Apr 14, · The best Bitcoin trading strategy is an 85% price action strategy and a 15% cryptocurrency trading strategy that uses an indicator/5(48). Apr 03, · What Is Day Trading? Day trading is a type of short-term trading aimed to bring quick profit in a short period of time. As the opposite of day trading, there is long-term trading which implies such a strategy as hodling. Pretty much every cryptocurrency can be traded in short and long positions if you know how to ‘read’ the market/5(). Sep 26, · So, you need a day trading cryptocurrency strategy to protect your balance. The high volatility nature of Bitcoin and other cryptocurrencies has made the crypto market like a roller-coaster. This is the perfect environment for day trading because during the day you’ll have enough up and down swings to make a decent profit/5().
Day trading strategies bitcoinHow to Day Trade Crypto Like a Pro? Simplest Day Trading Strategy Ever
Even though you can get deep into highly technical indicators, you should learn the basics of simple day trading strategies in the beginning. When it comes to starting out, the more straightforward — the more effective.
Basic questions you should be asking yourself when deciding on a strategy are:. In any case, day trading is a very particular kind of activity. Positions are based on short-term movements so you need to respond quickly. If there is relevant news that could affect the price or you see an emerging pattern, the window for any actions is very limited. After you master basic techniques, you could consider using a series of strategies.
There is no denying that computers can perform calculations much better than humans. It is crucial, especially when there is real money on the line.
People often make mistakes by holding trades for additional gains even though it goes against their chosen strategies. Failure to stick to the plan can have significant ramifications. People lose existing profit just because they feel they can get more. Another human flaw to point out is not being able to react quickly enough. Trading bots never make erratic decisions because a predetermined algorithm dictates every action.
Also, when it comes to day trading, timing is key. Bots can react to data and execute transactions in a matter of seconds. However, a trading bot is as good as the technology behind it. When you choose the automated trading platform by 3commas, you get a robust platform, with no downtime and technical hiccups.
And considering you can share and learn strategies, indicators, and settings with other traders in the community, your trading improves even further. All trading charts show data points for the past and current price movements. A Bitcoin day chart focuses on its price action for a specific day. You can also view changes within a specific timeframe, which helps traders make more informed decisions. Whilst there is no shortage of line and bar charts, one of the most valuable types is the candlestick chart.
It offers plenty of valuable information in a concise form. Here is what the chart can tell you:. There is a lot more information to extract, which will hold significance in your trading. Trends show the momentum of Bitcoin price changes in a particular direction. You can identify these patterns on a chart and make decisions based on that data. What we want to see when Bitcoin is failing to break above a resistance level or a swing high, and the Ethereum already broke, is for the OBV to increase in the direction of the trend.
We also want it to move beyond the level it was when Bitcoin was trading previously at this resistance level see figure below. Here is how to identify the right swing to boost your profit. Now, all it remains for us to do is to place our buy limit order, which brings us to the next step of the best Bitcoin trading strategy. Once the OBV indicator gives us the green signal, all we have to do is to place a buy limit order. Place the order at the resistance level in anticipation of the possible breakout.
After all, we told you the OBV is an amazing indicator. Now, all we need to establish is where to place our protective stop loss and when to take profits for the best Bitcoin trading strategy. Placing the stop loss below the breakout candle is a smart way to trade. When it comes to our take profit, usually an OBV reading above , is an extreme reading that signals at least a pause in the trend.
This is where we want to take profits. In the figure below, you can see an actual SELL trade example, using the best Bitcoin trading strategy. While bitcoin day trading does have some risks, there are many ways these risks can be reduced.
Here are some of the top ways to enhance your Bitcoin trading strategy. Maybe one day our fiat money system will go under and be completely replaced by cryptocurrencies. However, as long as there are still profits to be made from Forex currency trading we encourage you to read our receipt for Forex trading success: How to Make Money Trading — 2 Keys to Success. We hope that The Best Bitcoin Trading Strategy — has shed some light on how you can use the same technical analysis tools that you use for trading the Forex currency market to now trade the cryptocurrencies.
Ready to get started? Tap here now to get the E-Book Completely Free! Please Share this Trading Strategy Below and keep it for your own personal use! Thanks, Traders! We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more. Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow.
