Apr 14, · The best Bitcoin trading strategy is an 85% price action strategy and a 15% cryptocurrency trading strategy that uses an indicator/5(48). Oct 23, · Bitcoin Trading Summary Bitcoin trading is the act of buying low and selling high. Unlike investing, which means holding Bitcoin for the long run, trading deals with trying to predict price movements by studying the industry as a whole and price graphs in particular. Aug 16, · It offers a robust trading platform, and is among the top exchanges in trading volume, with high liquidity across many trading pairs. The exchange offers multiple options for futures contracts. The contracts are priced in leading cryptos such as Bitcoin, .
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Trading involves a lot of risks and it is imperative for traders to ensure that they have risk management protocols in place to minimize their losses. The Bitcoin and cryptocurrency market is extremely volatile and when trading, it is important to make use of stop loss orders to avoid substantial losses that may exceed the capital of the trader.
Leverage is a useful tool in trading, despite the financial instrument being traded, as it allows the trader to open larger positions despite their initial capital. Where there are great profits to be gained, there are also substantial losses which can be incurred.
Leverage in itself has a lot of risks while cryptocurrency trading has its own as well and traders will find that Forex brokers do not offer a high level of leverage while most cryptocurrency exchange platforms do not offer any leverage at all.
When using too much leverage, traders run the risk of becoming reckless and losing more than their initial capital while too little leverage may hamper the trade performance as premium trades cannot provide traders with their expected returns. This involves experience, skills, and knowledge in coding as it opens a new world for traders to refine their trading skills and to tailor their strategies to precisely what they need.
By learning to create strategies from scratch, traders can make use of algorithms as they trade based on finite parameters and there are thousands of ways to incorporate various factors and parameters into conducting analysis and executing trades. There are various ways in which Bitcoin can be traded where strategies, utilities, and methods are concerned, and traders should take time in exploring different options to find ways which cater specifically to their needs and objectives.
While trading, traders are urged to put the correct amount of funds into a trade while keeping tabs on specific sizing methods to ensure that the risk and reward ratios are correct and to avoid putting too much funds at risk.
Before selecting a Forex broker to facilitate trades or a cryptocurrency exchange platform through which to buy, sell, or trade, traders need to identify their trading needs and objectives. This allows traders to refine and narrow down their search on finding a broker or exchange that caters more specifically for them.
Before trading in a live environment or choosing a specific broker or an exchange, it is imperative for traders to make use of demo accounts to test the platform and offering of a broker or an exchange.
These trading bots are able to open and close trades without the trader intervening and provide traders with peace of mind that they will not miss out on opportunities when they are not able to trade manually and look for trends or changes in the market.
This strategy forms part of the trend-following aspect of Scalping and features two moving averages which can be utilized in identifying the short-term trend of Bitcoin.
The cross of a shorter period moving average is placed above the longer period moving average which signals an uptrend while the shorter moving average below that of the longer signals a downtrend.
The Stochastic oscillator is used by traders to identify market conditions where overbuying or overselling is present.
This signals the trader of a turning point in the current trend. Should the faster period moving average cross over the lower period moving average, the trader is signalled of a short-term uptrend in bitcoin.
Stochastic values above 80 signals the trader to overbought market conditions while anything below 20 signals oversold conditions. A short signal is returned when the period moving average crosses below that of the period moving average.
This signals the trader of a short-term downtrend. When using this strategy on short timeframes such as 1M or 5M, it tends to return the best result. Traders should ensure that stop losses are placed just above the recent swing high in case of short positions. Stop losses can also be placed just below the recent swing low in case of long positions. The profit targets of the trader should be the approximate size of the Stop Loss so that the trader can at least have a return to risk.
When using this strategy, the focus is on identifying breakouts around familiar price ranges and chart patterns such as:. When a breakout occurs, it is often followed by a substantial buying or selling momentum in the direction of the breakout with traders attempting to catch the momentum to profit from it.
This day trading strategy is based on the trade of the underlying trend of Bitcoin. This used to be a profitable approach when the cryptocurrency market knew only an upward direction but with ranging cryptocurrencies, a breakout approach would be better.
Although, should a new trend in Bitcoin be established and it is characterized by higher highs and higher lows in uptrends, or lower lows and lower highs in downtrends, this trading strategy may yet again become more viable. This strategy refers to catching price corrections which may go against an established trend.
This strategy is not recommended for beginners as it involves a substantial amount of risk associated with the level of volatility in the cryptocurrency market.
The name of the strategy is self-explanatory. Automated trading involves making use of AI technology such as trading robots, or Expert Advisors, to trade on behalf of the trader. There are numerous trading bots available with different parameters programmed which can be downloaded or purchased. A lot of Forex brokers and crypto exchanges also provide such robots to traders.
The trading bots are programmed according to different strategies and when choosing a bot, it depends on the traders trading needs, objectives, and parameters in deciding which one to use when trading.
