Bitcoin popularity is skyrocketing. This undisputed leader in the world of cryptocurrency is taking the world by storm. The positive attention that this coin is receiving reaches all the way to the traders on Wall Street. Can a brand new trader also begin to make money trading Bitcoin?
Bitcoin trading strategies are becoming wonderfully popular. The undisputed king of coins is literally taking the world by storm. It has been a delight to watch this new trustless system flourish and grow.
Traders are delighted as well. Why? For the majority of Bitcoin’s life, it has been a pure bull market for this cryptocurrency. Unsurprisingly, the traders on Wall Street have been involved with Bitcoin. This last point means Bitcoin is a superb trading instrument and worthy of your attention.
The old axiom, “Buy low and sell high.” How is it done?
Advanced Bitcoin trading strategies permit experienced traders to make hugely successful trades. Here we will talk about one of the most basic. It is called the trend line strategy. This is that “Buy low and sell high” plan of action that most have already heard of.
It works, of course, or it would not be so popular. How does a newcomer to Bitcoin trading implement the trend line strategy? This method works by using a simple straight line across the history of prices. Bitcoin has ups and downs in the markets just like other assets. The trend line is a straight line that starts and extends down from one of the last high price spikes. This is not to be confused with the all-time high.
It stops at the bottom of the most recent low. While tracing this straight line, the trend line touches the tops of the past high prices. The starting left end of the trend line is compared to the ending right end. A left end that is much higher than the right is telling traders to enter the market. This will be time to buy low.
Do practice trades on your own
An accurate, successful trade is easier using different tools. Before delving into using your own money to buy Bitcoin, take a look around online at websites that have reliable graphs of past Bitcoin prices. If you use the strategy mentioned above and go from a yearly view to a monthly and weekly view, you may be surprised.
Profitable times to use the trend line may be in more than just the overall or yearly view. Hourly trends can be seen if you take a closer look at the smaller timelines.
Visit a reliable site that shows past Bitcoin prices and traces your own trend lines from Bitcoin history. Use yearly, monthly, and even hourly views. See if you would have been correct. That is, see if you could have made money or not. More than likely, you would have if the left side of the trend line was a lot higher than the right.
Smaller steps and gains lead to bigger steps and gains
There is no doubt about it. Start your Bitcoin trading adventure with easy steps. There is no shame in starting small. The key is to get started. The speed of advancement will depend on you the trader. This is not the lottery we are talking about.
This is not about dumb luck. There are tried and true strategies that traders are using right now to double and triple their money. To make a profit, they simply follow a set of rules. Like learning to ride a bicycle, they started with training wheels and someone to guide them into their first profitable trade.
After a few months or years, they are blasting around like they are on a Suzuki Hayabusa. The seasoned traders do successful trading on their own.
But you forgot the best part
The trend line Bitcoin strategy explains where to buy. How does a new trader know when to sell? When is the right time to sell to do that doubling and tripling of money? This is one of those easy methods as well. Follow the bull market upward until it stops.
At the first sign of another bear market, sell. For newbies, a bull market is when the price of an asset or commodity is rising. In this case, we are talking about Bitcoin. Think of the bull horns. They point where? They point up. Conversely, a bear market is when the value is on the way down.
Think of bear claws. The claws point down. A bear market is happening when the value of Bitcoin, or any other asset, is on the way down.
As with all trading strategies, never invest more than you can afford to lose. At the same time, do some ghost trading to see just how much you could have made. Some sites allow a new trader to use free tokens to start trading in real time. These tokens have no real-world value.
If you can find a market that has this service, why not use them? Now that you know how to begin Bitcoin trading, go ahead and take the plunge. Good luck!
Learning the Basics of Bitcoin Trading