Bitcoin trading can be a lucrative undertaking if you are lucky enough to get things right. Ideally, this trading methodology covers the price points as you enter and exit the trade. This means that your success is determined by your ability to determine the best trading times successfully. Having a bitcoin trading app at https://bitcoin-revolution.app can help you improve your profits significantly. That said, here are some fundamental strategies that are popular with bitcoin traders.
Hodling
Hodling is perhaps one of the oldest bitcoin trading strategies. This term was coined in 2013 when a trader unknowingly typed the terms’ hodling’ instead of holding. This term has since evolved into a leading trading strategy that focuses on maintaining a long position on bitcoins, hoping that its value will increase. However, the volatile nature of bitcoins means that this strategy could result in losses.
Hedging
Individuals who already have some bitcoins might consider hedging Bitcoins if they predict a short-term decline in the market. Hedging is essentially a trading practice that involves opening trades that are aimed at managing the trade. Ideally, this means selling the bitcoins for the current price, hoping that the value will reduce. And when the market price falls, you buy the bitcoins back at the lower price and profit from the difference. When hedging, always make sure that you have a risk management measures to protect you from bitcoin’s volatile nature.
Trend Trading
Consistent highs and lows characterize a trend in bitcoin trading. Adopting this strategy essentially means that you hold your position open for as long as you think the trend will continue. Whether this takes hours, days, weeks, or months, you must keep up with any news and developments that might influence a price change.
Breakout Strategy
Breakout trading essentially means that you enter a trade as early as you can, waiting from the prices to ‘breakout.’ This strategy is informed by the fact major volatility starts after the market breaks through a key support or resistance levels. Your primary objective should be to enter the market at key resistance or resistance points to take advantage of the trend for as long as it lasts.
These trading strategies are quite effective. But this is not to say that they offer any guarantees. As mentioned earlier, all you need to do is choose a strategy that matches your trading objectives. …