Exploiting volatility: speculative trading strategies

Exploiting volatility in cryptocurrency trading is an increasingly popular strategy among speculative investors.

Cryptocurrencies with high volatility, such as Bitcoin and Ethereum, often experience huge price fluctuations within a short period of time, which means significant profit potential for well-timed trades.

In this segment, I will present some strategies that traders use to take advantage of volatility.

Day Trading

Day trading is the most active form of speculative trading, where traders buy and sell cryptocurrencies several times a day to take advantage of short-term fluctuations in the exchange rate.

These types of traders often use technical analysis tools such as moving averages and the relative strength index (RSI) to find the best entry and exit points.

Swing Trading

Swing trading is longer-term than day trading and traders aim to take advantage of larger price trends that can last for days, weeks or even months.

Swing traders also use technical analysis, but often combine it with fundamental analysis, such as taking into account market news and basic economic data.


Scalping is another active form of trading, where traders often buy and sell in a matter of minutes to take advantage of even the smallest price fluctuations.

The scalping strategy is often used in automated trading systems and requires a large volume of trades to make a profit.

All these strategies require considerable time and attention and carry a high level of risk!

Speculative trading is not suitable for everyone and it is always worthwhile to first thoroughly understand the cryptocurrency markets and trading strategies before you start.

Also, never invest more money than you can afford to lose!