There are dozens and dozens of strategies traders use to profit from cryptocurrency. Those strategies range from the very complex to the very simple. Many require technical analysis that relies on price and volume data. Those strategies require investors to be adept at recognizing price patterns and taking advantage rapidly.

While those certainly can and do lead to profit, this article is going discuss general signs investors should seek to identify for each of the coins below. These macroeconomic indicators require more of an ability to read overall markets as opposed to individual price charts. Both have the same goal of identifying opportunities, making a bet, and capitalizing on the returns.

Bitcoin (BTC)
Profiting with Bitcoin (BTC-USD) is still very possible, even after its massive run-up in the first quarter. That run-up produced 70% gains for investors who noticed that Bitcoin was about to take off to begin 2023.

Bitcoin’s rapid appreciation during the first quarter was attributable to a few potential factors. It could have been a simple rebound thaw following the so-called crypto winter. Fed rate hikes took the entire crypto sector off a cliff, beginning with the first hike in March of 2022. The result was that BTC fell from $40k to $15k by the end of 2022. 2023 began very differently, with prices surging. That could have been simple optimism, given inflation did move lower.

Likewise, the stock market began 2023 with a strong performance. Bitcoin and crypto may have simply benefited from overall optimism and a halo effect that pulled everything higher.

This time, investors should look for something different when seeking to profit from BTC. If the stock market crashes, general investor trust in traditional finance will erode rapidly. We now have an established crypto market that will act to absorb the distrust of our financial systems. If signs of a shock are evident, Bitcoin is then the place to be.

XRP (XRP)
A trading strategy for XRP (XRP-USD) is less strategy than a simple recognition that it can make investors money quickly any day now.

Every reader will be well aware that the catalyst here is the ongoing SEC case against Ripple and the presumption that Ripple is highly likely to prevail. If and when that happens, XRP is expected to appreciate in price rapidly. This is not news to many.

But there’s a real question that needs to be answered here. What are those investors expecting in terms of price in the days, weeks, and months following a favorable court judgment? Do they anticipate XRP’s prices will remain higher thereafter, or do they expect many investors to cash out quickly? If the latter occurs, XRP will peak rapidly and lose value just as quickly again.

That’s where I would put my money. Any investors playing that game should be prepared to cash in on XRP as soon as they can following a court judgment. Make those quick returns. Earmark some of that return for future investment if you truly believe in the long-term utility of XRP. But don’t risk the chance that those rapid gains evaporate.

Hedera (HBAR)
Hedera (HBAR-USD) investors should follow a trading strategy that is similar to that of Bitcoin. That’s because Hedera should benefit from a similar decline in trust in all that is traditional.

In Hedera’s case, it’s more about looking for signs that institutions are going to invest in crypto again. It has lots of enterprise utility and use cases with some of the biggest firms out there. Let’s assume that another shock rattles the markets shaking trust in traditional finance. That leads investors away from the stock market and into Bitcoin, which is the most trusted cryptocurrency.

Institutions could logically then invest in beefing up their cryptocurrency functionality in order to reattract some of that investor capital. That would be a clear opportunity for Hedera with its track record of enterprise utility. So, in short, look for a flight of capital away from the traditional financial system prompted by another shock and a resultant reaction by institutions to become crypto-friendly again. If that happens, HBAR will rise in price quickly.

— Alex Sirois

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Source: Investor Place