This strategy is, however, notoriously risky as the cryptocurrency market is volatile and in using this strategy, it may lead to substantial losses. This strategy is rarely recommended, and it requires a strict risk management plan. In Hedging Bitcoin, traders open strategic trades to decrease or eliminate the risk of existing positions. Traders hedge an existing holding by opening a position to short their current position. This involves the selling of the asset on the current market price in the expectation that it will decline.
Should the market price fall, traders will then buy their asset back for the lower price and coin profits from the difference. This means that, when using this strategy, traders will be trading on times when massive news breaks. This includes instances where the news reports events such as natural disasters, terrorist attacks, and others which cause assets to fall.
However, this is a risky strategy as there is a likelihood that prices on these assets may fall even lower. This strategy entails that a trader enters a position as the price dives should the expectation be that the current trend will endure.
This also involves a lot of discipline in trading psychology as it may trigger the overwhelming urge to close the position should the price continue declining in a downward trend. Trading, and Bitcoin trading, deserves a lot of consideration and tactic with the goal on making profits and minimizing any losses.
Therefore, it is imperative for traders to ensure that they start with a basic understanding of Bitcoin trading first before trading. There are numerous strategies that can be employed when trading Bitcoin and traders are urged to ensure that they thoroughly research and learn their strategy before moving to another.
The general rule concerning strategies is that it is better to have one good strategy that works instead of having numerous strategies that increase the chance of losses while they do not make profit at all. In addition, traders need to realize that there is no holy grail of strategies where trading, Bitcoin included, is concerned and one trading strategy that works for a trader will not work the same for another trader as each has their own trading styles, needs, and objectives.
When trading in Bitcoin it is imperative to secure your investments. Bitcoins are only as secure as the wallet storing them. Best Forex Copy trading Platforms and Brokers according to research in South Africa, Copy trading, also known as social trading, mirror trading, or auto trading […]. View Share. Sign up and we'll let you know when a new broker review is out. All data is delayed by at least 15 minutes.
Tel: Read Review. Download our free e-book. Skip to content Search. What is Ripple? What is Litecoin? Is Luno Safe? Best Brokers. Forex No Deposit Bonus. Open a Bitcoin Wallet. Broker of the Month. Bitcoin Overview When trading Bitcoin, it is the simple process involved with buying low and selling high. Fundamental Analysis Fundamental analysis involves the evaluation of mainly both economic and financial variables along with several others.
There are numerous variables that influence the demand of Bitcoin including: User adoption Transaction activity, and Trading User adoption is important as it is crucial to the long-term viability of cryptocurrency, and the driving force behind user adoption is the fact that money has various uses.
Technical Analysis Technical Analysis in Bitcoin trading requires traders to read charts and it is an essential skill in trading Bitcoin successfully. Ways to Trade Bitcoin There are numerous ways in which Bitcoin can be traded with two of the most predominant ways being the trading of Bitcoin and other cryptocurrencies on Forex and thus through a Forex broker , or by trading through a cryptocurrency exchange platform.
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No matter your previous experience, going over these points will help you ensure your understanding, as well as build the necessary knowledge regarding the method you are going to use. According to all of this, when it comes to dealing with the most popular cryptocurrency, which is Bitcoin, you have to use this guide that consists of the best Bitcoin trading strategies that will help you reach the points of success in your trading journey.
However, it is inevitable to take into consideration every single aspect of the process in order for you to experience all of the benefits that come with the Bitcoin trading process. Knowing all of this, to approach the subject of trading strategies we have created this article that will guide you through the most important things that you have to master in order to successfully approach the strategizing segment.
Hence, continue reading this article to find out more. This is probably one of the most important segments that are currently available, as technological development is allowing you to explore all of the benefits that come with the usage of Bitcoin trading platforms.
There is an abundant number of available platforms on the internet, which are making this segment a little bit harder to complete. However, when it comes to exploring the online trading platforms you should first start with Bitcoin Prime , which holds the reputation of the most popular trading tool that will help you in the process of making insane profits.
The platform, itself, consists of surprisingly easy features that are designed to help you get the best possible Bitcoin trading opportunities that correspond with your specific need and requirements. This is probably one of the most important strategies that will allow you to get a better understanding of your specific trading goals, as well as financial possibilities. The best way to actually ensure your future success is by taking smaller steps that will allow you to access bigger trading opportunities, thus ensure that success point you are hoping to get.
This is especially the case if you decide to explore all of the possibilities that come with the usage of the Bitcoin Prime platform. However, in order for you to access this segment of the trading journey, you need to first, create your trading account just by filling out the necessary registration form. When completing the required personal information, you will get a chance to fund your account, this is the point where you can put this strategy into play, and start the live trading process.
When dealing with online trading opportunities, especially with Bitcoin trading, it is important for you to establish the trading knowledge that will help you build the necessary trading skills, especially if you are new to all of this. So, you might wonder how to actually achieve the process of practice before you start the live trading segment.
Well, as mentioned above, the wonders of technological development are truly impressive, and platforms like the one that we are exploring today offer you exactly this.