Can you increase the odds of earning profits through Bitcoin trading? You sure can if you know which the most effective Bitcoin trading strategies are. Ideally, the most suitable trading strategy will be one that can be aligned to your individual target, risk appetite, and capital at hand.
These are some of the most effective trading strategies that can prove to be successful in 2020:
This strategy may pay off in 2020 as it involves “hedging” your risks if you feel that the market price will fall. So, you seek to open trades to eliminate or lower risks. When you hedge a holding and pen a position to short-sell the Bitcoin, you will be selling this at a price expecting it to decline. When it does fall, you can re-buy it at a low price and then enjoy profits from this difference.Hedging is full of risks because when you actually sell the coins, there is no limit on the amount that the market can go against you or how much loss you will ultimately experience. So, this strategy also needs risk-management measures.
This has always been the most trusted trading strategy for Bitcoin traders and it basically stands for “holding on for dear life”. It originated in 2013 when prices of Bitcoin took a plunge and some user incorrectly typed “holding” as hodling”; since then this term has become popular and it refers to a position which a trader will hold onto with the hope that Bitcoin prices will rise in the long run.This strategy may work but knowing the market volatility it is best to have a risk-management strategy also in place. The autonomous trading of cryptocurrency is carried out based on these strategies using automated trading software applications like bitcoin revolution. Here is a bitcoin revolution recensione alias review to learn about how the automated bitcoin trading is done.
This will pay off during suitable time-periods. So, you will hold the position till as long as you are certain the trend is going to continue; this could even go up to months. As a trend trader you have to be constantly updated with the latest Bitcoin news. That way you will know when a certain event can impact the price of Bitcoin. In trend trading you must use technical analysis methods. You work on an assumption that the existing price will move in the current direction, or it will result in a new trend.
This means you enter a market with the onset of a trend and you are ready for the price to “breakout” from its previous range. In short you believe that when the market breaks through a resistance level, there will be volatility. So, a smart trader will try and enter the market when trends are on and stay on from beginning to end.
If you wish to cut down on risks of trading, you must diversify your crypto portfolio. Different coins are for different purposes and they are all currencies with market cap and high liquidity. If you diversify your assets well, follow the latest news, and employ technical analysis, you can be sure of success.