Aug 15, · That means the market, for a prolonged length of time, has been trending upwards. During these periods, nearly anyone can make money trading Bitcoin or any asset class. If the price, tomorrow, will be more than the price today, the average investor can make Author: Coinbeat. A bitcoin mining calculator considers the cost of electricity, the cost of Bitcoins, the hash rate and various other factors such as the difficulty of mining, pool fees, block rewards etc. to determine the hourly, daily, weekly, monthly and yearly profit that you would make on your mining activity. How to sell Bitcoin: Exchanges The best exchanges are licensed and trustworthy. Next, you want one with a high volume and a narrow bid / ask spread for the coins you want to sell. This should mean that it will be relatively easy to find a buyer on this exchange.
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It is used to basically analyze the total money flow in and out of an instrument. The OVB uses a combination of volume and price activity. This tells you the total amount of money going in and out of the market. How to read the information from the OBV indicator is quite simple.
Here you can learn how to profit from trading. In theory, if Bitcoin is trading up and at the same time the OBV was trading down, this is an indication that people are selling into this rally. The same is true in reverse if Bitcoin was trading down and at the same time the OBV was trading up. What we really want to see is the OBV moving in the same direction as the Bitcoin price.
In this regard, our team at Trading Strategy Guides uses the OBV indicator with other supporting evidence to sustain our trades and gain more confirmation. The next step comes from the Ethereum trading strategy which will be used to identify Bitcoin trades. Now, before we go any further, we always recommend taking a piece of paper and a pen and note down the rules of the best Bitcoin trading strategy. Your chart setup should basically have 3 windows.
One for the Bitcoin chart and the second one for the Ethereum chart. Last but not least, make one window for the OVB indicator. If you followed our cryptocurrency trading strategy guidelines, your chart should look the same as in the figure above.
Simply put, we are going to look after price divergence between Bitcoin price and Ethereum. Smart money divergence happens when one cryptocurrency fails to confirm the action of the other cryptocurrency. For example, if Ethereum price breaks above an important resistance or a swing high and Bitcoin fails to do the same, we have smart money divergence. And the Ethereum trading strategy as well. In the above figure, we can notice that Bitcoin's price fails to break above resistance while Ethereum's price broke above and made a new high.
This is the first sign that the best Bitcoin trading strategy is about to signal a trade. The same principles have been true for all the other major asset classes for decades.
Before buying, we need confirmation from the OBV indicator. This brings us to the next step of the best Bitcoin trading strategy. If Bitcoin is lagging behind the Ethereum price it means that sooner or later Bitcoin should follow Ethereum and break above the resistance.
Simply put, the OBV is a remarkable technical indicator. It can show us if the real money is really buying Bitcoin or if they are selling. What we want to see when Bitcoin is failing to break above a resistance level or a swing high, and the Ethereum already broke, is for the OBV to increase in the direction of the trend.
We also want it to move beyond the level it was when Bitcoin was trading previously at this resistance level see figure below. Here is how to identify the right swing to boost your profit. Now, all it remains for us to do is to place our buy limit order, which brings us to the next step of the best Bitcoin trading strategy. Once the OBV indicator gives us the green signal, all we have to do is to place a buy limit order. Place the order at the resistance level in anticipation of the possible breakout.
After all, we told you the OBV is an amazing indicator. Now, all we need to establish is where to place our protective stop loss and when to take profits for the best Bitcoin trading strategy.
Placing the stop loss below the breakout candle is a smart way to trade. When it comes to our take profit, usually an OBV reading above , is an extreme reading that signals at least a pause in the trend. This is where we want to take profits. In the figure below, you can see an actual SELL trade example, using the best Bitcoin trading strategy. While bitcoin day trading does have some risks, there are many ways these risks can be reduced. Here are some of the top ways to enhance your Bitcoin trading strategy.
Maybe one day our fiat money system will go under and be completely replaced by cryptocurrencies. However, as long as there are still profits to be made from Forex currency trading we encourage you to read our receipt for Forex trading success: How to Make Money Trading — 2 Keys to Success. We hope that The Best Bitcoin Trading Strategy — has shed some light on how you can use the same technical analysis tools that you use for trading the Forex currency market to now trade the cryptocurrencies.
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Thanks, Traders! We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more.
Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow. We want to share with you some important information about Trading Strategy Guides as we move forward to our goal to help 1,, Traders find a strategy that suites them best. We want you to fully understand who we are as a Trading Educational Website We will send out many free trading strategies for you to learn and apply to your trading system right away Our team gathers a vast amount of information and comes up with some of the simplest and easiest trading strategies to follow each week.
