When you trade the Bitcoin, you trade it against the values of fiat currencies or other cryptocurrencies. You can trade the Bitcoin using many different strategies, and the outcome will depend largely on your expertise and experience. The trick is not to invest more money that you can actually afford to lose. This is the most important piece of advice for a newcomer in the world of cryptocurrency investments.
A social trading platform is a social network designed for traders. Instead of posting selfies, participants share their latest trades and strategies. It’s possible for you to pay attention to what someone else is doing, follow traders that have similar philosophies to you, and learn from them.
5 Popular Bitcoin Trading Strategies:
- Buy-and-hold: This is by far the easiest way to trade the Bitcoins; participants are known as “holders”. You can therefore buy the Bitcoin or any other cryptocurrency and hold it for a long time. The idea is that the prices will go up as time passes by. Traders following this trade strategy will consider monthly, weekly, or daily price charts and their only intention is to buy the coins and retain these so that their values go up with time. Traders using this strategy will not be affected by any daily price change of the Bitcoin Incidentally, whenever there is a price crash; they use the opportunity to buy more Bitcoins.
- Swing Trading: These traders are not in it for the long haul; they will hold their crypto coins only for a few days or months at the most. This strategy focuses on trading at a price and moving in between two extremes. For example, if the Bitcoin value does not follow a clear upward or downward trend, these traders will buy and sell on high and low-cost range. Automated trading is also becoming popular; this bitcoin trader review will be helpful to understand how the automated software works.
- Trend Trading: To use this strategy you will need a lot of skill and expertise since it is far more difficult to implement than other strategies. Traders here will use prolonged trading patterns because they are keen to capitalize on the trend till it is over. Such traders will never have a specific target like swing traders. To be successful you have to identify the trends of the pricing at the start before others pounce on them. Mastering this technique takes time; so, one should be ready to suffer some losses in the process.
- Day Trading: To be successful at this you need to know how to retain your position. Traders usually work in 12-16 hour shifts here, although there can be longer shifts. Day trading is as intense as stock trading and you need to have the right mindset to do this. The traders likely to follow this technique are those that follow hourly and sub-hourly charts. It is best for people who want to trade as a full-time profession and not as a time-pass or hire miners. When your Bitcoin mining equipment fails, you should repair your ASIC miners as soon as possible. Otherwise, you are wasting money every second. D-Central offers cheap asic miner repair. You should start with a day trading course that will help you learn the basics. Read the full Motley Fool Stock Advisor review to see if this service is right for you at https://www.stocktrades.ca/.
- Scalping: This is not very popular but many use it for making profits. Here, traders can make money on minute-to-minute exchanges. So, they will take advantage of imbalances in the market to order and book many mini-profits; they tend to receive large returns made up of multiple small profits. This strategy is tough to follow and unless you are very experienced and well-versed with the nuances of this strategy you should not try it.