Bitcoin Strategies to Succeed as Bitcoin Trader

Unlike the general currencies around the world which are controlled and monitored by the governments of the countries, cryptocurrency is a virtual currency and is completely decentralized in nature. Since 2009 the year when the first cryptocurrency bitcoin ever surfaces till today, this currency system maintained through a blockchain ledger system has shown a highly volatile nature. According to the data and facts report of Blockchain.com, there have been more than 668 million transactions since 2009. Besides, among 21 million Bitcoins that exist, approximately 18.8 million, many Bitcoins are lost forever, since many people have passed without any transactions made from their assets, many others are lost due to lost passkey, and so on. It is always important to start with Bitcoin Crypto trading at a very low note, and you need to go through some of the active market trends that are there.

Plan First

The volatile nature of the cryptocurrency market is always a knocking reminder for those who are uncertain or first-time investors who need to take it slow. Since you need to use cryptocurrency price predicting tools, even if you invest small bits, it is best to follow cryptocurrency market news and announcements, choose reliable exchange platforms like Bitcoin Era and follow trends of valuation over the past few years of the currency you have invested in. Since the currency market is extremely volatile, you need to have the right modulation that will allow you to deal with the right coins, select and then highlight the positive aspects of it.

You need to decide on the type of trading you would like to follow. Every investor has a preference forthe trading pattern. Here are the common types of trading patterns traders follow.

Day Trading

As the name suggests it complies with trading within a day or intraday trade. This means that the trader buys or gets possession of a cryptocurrency of his choice and that very day he sells it off and the price variation within the few hours of the day, thereby gaining the profit margin within the day. This day trading could sometimes lead to sudden loss as well, as sometimes the tarder will not have an idea about when to close the trade suddenly, and then what to do if the price value suddenly goes up.

Range Trading

If you are one of those who believes in deep analytical trading, with an analytical study of the market trends and tracking valuation constantly, you need to know your resistance range and support range. ‘Resistance’ refers to the highest mark up to which the cryptocurrency value is expected to rise, which again means that the resistance level is always higher than the current value of the digital currency.

Scalping

Unlike day trading which stands for small asset holding, scalping stands for bulk booking and investment in the market. These are meant for whale traders who plan for investing a huge portion in the market. Most scalping traders choose an entry and exit point within a day and wait to sell off their assets until the price hikes to a definite level where a definite proportion of profit can be attained. You can profit off any small price change if it is there, and then go for a strategy to make high volumes only from the starting of small profits.

High-Frequency Trading (HFT)

HFT is a bot-operated algorithmic trading strategythat is particularly taken into consideration by quant traders. These trading algorithms are controlled and operated to gauge quick entry and exit points for different crypto assets by trading bots. However, this kind of bot development requires an acute understanding of the cryptocurrency market, cryptography, market growth, and value trends.

Manage Balanced Portfolio

When you depend on a single asset type or cryptocurrency for your entire investment you are at a higher stake of risk since if the market value falls you can be directly facing heavy loss. However, managing your investment portfolio in cryptocurrency can be maintained strategically by distributing your assets in different digital currencies like Ethereum (ETH), Polkadot (DOT), Stellar (XLM), BNB, etc.

Therefore any business or investment is subjected to a minimum or high risk, which could be managed with strategic and planned investment patterns, a comprehensive understanding of the market, and analytical follow-up.

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Dan Dunn

Executive Managing editor

Editor and Admin at MarkMeets since Nov 2012. Columnist, reviewer and entertainment writer and oversees all of the section's news, features and interviews. During his career, he has written for numerous magazines.

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