The essential and most famous part of the Crypto trading strategy is Bitcoin, simply because Bitcoin’s price has a massive influence over the price of other cryptocurrencies. Determining trading Strategies before trading or while Rise of Cryptocurrencies can be daunting, especially if someone is new at this business.
If there is risk in Bitcoin Trading, then growth is very high. But because growth is very high, the risk factors are also high and having a strategy is highly needed.
Trading Tips for Bitcoin Investor
You invested in Cryptocurrency let’s say you invested ten thousand rupees. Within a year, it increased ten thousand to thirty thousand; people feel that much profit is being made in Cryptocurrency. So definitely, you should invest in Bitcoin. As you are investing today and Bitcoin price increases and you sell that particular Bitcoin, you can call it an
investment or Swing Trading.
So, what is Swing Trading? Swing Trading can be Short or Medium Term. What you want to do is up to you individually; many Traders use it differently. Swing Trading is just taking best on the market for either short or Medium Terms; You can trade for a couple of days or even up to a couple of months. It’s named Swing Trading Because we are looking to take advantage of these longer-term swings in the market.
If we assume the Stock Market, we get Leverage, also called a Margin. We also get Margin in Options and Futures, so we also get margin in Cryptocurrencies. The answer is Yes. If there is a market, suppose Stock Market, Share Market, Forex Market, Crypto Market, then there is absolutely a game of demand and supply.
Technical Analysis that you have worked on so far works Everywhere. You can make money by Trade on Price Action; the person who Learned the Technical Analysis can earn money by price action in any market. It would be best to look for areas and times when you can get in and ride that Trade into the profitable Trade. We can also use Technical Analysis to confirm our Entry and Exit points, so definitely, we want to use that to make sure that we have a second bit of information to enter into our trades.
Also, with Swing Trading, we have to take macro-News and environment, News, and everything into account. Because if we are holding trades for maybe a few days or a few months, then it’s not just going to be Technical Analysis that helps us out
Three Things to keep in mind when we do Trading in Bitcoin
- Market order
- Limit order
- Stop order
- Market Order.
What is Market Order? If you want to buy some Bitcoin, we can place Market Order. Market Order is when you can how much Bitcoin you want to buy, but you do not choose the price you want to pay. You have no say whatsoever and how much you are paying, so where will we buy one Bitcoin. If we want to buy a Bitcoin and have a Market Order, we know we want to buy one Bitcoin, but we cannot choose the price we pay. That is how Market Order works in the world of Trading.
- Limit Order
Choosing the amount we trade, and the price we trade is a huge advantage here. Remember where are we going to buy one Bitcoin. We are buyers now, and we will choose the price we pay. We are a buyer we can put the order as a Bidder price as a Buyer and lower price so instead of paying other people’s price now we can choose the price that we want to pay and we can put it as a lower price than the Sellers.
Pros of Limit orders are we can choose our price, choose our Bidder, and wait for the market to jump around.
- Stop Order
You can choose the amount you want to trade, but you do not choose the price you pay while in Stop market order. With the Stop Order, we can choose the price when the order s placed in the market.
So that is how one must prepare themselves when they do Bitcoin Trading or any other Cryptocurrency Trading. And, a trustworthy exchange to start with is the Bitcoin Era.