With new technologies and the proliferation of earning opportunities online, many people are attempting to make extra income with Bitcoin. However, to increase your chances of success, you must be meticulous and plan your moves carefully. This article presents two bitcoin trading strategies to help you gain an edge.
Listed below are the most efficient ways that will help you know how to make money with Bitcoin via two strategies that are popular amongst successful traders.
1/ Trading the News, One of the Most Popular Bitcoin Strategies
Generally, Bitcoin does not respond to news from economic calendars. You must instead stay up to date on specific Bitcoin news, especially more so compared to other economic data. For example, US nonfarm payrolls seem to have a longer-lasting effect.
If you learn that a large fund has invested hundreds of millions of dollars in Bitcoin, you should consider purchasing cryptocurrency in the coming days. Reversely, consider selling Bitcoin if a significant cryptocurrency exchange experiences a hack. Thus, you understand that trading according to the news is vital when it comes to the most popular Bitcoin strategies.
Let us use some examples to demonstrate this concept. Several factors contributed to the cryptocurrency’s rise:
- Bitcoin was declared Sharia-compliant.
- There were reports that well-known investor George Soros is interested in cryptocurrency trading.
- Traders were also looking forward to the World Blockchain Forum, which will take place in Dubai.
- The green arrow denotes the beginning of Bitcoin’s upward swing.
- The cryptocurrency increased by 30% in a month because of the positive news.
It is important to note that this Bitcoin strategy necessitates following specific websites and blogs that track Bitcoin-related events. You will also need to separate the essential news from the noise that does not lead to trends.
2/ Trading With Technical Analysis
This is another of the top Bitcoin strategies to consider. Technical analysis is another excellent source of Bitcoin trade ideas. We do not recommend scalping or trading in the shortest time period. Focus on timeframes greater than H1 because they will allow you to get the most out of this market.
Bitcoin follows market trends. The most promising of the Bitcoin strategies is to use a Bitcoin trend-trading system. Trading based on a moving average or a combination of MAs can be as simple.
A Final Suggestion: Trade Various Cryptocurrencies
Diversify your capital among several cryptocurrencies to reduce risk and maximize profit when trading cryptocurrencies.
Different cryptocurrencies serve distinct functions. Bitcoin and Litecoin, for example, function directly as currencies.
Ethereum is a decentralized application platform, whereas DASH prioritizes user privacy. All of these are cryptocurrencies with high liquidity and market capitalization.
It is a good idea to choose cryptocurrencies from different industries. Indeed, if one of them takes off, you will be ready!
The conclusion is straightforward: diversify, keep up with the news, and use technical analysis to profit from cryptocurrencies!
Also, the bitcoin strategies consider its high volatility. Choose the one that suits you most and start earning!