Bitcoin buy and hold strategy

Those fluctuations can be dramatic. There isn’t much liquidity in the bitcoin marketplace, relatively speaking, meaning that the volume of trading activity is relatively low. This will make great Bitcoin strategies like scalping more profitable—and viable—for all. Bitcoin is open to everyone and provides an exciting opportunity to delve into an entirely new asset class. If you want a small miner to play around with mining, go for it. In less than 10 years, Bitcoin BTC finds itself on the verge of being recognized as a major asset class within the investment community.

What is bitcoin?

However, is trading bitcoin as you would any other financial instrument possible? Is it traded on Forex? How volatile is it? And how can I analyse it to make sensible trading decisions? This and much more will be discussed in this article. Bitcoin is a revolutionary new product whose value is solely determined by the forces of supply and demand. The story began back inwhen an anonymous developer or group of developers named Satoshi Nakamoto developed bitcoin, authored the bitcoin whitepaper, and created the first database for bitcoin transactions.

Bitcoin Futures Are on a Tear

That’s the reason why I wrote this strategy link see below. My sell strategy is triggered by either one of these conditions: the EMA 6 of the close value is crossing under the trailing stop value green or the fast sell EMA navy is crossing under the slow sell SMA curve red and the fast sell EMA has a certain down strength. The trailing stop value green is set to a multiple of the ATR 15 value. The script shows a lot of graphical information: One green area represents one trade The close value is shown in light-green. When the close value is lower then the buy value, the close value is shown in light-red. This way it is possible to evaluate the virtual losses during the trade. When the sell value at the end of the trade is lower then the buy value, the last color of the trade will be red best viewed when zoomed the EMA and SMA values for both buy and sell signals are shown as a line the buy and sell close signals are labeled in blue How to use this strategy?

Why Invest in Bitcoin?

Trading strategies that will help you to improve your results, novice or professional. Disclaimer: The opinion expressed here is not investment advice — it is provided for informational purposes. It does not necessarily reflect the opinion of U. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose. Hello, dear readers and subscribers.

The number of Bitcoin traders and investors has increased significantly in the past couple of years. They are trying bitcoin buy and hold strategy get profits in this volatile market. Traders and investors use different types of strategies in order to succeed. Before I start describing the three of the best methods of trading Bitcoin, I would like to enlist.

Here they are:. This is one of the easiest ways of trading Bitcoin. This Hodl strategy requires nor skills neither experience in trading. The only thing you need is money and patience. Long term Hodl strategy was a reliable one in the past and many investors think that this one will give good results in the future. Why Hodl? This is a misspelling of the word Hold.

The word appeared in when Bitcoin was falling and a drunk trader has posted his comment on Bitcointalk. Later, Hodl became popular and is used widely by many traders. What is the main idea of this strategy and why do I like it more than the others? You need no technical analysis knowledge at all. The only thing that is important is to monitor the price of the digital asset Bitcoin in this case.

To make it more fruitful, I use fundamental analysis as well, meaning I follow all the important news and make my own analysis thinking of how they can influence the crypto market. What are those events and why do they influence Bitcoin’s price?

Well, every Bitcoin trading strategy is based on supply and demand principles meaning the price of the cryptocurrency relies on those two basic parameters.

When the demand is higher than the supply, Bitcoin grows. Otherwise, the main cryptocurrency goes downwards. When the supply and demand are equal, the price stands at a place without significant changes. The news is one of the main price drivers! They may be either positive or negative. Depending on their nature, Bitcoin’s price may grow or decline. One of the most influential events was a fork.

There are some other important events that I will describe. Some data may be expected or unexpected. Being a professional FX traderI know and understand that expected news in the cryptocurrency community is something very rare.

There are no special events calendar that you may open on Monday, for example, and see that there is some important data on Thursday, e. When I trade FX currency pairs, I use such calendars frequently as I want to know what events are likely to influence the market during the week. However, as for Bitcoin, there is no such a calendar at all meaning there are almost no events that may be expected or predicted in advance except those that are widely discussed by the community.

Another important group of events is related to policies towards cryptocurrencies and the whole Blockchain technology.

To tell the truth, Blockchain adoption is far from being fast. However, I can see that we have huge progress in this field as compared to previous years. The situation with cryptocurrencies is much more difficult as they are forbidden in many countries where blockchain technologies are already adopted.

