4 Best Bitcoin Trading Strategies and Tips for Beginners
Even though there were a lot of controversies along the way, we can see that cryptocurrencies are now more popular than they ever been. At the same time, we can see that the market is not showing any signs of declining, only growth. When we talk about cryptos, we can see that Bitcoin, often called “the father of all cryptos” has significantly risen in the last couple of years.
Since its introduction back in 2009, we could presume that this was nothing short of a revolution in the world of finances. So, it doesn’t come as a surprise that so many people became interested in it over time. Therefore, we can see that there are a lot of different ways you can handle this. Naturally, it all depends on the crypto you have chosen. But we are going to focus on BTC in this article of ours.
Time is of the essence in this world, so, pretty much any moment is a moment of action when it comes to this highly-valuable crypto. We can see that there are a lot of tools that can help you while trading with these. However, these tools will not be of any serious help in case you don’t have an appropriate strategy to accompany them.
Furthermore, you need to know all the basic things about BTC before you actually decide to enter the market. So, if you are interested in learning these basics, be sure to check icorating.com and get familiar with all the essential things required. Anyhow, everyone who thinks about entering this market should be aware of how much time it needed before all the crucial things are learned.
While there is no accurate time since different people have different capabilities, from our experience, you will need to invest a lot of time, no matter how capable you are. In order to provide you with some help on this journey of yours, we would like to provide you with some of the best strategies you can use for BTC trading. Without further ado, let’s begin.
We are absolutely sure that you have heard about a term which says “hedge your bets”. Well, this is a term that pretty much explains all there is to know about this strategy. Naturally, the form is widely different from what you are used for explaining by this term. We all know the story about BTC’s value and how unstable it can be sometimes. There is always a chance that you will lose some money due to the instability of the market.
Due to this reason, you need to make sure that you decline the chances of these losses down to a bare minimum. There are a couple of ways you can do that, based on the market’s behavior. The first one is that you can sell coins as soon as their price goes up. The second one is that you can keep them until they have reached the price you’ve hoped for. Last but not least, you can think about setting up a deadline with an exchanger about when you are going to sell your coins.
We are pretty sure that people who’ve just entered the world of BTC don’t really know what HODL means. This is a term that was invented by the forum in 2013. Different from many opinions, this is not an acronym for some long sentences. We are talking about the word hold. As we’ve mentioned, the roots of this strategy are in 2013. This was a year when BTC’s value has risen from $15 to $1,000 in just a couple of months.
Therefore, people got the idea of investing in BTC and keeping their investment until its price rises. While we describe this one as some kind of strategy that has multiple features that investor needs to pay attention to, it is a pretty good one for people who just started participating in the world of cryptos and they have a lot of ground to cover in the future.
3. Breakout Trading
We all know about the trends that come and go, in any industry, or market. Therefore, you can see that the situation is pretty much the same with cryptos. So, breakout trading is something that we can describe with predicting trends, or reaping the benefits of these trends. This means that you are going to take action at the beginning of these trends or you are going to find the perfect moment when you are going to invest at the end of these trends cycle.
Without any doubt, you will be able to have some exceptional benefits if you play your cards right. There are a plethora of ways you can undergo to predict these. So, you need to follow all the movements on the market carefully, and make sure that you’ve found the perfect moment for action. Thankfully, there are a lot of resources you can use to make this happen and take some benefits from it.
4. Trend Trading
Last but not least, we would like to talk about trend trading. As its name says, investors are following the trends in the market and act according to that. This means that you will need to be invested in all the movements in this market. Since some of these are performed daily, you can be sure that you will need to invest a lot of effort and time into tracking them. But you can be sure that some of the best benefits can be reaped from these situations.
For example, a couple of years ago, when the price of BTC was at its highest level, one of the reasons why this happened is due to the publicity it received from all over the world. So, with the investments, the higher value came. Since you are completely free to take action whenever you feel like it, you can be sure that these trends can point you to the best moment for your action. You should remember that you are not the only one interested in this kind of investing. Therefore, you should be careful.