Jul 16, · One of the more exciting Bitcoin trading strategies that have become quite popular in recent times is Bitcoin Margin trading. This form of trading offers huge profitability margins as it involves using borrowed funds to place larger trades on Bitcoin. Apr 14, · (Rules for a Buy Trade) Step #1: Overlay the Bitcoin chart with the Ethereum chart and the OVB indicator.. Your chart setup should basically Step #2: Look for Smart Money Divergence between Bitcoin price and Ethereum price.. What do we mean by /5(48). Oct 23, · Well, a Bitcoin trading strategy is what you’ll use to cover the price of the points you have once you enter the business and once you exit. While this might look confusing for you at the moment, you should understand more once you’ve read our article.
Strategies bitcoin tradingThe Best Bitcoin Trading Strategy - 5 Easy Steps to Profit
Once the OBV indicator gives us the green signal, all we have to do is to place a buy limit order. Place the order at the resistance level in anticipation of the possible breakout.
After all, we told you the OBV is an amazing indicator. Now, all we need to establish is where to place our protective stop loss and when to take profits for the best Bitcoin trading strategy. Placing the stop loss below the breakout candle is a smart way to trade. When it comes to our take profit, usually an OBV reading above , is an extreme reading that signals at least a pause in the trend. This is where we want to take profits.
In the figure below, you can see an actual SELL trade example, using the best Bitcoin trading strategy. While bitcoin day trading does have some risks, there are many ways these risks can be reduced. Here are some of the top ways to enhance your Bitcoin trading strategy.
Maybe one day our fiat money system will go under and be completely replaced by cryptocurrencies. However, as long as there are still profits to be made from Forex currency trading we encourage you to read our receipt for Forex trading success: How to Make Money Trading — 2 Keys to Success. We hope that The Best Bitcoin Trading Strategy — has shed some light on how you can use the same technical analysis tools that you use for trading the Forex currency market to now trade the cryptocurrencies.
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We want to share with you some important information about Trading Strategy Guides as we move forward to our goal to help 1,, Traders find a strategy that suites them best. We want you to fully understand who we are as a Trading Educational Website We will send out many free trading strategies for you to learn and apply to your trading system right away Our team gathers a vast amount of information and comes up with some of the simplest and easiest trading strategies to follow each week.
We are highly motivated to do this for you because we love helping people succeed who are serious about trading. Our Goals. The crypto Market is the highest market now. You can be part of the people who are earning a living through trading cryptos.
With just half a bitcoin, you can make up to 3 bitcoins in a week. Contact me via kramerp04 gmail. If you want to buy more bitcoins up to 0. Forex Trading for Beginners. Shooting Star Candle Strategy. Swing Trading Strategies That Work. Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page. Info tradingstrategyguides. Facebook Twitter Youtube Instagram. How to Start Trading Bitcoin: The first thing you need to get started trading bitcoin is to open a bitcoin wallet.
Available in the United States, Canada, and the majority of countries in Europe. Offers several payment options. Binance is the second-largest exchange that trades over different currencies. Has low transaction fees 0. Bitmex is the third-largest exchange and only trades BTC.
Great for short selling and margin trades. Bittrex is a US-based exchange founded by ex-Microsoft security professionals. OKEx is a Hong Kong-based exchange. Trades over different cryptocurrencies. Coinmama - allows you to buy and sell easily. Accepts credit cards and has a large global reach. How to Day Trade Bitcoin While long term traders prefer to hold their bitcoin positions for extended periods of time, day traders have discovered that Bitcoin is lucrative for many reasons: Crypto trading is more volatile than stock trading.
Bitcoin is traded 24 hours per day 7 days a week. Bitcoin allows for big trades with low overhead. Bitcoin is the most liquid form of cryptocurrency.
Multiple trading opportunities emerge within a 24 hour period. The Best Bitcoin Trading Strategy — 5 Easy Steps to Profit This is a cryptocurrency trading strategy that can be used to trade all the important cryptocurrencies.
Now… Before we move forward, we must define the mysterious technical indicator. You'll need this for the best Bitcoin trading strategy and how to use it: The only indicator you need is the: On Balance Volume OBV : This is one of the best indicators for day trading bitcoin.
What do we mean by this? Step 3: Look for the OVB to increase in the direction of the trend. But, how do we know that? Step 4: Place A Buy Limit Order at the resistance level in an attempt to catch the possible breakout.
Ways to Enhance This Bitcoin Day Trading Strategy While bitcoin day trading does have some risks, there are many ways these risks can be reduced. Remember to: Diversify your trades. Combining Bitcoin, Ripple, Litecoin, Ethereum, and other cryptocurrencies will help reduce the daily risk associated with a specific coin.
