virtual currency by market cap, is currently trading at $2.97K (24h increase +1.72%), showing a strong recovery trend. Both of these cryptocurrencies are chosen by major financial institutions and institutional investors as long-term value storage tools.

Institutional capital flows into quality coins

Currently, more than 50% of Bitcoin (about 11.4 million BTC) is held by large financial organizations for long-term investment. Similarly, “whale” investors own about 33% of the total Ethereum supply, most of whom do not trade frequently, just holding for reserves.

This shows that:

• Investment capital is focusing on high-quality cryptocurrencies
• Bitcoin and Ethereum play an important role in financial institutions’ portfolios
• “Big players” trust in the long-term value of these assets

Valuable cryptocurrencies to invest in

Although the market has over 5,000 types of cryptocurrencies, only 5 reputable, high-quality ones account for up to 80% of the market capitalization:

1. Bitcoin (BTC) - $88.77K, +1.54% (24h) 2. Ethereum (ETH) - $2.97K, +1.72% (24h)
3. XRP (Ripple) - $1.87, +0.80% (24h) 4. Bitcoin Cash (BCH) - $605.40, +3.55% (24h) 5. Tether (USDT) - Stablecoin

Experts predict that Bitcoin has significant potential for price increases in the future due to supply limitations. When choosing which coin to invest in, you should focus on those with a long history, high reputation, and backing from major organizations.

Five methods of cryptocurrency trading

Method 1: Buy and hold long-term

This is the simplest way: buy Bitcoin or Ethereum, store in a personal digital wallet, and hold for the long term. This method suits investors wanting to reserve assets but requires large capital and long waiting time.

Method 2: Buy, wait for price increase, sell

Owning coins directly allows you to profit when prices rise. However, this method has some limitations:

• Transaction fees around 4% can eat into most profits
• You don’t profit when the market declines
• Requires substantial capital to start

Method 3: Crypto mining

Crypto mining is often concentrated in countries with cheap electricity like China, New Zealand. In Vietnam, electricity costs are high, making this method no longer economically effective. Additionally, you need to invest in expensive equipment and technical expertise.

Method 4: Participating in Crypto Faucets

You perform simple actions (like downloading games, watching ads, taking surveys) to receive virtual money. Although easy to do:

• Profits are extremely low compared to time spent
• High data security risks when downloading unknown files

Method 5: CFD trading - The most effective way

This method allows you to:

• Short sell (long) or short sell (short) continuously without owning coins
• Use leverage (up to 1:10) to increase buying power with small capital
• Trade 24/7 (T+0) on a two-way market
• Set stop-loss orders to control risks
• Low costs compared to other methods

With CFDs, you only need a small capital (from $50) to start trading Bitcoin or Ethereum. The spread costs are minimal, allowing you to profit whether the market goes up or down.

Comparing cryptocurrency investment methods

How to start cryptocurrency trading

To trade crypto effectively, you need:

Step 1: Choose a reputable platform
Select a licensed, highly reputable exchange that offers quality coins and supports CFD trading.

Step 2: Register and verify your account
Fill in personal information, verify email/phone, deposit funds. It’s recommended to start with a free demo account to practice strategies.

Step 3: Deposit capital
Deposit via Visa/Mastercard, Internet Banking, or ATM card. The minimum amount is about $50.

Step 4: Analyze and trade
Use technical analysis (Bollinger Bands, RSI, Moving Averages) to identify entry/exit points. Start with small orders to control risks.

Basic technical analysis

When trading Bitcoin or Ethereum, you should use common indicators:

• Bollinger Bands: Show price volatility range, help identify overbought or oversold conditions
• RSI (Relative Strength Index): >70 = overbought, <30 = oversold
• Moving Averages: Identify overall market trend

Combining these indicators will help you make more informed trading decisions.

Final advice

1. Avoid trash coins: Only trade reputable, high-quality cryptocurrencies with long histories.
2. Use reputable platforms: Choose licensed exchanges with strong security protocols.
3. Manage risks: Always set stop-loss, do not invest all your capital in one order, and only trade with money you can afford to lose.
4. Continuously learn: The crypto market is always changing, so keep updating your knowledge and follow market news.
5. Avoid greed: Don’t expect to make a million in $100 one day. Sustainable trading yields better results in the long run.

The cryptocurrency market is growing, and with the right strategy, you can participate to earn extra income. Start small, learn daily, and gradually develop your trading skills!