Apr 14, · 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. Actually, this is an Ethereum trading strategy as much as it’s a Bitcoin trading strategy. If you didn’t know Ethereum is the second most popular cryptocurrency (see figure below)/5(48). Automated trading without doubt increases risk — and binary options are already a high bitcoin trading strategies pdf South Africa risk investment vehicle. One of them is to notice how the price acts in older areas and trying bitcoin trading strategies pdf South Africa to predict the price movement when the price comes back to these areas. Bitcoin trading strategies pdf south africa. Many Thanks! Martingale is best avoided, especially trading bitcoin di indonesia South Africa for novices. Its thinkorswim platform offers an advanced trading platform where serious futures traders can trade bitcoin bitcoin trading strategies pdf .
Bitcoin trading strategy pdfCryptocurrency Trading – Best PDF Guide For Beginners
Keep in mind that it is possible to lose money. Your capital is at risk while trading cryptocurrency because it is still trading at the end of the day.
We always recommend that you demo trade before risking any live money. Also, read the trading volume guide. These bitcoin strategies can also be used for trading bitcoin cash as well as other cryptocurrencies. In fact, you can use this as a trade guide for any type of trading instrument.
Blockchain technology is a big step forward for how to access information. Many companies are starting to develop applications to use Blockchain in their favor.
Remember that when trading digital currency, it may seem like it's not a real currency. But it actually is real. This is not some Ponzi scheme. You must do your technical analysis just as if you were going to day trade any other instruments.
You can also read our best Gann Fan trading strategy. One of the reasons why Bitcoin is so popular among day traders is that there are many different Bitcoin exchanges available.
Finding the best Bitcoin exchange will depend on many different factors. These include your home country, the preferred method of payment, fees, limits, liquidity needs, and other factors. Here are some of the top cryptocurrency exchanges in the market:. A cryptocurrency is really no different than the money you have in your wallet. They have no intrinsic value. And cryptocurrency is just bits of data while real money is just pieces of paper. Unlike fiat money, Bitcoins and other cryptocurrencies have no central bank that controls them.
This means that cryptocurrencies can be sent directly from user to user without any credit cards or banks acting as the intermediary. When you print lots of money, inflation goes up which makes the currency value going down. There is a limited amount of Bitcoins. This holds true for the majority of the other cryptocurrencies. We will use our best Bitcoin trading strategy. We also have training for the best short-term trading strategy. 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:.
Because Bitcoin is more volatile than other tradeable assets, there will be a high number of profitable trading opportunities occurring each day. Like ordinary currencies, using technical indicators will make it easier to tell when price increases are likely to occur. Volume, relative strength, oscillators, and moving averages can all be applied to Bitcoin day trading.
It is important to pay attention to technical indicators and developing trends. In this next step, we will talk about OBV trading and how to get started buying and selling cryptocurrencies. This is a cryptocurrency trading strategy that can be used to trade all the important cryptocurrencies. 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:. It is used to basically analyze the total money flow in and out of an instrument. The OVB uses a combination of volume and price activity. This tells you the total amount of money going in and out of the market. How to read the information from the OBV indicator is quite simple. Here you can learn how to profit from trading.
In theory, if Bitcoin is trading up and at the same time the OBV was trading down, this is an indication that people are selling into this rally. The same is true in reverse if Bitcoin was trading down and at the same time the OBV was trading up. What we really want to see is the OBV moving in the same direction as the Bitcoin price. In this regard, our team at Trading Strategy Guides uses the OBV indicator with other supporting evidence to sustain our trades and gain more confirmation.
The next step comes from the Ethereum trading strategy which will be used to identify Bitcoin trades. Now, before we go any further, we always recommend taking a piece of paper and a pen and note down the rules of the best Bitcoin trading strategy. Your chart setup should basically have 3 windows. One for the Bitcoin chart and the second one for the Ethereum chart. Last but not least, make one window for the OVB indicator. If you followed our cryptocurrency trading strategy guidelines, your chart should look the same as in the figure above.
Simply put, we are going to look after price divergence between Bitcoin price and Ethereum. Smart money divergence happens when one cryptocurrency fails to confirm the action of the other cryptocurrency.
For example, if Ethereum price breaks above an important resistance or a swing high and Bitcoin fails to do the same, we have smart money divergence. And the Ethereum trading strategy as well.
In the above figure, we can notice that Bitcoin's price fails to break above resistance while Ethereum's price broke above and made a new high. This is the first sign that the best Bitcoin trading strategy is about to signal a trade.
The same principles have been true for all the other major asset classes for decades. Before buying, we need confirmation from the OBV indicator. This brings us to the next step of the best Bitcoin trading strategy. If Bitcoin is lagging behind the Ethereum price it means that sooner or later Bitcoin should follow Ethereum and break above the resistance. Simply put, the OBV is a remarkable technical indicator. It can show us if the real money is really buying Bitcoin or if they are selling. 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.
As a crypto trading beginner you should start with understanding the underlying mechanics of financial markets in general and the rules of profitable trading, before you are ready to understand the driving forces of crypto markets and before you are ready to get into the trading details.
You should learn that there are some particularities in which those new volatile trading assets differ from the traditional stocks or forex markets. Just like sportsmen or poker gamblers who should better know their opponents or comrades, crypto traders should have a rough idea with whom they are on the field. The next field you need to explore is technical chart analysis which delivers buy and sell signals. No trader can really make a sound trading decision without having checked the trading signals provided by price charts.
Traders can only make reasonable trading decisions based on chart signals rather than on plain intuition or based on nothing, as it is the case in gambling.
Once a trader knows his strategy, the previously learned technical chart analysis will help him to find buy and sell areas in the specific market environment.
A trader who takes his job for serious should know a range of different strategies for different market situations to be flexible when it comes to finding tradable charts. However, many pro traders have a preferred strategy they like to use the most — basically because specialization usually leads to a higher degree of mastery than doing too many things.
This is exactly what the website of cryptotradingbook. Risk management — knowing how to protect your trading capital from bigger losses — is an elementary part of every trade. As a crypto trading beginner you should learn how to protect your capital from bigger losses while maximizing the chances that your capital will grow fast. There are some risk management strategies that can be used in trades.
The most fundamental risk management measure is the stop loss order, but there are some more interesting strategies traders should know and be able use. So a top cryptocurrency trading pdf guide should teach you easy but effective risk management measures. Brokers are very different regarding their features.
Most brokers are kind of unique regarding their mix of features, so most are not really substitutes but rather targeting different users. Traders should always keep a trading journal and a good cryptocurrency trading guide for beginners should help you with that.
A crypto trading journal is very important because it always shows your latest performances at a glance. Trading journals make traders learn faster and more efficiently. You should understand why most newbies lose too much money over time before they learn how profitable trading really works. Although the basic principle of how to make money in trading sounds fairly simple — buy low and sell high — most traders manage to do the exact opposite, often ending up with high losses.
Your cryptocurrency trading guide should not miss to educate readers sufficiently when it comes to data protection. You should learn the best protection measures that exist at the moment and really take this topic for serious. The best crypto trading ebook for beginners currently available online explains all those topics and many more essentials and useful insights in about easy to read pages.
The great thing about the cryptocurrency trading guide for beginners pdf ebook is the highly efficient concept of the compilation of knowledge:. So the guide teaches the essential crypto trading knowledge you ought to know, with the most important expert tips you need in that field, while skipping extra knowledge you can still learn later in your trading career.