How to use trading strategies to invest in Bitcoin (BTC)
Bitcoin, the first and most famous cryptocurrency, has been a hot commodity in recent years. With their high volatility and potential for a rapid increase in prices, many investors turned to trading strategies to use the market. In this article, we will explore how to use different trading strategies to invest in Bitcoin (BTC).
Understanding of Bitcoin Trading Strategy
Before immersing yourself in specific trading strategies, it is essential to understand the basics of cryptocurrency trading:
* Technical analysis : this includes an analysis of graphic and samples on the graph to predict future prices.
* Basic analysis : This focuses on the evaluation of the company’s budget, on the growth of revenue and trends in the sector to make informed investment decisions.
* Investment of Momentum : This strategy is based on the identification of trends on the market and betting on them to last.
Popular trading strategies for Bitcoin (BTC)
Here are some popular trading strategies to invest in Bitcoin:
1.
Revolutionary strategies
The outbreak of titles or properties from its range can be an effective way to obtain a quick profit. When the price breaks the level of resistance, it is seen as a purchase signal.
- Use graphic samples such as a head and a wound or a wedge to identify potential levels of piercing.
- Place the stop pressures and growing profits at certain levels of price management.
2.
Trend following
This strategy provides for the identification of the market management and follows it for trade.
- Look for trends in the financial statement, the growth of revenue and analysis of the sector.
- Use technical indicators such as RSI or Bollinger bands to confirm the direction of the trend.
- Place the stop-guys and the growing profit based on historical data and market conditions.
3.
Medium Reversion
This strategy provides for the identification of overcrowded and overcrowded conditions on the market and bets on them to correct.
- Search signs of overcrowded or overturned conditions, such as a form of price or technical indicators.
- Use graphic samples such as a triangle or wedge to confirm the direction of the trend.
- Place the stop-guys and the growing profit based on historical data and market conditions.
4.
Scaliping
This strategy involves taking small crafts during the day to profit from fast prices.
- Identify potential trading options, such as short -term prices or sets.
- Use technical indicators such as RSI or Bollinger bands to confirm the direction of the trend.
- Place the stop-guys and the growing profit based on historical data and market conditions.
5.
Trading range
This strategy provides for the purchase or sale of ownership in a particular interval, bet that the property will be at a certain point from its reach.
- Use graphic samples such as a head and a wound or a wedge to identify potential levels of piercing.
- Place the stop-guys and are grown according to certain price levels.
- Follow the conditions of the market and adapt the strategy according to need.
6.
Options trading
This strategy provides for the purchase and sale of contracts, which can provide exposure to different classes of activity.
- Identify the fundamental property and the type of option for call or put).
- Place the prices of the strikes, the expiry dates and the margin requirements.
- Follow the conditions of the market and adapt the strategy according to need.
7.
Increase in trading
This strategy provides for the use of money borrowed to improve potential profits from trade.
- Use a lever to exchange activities with a lower minimum investment request.
- Place the stop-guys and the growing profit based on historical data and market conditions.
- Follow the conditions of the market and adapt the strategy according to need.
8.
Trading based on news
This strategy involves the use of news or ads for trade.
