Btc trading strategies

Use technical analysis.
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• A Beginner's Guide to Cryptocurrency Trading Strategies | Binance Academy
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• Cryptocurrency Trading Strategies: Learn to Profit From Bitcoin, Ethereum, and More

This way, you can continually monitor and optimize your cryptocurrency strategy. This article mainly focuses on cryptocurrency trading strategies. However, these may also apply to other financial assets, such as forex , stocks, options , or precious metals like gold. So, would you like to devise your own trading strategy? This article will help you with the basics of how you should approach speculating on the crypto markets. We can describe a trading strategy as an extensive plan for all your trading activities. A trading plan can also help mitigate financial risk , as it eliminates a lot of unnecessary decisions.

While having a trading strategy is not mandatory for trading, it can be life-saving at times. If something unexpected happens in the market and it will , your trading plan should define how you react — and not your emotions. In other words, having a trading plan in place makes you prepared for the possible outcomes. It prevents you from making hasty, impulsive decisions that often lead to big financial losses. For instance, a comprehensive trading strategy may include the following:. In addition, your trading plan may also contain other general guidelines, even down to some minor details.

For example, you can define that you will never trade on Fridays or that you will never trade if you are feeling tired or sleepy. Or you can establish a trading schedule, so you only trade on specific days of the week.

Do you keep checking the Bitcoin price during the weekend? Always close your positions before the weekend. Personalized guidance like this can also be included in your trading strategy. Devising a trading strategy may also include verification by backtesting and forward testing.

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For instance, you could do paper trading on the Binance Futures testnet. In fact, it may be worth considering a hybrid approach by combining multiple strategies. Active strategies require more time and attention. We call them active because they involve constant monitoring and frequent portfolio management. Day trading might be the most well-known active trading strategy.

Day trading involves entering and exiting positions on the same day. As such, day traders aim to capitalize on intraday price movements, i. So, in those markets, day traders never stay in positions overnight, when trading is halted. Most digital currency trading platforms are open 24 hours a day, days a year. So, day trading is used in a slightly different context when it comes to the crypto markets.

It typically refers to a short-term trading style, where traders enter and exit positions in a timespan of 24 hours or less. Day traders will typically use price action and technical analysis to formulate trade ideas. Besides, they may employ many other techniques to find inefficiencies in the market.

As such, day trading is recommended for more advanced traders. Swing trading is a type of longer-term trading strategy that involves holding positions for longer than a day but typically not longer than a few weeks or a month. In some ways, swing trading sits in the middle between day trading and trend trading. Swing traders generally try to take advantage of waves of volatility that take several days or weeks to play out.

Swing traders may use a combination of technical and fundamental factors to formulate their trade ideas. Naturally, fundamental changes may take a longer time to play out, and this is where fundamental analysis comes into play. Even so, chart patterns and technical indicators can also play a major part in a swing trading strategy. Swing trading might be the most convenient active trading strategy for beginners. A significant benefit of swing trading over day trading is that swing trades take longer to play out.

This allows traders more time to consider their decisions. In most cases, they have enough time to react to how the trade is unfolding. With swing trading, decisions can be made with less haste and more rationality. Sometimes also referred to as position trading, trend trading is a strategy that involves holding positions for a longer period of time, typically at least a few months. As the name would suggest, trend traders try to take advantage of directional trends.

Trend traders may enter a long position in an uptrend and a short position in a downtrend. Trend traders will typically use fundamental analysis , but this may not always be the case. Even so, fundamental analysis considers events that may take a long time to play out — and these are the moves that trend traders try to take advantage of. A trend trading strategy assumes that the underlying asset will keep moving in the direction of the trend.

However, trend traders also have to take into account the possibility of a trend reversal. As such, they may also incorporate moving averages , trend lines , and other technical indicators in their strategy to try and increase their success rate and mitigate financial risks. Trend trading can be ideal for beginner traders if they properly do their due diligence and manage risk.

Scalping is one of the quickest trading strategies out there. Better focus on timeframes exceeding H1 as they will allow you to get the biggest best of this market. Bitcoin tends to move in trends.

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The most promising strategy is to choose a trend-trading system for Bitcoin. It can be as simple as trading on the basis of a moving average or a combo of MAs. Take profit when price moves back and touches the period EMA. Place a Stop Loss above the swing high. Do the opposite for a BUY trade. To minimize your risk and maximize your profit while trading cryptocurrencies, diversify your capital among several of them.

Different cryptocurrencies have different purposes. For example, Bitcoin and Litecoin act directly as currencies. Ethereum represents a decentralized application platform, while DASH is focused on the privacy of its users. These all are cryptocurrencies with high liquidity and market capitalization, and you can trade them with FBS.

The conclusion is simple: diversify, follow the news, and use technical analysis to profit on cryptocurrencies! Crypto Hub. Economic News. Expand Your Knowledge. Forex Brokers Filter. Trading tools. Macro Hub. Corona Virus. Stay Safe, Follow Guidance. World ,, Confirmed. Fetching Location Data…. Get Widget. Bitcoin Trading Strategies To increase your chances for success, you have to be systematic. Bitcoin Daily Chart Notice that this strategy requires following special websites and blogs which track Bitcoin-related events.

Trading with technical analysis Technical analysis can also be a great source of Bitcoin trade ideas. The price should be below EMA the orange line on the chart. Bitcoin 4H Chart A tip: trade different cryptocurrencies To minimize your risk and maximize your profit while trading cryptocurrencies, diversify your capital among several of them.