In this digital era, Bitcoin carries a decent reputation among traders and investors. It’s also the hottest trading market of today, and individuals across the globe are said to gain plenty of profits through Bitcoin. Experts say that Bitcoin will continue to be the best market for trading and investing than the stock market due to its Blockchain technology. It’s because all the transactions through Bitcoin will occur without any central exchange. For more information, you can click here and get to know more about Bitcoin and how to get started.
Strategies that will help you generate profits in Bitcoin
If you are looking to make profits through Bitcoin, you can opt for some of the best strategies that are available. To know what these strategies are, read on.
Holding on for Dear Life or HODLing is one of the most popular and common types of Bitcoin strategies that you will come across. This particular term was coined in 2013 when the prices in Bitcoin were falling. One user typed the word Hodling instead of Holding to show he would not exist in his position. Since then, it has evolved to become a strategy that helps in maintaining a long position within Bitcoin, in a hope that the prices will increase. But Bitcoin is pretty volatile, and opting for this strategy might result in losses. For such reasons, HODLing is not recommended without a risk management plan.
2. Trend trading Bitcoin:
The trending market is something that constantly reaches lower lows and higher highs. This strategy is pretty much suitable for various timeframes. Through this strategy, you can hold your position as long as the trend will continue, whether in days, hours, or weeks. For many individuals, Bitcoin itself stands out as a trend. This digital market faced a massive surge way back in 2017 and reached around $19,763.50 by December 2018. The main driver of the trend were the people who didn’t wish to miss out on the new big thing. Since it’s a famous market, all the trend traders must stay abreast of all the events and news that might influence the price.
Scalping is a type of strategy that lets you take advantage of all the small market movements. The main thing here is to make plenty of successful small trades and prevent losses during the process. Scalper traders try to avoid the high volatility, because to them, it’s unpredictable. The best situation for a scalper should be a clam market with little or no volume. Also, scalping is a strategy, which stands out to be safe and employs small-time trades. You can exit the trade anytime when something unwanted takes place or goes wrong.
4. Hedging Bitcoin:
If you already own BTC or Bitcoin, it will be much better to hedge your Bitcoin risk when you think there might be a decline within the market prices. Hedging is a type of strategy that helps in eradicating or decreasing the risk to an existing position. But there might be a bit of risk when you hedge your Bitcoin through a short-selling strategy. For such reasons, you must have risk management measures beside you.
These Bitcoin strategies stand out as the methodology for trading the market that covers all the price points, which you’re either exist ing at or entering through. These strategies will help you make the right decision when it comes to trading in Bitcoin so that you can make massive profits instead of losses.