If you want to make money with the help of bitcoins, it is definitely not going to be easy. There are a lot of complications in bitcoin trading that you should know about before you start trading in bitcoins. However, trading could not simply be done but you should have some strategies as well. There are a lot of strategies that you will come across over the internet for making money from bitcoins but it is not necessary that every one of them is going to be working for you.
You should know that the best bitcoin strategy is the one that is going to align you to your own individual risk, goal and appetite and also available capital. You should know about how much you have in your hands to invest in the bitcoins. If you do not consider your savings or money, it is not going to be at all possible for you to consider a very effective strategy as well. Therefore, assessing your own things is also an important factor in a bitcoin trading strategy that you are going to use.
Top three strategies
There is a long list of strategies that you can use for trading in the bitcoins but you should use the top ones only. The list is not shot but we are going to mention some of the most working bitcoin trading strategies that you can use for making massive profit from bitcoins. Here are some important ones among them.
1. Hodlingit is a strategy that was first used in 2013. Well, you might be thinking that there is no meaning of the word HODLING but somehow it makes sense. There was a person who was trading in bitcoins and at that time, the bitcoins were at a very low price. The price was even falling and then he used the word HODLING in place of holding. He was talking about keeping the money or we can say exiting his position so that he could use his bitcoins in the time when the prices are going to be higher than the present time.
Since then, the strategy is named as hodling and it is considered to be one of the most popular strategy nowadays. In this strategy, one has to keep his bitcoins saved when the prices are low and sell them when the prices are at peak. The person who originated the strategy sold his bitcoins in 2018 and earned huge profits from it.
2. Trend trading bitcoin It is a strategy that keep the analysis of trending market and reaches consistently higher highs and lower lows. It is a strategy that could be used in different time frames according to the situation. You need to look at the market trends and also analyse if the market is going to be higher in the coming future or low in the coming future and there are sites like Bitcoin Fast Profit To help you out.
You need very technical knowledge and market knowledge in order to use this strategy. It was in 2017 when the prices of bitcoin had a hike search and reached about $19,763 in December that year. That year, people were very curious about investing in bitcoins because they do not want to miss this big opportunity. You need to hold your position when the prices are low and let go of it when the prices are high.
3. Bitcoin breakout strategy It is also one of the most popular strategies used by experts of bitcoin trading. In this strategy, confirmation signals and technical indicators are used like RSI or moving average convergence divergence. Suppose that the prices of the bitcoins at present or at $11,000 and $11,050. Through your analysis, if you believe that the prices are going to be higher than $11,050 in the coming market, he will decide to enter into the market and keep an order for long run. The market price does not goes higher than $11,050, your position would not be executed at all.
The final verdict
The above mentioned are the top three strategies that you can use for making money out of bitcoin trading. With the proper guidance and implementation of these strategies, it’s going to be a piece of cake for you to make money with minimum efforts.