Blockchain is considered to be a very promising technology by the local government, but they are fighting against ICOs, TGEs, and cryptos in general. How to make profit trading news? This Bitcoin trading strategy is actual when important events take place. All you need is some experience and patience. This strategy is not a hodl one, but is close to it as you may buy Bitcoin, for example, and hold it for a long time period.

Bitcoin trading is very popular nowadays and many investors try their best in an attempt to earn money. Bitcoin is very volatile and allows gaining significant profits for. However, before you start trading this cryptocurrency, you need to calculate your risks as. I, personally, prefer technical analysis trading as hodling is a very long-term strategy, which freezes money with undefined results.

I am going to show you some interesting solutions that may help you earn money when trading Bitcoin. Here you can see a clear downtrend and a simple descending trend line. The price reaches it at one point and here we have a clear signal to sell Bitcoin.

This is one of the easiest Bitcoin trading strategies, but you need to learn about trend lines and how to use. They look pretty easy on my screenshot but I have great experience in using.

You need first to learn how to put them on charts and how to deal with them as. Let me give you another example. On the second screenshot, you can see no trend at all, but we have a strong resistance area. The currency pair tries to breach it several times without any chance to succeed. This tells us that bulls re-unable to reverse the trend. This is the first signal that shows us that we will have some further downtrend in the nearest future.

However, here we have some clear signal that predicts further price fluctuations. BTC price goes downwards first but then retests the resistance area. As you may see, bulls fail again and the price declines towards the red flag. This strategy includes no indicators or other tools except resistance area and candlestick patterns.

It seems very easy, but you need to have experience in graphic analysis before using it. Another example of Bitcoin trading strategy is. Take a look at the next screenshot. Here I have put Bollinger Bands indicator in order to show how it works. As you may see, I have highlighted some interesting points on the chart.

Here there are signals that will help you to take profits. Bollinger Bands indicator is a rather simple one. There are plenty of Bitcoin trading strategies that you may use when applying this algorithm. However, I would like to show you the easiest one.

Here you can buy when the price is touching or is close to to the lowest border of the indicator and sell when Bitcoin reaches the upper one. They are illustrative.

Every time you look at the chart you can see something that may give you an idea of what is happening with the price. No matter what kind of tools do you use, you always have something to look at. Wide range of tools. Bitcoin trading strategies of this type use bitcoin buy and hold strategy tools including technical indicators, graphics tools.

You can just choose one or two in order to succeed. All data is available. Those who choose technical analysis, are able to use all data that is available for them meaning they have the current price and history of quotes that help to forecast future fluctuations.

The price includes. This is one of my favorite advantages. No matter what type of asset do you trade all the news and events are already included in the price. The only thing you need is to understand the future direction of fluctuations. Technical analysis is sometimes subjective. All the results that you have when analyzing the price using technical means may be subjective as they are coming from your head.

Your forecasts may fail no matter what you. Yes, it happens and I would say that such situations are frequent. You do your analysis, find signals but the price goes the opposite directions.

As for me, I establish some limits for my personal trades meaning I know when to exit my positions if the forecast is wrong. Those ones are part of technical analysis trading strategies. Scalping is also known as pips trading. The main idea of this method is that you open a huge number of positions within one single trading day.

Scalping is not a new method as it was used already in Forex and stock trading for a long period of time. Those scalping traders sometimes are able to make significant gains due to the big number of positions they open.

Can bitcoin be traded on Forex?

Conversely, there exists a large percentage of BTC day traders who perform rather poorly. Certainly, there are a large number of day traders who are quite successful trading Bitcoin on a daily basis. Find a Bitcoin Exchange. During the past few years, some of the most volatile moves in Bitcoin have been to the downside. Magnr is one such example. So, really: It is no surprise that Bitcoin, a secure, global, and digital currency has claimed the interest of investors. Quite often, a long-term trader will only place a few trades per year. How to Invest in Bitcoin. Trading in irrational markets is dangerous because they can move against you for reasons that are hard to anticipate or even understand. A sound, global currency like Bitcoin will have the same impact on finance and the global economy. The term originally surfaced inwhen Bitcoin was experiencing one of its many volatile price movements. Because Bitcoin is a bitcoin buy and hold strategy vehicle for day trading based on the fact that it produces extreme price volatility. This explains why futures traders have a tremendous advantage over stock traders.