We want to share with you some important information about Trading Strategy Guides as we move forward to our goal to help 1,, Traders find a strategy that suites them best. We want you to fully understand who we are as a Trading Educational Website We will send out many free trading strategies for you to learn and apply to your trading system right away Our team gathers a vast amount of information and comes up with some of the simplest and easiest trading strategies to follow each week.
We are highly motivated to do this for you because we love helping people succeed who are serious about trading. Our Goals. The crypto Market is the highest market now. You can be part of the people who are earning a living through trading cryptos. With just half a bitcoin, you can make up to 3 bitcoins in a week. Contact me via kramerp04 gmail. If you want to buy more bitcoins up to 0.
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Facebook Twitter Youtube Instagram. How to Start Trading Bitcoin: The first thing you need to get started trading bitcoin is to open a bitcoin wallet. Available in the United States, Canada, and the majority of countries in Europe. Offers several payment options. Binance is the second-largest exchange that trades over different currencies. Has low transaction fees 0. Bitmex is the third-largest exchange and only trades BTC. Great for short selling and margin trades.
Bittrex is a US-based exchange founded by ex-Microsoft security professionals. OKEx is a Hong Kong-based exchange. Trades over different cryptocurrencies. Coinmama - allows you to buy and sell easily. Accepts credit cards and has a large global reach. How to Day Trade Bitcoin While long term traders prefer to hold their bitcoin positions for extended periods of time, day traders have discovered that Bitcoin is lucrative for many reasons: Crypto trading is more volatile than stock trading.
Bitcoin is traded 24 hours per day 7 days a week. Bitcoin allows for big trades with low overhead. Bitcoin is the most liquid form of cryptocurrency. Multiple trading opportunities emerge within a 24 hour period. The Best Bitcoin Trading Strategy — 5 Easy Steps to Profit This is a cryptocurrency trading strategy that can be used to trade all the important cryptocurrencies. Now… Before we move forward, we must define the mysterious technical indicator.
You'll need this for the best Bitcoin trading strategy and how to use it: The only indicator you need is the: On Balance Volume OBV : This is one of the best indicators for day trading bitcoin.
Start your trading career with daily practice. Useful services: TradingView , Coinmarketcap. Until that moment here are a couple of day trading strategies that might work for crypto beginners. The Wave Riding strategy perfectly works for crypto newbies as it is simple and efficient. While in early stages, it is better to trade a cryptocurrency against a stablecoin. In this case, you have to monitor fluctuations of just one coin in a pair. It is important to find a good low entry position.
How to detect it? This strategy requires patience, as most likely you have to wait for a couple of hours to fix the market tendency. It is better to enter the market when there is a row of green candlesticks. Once you fix the desired ROI reached — close the position.
As a result, the chart will look wavy. Both types of news, global and crypto, have a significant impact on the market state. That is why traders have to stay updated on recent events. Whether these are great news or not, the market will react while a trader has to seize the moment by entering the market on time. However, fuss around a particular cryptocurrency may lead to greater volatility, so keep an eye and act promptly. There are multiple tools to monitor crypto news and market sentiment.
A data provider CryptoMood , for example, uses machine learning along with natural language processing to provide information regarding market fundamentals and sentiment. There is also an opportunity to trade with bots. Most cryptocurrency exchanges provide open-source API that in case you are a tech-savvy trader allows you to create a bot for trading to be more efficient and profitable. Essentially, a trading bot is a kind of software programmed to analyze cryptocurrency market trading data.
Each bot can be adjusted to your preferences so that they are saving you from manual work of constant market monitoring.
Trading bots are in their infancy and currently cannot be adapted to highly volatile crypto market conditions. Among trading bots downsides is lack of security. They can be hacked or they might collect your data and unintentionally or not send it to a third party. Trading bots suit professional traders. Mind also that a trading bot can help to automate your trading in general. However, it is fair to say that nobody would ever share a piece of software that could potentially bring millions of dollars.
Day trading requires a lot of preparatory work, but once you figure everything out, it might help you to gain considerable profit. Remember, trading — is a risky business, no matter how professional the trader is.