Bitcoin has been the talk of the town in the crypto currency trading and investing world since it changed the fortunes of several people who invested in it. Back in 2017 when Bitcoin really became famous for bringing massive profits to whoever invested in it, very few people knew about it.
However, once the news was out everybody has been trying to make it big in the crypto currency world, especially the world of Bitcoins. More and more people enter crypto currency trading with hopes that they will become trading maestros within a few days and turn around their luck with a couple of clicks.
Sadly though, things do not work that way. Bitcoin trading can be quite complex, especially for people who are just starting out. If you happen to be someone who is looking to enter the world of crypto currency trading, In this article XTRgate discusses the best bitcoin trading strategies and tips for 2020. Follow these tips and eventually you will become a master in bitcoin trading.
Bitcoin’s Volatile Price
Most of you even have a little bit of knowledge regarding bitcoins will be well aware of the fact that bitcoin’s price can be highly volatile. There are a large number of factors behind the high volatility of Bitcoin. Geopolitical statements that governments from different parts of the world make can have a major influence on bitcoin’s price.
Sometimes international organizations and politicians tend to pass on negative opinions. These opinions often scare bitcoin holders, investors, and traders which can result in the price of bitcoin going way down.
Shocking and breaking news such as the 2014 bankruptcy of Mt, GOx and Youbit in South Korea also had a negative impact on the price of crypto currency. Suffice to say, negative news of all types results in lower bitcoin prices. There was even a time when bitcoin’s price went down because people found out that this crypto currency’s fast and anonymous transactions help pornography website owners and drug dealers.
Suffice to say, there is a lot of uncertainty that revolves around the future price of bitcoin. People fear that the regulation will become quite strict in the future and that there could be massive taxes incurred on all crypto currency activities. Things like these also negatively influence bitcoin prices.
The Flip Side
Despite the fact that bitcoin is quite volatile as a crypto currency its price can also go up with positive news and feedbacks. A large number believe bitcoins and several other crypto currencies to be digital gold, it has massively helped to improve its prices. There have even been a large number of reports that claimed that the total amount of international institutions and banks that prefer to use bitcoin has increased, this also led to an improvement in bitcoin prices.
Trading Strategies – What Are They?
Trading strategies help traders to come up with creative ways to trade crypto currencies that could potentially help them earn a decent some of money in return for their trading efforts. These strategies are there to offer traders objectives in earning a larger sum of money with a smaller capital.
This is quite similar to how most successful businesses operate. You will come across a large number of trading strategies present all over the internet these days. However, several of these trading strategies are not some ingenious pieces of ideas that would help people become overnight millionaires. Instead they just talk plain and common sense.
That being said, common sense these days is quite lacking, and a large number of novice traders try to hit a home run by trying to come up with complex ideas. In reality however, common sense is all you need to win big in the world of bitcoin or any other crypto currency for that matter.
Genuine strategies for crypto currency trading should always be based on specifications that you can analyze in reference for historical; data in order to use them for future trading scenarios. Coming up with the right strategy for helping traders could potentially help you to earn a decent sum of money.
That being said, a lot of novice traders do not realize the importance of planning things pout before applying the strategy. It is perhaps the most important thing that every trader should do. So, without further ado, let us get into some of the most successful crypto trading strategies that could make you a successful bitcoin trader.
Starting With the Basics
A renowned ebook hat goes by the name of crypto trading strategies has often been relied upon by a large number of crypto currency traders and investors. It provides a great deal of information for dealing crypto currencies in a proper manner. Every small bit regarding crypto currency trading is explained thoroughly in that book. You will also come across quite a lot of trade dealing strategies that could help you out.
You will also become better at monitoring the different types of fluctuations that happen in the world of bitcoin and tons of other crypto currencies. Readers also learn to single out effective selling and buying areas for their trading scenarios, in addition they also learn how to protect their trade in case they suffered from a massive loss.
The main intention of that crypto currency ebook is teaching the up and coming novice crypto currency traders how to be independent in the bitcoin trading world while gaining success and protecting their investments. Suffice to say it is quite an amazing read and can help you out in tons of different ways.
General Strategies for Bitcoin Trading
This might sound a little silly but a major benefit of learning different things is that you are not aware of anything regarding those things. This is particularly true for people who are new to bitcoin trading. The knowledge out there can make or break your trading career.
So make sure that you get the knowledge from the right sources and start implementing it as the wrong strategies could potentially cost you all of your investments. An excellent way to approach the world of Bitcin trading is to take and see everything with an open mindset. Think of your mind as a sponge and prepare it to absorb the strategies mentioned down below:
News Based Trading
Trading based on the news generally or simply means that you will be trading on times whenever a massive news breaks. Things like natural disasters and terrorist attacks often cause assets to fall down. Times like these are quite opportune for traders as they are available at the cheapest possible prices.
That being said, news based trading can often come and bite you back as sometimes the prices of bitcoin or any other crypto currencies go even further down. However, if you play the long game, chances are that you will eventually make a good profit.
Just like the name suggests, day trading is essentially the selling and buying of assets on the same day. Although there are tons of trading strategies out there, you will notice that they are not backed up by something definitive. Every successful trader out there does follow a certain strategy, but they also have some of their own tricks up their sleeves. These tricks however, come with months and years of trading experience.
Swing trading comes somewhere in between trend trading and mid day trading. The reason for it is that day trading is capable of holding assets form a few second to some hours. However, it does not happen for more than a single day. On the other hand, trend trading is the type of trading when a trader is looking for an extensive timetable while keeping his or her asset for some weeks to some months. Swing traders however, hold assets for a few days to a couple of weeks.
Long and Short are just basic jargons that quite a lot of bitcoin and dealers of other crypto currencies tend to use. Whenever traders find themselves in “long” it often means that they successfully purchased something and hope that its prices will eventually go up so that they are able to make a decent profit.On the flip side however, “short” means that a trader has sold what he or she had in their hands.
Scalping is perhaps the most preferred trading style these days. This does not mean that the trader sells ticket for higher prices. In scalping, the trader essentially takes advantage of lesser gains on bigger scales. Scalping helps bitcoin traders make a sizeable sum of money through multiple exits and entries.
Strategies for trading have been there for as long as human civilizations have existed. They have just evolved with time to make sure that they suit the traders, investors, and the currency being traded. Suffice to say, whichever trading strategy you end up using. It is important to make sure that you do some risk free practice to prepare yourself for the real bitcoin trading world.