With last week’s price move, we decided to come with this article to ensure you can take advantage of the Bitcoin price fluctuation.
Today’s article is all about Bitcoin Trading strategies.
If you are here, it’s most likely that you have finally decided to enter the Cryptocurrency trade market. Although there are tons of Cryptocurrencies in the market that can promise to bring profit, one stands out from the rest.
Yes, you guessed it correctly; it is none other than Bitcoin.
Bitcoin has always been the undisputed king of the Cryptocurrency trade market. And after last weeks’ performance, it has once again proved itself.
Our team at Best Startup understands that everybody wants a piece of the pie. That being said, here we are with the Bitcoin Trading Strategies that can help you make a profit out of your Bitcoin Investment.
How To Start Bitcoin Trading?
The first thing that you would need to start Bitcoin trading is to have a Bitcoin wallet. Without a bitcoin wallet, there would be nowhere to store your digital assets.
However, if you do not have a Bitcoin wallet, you can always go for platforms like immediate edge. The immediate Edge platform offers a secure platform to trade along with defaults to store all your Crypto assets securely.
Once you have registered to the platform, you are all set to enter the Crypto-trading market. But before you invest in any Cryptocurrency, you must understand the risks that come with it.
The cryptocurrency market is highly volatile, and it is possible that you may lose all your capital in the first investment. This, invest the amount that you are willing to lose.
Don’t go using your life savings into Bitcoin investment.
Bitcoin Trading Strategy: 5 Easy Steps To Profit
Bitcoin trading may have given millionaires to the trading industry, but it is not easy to trade in Bitcoin. The constant fluctuation in price makes it hard for investors to predict its future movement.
Follow the steps to form an effective Bitcoin trading strategy.
Step 1: Compare Bitcoin & Ethereum Charts
If you take the price chart of Bitcoin and Ethereum and compare, you will find that Ethereum started the price spike, and Bitcoin simply follows the lead. That means, comparing the two may help you with additional information on what might happen with the Bitcoin market in the future.
Step 2: Look For Smart Money Divergence
What do you mean by this?
Simply put, we will look at the price divergence between Bitcoin and Ethereum. Smart money divergence happens when the price fluctuation of one currency is unable to confirm another’s price.
If you think why Smart Money Divergence is important, the reason is simple. If we see the Cryptocurrency market as a whole, it should move in the same direction as the trends. This gives a lot of information for making your investment decision.
Step 3: Ensure OVB Is Directly Proportional To Trends
Ensure OVB (On Value Balance) directly proportional to the trends show how the respective Cryptocurrency will perform in the future.
Simply put, an OVB is a technical indicator. It shows us whether real money is buying Bitcoin or if they are selling.
Step 4: Place A Buy Limit
Once the OVB parameter gives us a green signal, the next thing we need to do is to play a buy limit. Buy limit is the point from where the market has the possibility to break.
Now, all we need is to place out stop loss. This is the point where you are happy with the profit and don’t care about making it anymore. You simply exit from the trade market.
Step 5: Place Your Stop Loss Below The Breakout Candle
Placing your Stop Loss below the breakout candle is the best way to make a profit. Stop-loss ensures that you have a breaking point when the market is down-performing.
Maybe one day, the fiat financial system will go under and will be completely replaced by Cryptocurrencies. But, for that to happen, people need to start trusting Cryptocurrency and take part in Cryptocurrency investment. Till then, we can only wait.
We hope that this Bitcoin trading strategy has shed some light on things that you were looking for. If there is anything more you would like to know about Bitcoin, contact us.