Bitcoin Trading Made Simple: How to Get Started
Methods of Trade
Though they may all seek the same result, every trader employs unique strategies. A trading platform that assists its users in streamlining their trade, Bitsoft360 was created for them. Let’s take a look back at a few instances of the most common trading styles:
Intermittent Buying and Selling
Using this strategy, you would make many daily transactions to capitalize on small price fluctuations. Day traders sit in front of computers all day and often close out their positions after each trading day.
A growing number of people are adopting this method of day trading. The act of trying to make significant profits off of relatively minor price movements is known as “scalping,” and it has been likened to “picking up pennies in front of a steamroller” on occasion. Trading on a very short time frame, or “scalping,” is predicated on the premise that traders may reduce their exposure to risk and gain an advantage by frequently taking small, quick profits. Scalpers sometimes execute dozens, if not hundreds, of trades in a single day.
Trading Bitcoins: A Step-by-Step Guide
Creating a Bitcoin wallet is the initial step in participating in the Bitcoin market. Coinbase, the largest bitcoin wallet service, is where you can get started if you don’t already have one. Here’s how to receive $10 free on Coinbase to try out the bitcoin market: we have put up a bargain that is one of a kind. Bitcoin merchants and investors are always seeking for ways to improve how business is done with the cryptocurrency.
How to Make Money Trading Bitcoins – (Rules for a Buy Trade)
Step 1. Place an Ethereum chart on top of the Bitcoin chart and the OVB indicator.
A minimum of three windows should be included in your chart configuration. You’ll need two separate charts: one for Bitcoin and another for Ethereum. Create a single window for the OVB indication as the last step. By adhering to our bitcoin trading strategy recommendations, your chart should resemble the one shown above. For the time being, it appears that everything is in order, so we can go to the next phase of our optimal Bitcoin trading plan.
Step 2. It is to monitor the spread between Bitcoin and Ethereum prices to see whether there is any smart money divergence. In other words, we will manage the spread in value between Bitcoin and Ethereum. To put it another way, smart money divergence takes place when the activity of one kind of virtual currency does not corroborate that of another form of virtual currency. For decades, the same fundamental criteria have been applied to all of the other main asset groups. Likewise, this holds for the trading technique of cryptocurrencies.
Step 3. Anticipate an expansion of the OVB in the direction of the trend.
When Bitcoin’s price falls behind Ethereum’s, it suggests Bitcoin will eventually do the same and break over the resistance level. The OBV, in a nutshell, is a fantastic technical indicator. Indicating whether or not the big players are buying Bitcoin or selling it. As an added incentive, we’d want to see it break above the price at which Bitcoin was trading before it hit this barrier (see figure below). Learn how to spot the optimal swing that will maximize your earnings.
Step 4. Put a stop-loss purchase order in at the level of resistance.
It’s as simple as placing a purchase limit order after the OBV indicator provides the go-ahead. In the event of a breakout, your order should be placed at the level of resistance. Seeing this transaction gets triggered and the Bitcoin price break higher than planned is not unexpected. You were told the OBV is a fantastic indicator, after all. The only remaining questions for the optimal Bitcoin trading strategy are where to stop loss and when to cash in.
Step 5. Take profit and set your SL below the breakout candle.
For best trading performance, set the stop loss below the breakthrough candle. A value of OBV above 105,000 is considered high and typically indicates at least a temporary halt in the trend, which is where we set our take profit. We want to make money in this area.
Like any other endeavor, trading is one where you’ll need to invest a lot of time and money into learning the ropes. To put it bluntly, if your only motivation for trading is to earn a fast buck, you should probably stay out of the market. There is no such thing as quick, simple money that does not come with some sort of risk or drawback. If you’re serious about becoming a professional Bitcoin trader, look at our resources area. With these tools, you may upgrade your current setup and further your knowledge.