Are you looking to make money from the comfort of your home? Have you ever explored the kind of opportunities that cryptocurrencies are capable of providing?
Needless to mention, Bitcoin is the buzz word these days. In fact it is one of the widely traded cryptocurrencies today. Despite the regular ups and downs in its prices, the currency continues to dominate other cryptos in the world of trading. In this article, we shall reveal some of the best and profitable strategies for investing in Bitcoin. If you are new to crypto trading, then continue reading to find our comprehensive guide to profiting from Bitcoin trading.
Why Bitcoin?
Before delving deeper into Bitcoin profitable trading strategies, it’s important to understand why should we trade the currency in the first place? Well, to begin with, Bitcoin trading offers higher spreads and margin trading option. In fact, Bitcoin is one of the most popular global cryptocurrencies, which means that its value isn’t related to any specific country’s policies or economy. Additionally, unlike the stocks, Bitcoin can be traded 24×7 and is highly volatile. Now, aren’t these reasons enough for trading? If you answered in affirmative, then check out some of our top Bitcoin trading strategies.
Bitcoin Trading Strategies
Like stocks and forex, you must have a well defined technique or strategy for trading Bitcoins too. This implies that you must know exactly when to enter or exit a trade position, how much you want to invest and what kind of profits you require in order to improve your earning capabilities. Below, we’ve listed our secret Bitcoin trading strategies for traders, especially those who are planning to make money from home.
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Strategy One: Follow the Experts
Want to profit through Bitcoin trading? Follow the experts or successful cryptocurrency investors. All you really need to do is follow their predictions before investing in Bitcoins as they provide sure-fire ways of profitable trading.
Strategy Two: Fundamental analysis
Fundamental analysis is another great way of profiting from Bitcoin trading. As a trader you need to keep a track of the fundamental figures that affect the value of the currency. This typically includes number of wallets, transactions that are carried out on a daily basis, total number of wallets, the volume that is traded on crypto exchanges etc. Traders can utilize this figure/data for estimating what Bitcoin’s worth can be in reality. This will also help them in determining whether the currency is overvalued or undervalued and furthermore take their buying/selling decision accordingly.
Strategy Three: Technical Analysis
Technical analysis is all about checking out the various patterns on the trading chart. As Bitcoin traders you can use technical charts for predicting the direction of price movement. Remember, certain price patterns keep on repeating themselves and may thus appear in the Bitcoin market too.
Strategy Four: Trading Signals
Traders can turn to technical trading signal providers who keep on updating their trading signals by sending regular alerts regarding buying and selling of Bitcoins. However, in order to take advantage of Bitcoin trading signal, you will have to identify a reputed signal provider and also pay a certain amount of subscription.
Strategy Five: Margin Trading
Another good strategy for trading Bitcoin can be used in the form of margin trading. Margin trading helps you in making profits from market movement. For this, you need to borrow money and place your trade by utilizing the asset or currency purchased in the form of collateral. When a trader engages in margin trading, the automated trading system will sell off the currency when the market moves against him/her. That’s because they intend to minimize their losses by closing their trade automatically. Traders that are specifically looking for such exchanges can opt for margin trading facility at BitYes and Bitfinex.
Strategy Six: Buying and Holding Strategy
In the world of Bitcoin, buying and hodling strategy is quite common. Hodling is a general term used in the world of Bitcoin, which in essence means ‘holding’. In the buy and hold strategy, you need to purchase the Bitcoins and hold them for long periods, irrespective of market fluctuations.
Strategy Seven: Hedging
While, this strategy is commonly used in stock trading, it can be used for profiting from Bitcoins trading too. In this strategy, you need to split your Bitcoins in two different parts. While, they continue to hold the 1st part with them, they sell the 2nd part and continue to wait for the most appropriate price. As a result, if the prices go up, they end up earning profits and vice versa.
Strategy Eight: Seeding
The seeding strategy is primarily used in the equity market. In this strategy, venture capitalists invest a small amount of funds on a number of start-up organizations that are currently at the initial stage of development. However, the investor is already aware that most of these organizations will end up falling and hence losing money. Their main objective is to reap higher ROI on those who would win. Thus, if one or more of these start-ups is successful then the investor gets plenty of opportunities to recover his/her loss. This strategy could be easily used in the world of cryptocurrencies, wherein an investor can invest in one or more cryptocurrencies and expect to profits in returns from one or more cryptos.
Strategy Nine: Basket Trading
We have another good strategy for crypto traders who wish to trade Bitcoin. Yes! Opt for basket trading. In this strategy you can swap old cryptocurrencies including Bitcoins with the new ones. This will fetch you higher profits and greater returns.
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Great! So, how do I start?
The first and the most important thing to take care of is to find a reliable Bitcoin trading broker. There are many and more Bitcoin trading brokers to choose from around the globe.
Here are the most important things to consider choosing a Bitcoin broker:
Initial Deposit: Some brokers require a large minimum deposit while others have no minimum, or low minimum deposit requirements. Don’t feel pressured to choose a bitcoin broker whose deposit is too high for you – you will be able to find one that can meet your needs. Just make sure that you don’t trade with money that you can’t afford to lose.
Charges and fees: In order to entice bitcoin traders, many bitcoin brokers promise ‘no commissions’ on cryptocurrency trading. Make sure to read the fine print to determine if there are rollover fees for overnight positions or other hidden fees that can take a bite out of your profits.
Leverage: Most brokers limit the leverage offered on cryptocurrency trading due to the high volatility of the assets. If leverage is offered, it can range from 2:1 to 30:1. Take care not to use too much leverage as strong movements against your position can cause irrevocable damage to your account.
Trading platform: There are dozens of bitcoin trading platforms available, from the standard MetaTrader 4 to proprietary platforms built by individual brokers. You can choose between web platforms or downloadable options, or a combination of both. Don’t be afraid to test out different platforms to see which one works best for you.
Educational materials: There is so much to say about bitcoin trading, and about cryptocurrency trading in general, but not every broker has taken the time to provide these insights to its traders. Consider whether you need to learn more before trading, or whether you’ve already got the knowledge you need. If your broker doesn’t offer the educational materials you seek, it may not be the right broker for you.
Choosing the right Bitcoin broker for you can be challenging, but Insider Journals is ready to help you with this. Together with leading Forex Bitcoin Brokers we offer you free assistance finding a Bitcoin broker that works the best for you! Find the right broker in your region and also avail a 30% bonus on your first deposit with some of the leading brokers. Click the button below and fill in the form to get the offer.
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