I have not written any Cryptocurrency content for a long time now and I’m beginning to think it’s unfair for my crypto readers.
Since my Cryptocurrency certification and the publication of my Cryptocurrency in Cameroon eBook, a lot has happened. While the book is getting more and more popular, my Cryptocurrency coaching program is also getting more Cameroonians educated
Cryptocurrencies are still thriving and Bitcoin trading is continuing unabated and there are no visible signs yet of the crypto market slowing down.
This means that if you still have not jumped onto the Bitcoin bandwagon this is the right time to do it. You can adopt any of these 4 successful Bitcoin trading strategies that have been tried-and-tested by traders.
4 Successful Bitcoin Trading Strategies Shared by Traders
This is one of the Bitcoin Trading Strategies underline in my ebook.
The term “hodling” came about in 2013 when a Bitcoin trader incorrectly typed it instead of “holding” when trying to explain holding onto the Bitcoins for the long-term.
According to this common trading strategy, it is advisable to hold onto your assets when you are not very sure about trading skills or new to the world of crypto investments. This strategy is somewhat safe and the hope is that prices of Bitcoins will go up again so that you will be able to sell off your coins enjoying huge gains in the process.
While it may not be a very elaborate trade strategy and one that is not entirely without risks, it can be considered as sound advice for newcomers.
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This strategy refers to hedging your bets as Bitcoin prices are very volatile. This means that money can be lost with short-term trades; it is therefore wise to hedge your bets through opening positions for trade to cut down that risk.
So, you may sell the coins hoping that prices will come down further and then you can re-purchase the coins at a low rate. In fact many Bitcoin traders borrow coins from a Bitcoin broker, trade these on exchanges, and then return the borrowed amount.
All this will pay off if the prices keep going up and not down. You may also hedge using the CFDs or contracts for difference that are not the real cryptocurrency, but derivatives. You may also hedge using Bitcoin Futures which are contracts between two parties on trading Bitcoins at a particular price at a decided date in the future.
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#4. Trend Trading
This strategy for trading Bitcoin is dependent on whatever is trending in the world around you at the moment. So, you will need to monitor on what the others are discussing or planning to do.
For instance, Bitcoin’s price rise in 2017 could be accounted by the fact that it was very much in the news at that time. More and more people were keen to invest in it and this helped to skyrocket its value. It is possible to do trend trading over any time-period, whether it is months, weeks, or even years.
You basically must have some idea about what will occur next. And to do this rightly, you need to know the art of technical analysis. This strategy appears less risk-prone but you have to realize that the factors influencing Bitcoin values is not one, but hundreds.
Recommended: What are the 4 Differences Between Bitcoin and Bitcoin Cash?
#4. Breakout Trading
This trading strategy is like trend trading except that you will buy or sell either at the start or finish of a trend. For this you must have an idea about resistance level and support level, or the ceiling and floor respectively.
These are points beyond which prices of Bitcoins will not rise or fall. They are the “breakout points” and after this, prices are likely to become volatile. So, to be successful as a trader, you need to be able to rightly anticipate what will come next.
Are you interested n Bitcoin or altcon? Are you a crypto trader? What do you think about trading cryptocurrencies?
I’d like to hear you out in the comment box below.
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