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 . Aug 13, · The best bitcoin (BTC) trading strategy is one that is perfectly aligned to your own individual goals, risk appetite and available capital. However, there are a few strategies that have . Apr 14, · Trading bitcoin for profit is actually a universal cryptocurrency trading strategy. It can be used to trade any of the plus cryptocurrencies available to trade as of today. If you’re not already /5(48).
Btc trading strategies4 Bitcoin Trading Strategies To Use in - NorseCorp
However, bitcoin is notoriously volatile, which means that this strategy could result in losses. This is why the strategy is rarely recommended without a strict risk management plan in place. Individuals who already own BTC might consider hedging their bitcoin risk if they believed that there was going to be a short-term decline in the market price. Hedging is the practice of opening strategic trades to decrease or eradicate the risk to existing positions.
This would mean that any loss to your original bitcoin holding would be offset by the profit to your short bitcoin trade. There are a few financial instruments traders can use to hedge their bitcoin exposure, but a vast majority of traders choose to hedge with contracts for difference CFDs.
As a derivative product there is no obligation to own the underlying asset in order to trade. Want to practise hedging bitcoin? Start building your strategy in a risk-free environment using an IG demo account.
It is important to remember that there are significant risks if you decide to hedge your bitcoin using a short-selling strategy. This is mainly because there is an unlimited downside risk — when you sell a bitcoin, there is no constraint on the amount the market can move against you and how much loss you might incur as a result.
So, it is crucial to have risk management measures in place. A trending market is one that reaches consistently higher highs or lower lows. The strategy is suitable for different timeframes, as essentially you hold your position open for as long as you believe the trend will continue — whether this is hours, days, weeks or months. For many, bitcoin itself is a trend. As such a popular market, it is vital that trend traders stay abreast of any news and events that might influence its price.
Discover what cryptocurrency trading is and how it works. Trend following strategies use technical analysis to predict the direction of market momentum. There are multiple ways that traders can identify the direction of a market trend and its momentum, which usually involve using technical analysis indicators.
Popular trend and momentum following indicators include moving averages, the relative strength index RSI and the stochastic oscillator. The strategy is based on the idea that once a market breaks through a key support or resistance level, major volatility will start. Bitcoin traders would therefore look to enter the market at these key points in order to ride the trend from start to finish.
In order to identify support and resistance levels, bitcoin traders will often use volume levels as confirmation signals and technical indicators, such as the RSI or the moving average convergence divergence MACD. Once these levels have been identified, you can open a position.
If the price did rise to this level, your CFD would be executed and you could ride the bitcoin trend until your analysis showed it was going to reverse.
The bitcoin market is infamously volatile, which makes it absolutely vital to understand the market before you implement your strategy.
There are a lot of factors that can impact the price of bitcoin, including:. However you decide to trade bitcoin — whether this is buying the coin outright or speculating on its price with derivatives — it is important to understand your chosen method. If you decide to buy bitcoin, you would do so via a cryptocurrency exchange.
You would take ownership of the coins themselves and keep them in a digital wallet, in the hope that they increase in value and you can sell them for a profit. When you open a position to trade a cryptocurrency, you are speculating on its price, which means that you can take advantage of markets that are rising and falling in value.
Learn more about how to trade cryptocurrencies. Before you start to build a strategy, you should create a trading plan. Volatility is a key part of the bitcoin market, but with volatility comes risk. This is why it is important to learn how to manage your risk before you start to trade. A risk management strategy should include stops and limits to set out the parameters of your trades.
Limit-close orders will close your positions once the market has moved by a certain amount in your favour, enabling you to lock in profits. While stop-loss orders will automatically close your position once the market has moved against you, enabling you to define your acceptable loss. And, if you are using derivative products, you can attach a guaranteed stop to your bitcoin position that will protect your trade if the market moves against you.
If your guaranteed stop is triggered, there will be a premium to pay. Alternatively, you can join IG Academy to learn more about financial markets. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument.
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It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. Discover the range of markets you can spread bet on - and learn how they work - with IG Academy's online course.
Practice makes perfect. Compare features. Marketing partnerships: marketingpartnership ig. The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 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.
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.