5 Simple Bitcoin Trading Strategies To Help Get You Started Making Money!
5 Simple Bitcoin Trading Strategies To Help Get You Started Making Money!October 10, 2017
Bitcoin is hot, period! We have been receiving an endless swarm of queries in regards to various Bitcoin and cryptocurrency trading robots, signals, and strategies. However before we get into the intricacies of trading Bitcoin, you should first understand and differentiate between investing in Bitcoin, and actually trading the cryptocurrency. On the actual investment side you would have to signup for a type of Bitcoin Wallet and purchase or sell bitcoins using an exchange and a ledger. This means you speculate that the price of Bitcoin will increase or decrease based on various technical indicators, news updates, and market price movements. Trading Bitcoin means it has to be trades AGAINST ANOTHER CURRENCY. For example BTCUSD, or BTCEUR are very common assets, and this can be done via a Forex broker for all intents and purposes. So, if you are an investor you would need a service like Blockchain and if you wish to trade then you are in the market for a Forex broker like UFX which allows BTC currency pair trading.
Now for the strategies:
1. Pattern Trading: Here we see a chart for ETHUSD which is based on candlestick analysis. As you can see when ever you have 2 consecutive red candlesticks on a downward trend, the next signal is always green. So if we are using short time frames for trading it is worth noticing a trend such as this. Additionally, the general direction is upwards so it seems the market is Bullish on Bitcoin on this chart and that is the current overall sentiment.
Patterns such as these are easy to spot, but also change frequently. So in order to be successful you need to enter and exit quickly and make small amounts of money with high frequency. Eventually you will accumulate a substantial amount and cash out.
2. Buck the Trend and Compare: In this scenario we see two small bullish hammers indicating an upward trend on the BTCUSD. A similar trend is seen on the ETHUSD, so its obvious the trend will reverse as we never see more than two consecutive bullish hammers in a row. Looking at this chart we would assume the right move is to sell on the short term contracts as it is most likely to take a downward turn. We also use comparative data on similar assets to validate our conclusions.
3. Use Forecasting Tools: There is a plethora of free tools available today and they are all available free of cost. TradingView offers a free forecasting tool and we have actually used it successfully for the longest time for technical analysis. In this scenario we can see the predictive tool indicates an upward or bullish trend so that is something you may wish to factor into your Bitcoin trading strategy.
4. Use The Trend Line: The trend is your friend, so make sure to look at it when you are making a decision about a certain underlying contract or alternatively when entering or exiting a position. Our team uses this feature constantly as a monitoring tool and to try and understand the general direction of the market trends and also ads a more robust graphic dimension on your technical analysis.
5. Trading the news. It’s important to keep your eyes peeled, ears open and factor in current events and developing news into your trading strategy. To be specific, if Goldman Sachs CEO Lloyd Blankfein comes out with a statement about not rejecting and keeping “an open mind” about Bitcoin it’s going to have an effect on the cryptocurrency.
Additional strategies include MACD, Momentum, Swing Trading, Retracements, Pivot Points, Carry Trade, Fundamental Analysis and more. However, the ones we provided are a good starting point if you wish to focus your efforts with relatively simple strategies.
Automated Versus Manual Trading
Most of the trading in the world is executed via super computers using complex algorithms and extremely fast execution times. Humans can’t make so many split second calculations and execute trades effectively, so it has to be automation and high frequency trading (HFT). However, there are quite a few successful traders who trade for a living and have made a career of it. Some say it’s not easy, and you must have a firm grasp of figures as well as be quick-minded in order to have a fair chance of becoming a successful trader. Needless to say you also have to be ready to take risks, otherwise just stick to your day job. While this may seem true, it’s not necessarily the case in every situation as we have already been successful using our system and we have not graduated from the London School of Economics or have a strong background in engineering or mathematics. We simply learned through trial and error and put together a system that provides a reasonable success ratio of 78% and it is based on a few strategies that if implemented correctly will actually generate consistent income for you on a daily basis.
How To Spot a Bitcoin Scam?
Generally speaking Bitcoin and cryptocurrency scams in general are divided into 3 main categories. The first are Ponzi schemes which are a kind of pyramid and eventually close with the people at the top raking in all the cash. The second type are investment scams which ask that you invest with Bitcoin only and don’t really provide factual information about what is being traded, the true nature of the investment strategy or potential return on investment. These scams can also take the form of get-rich-quick schemes such as the Ethereum Code or Bitcoin Code. The third are more criminal and have to do with malware or Trojan horse viruses taking over your computer and in order to gain your control back you must pay in cryptocurrencies. So the first question you must ask yourself before investing is what is the compensation mechanism and how does it work? The second has to do with the people behind it. And finally you need to check the numbers and see if they add up.
As previously mentioned, genuine Bitcoin investing is usually divided into two types. The first is actually investing and buying the currency at market rates and then holding on to it or selling it depending on how you believe the markets will react. The second has to do with trading Bitcoin opposed to other currencies such as BTCUSD or BTCEUR. This means you are purchasing an underlying contract with a Forex or CFD broker and based on a trading strategy such as the one we have tested are able to produce results.
How Much Time Do I Have to Invest?
After setting up the account and making an initial investment of between $200-$300 you should not have to spend more than 15 minutes a day just monitoring your account and making sure the trades are executed according to the strategy.
The Real Deal and Closing Arguments
Making money with Bitcoin can be tricky, but fortunately our staff of researchers has done the work and executed trades using our strategy and system we have set up. This is not some get-rich-quick scheme with all the hype and inflated bank accounts. We have taken extensive measures to make sure our trading accounts are with tested brokers which have a solid reputation in the online trading community so no one is out to steal your money. If you have any questions or need explanations about how to get started, please mail us at binaryscamalerts(at)gmail.com and we shall be more than happy to assist. We are also available via our Facebook Page and subscribe to our YouTube channel.