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Trading Strategies

Find an Investment Style That Works for You: Crypto & Derivatives Made Simple

In crypto and derivatives trading, there’s no one-size-fits-all approach. What works for one trader might be a terrible fit for another.

This guide will help you figure out what kind of investment style suits you best based on your goals, knowledge, time commitment, and risk tolerance.

Please note: This article does not constitute investment advice. Laws governing crypto, derivatives, and other forms of trading and investments as well as taxation vary by region and are subject to change. You are responsible for complying with the laws in your jurisdiction. Ouinex’s services and offers, including those mentioned in this article if any may vary by location and are subject to change. All investments carry risk.

Key Takeaways

  • Your investment style should match your risk tolerance, time commitment, and knowledge
  • Passive investors benefit from HODLing, staking, and using Earn offerings
  • Active traders use spot crypto, perps, CFDs, and leverage to profit from price movements
  • Explorers look for early-stage tokens and new launches
  • Ouinex gives you the tools to pursue any or all of these strategies on one platform

 

The Passive Investor: HODLing and Earning

You believe in long-term growth and prefer not to stress over daily price swings…whether you’re just lazy, or don’t have the time to trade all the time. Your game is patience.

Best options for you:

  • Spot Trading / Buying & Holding: Buy BTC, ETH, or other solid coins and hold them long-term.
  • EARN/Staking: Lock your crypto to earn rewards with Ouinex you can earn up to 10% APY with stablecoins like USDC. See it as a crypto savings account with additional perks.

Why it works: You’re not trying to time the market. You’re in it for the long haul and don’t mind if the market goes down for a while, as it will eventually go up again.

Best for: Beginners, busy professionals, or anyone looking for low-maintenance investing.

What you need to know: While one asset might spike in the near future so that you sell it off and make a profit, other assets might take years to deliver a ROI (if ever), so you have to be happy to lock up your funds for the long run. 

 

The Curious Explorer: New Token Launches & Small-Cap Coins

You enjoy doing research and are willing to take on more risk for bigger rewards.

Best options for you:

  • Investing in New Coin Launches: Get in early on promising tokens.
  • Spot Trading of Small-Cap Assets: Look for coins with growth potential but vet them thoroughly.

Why it works: You like discovering hidden gems and believe in projects before the masses catch on.

Best for: Research-driven investors with a higher risk appetite.

What you need to know: Pump and dump schemes abound, and while Ouinex vets every coin before we allow it on our platform, not all exchanges are that thorough. You can read more about pump and dump schemes…and how to avoid them…here.

 

The Strategic Trader: Derivatives and Active Trading

You want more control, more flexibility, and the ability to profit in both rising and falling markets.

Best options for you:

  • Spot Crypto: Act on market swings.
  • Crypto Perpetuals: Go long or short on major crypto assets with leverage.
  • Derivatives for Commodities, Stocks, Forex, and Indices: Diversify beyond crypto while staying in the same platform (at least if you use Ouinex).
  • Technical Analysis + Risk Management Tools: Use stop-losses, take-profit orders, and manage margin effectively.

Why it works: You know how to handle volatility and love the challenge of the market; staying constantly abreast of market news (which is why Ouinex offers in-app news and trading alerts).

Best for: Intermediate to advanced traders who want to actively manage their positions.

What you need to know: If you’re serious about trading, start small and grow from there. You can use our demo trading platform for free to hone your skills and improve your strategies and then move over to live trading with smaller amounts before going all in. You can also use SocialFi to earn crypto by performing quests and then use that crypto to trade.  

 

The Hybrid Approach: A Bit of Everything

You want the safety of long-term investing but the excitement of short-term trades. You mix and match.

Best options for you:

  • Stake or EARN with part of your portfolio

  • HODL high-conviction coins

  • Actively trade with another portion

  • Invest a set amount in new tokens yearly

Why it works: You diversify your strategies to spread risk and maximize opportunity.

Best for: Flexible thinkers who want balance and optionality.

What you need to know: Even if you don’t have a huge amount of money to invest, nor a lot of time, you can still diversify. HODL some high-conviction coins, invest in a few new tokens every year, and stake/make use of EARN offerings for a few different cryptos. This doesn’t require active day-to-day trading, but still allows you to diversify. 

 

Choosing What’s Right for You

Ask yourself:

  • How much time can I commit to trading?
  • How much risk am I comfortable with?
  • Do I want steady returns or high potential gains?
  • Am I more reactive or research-driven?

Ouinex supports all styles:

  • Make use of our EARN offering for up to 10% APY on stable coins
  • Trade spot, perps, or traditional assets all on one platform, and use USDC to trade derivatives…if you want to!
  • Access vetted new coin launches

No matter your strategy, you’ll get full transparency, fair execution, and institutional-grade tools whether you’re a HODLer, a scalper, or a macro trader.

 

FAQs: Finding Your Crypto Investment Style

What’s the safest way to invest in crypto?
Staking and EARN products tend to carry lower risk, especially with stablecoins. Buying and holding blue-chip tokens is also popular.

Is trading derivatives risky?
Yes especially with leverage. What’s good about derivatives, however, is that you can make money even when the market is going down (granted you go short on the assets that are going down). 

Can I mix investment styles?
Absolutely. Many traders hold long-term assets, earn yield on crypto through EARN offerings, and actively trade on the side.

How do I start trading on Ouinex?
Sign up, fund your account and explore our spot, EARN, and derivatives offerings.

What’s best for beginners?
Start with EARN and try our demo trading platform to ensure you can make a ROI before you engage in spot crypto and derivatives trading. Explore new coins as you gain confidence, or limit your budget for new coins and diversify heavily when you first set out.

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