If you want to take an approach that combines day trading and HODLing, you can decide to sell a percentage of your Bitcoin while holding onto the rest. This allows you to try to take advantage of price volatility and sell high without risking your entire investment. Jul 13, · When it comes to arbitrage, Bitcoin is just the latest stage for a financial strategy that’s played out for literally thousands of years. If the same thing has a different price in two different places, you can profit by buying it at the cheaper place and selling it at the more expensive place. That’s what arbitrage is. If selling bitcoins, a market order would sell bitcoins for the highest available price based on the current buy orderbook—in this case $ Trading Risks. Bitcoin trading is exciting because of Bitcoin’s price movements, global nature, and 24/7 trading. It’s important, however, to understand the many risks that come with trading Bitcoin.
Bitcoin buy and sell strategyWhen to Sell Bitcoin: 3 Investment Strategies - Coinmama
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!
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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. And, unfortunately, you have to be willing to make mistakes. Yet, on September 24, that stability seemed to shatter.
Over the course of only a few hours, the Bitcoin price dropped by over 1, USD, and over the next month, it would drop to 7, USD, its lowest price point since mid-May.
Then, on October 25, Bitcoin saw its highest hour price change since when it was trading at 5. Cryptocurrency day traders thrive in a volatile price market. So always take some precautions—or be prepared to lose your entire investment. While the Bitcoin price pattern in the last decade indicates a constant upward swing, this approach is also not without its risks.
While many have tried, no one can predict with certainty where Bitcoin will be another decade from now, let alone another years from now. And the asset is still so new that not only is the price fluctuating, regulations surrounding its legality are too. Just make sure you HODL your private keys as well! If you want to take an approach that combines day trading and HODLing, you can decide to sell a percentage of your Bitcoin while holding onto the rest. This allows you to try to take advantage of price volatility and sell high without risking your entire investment.
At the same time, it leaves a chunk of your investment intact with a long-term approach. This approach, too, takes time and risk. But for people who want the best and worst of both worlds, this may be the approach to when to sell your Bitcoin. Sell Bitcoin Today. Coinmama Nov 19, Investors should look not at the risk and return of individual assets, but at how they blend together into a diversified portfolio. Coinmama May 11, Coinmama has all the information you need to get informed about Bitcoin mining.
Discover how Bitcoin mining works, what Bitcoin pools and Bitcoin mining hardware are, and more.