5 Steps to Develop Your Short-Term Crypto Trading Strategies

Last modified: June 27th, 2023

By Justin Rogers

A golden coin with the Bitcoin logo is sitting up on a blue reflective table with its reflection below it with two other coins.

Cryptocurrency is a great asset that almost anyone can get into. All you need is a device with wifi and some start-up money. While many investors start out worrying about how much money they make, the fundamental importance lies within our percentage. The dollars don’t matter if they are inefficient and all over the place. We want to figure out how to develop short-term crypto trading strategies that are reliable and low-risk.

Here are the 5 steps it takes to find out how to trade crypto like a pro and make consistent profits:

  1. Asset Selection
  2. Trading Style
  3. Market Understanding
  4. Goals and Consistency
  5. Aftermath
A stack of green currency bills on a white table with multiple golden coins resting on top all with the Bitcoin logo showing.

Asset Selection

Simple short-term crypto trading strategies make sure that they are taking advantage of the resources we have around us as much as possible. This includes the assets you choose. Since your trades will be short-term, you are going to want to hold much fewer assets than the long-term investor would.

The way you decide how to manage risk in short-term crypto trading should be based on picking a few very efficient assets and monitoring them daily to decide which would be the best option to put your money into. I think that using more than one asset per day is a bit overwhelming for my strategies, but you may differ in wanting to wait for the first good signal from multiple options and then stick to that until the signal is over, then wait for the next one to come. While this strategy is diverse, you might still end up taking inefficient trades.

Efficiency is based on the potential for profit and the risk potential. This measure calculates the risk-to-return ratio. This can be tedious or annoying to deal with as an individual trader, so third-party resources, like Webminers Asset Efficiency, can help you find the best cryptocurrencies for your low-risk short-term crypto trading strategies.

After picking the assets you like best you can begin to look into their price history. Figuring out how to backtest short-term crypto trading strategies to improve your win rate for yourself is important to maintaining this efficiency and using it for your profits.

A computer screen with two candle charts on the right showing the market going up and down in green and red next to a chart.

Trading Style

After you have your efficient assets, you can begin to structure your trading system. This system will be the set of rules that you follow to maintain consistency in your trading. These rules can be patterns in the markets, times of day, and even days of the week. No matter what you pick you should always backtest again so that you can confirm your rules work with the assets you have picked. After we are happy with how our trading system has acted in the past, we can start using it.

Being able to know how to forward-test short-term crypto trading strategies to confirm your results is as easy as using low amounts of money until you can trust your system. It might feel slow or annoying that you are just sitting there not making much, but we would rather take it slow and figure out flaws that can fully wipe out your account with $100, rather than $10,000.

Your trading system determines how to make money trading crypto in the short term for yourself and should be taken care of. Maintaining your trading system is simply done by refreshing the rules now and then, as well as constant research to be able to replace rules if they fully break and stop working.

A black sign in a city labeled wall street in white letters with two large tan buildings in the background with black windows.

Market Understanding

Once you start actively trading, you are going to want to study what is going on in the markets. There are hundreds and thousands of entities in the market all buying and selling at a given time. Understanding how they think is the first step to being able to overcome them and take advantage of their mistakes. Their mentality, also known as trading psychology, can be used as a tool. Traders will be fearful at the bottom of crashes, selling at a discount. And continue buying on the way up until the top, where things are overpriced.

This imbalance allows for profit to be made by buying cheap and selling overpriced. Figuring out where the market is not, in terms of emotion, and how discounted the price is will define how to analyze short-term crypto charts for your strategy. After you analyze other traders you can begin to analyze yourself. You are going to be testing out your trading system and need to find its weaknesses as well as your weaknesses. If you are an emotional trader, feeling worried can cause you to make mistakes. The first step to overcoming these mistakes is by recognizing they are there.

Determining how to develop a trading journal for short-term crypto trading to track your progress and improve your win rate is up to you. I suggest you start by noting down why you decide on the market, before making it, then writing the result next to it. At the end of the day, you can look back and see the mistakes you have made and why. Journaling your trades is one of the simplest ways to achieve how to manage your risk in crypto trading and avoid losing money.

A digital tablet displaying a crypto trading candle chart going up and down in red and green next to a cup of brown coffee.

Goals and Consistency

Developing goals is how you maintain your profits and continue improving. If you reach a goal and then stop setting them, your profit will begin to plateau, this is fine if planned, however, might be aggravating for someone who wants to continue making more profits. The best way to stay on track is to set goals that you can continually reach. Low-risk short-term crypto trading strategies will have easy-to-reach benchmarks that fuel accomplishment and further benchmarks. When setting goals we should strive for a reasonable achievement, yet still challenging and pushes for improvement.

With these goals, we can start to see our consistency pay off. There will also be points where to reach your goal, something has got to change. Maybe you have an unnoticed flaw that is holding you back, or a rule in your trading system that is outdated. Constant pushing requires constant improvement, even if you have to rebuild your system to be better. You can have the best trading system out there with the best assets and still make mistakes. Your trading strategy as a whole includes both your knowledge and your system. It is up to you to make them work in harmony. Effective short-term crypto trading strategies make this combination very smooth and feel like everything makes sense.

A road separates two sides of a very green field that has brown plants growing on the sides next to a tree with green leaves.


Money is not everything and having it in the bank will not make you happy. That does not mean that you can’t spend it for happiness though. Once you have money, it is important to decide what you plan to do with it. Hopefully, there will be a time of abundance in your trading career and you will have more than you need. This extra can be used to go to great things in your life. Whether you want to help out the poor, support your family, or give gifts to those close to you, I strongly believe in giving back. Greedy people are not good traders because these same emotions will be the cause of your losses.

Having plans for how you plan to spend your money gives you a purpose as well. If your purpose is to work hard enough so you can afford to get out of a bad situation, that is a great motivator and should be on your mind while making money. When keeping your purpose in mind, I enjoy having two aspects. One is the bad situation you are avoiding, this could be not being able to afford basic needs or moving to a safer area, but it should be something you are working to get out of. The other side should be the happy ending you are hoping for. This can be moving into your dream house or being able to give your family the lives you feel they deserve. Creativity is limitless and powerful when you come to your conclusion of what your trading purpose is. One of the best crypto trading resources is your mind.

A stack of green hundred dollar bills on a brown wooden table with a golden coin showing the logo of Bitcoin on the front.

Concluding Words

How can I profit from other peoples’ mistakes?

The first step is understanding where and why they make them. Trading psychology tells us that during a big crash, people panic and sell while values are underpriced. Buying here gives you a great discount if you can time it correctly.

What is the most important part of a crypto trading strategy?

The most important part of a crypto trading strategy is how efficient you are. You can optimize efficiency in the assets you choose, how you trade them, and your mentality while trading.

What does it take to become a top 1% trader?

Consistency is key. Maintaining the strategies you have set for yourself can help systemize your actions and avoid mistakes. The longer you trade, the better you will get. Keeping at it and staying focused on new goals is the best way to reach the top 1% of crypto traders.



The information provided in this article is not investment advice. We are not responsible for any losses incurred by readers who choose to invest in cryptocurrency. Readers should do their own research before investing in cryptocurrency. Cryptocurrency is a volatile asset and there is a high risk of loss. Readers should only invest money that they can afford to lose.

Desire to be a better Investor?

Are you ready to start implementing scientifically proven methods into your crypto investing?

Desire to be a better Investor?

Are you ready to start implementing scientifically proven methods into your crypto investing?

Efficiency Table

Looking for Efficient Profit?

Visit Our FREE Asset Research

Find your efficient returns with the right data on the right assets