We are highly motivated to do this for you because we love helping people succeed who are serious about trading. Our Goals. The crypto Market is the highest market now. You can be part of the people who are earning a living through trading cryptos. With just half a bitcoin, you can make up to 3 bitcoins in a week.
Contact me via kramerp04 gmail. If you want to buy more bitcoins up to 0. Forex Trading for Beginners. Shooting Star Candle Strategy. Swing Trading Strategies That Work. Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page. Info tradingstrategyguides. Facebook Twitter Youtube Instagram. How to Start Trading Bitcoin: The first thing you need to get started trading bitcoin is to open a bitcoin wallet.
Available in the United States, Canada, and the majority of countries in Europe. Offers several payment options. Binance is the second-largest exchange that trades over different currencies.
Has low transaction fees 0. Bitmex is the third-largest exchange and only trades BTC. Great for short selling and margin trades. Bittrex is a US-based exchange founded by ex-Microsoft security professionals. OKEx is a Hong Kong-based exchange. Trades over different cryptocurrencies. Coinmama - allows you to buy and sell easily. Accepts credit cards and has a large global reach.
How to Day Trade Bitcoin While long term traders prefer to hold their bitcoin positions for extended periods of time, day traders have discovered that Bitcoin is lucrative for many reasons: Crypto trading is more volatile than stock trading.
Bitcoin is traded 24 hours per day 7 days a week. Bitcoin allows for big trades with low overhead. Bitcoin is the most liquid form of cryptocurrency.
Multiple trading opportunities emerge within a 24 hour period. The Best Bitcoin Trading Strategy — 5 Easy Steps to Profit This is a cryptocurrency trading strategy that can be used to trade all the important cryptocurrencies.
Now… Before we move forward, we must define the mysterious technical indicator. You'll need this for the best Bitcoin trading strategy and how to use it: The only indicator you need is the: On Balance Volume OBV : This is one of the best indicators for day trading bitcoin. What do we mean by this? Step 3: Look for the OVB to increase in the direction of the trend. But, how do we know that? Step 4: Place A Buy Limit Order at the resistance level in an attempt to catch the possible breakout.
That means the market, for a prolonged length of time, has been trending upwards. During these periods, nearly anyone can make money trading Bitcoin or any asset class. If the price, tomorrow, will be more than the price today, the average investor can make money with little to no market understanding.
Since mid-December, however, this trend has been turning the other way. Taking a look at the graph below, you can clearly see this downward trajectory over the last day period. During these times, a person who lacks market experience and knowledge will likely lose money and not be able to generate a return. Professional traders, however, will. Additionally, while a day trader can buy low and sell high in a bull market, during a bear market, those patterns usually result in a succession of lower peaks and bigger dips.
This makes it impossible for the average trader who is not properly trained to make money and they may actually lose more than if they had simply held through the fall.
The second part to this is what you are planning to keep as a reserve currency? If you are attempting to grow your USD value, for example, then in a bull market it is very possible as the value of BTC continues to increase against the dollar. In a bear market, it would be a tall order to accomplish, as the value is decreasing against the dollar. That being said, if you were simply trying to increase the amount of Bitcoin you have during these downtrends, that would be a lot easier.
This is because, though they both are dropping in value against the USD, they will not drop at the exact same rate on the way down. So, during a downtrend, Ethereum would be converted to BTC, and during an uptrend, it would be converted back to Ethereum. This is by no means a guarantee and I have seen the market do the opposite as well. In both cases, however, you will have less USD in coin value. When the market turns bullish, you will have a lot more of either currency and will profit immensely.
The final part is how much time can you devote to trading? If you can only spend a few hours a day trading, many times you will find the opportunities going back and forth between currencies will be missed.
Additionally, not being around during flash crashes or panic sells, or not taking profits when markets reach resistance levels, will mean you may make nothing. Professional traders also spend countless hours working on these strategies and doing market research to identify opportunities. You will also need to identify what your overall strategy is. Are you going to try and make profits in fiat? I also strongly suggest educating yourself on financial.
Another key — and a huge part of deciding your strategy — is to keep up-to-date on rules, regulations, sector news, and whatever else may affect the markets and increase volatility. CoinBeat is a great place to get that information, as we aim to deliver those details directly to our readers and put them ahead of the informational curve.
If you can put those things into play, you can make a decent return and live trading cryptocurrencies like Bitcoin. For example, though it is possible for anyone to cook a meal, it is not possible for everyone to devote the time and energy required to run a successful restaurant.
Hence why we have professional cooks. If the swings in a single day are more, they make more. In the above chart, for example, if a trader had cashed out at every peak and bought back in at every dip, they would have made a very tidy profit even in a falling market. That, however, would have taken a strong understanding of market signals, intuition that can only be gained by actively trading, and a knowledge of where resistance and support levels within the market were.