Bitcoin trading strategies
Bitcoin trading strategies, with Bitcoin the world's No. 1 virtual currency, many see it as the most challenging cryptocurrency. However, when looking at Bitcoin's history, it appears that a lot of volatility awaits this currency.
Bitcoin trading strategies
Trading on a daily basis
Open a position based on expected short-term moves, and close it at the end of the trading day.
The strategy that works for you if you want to respond to short-term opportunities in the bitcoin market, in light of developing news or emerging patterns.
Trade volatility or price swing
Grab trends as they form, and hold the center until the trend runs its course or shows signs of reversal.
The strategy that suits you if you want to take advantage of opportunities based on the strength of market activity and its trends.
Lightning speculation
Do frequent intraday trades on small price movements.
The strategy that works for you if you want to position yourself to get continuous small profits, rather than waiting for a fake breakout or significant downtime.
Automated trading
Automate your trading operations to respond to changing market conditions on your behalf.
This is for you if you want to be a passive trader.
What are the factors that affect the Bitcoin price?
While bitcoin volatility makes this hypothetical currency an attractive opportunity to trade, it also makes it a risky market to speculate in. Bitcoin prices may change drastically and suddenly, and since the Bitcoin market is operating around the clock, it could happen at any time of the day.
Negative press material
All currencies are affected by public opinion, but Bitcoin is the currency most affected by it, as the age, value, and security of this virtual currency are questioned even in good times in the life of Bitcoin.
Technological improvement
Bitcoin characterization and confidence in traditional currencies will depend on integrating Bitcoin into new payment systems, crowdfunding platforms, and more.
Industry adoption of Bitcoin
Bitcoin will be adopted by companies around the world, and it is not clear what impact this will have.
Main events
Any major event will have significant impacts on the cryptocurrency, including regulatory changes, security holes, setbacks on the macroeconomic level, and more.
Display
There may be a limited supply of bitcoin, 21 million, all expected to be "mined" by 2040. However, currency abundance fluctuates depending on the rate at which it enters the market, as well as the activity of the bitcoin holders.
Market value
The value of the bitcoin market is affected, how the currency is perceived as valuable to customers and whether they are looking to buy it as soon as we get the opportunity or sell it as quickly as possible.