Bitcoin trading has become more popular, and it is not showing any signs of going down. Now is the time to use this market with several Bitcoin trading tools and understand how to succeed using basic strategies to make a profit. Bitcoin trading is executed to make a profit, and it is the universal trading strategy that can be used for more than 800 cryptocurrencies available today. This article will explain different Bitcoin trading strategies that help the users analyze which one is the best for the user.
What Is Bitcoin Trading?
Bitcoin trading can be defined as how the user can speculate about the price movements of the cryptocurrency. This involves purchasing bitcoin from an exchange, anticipating the price of the bitcoin might either increase or decrease in the future. The traders can use derivatives to speculate the rise and fall of bitcoin prices to make the best use of the market’s volatility. Before trading, the user needs to find a regulated cryptocurrency exchange, devise trading strategies, and choose the best cryptocurrency wallet that provides good quality service.
Strategies to Earn More with Bitcoin Trading
At present, there are different types of Bitcoin trading strategies that the trader uses. The below-given trading strategies can be chosen by the trader that best suits according to their goals. Here are the few main strategies that all traders should know before they proceed with trading.
- Hedging Bitcoin is one of the strategies that involve opening trade in one position for profit or loss by the changes in the value of another position.
- HODLing is a trading strategy used to hold the assets; this can be used to hold Bitcoin long-term. As the Bitcoin market is prone to high volatility, this strategy is not highly recommended.
- The bitcoin breakout strategy is the next type of strategy where it involves getting access to the trading market quickly. This strategy works when the market comes through a resistance level then the volatility begins. Hence the users need to enter the market at these points from starting to end.
- Trend trading Bitcoin strategy involves the price of Bitcoin reaching lower lows and higher highs. This strategy is suitable for different types of time frames.
Best Exchanges to Trade Bitcoin
The primary reason why Bitcoin is more popular is its availability. Many cryptocurrency exchanges offer Bitcoin to trade; finding the best bitcoin exchange will depend upon several factors. Some of the elements are preferred payment options, country of residence, limits, liquidity, fees, etc. Here is the list of few best exchanges for trading Bitcoin.
- Binance is one of the leading cryptocurrency exchanges where users can trade with more than 130 various currencies and charge 0.1% as transaction fees.
- Coinbase is one of the largest exchanges offering its services in the U.S., Europe, Canada, and other major countries worldwide. Users are offered a variety of payment methods.
- One of the new exchanges, Robinhood, has more than 6 million users and charges zero trading fees.
- The third-largest cryptocurrency exchange is BitMex, which trades only Bitcoin. This exchange is the best for margin trades and short selling.
- The U.S.-based exchange GDAX allows its users to trade with Bitcoin, Ethereum, Ripple, and other cryptocurrencies.
- The Hong Kong-based exchange OKEx will enable traders to trade with more than 145 types of cryptocurrencies.
- Coinmama, one of the well-known cryptocurrency exchanges, allows users to buy and sell cryptos quickly. This exchange has a global reach and accepts all major credit cards as payment.
- Apart from that, If you want to go with the Bitcoin robots or auto trading platform, then Bitcoin Rush is the most trusted and authentic platform for you. Check out Reviews on Bitcoin Rush to know more about this auto robot.
To summarise, Bitcoin trading is a technique that helps the users to buy Bitcoins at a meager price and sells them when the price goes up. The Bitcoin market is highly volatile, and the cost of Bitcoin keeps on fluctuating. The users should do their research, keep themselves updated with the current price, and study the Bitcoin market if they want profits, which is not easy. They can follow different strategies and identify which properly suits all their goals.