Best Bitcoin Trading Tips & Strategies ️ View an actionable summary of the best bitcoin trading tips & strategies which includes the leverages, minimum deposits and more. Dec 16, · To put all of this in other words, using the Bitcoin trading platform as the primary trading tool will help you master this strategy as they allow users to place an initial minimum deposit and. Jul 08, · Here are the best crypto exchanges for Bitcoin day trading: Binance – vast functionality, basic and advanced exchange information, no lagging, on-the-go app. BitMEX – high leverage, no Bitcoin deposit and withdrawal fees, solid security infrastructure, simple 24crypto.de: Mikhail Goryunov.
Best trading strategy for bitcoinThe Best Bitcoin Trading Strategy - 5 Easy Steps to Profit
We will start by discussing strategies from both the fundamental and technical schools of thought, followed by tips that can serve to enhance the success of these strategies. Read Review. In theory, it means that traders should enter a position when the price dives if they believe that the current trend will endure. To carry out this strategy successfully, one should buy incrementally as the price goes down, creating an average position and aiming to buy more as the price decreases further.
Before you start developing a news trading method, you have to know the impact of economic news. Some news has a low impact and some has a very high impact. You must be able to identify high and low impact news. Professional traders blend the news data with the technical analysis to find potential trade setups. To trade the major news, you can use the price action signals. Draw the support and resistance level in the higher time frame.
Once the news is released, you need to look for the reliable price action signal in the minute time frame. If you spot any price action signal that favours the news take the trade.
In simple terms, hedging is an action made to reduce the risk of another investment. So in Bitcoin terms, hedging is the action of selling Bitcoins in order to reduce the risk of holding Bitcoin, thus increasing or maximizing the reward of your profits. When the price goes up, you hold your coins. Hodling does not look fondly on short term trading strategies. Buying and selling when an asset is as volatile as Bitcoin is tough if you want to profit.
And even if you can profit by trading, you likely miss out on money you would have gained by just hodling Bitcoin instead. Hodlers can escape the volatility, by simply hodling Bitcoin. Automated trading of Bitcoin is when algorithms of trading are carried out by a computer program.
There are also many tools, like filters and signals, which help crypto bots make decisions. The cryptocurrency trading process is based on the results of different market analytics and calculations and excludes human factors like fatigue.
A countertrend strategy is a trading method that attempts to make small gains by trading against the current trend. Contrarian traders often deploy countertrend trading strategies. Trend trading is a strategy that involves using technical indicators to identify the direction of market momentum. It is based on the idea that markets have an element of predictability, so by analysing historical trends and price movements, a trader will be able to forecast what could happen in the future.
Trend trading is usually considered a mid to long-term trading strategy, but it can in theory cover any timeframe, depending on how long the trend lasts. Trading breakouts is a very popular strategy among traders in many markets, not just with cryptocurrencies. However, when it comes to cryptos, trading breakouts can be somewhat intimidating after the first impression. Breakouts occur when the price action surpasses a resistance or support levels or any chart pattern.
As per their very nature, breakouts break trends, and if they counter the previous trend, then they often signify the start of a brand new trend.
Day traders in short trades sell assets before buying them and are hoping the price will go down. Short-term trading can be very lucrative but it can also be risky.
A short-term trade can last for as little as a few minutes to as long as several days. You must not only know how to spot good short-term opportunities but also how to protect yourself. The truth is, by the time we hear about it, the markets are already reacting. Dollar cost averaging is when you purchase a fixed amount of cryptocurrency at certain intervals while the price action is either moving up or down.
This price typically ends up being a much higher or lower price point then if you were to purchase in one lump sum at a single interval in time. This assumption holds true both for traditional and cryptocurrency markets. The reason why this happens is because of the overall market psychology. A momentum investor judges the ebb and flow of the market by its momentum. An ideal scenario is to ride a positive momentum wave with your assets and then immediately sell them off when the market momentum reverses.
The core philosophy behind this is the belief that the prices of an asset will spike above its average and then run out of momentum and fall down. In this situation, the timing of the buy-in and sell-off is critical. The price of an asset can vary in different exchanges. This mainly happens due to fragmentation in price across marketplaces. With the Arbitrage strategy, you will be able to make a profit by buying and selling on exchanges simultaneously. To exploit these price differences, you will need to buy and sell X, almost at the same time.
By feeding relevant information to your bots, you can help it determine the correct entry and exit times. In the cryptocurrency market, the price of the asset can change wildly as per fundamental news like articles, tweets, and other similar content.
Using NLP programming, one can teach their bots how to programmatically interpret words and phrases and analyse the underlying sentiment. Partnership news is usually pretty bullish. This may be the greatest mistake in the crypto community to date. But seeing as the supply of Bitcoin is finite, any time someone loses any, that means the circulating supply decreases.
So even when we reach 21 million, the number available to buy, sell, store and use will be lower. Your private key gives access to your Bitcoin. Some people have written down their credentials, only to lose or accidentally throw away the piece of paper.
Others committed them to memory, then later forgot it. In addition, people may destroy their private key on purpose for various reasons.
The creator of Bitcoin, Satoshi Nakamoto, is believed to have mined one million but has never touched them. Some believe Nakamoto destroyed the private key. Falling for an email scam is something that can happen to anyone. Also known as a phishing scam, it involves using email and fraudulent websites to steal sensitive information such as passwords, credit card numbers, account data, addresses, and more.
With the increasing popularity of cryptocurrency airdrops, it is no surprise that there are also many scams out there. This secures the account. For example, if 2FA is applied to a cryptocurrency exchange account you would need to log in with your username and password, but you will also need to enter a 2FA authentication PIN.
The authenticator is usually on a secondary device like a mobile phone or a USB key. Try to feel and think logically to shatter the dreams of high returns. When you notice the market going up, try to avoid feeling like investing in the hopes of it going higher.
The most effective strategy for minimizing risk is diversification. A well-diversified portfolio consists of different types of securities from diverse industries, with varying degrees of risk. Pump and dump is a scheme that boosts the price through recommendations based on false, misleading or greatly exaggerated statements. In this scheme, a horde of traders drum up enthusiasm for a coin by evangelizing it on multiple channels, including social media.
Subsequently, they instigate a coordinated purchasing frenzy for it. The coordinated action is repeated, except this time around in selling the coin, when it reaches a certain price target. This causes a sharp decline in its price. While the pump-and-dump group makes profits, other traders, who purchased the coin based on false promises, are left holding losses. A price ticker will alert you whenever the price fluctuates.
In the above figure, we can notice that Bitcoin's price fails to break above resistance while Ethereum's price broke above and made a new high. This is the first sign that the best Bitcoin trading strategy is about to signal a trade. The same principles have been true for all the other major asset classes for decades.
Before buying, we need confirmation from the OBV indicator. This brings us to the next step of the best Bitcoin trading strategy. If Bitcoin is lagging behind the Ethereum price it means that sooner or later Bitcoin should follow Ethereum and break above the resistance.
Simply put, the OBV is a remarkable technical indicator. It can show us if the real money is really buying Bitcoin or if they are selling. What we want to see when Bitcoin is failing to break above a resistance level or a swing high, and the Ethereum already broke, is for the OBV to increase in the direction of the trend.
We also want it to move beyond the level it was when Bitcoin was trading previously at this resistance level see figure below. Here is how to identify the right swing to boost your profit. Now, all it remains for us to do is to place our buy limit order, which brings us to the next step of the best Bitcoin trading strategy. 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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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