Easy methods to Trade Bitcoin Successfully As a Pro Trader
Trading cryptocurrencies is currently one of the hottest trends in the investment landscape. Many folks are earning money through trading and permanently reason. Cryptocurrencies can be traded 24 hours a day and are not controlled by financial institutions exactly the same way fiat is regulated by central banks. This eliminates issues such as price manipulation. Trading cryptocurrencies can be relatively simple and there are many opportunities in the market.
For most traders, it’s wise to trade Bitcoin which can be one of the numerous cryptocurrencies out there. One of the main reasons bitcoin robot trading for this really is that Bitcoin is one of the very most volatile cryptocurrencies and it also will influence the performance of altcoins. This was evident in the 2017 cryptocurrency rally where most altcoins rallied because Bitcoin was rallying.
Engaging in Bitcoin trading
By now you probably understand that a number of the people who claim to own made millions after investing in Bitcoin managed to create that money simply because they invested when the price of Bitcoin was still low. Especially the ones that purchased Bitcoin before 2016 and held on looking forward to the purchase price to attain epic heights.
Unfortunately, which was one of a form opportunity for the cryptocurrency market and we saw the cryptocurrency crash in early 2018 and most of the gains were lost. However, you are able to still trade cryptocurrencies nonetheless it is best not to accomplish it speculatively since cryptocurrency prices have now normalized.
Day trading Bitcoin
If you monitor the price of Bitcoin, you’ll notice that it has significant volatility at any time of the day. This helps it be a stylish asset to trade in a fashion similar to how forex pairs normally have volatile movements, only in this case Bitcoin might offer more volatility. So how does one take advantage of this?
You can use a Bitcoin trading bot which will do the majority of the job for you. Some crypto trading platforms promise to provide crypto trading bots that analyze the marketplace on your behalf, execute the trades and even close trades for you. All you have to accomplish is setting the parameters to your preference and the crypto trading bot will do the rest for you.
You should have a great comprehension of how Bitcoin works and what really influences its price movements if you’d rather do the trading yourself as opposed to count on a Bitcoin trading bot. Bitcoin’s volatility is especially due to demand. The bulk buyers or large accounts are apt to have a significant impact on Bitcoin’s price direction. You are able to identify the direction in that your large accounts otherwise referred to as whales are trading and also trade inside their direction. You are able to access that data on platforms such as Binance Futures in the sentiments segment.
Using technical indicators
As far as the execution is concerned, you should use technical indicators to identify potential entry points. Remember that indicators alone are not very reliable, thus the requirement to combine them with other data, in this case, sentiment data on large accounts vs smaller accounts would make sense. One of the finest indicators readily available for trading Bitcoin is the On Balance Volume or OBV indicator.
OBV is a good tool for predicting strong trends. Once the OBV aligns with the price of Bitcoin for a strong bull or bear movement, then it is best to trade the direction of that trend. You can even overlay a Bitcoin Chart and that of Ethereum for another OBV strategy. This strategy is known as smart money divergence and it’s where the price of Bitcoin and ethereum are both behaving similarly but at some point, one doesn’t respect support or resistance lines.
The aforementioned demonstrates the amount of money divergence, in this case, the divergence involving the Bitcoin and Ethereum prices when pegged from the U.S dollar. The trading platform
You will be needing a reliable platform that delivers use of important indicators and also a trading interface that is tuned to generally meet trader requirements. TrailingCrypto is one particular platform and the sweetness is that you could switch from exchange to a different within its platform. In addition, it offers the flexibleness of selecting various kinds of order types. In addition, it uses measures such as API keys to get in touch to different crypto exchanges, and two-factor authentication as security measures. As far as the assets are involved, you are able to trade Bitcoin pairs and other cryptocurrency pairs, so you have good variety.