Mar 24, · Trend trading is a strategy that relies on the current trends in the Bitcoin world. You’ll need to keep a close eye on what others are talking about and plan to do. For example, bitcoin . 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, · If you want to be successful in trading BTC, you need to grasp the hold of the best strategies there are. If you are a novice in this field, you must be wondering what these strategies are. Well, a Bitcoin trading strategy .
Strategy btc tradingThe Best Bitcoin Trading Strategy - 5 Easy Steps to Profit
Because Bitcoin is more volatile than other tradeable assets, there will be a high number of profitable trading opportunities occurring each day. Like ordinary currencies, using technical indicators will make it easier to tell when price increases are likely to occur. Volume, relative strength, oscillators, and moving averages can all be applied to Bitcoin day trading. It is important to pay attention to technical indicators and developing trends. In this next step, we will talk about OBV trading and how to get started buying and selling cryptocurrencies.
This is a cryptocurrency trading strategy that can be used to trade all the important cryptocurrencies. 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:. It is used to basically analyze the total money flow in and out of an instrument. The OVB uses a combination of volume and price activity. This tells you the total amount of money going in and out of the market. How to read the information from the OBV indicator is quite simple.
Here you can learn how to profit from trading. In theory, if Bitcoin is trading up and at the same time the OBV was trading down, this is an indication that people are selling into this rally. The same is true in reverse if Bitcoin was trading down and at the same time the OBV was trading up. What we really want to see is the OBV moving in the same direction as the Bitcoin price. In this regard, our team at Trading Strategy Guides uses the OBV indicator with other supporting evidence to sustain our trades and gain more confirmation.
The next step comes from the Ethereum trading strategy which will be used to identify Bitcoin trades. Now, before we go any further, we always recommend taking a piece of paper and a pen and note down the rules of the best Bitcoin trading strategy. Your chart setup should basically have 3 windows. One for the Bitcoin chart and the second one for the Ethereum chart. Last but not least, make one window for the OVB indicator. If you followed our cryptocurrency trading strategy guidelines, your chart should look the same as in the figure above.
Simply put, we are going to look after price divergence between Bitcoin price and Ethereum. Smart money divergence happens when one cryptocurrency fails to confirm the action of the other cryptocurrency. For example, if Ethereum price breaks above an important resistance or a swing high and Bitcoin fails to do the same, we have smart money divergence.
And the Ethereum trading strategy as well. 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.
Ready to get started? Tap here now to get the E-Book Completely Free! Please Share this Trading Strategy Below and keep it for your own personal use! Thanks, Traders! We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more. Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow.
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.
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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. I will strongly advise that you familiarize yourself with the idea of Bitcoin first, before continuing to read this article where you'll find many useful Bitcoin trading tips. Don't worry. We are here to stay at least before the crypto robots takeover. So get your pen, paper, and chair, because the class is in session. Simply put, bitcoin trading means buying or sell Bitcoins BTC. Let us say you one day decide to start profiting from the rise and fall in prices of Ethereum tokens ETH , but you only have Bitcoins in your wallet.
Generally speaking, to indeed start trading Bitcoin, you need to have an account with a standard Cryptocurrency exchange or venture into Contract for Difference CFDs. CFDs is another topic on its own that we won't be able to cover in this piece; we love you too much to give you half-baked information.
Whether you are trying to cheat your siblings at a poker game or winning a court case, you will always need a strategy. Wonder how to day trade Bitcoin? When it comes to trading also, a plan is required to help ascertain consistent winning. Like the saying goes - to fail to prepare is to prepare to fail. A trading strategy is the building block of any trading system you will find out there.
It is the category, each style used by all traders Forex, stock, Cryptos, commodities, etc. Forex trading strategies can be likened to as the bare bones of a trading operation. Forex trading systems, on the other hand, make effective strategies.
Trading systems are very elaborate and comprehensive, and it explicitly takes into account the kind of trader you are scalper, day trader, trend trader, etc. There are various trading strategies to try out. With every passing day, some trading genius after spending years mixing trading chemicals in a secret trading lab at the top of the Himalayas would have come up with the next best trading system available for sale at an exorbitant price The funny but true story.
Now, the most significant part of our Bitcoin trading guide. Here is a list of the top trading strategies that will help you to achieve your goal. Broken down, scalping the Bitcoin trading strategy involves taking little scraps from mini market trends and price spikes.
This way, a trader only enters the market to gain the least possible profit from it, and then move out as quickly as possible, before the market shows them who's the boss. Scalping is best done when the possible outcomes of an event are predictable and expected to lead to a very sharp and quick spike in the price of Bitcoin, even if it's for a short period.
Imagine making about Satoshis, 20 times daily! From just going in and out of the market within minutes! Scalping requires a heightened sense, access to firsthand market information, and keen eyes for mastering patterns along with details. Even with all these in place, it takes time and several months, if not years of practicing. If you don't have any of this, it's better you stick to other strategies best suited to your resources. You must have been practicing fundamental analysis without even knowing.
Simply put, fundamental analysis is the process of using economy data as an indicator of the likely directions of price and whether a particular asset is overvalued or undervalued about other similar or connecting financial assets.
This Bitcoin trading strategy can be a little bit complex and also not advisable for short-term traders or beginners in general. As a smart person, you are asking why is that so, right?
However, not asking doesn't mean you aren't smart, don't go googling "how to be smart," please! This News and economic data's used in fundamental analysis comes from Central banks, regulatory bodies, and the major financial institutions let's call them the big boys or girls whichever you feel comfortable with.
If you are used to the price charting packages, you will notice that the price of a target asset tends to increase or decrease sharply just right after a significant news release. So unless you can get access to this News before prices start to reacts to the News, you will most likely always miss the spike in prices, thus entering at the top or bottom of an already established trend.
So if you don't have access to state of the art information transmitters or subscribed to some secret and costly financial news channels, this method might prove a bit more of a gamble for you. However, it should be noted that some traders have devised various means of profiting from this strategy.
These following methods have been tested and trusted over a long period. This is a bit more straightforward approach to trading Bitcoin. Mathematicians in the house will surely love this! Technical analysis is based on the mathematical interpretation of past price data. In other words, you are using mathematical equations in the form of indicators to predict the likely directions of price, using information from the past.
Since it is quite possible to merge as many fundamental indicators to form another unique one, the number of technical indicators you will find around is quite a lot.
However, there are some basic ones you will surely come across in your professional analysis path. This set of indicators makes up the bulk of several other, so they are generally regarded as the system indicators they mostly accompanies a charting package. The others originating mostly from the alteration or merging of the standard mathematical equations, used in the making of the above-listed ones are referred to as Custom indicators.
You can liken indicators to the financial market traffic lights.