In this article, you will be given a detailed explanation of the existing but mature trading methods of bitcoin. With the characteristics, advantages of each trading method step in trading, and issues to pay attention to in trading, hoping to have an inspiration for friends who are interested in participating in bitcoin trading.
Don’t know how to trade?
Bitcoin must be familiar to everyone, from 13 years of fire to the present, from 0.3 US dollars to the current more than 50,000 US dollars valuation; bitcoin successfully covered a huge area of success. But many people have been waiting all the way, and watching the price of the coin going up and down but never dare to enter the market. There are many reasons like many friends don’t know bitcoin, don’t know how to trade bitcoin, and have seen many instances where their friends have lost their funds. Bitcoin is equally volatile as stocks and you can lose your entire funds overnight. But, if you know the right trading strategy then you can earn a huge profit from cryptocurrencies like stocks and bonds.
Bitcoin trading strategy
Bitcoin has risen from $1,000 to $5,000. Many people like to play with such coins. But it is not gambling and you should not try to play with these digital assets. There is an old saying that “the best time to plant a tree is ten years ago, followed by now”. Whether an investment can make money depends on how you do it?
For example, it is advised to use contracts of difference (CFDs) for short-term trading, starting with the three strategies commonly used to shock the market, trend, and hedge:
When shaking the blue market:
Small warehouse funds (almost one layer can be used) increase the multiple of the spread contract. It is fast forward and fast out to trade, reasonable take profit and stop loss do not falter, breaks through the earthquake zone do not stay in waiting, and the end should be closed to understand.
Trend market:
The so-called trend market is to break through the shock zone. And establish a direction of the market, with the way of decrement and stacking into the market in batches. For example, you can use the support of the breakthrough trend to make a stop-loss position to double the cost of taking a profit( keeping the profit in the market). While continuing to take profit in batches.
Hedging:
Hedging strategies are suitable for extreme market moments, such as extreme highs or extreme lows, such as hedging strategies. For example, market bitcoin CFD trading can be based on the price movement of bitcoin futures contracts as a certain reference. And, it is relatively safer to make a little more order in the downtrend or to make a little short order in the upward trend.
Of course, in the case of understanding the large macro environment (especially US financial market movements such as us stocks, US dollars, etc.).It is also necessary to adjust the trading strategy with the technical indicators, and you can find such indicators online, especially on the exchanges designed for beginners.
The dos and don’ts in the process of trading bitcoin:
To know the right trading direction, the trading strategy here is not to mention,
- Must first figure out whether to do long or short and then place an order;
- Do Set “take profit” and “stop-loss”,
- Do a good job of risk management,
Don’ts
- Don’t forget to be firmly flat when you get to the position. And flat is the first step to making a good deal.
- Don’t go without setting a loss limit while taking profit, and risk control and trading should be under check;
- Don’t be greedy for Macro-analysis is in place, control leverage;
- Don’t be gullible, and be careful when switching platforms;
- Don’t think dependently, hedge transactions should be kept in mind,
- And the counter-trend warehouse cannot be abandoned.
In Conclusion
This article explained the basics of bitcoin trading. It includes the dos and doesn’t of trading but with countermeasures. Even if, you are afraid or overly optimistic in trading, you will be able to achieve high performance by objectively analyzing and implementing the magnitude of the risk in the trade. Visit https://bitcode-prime.live/ to find what profits will be made in the long term while setting the limits of the losses.