Minimize trading costs. Opening multiple positions every day affects your daily ROI. To minimize the cost of trading, choose a trustworthy exchange that has low fees.
Watch Trading times. Plan out trading times that are compatible with your schedule. Bitcoin trades 24 hours a day. It's different from the NYSE. Follow Bitcoin News.
Pay attention to cryptocurrency news stories to stay ahead of the market. Set up alerts and other types of notifications. Use technical analysis. Use strong technical indicators like OBV. This will help you justify each of your trades.
Use stop losses. Set stop-loss orders on every trade. Start with a profit loss ratio of Author at Trading Strategy Guides Website. Alexis Jk Dela Cruz says:. September 27, at pm. TradingGuides says:. November 9, at am. Kramer Parker says:. October 28, at am. Robert Donald says:. November 28, at pm. Chintan Patel says:. November 30, at pm. December 3, at pm.
Many of the platforms that offer trading have attempted to make it easy and uncomplicated to attract new users to the space. Bitcoin is also an asset unlike any other. It operates a bit like a digital gold, in that it does not exist in the physical realm and has the properties of gold when it comes to accruing value, but it is also decentralized, which means there is no one entity that controls it.
So, when you invest in a stock, your stock price can fluctuate depending on what businesses decisions the company takes, but that does not happen with Bitcoin. Other advantages to trading in Bitcoin include the fact it has a transparent, immutable ledger to track and trace transactions.
It is a scarce resource with there only ever being 21 million in existence, it has low transaction fees which are often taken into consideration by certain trading platforms, and probably — most importantly, Bitcoin is the best performing asset of the last decade by a considerable margin. This strategy is arguably the easiest , most common, and highly prized Bitcoin Trading strategy.
The other big advantage of this method of trading is that it is incredibly simple. There are of course some Cons that come with this strategy though. It is a strategy that comes with risk. Because the Bitcoin market price is constantly moving, one day Bitcoin price is going up , the next day bitcoin price can drop. If you decide to buy and hold Bitcoin at a certain price point, the price can drop significantly from there and you can lose as much as 80 percent of your investment.
One of the more exciting Bitcoin trading strategies that have become quite popular in recent times is Bitcoin Margin trading. This form of trading offers huge profitability margins as it involves using borrowed funds to place larger trades on Bitcoin. This, in effect, means that a person can double, triple, or more, their initial investment in a single trade. Margin trading is also known as leveraged trading as a person borrows funds — usually from a cryptocurrency exchange, they are trading on — to leverage their trades for a higher profit margin.
For example, some platforms offer trading of meaning that if you want to trade with 1 BTC, you are able to borrow 2 more BTC for the same trade. Then, if that trade is successful, your profit is then three-times bigger.
The biggest Pro of this strategy is the massive amount of profit that can be made in a single trade. The Con of this type of trading is that the margin trading can go the other way and lead to large losses as well. Trade Bitcoin with Leverage. This trading strategy has become more and more popular in recent times, and that is obvious by the amount of money that is seen in the Bitcoin futures market, and the fact that there are more institutional investment firms now offering Bitcoin Futures Trading options.
Futures Trading involves entering into a contract with a trading platform — that has a set value — and taking a speculative prediction on the price of the digital asset. The contract thus sets the future price of the asset which needs to be honoured regardless of how the market has moved. The Pros of this Bitcoin trading strategy is that it also offers a hedge against a potentially falling Bitcoin price. This means that if the price does fall, you get to sell your Bitcoin at the higher price you originally bought the Bitcoin contract for.
Another big advantage in this form of trading is that this has become a regulated trading market with the likes of CME and Bakkt — two institutional investment platforms — offering the service. But even cryptocurrency trading platforms and exchanges are getting regulated. Another very popular trading strategy that has become especially attractive when it comes to the Bitcoin market is Day Trading.
Many people want to learn how to Day Trade Bitcoin, but this form of trading basically requires a person to keep a sharp eye on the continuously fluctuating Bitcoin price and looking to buy when it is low and sell when it is higher, to take profit. Day Trading is a strategy that takes place with other assets as well, including stocks, forex, and other commodities.
But the Pros of day trading with Bitcoin are a lot more. Firstly, the volatility of the market is a day traders friend, and day trading can happen 24 hours a day, seven days a week. This is unlike stock markets that close at certain times. Some of the Cons of this trading strategy tie into the usual ones associated with Bitcoin. Again, the volatility can be positive if your trading is going well, but it can also be a con as it may lead to big losses.
Additionally, day trading requires a bit of experience and skill, and it helps to understand technical analysis in order to read the Bitcoin price charts. As a brief explanation, there are two basic types of technical indicators used in technical chart analysis.