How to use trading strategies for Bitcoin investments (BTC)
Bitcoin, the most recognized first and cryptocurrency, has been a hot goods in recent years. With its high volatility and its potential for rapid prices, many investors have turned to negotiation strategies to take advantage of the market. In this article, we will explore how to use various trading strategies to invest in Bitcoin (BTC).
Understand Bitcoin trading strategies
Before diving into specific trading strategies, it is essential to understand the basics of cryptocurrency trading:
* Technical analysis : This implies the analysis of graphics and models on a graph to predict future price movements.
* Fundamental analysis : This focuses on the assessment of a company’s financial statements, income growth and industry trends to make informed investment decisions.
* Momentum Investing : This strategy is based on the identification of trends on the market and bet on them to last.
Popular trading strategies for Bitcoin (BTC)
Here are some popular trading strategies to invest in Bitcoin:
1.
Strategies in small groups
The creation of a stock or an asset in its range can be an effective way to make rapid benefits. When the price crosses a level of resistance, it is considered a purchase signal.
- Use graphic models such as head and shoulders or corners to identify potential escape levels.
- Define stop-loss and organizations to take at specific price levels to manage risks.
2.
Next trend
This strategy consists in identifying market orientation and following it to make professions.
- Look for financial statements, income growth and industry analysis.
- Use technical indicators such as RSI or Bollinger bands to confirm the trendy direction.
- Define stop-loss and organizations to be taken according to historical data and market conditions.
3.
Average reversion
This strategy consists in identifying the conditions of overcouting and occurrence on the market and betting on them to correct.
- Look for signs of over -rascal or occurrence, such as price action models or technical indicators.
- Use graphic models such as triangles or corners to confirm the trendy direction.
- Define stop-loss and organizations to be taken according to historical data and market conditions.
4.
Scalping
This strategy consists in taking small trades throughout the day to take advantage of the rapid price movements.
- Identify potential negotiation possibilities, such as short -term price reductions or gatherings.
- Use technical indicators such as RSI or Bollinger bands to confirm the trendy direction.
- Define stop-loss and organizations to be taken according to historical data and market conditions.
5.
Beach trading
This strategy consists in buying or selling assets in a specific range, betting that the asset will come out of its range at a given time.
- Use graphic models such as head and shoulders or corners to identify potential escape levels.
- Define stop-loss and for-profit organizations depending on specific price levels.
- Monitor market conditions and adjust the strategy if necessary.
6.
Options trading
This strategy implies the purchase and sale of options of options, which can provide exposure to various asset classes.
- Identify the right underlying asset and the type of option (for example, call or put).
- Set exercise prices, expiration dates and margin requirements.
- Monitor market conditions and adjust the strategy if necessary.
7.
LEVER effect trading
This strategy is to use money borrowed to amplify the potential profits of negotiation.
- Use a leverage to exchange assets with a lower minimum investment requirement.
- Define stop-loss and organizations to be taken according to historical data and market conditions.
- Monitor market conditions and adjust the strategy if necessary.
8.
Trading based on news
This strategy is to use news events or announcements to make professions.
