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Gain in-depth Knowledge about the Most Popular Bitcoin Trading Strategies!

Are you a trader? Do you want to trade bitcoin but have less knowledge about bitcoin trading strategies?

Well, there are some popular bitcoin trading strategies that you can choose to apply while trading bitcoin depending on your available capital, risk enthusiasm, and your goals.

Trading bitcoin is a bit daunting as it requires a complete understanding of the bitcoin market.

Gain in-depth Knowledge about the Most Popular Bitcoin Trading Strategies!: eAskme
Gain in-depth Knowledge about the Most Popular Bitcoin Trading Strategies!: eAskme

Other people are at: Features that Make Bitcoins a Top-Notch Cryptocurrency

Because its market is highly volatile, some traders find it quite risky to trade bitcoin.

You can learn to trade bitcoin through the very famous platform like www.bwcevent.com.

We are introducing to you some very popular bitcoin trading strategies that are described in detail.

These strategies will help you to make profits in the bitcoin market if done with proper planning and implementation.

Let us move forward and gain knowledge about bitcoin trading strategies.

Breakout trading

Bitcoin breakout trading strategy is one of the best strategies that many people adopt as it requires traders to enter the bitcoin market at the earliest and be ready for the value of bitcoin to breakout from the previous value.

Breakout trading strategy means when the bitcoin market will break because of the resistance level of key support; after that, volatility in price will start and will increase.

Bitcoin traders must learn when it is the right time to enter the market when using a breakout trading strategy.

Key support and level of resistance are required to be identified by bitcoin traders, and in order to understand these, traders can make use of volume levels as technical indicators or signals of confirmation like MACD (Moving Average Convergence Divergence). After identifying resistance levels, traders can open a position according to the market.

Trend Trading

Trend trading bitcoin market is a strategy where the market reaches either lower lows or higher highs consistently.

Trend trading strategy is only suitable for traders of different timeframes as they can hold their position open in the market as long as the trend continues, and it can either be for hours, days or months.

The bitcoin market is a trend in itself because there are high fluctuations in the price of bitcoin.

Its popularity increased in 2017, and its price skyrocketed, and people who didn't trade or invest in bitcoin at that time missed the thrilling experience.

People who didn't miss out on that huge surge in price and popularity of bitcoin and experienced are referred to as Fear Of Missing Out (FOMO). Bitcoin is highly popular, and even a news headline or event can influence its price.

Traders who use trend trading strategies often learn technical analysis to learn about the bitcoin market's direction.

Traders must open a position when they feel or believe that bitcoin will move from its current price or direction to a new trend.

HODLing

One of the most popular bitcoin strategies is referred to as HODLing, which means 'holding on for dear life.'

HODLing tern was introduced in 2013 when bitcoin's price was falling, and one of the bitcoin users used the term hodling instead of holding.

Later, it becomes a strategy that people used to maintain quite a long position in bitcoin, expecting the price to rise in the long-term.

However, the bitcoin market is highly volatile, and sometimes HODLing bitcoin results in huge losses.

It is recommended to only use the HODLing strategy when you have a risk management plan and only trade a limited amount of funds using this strategy.

Hedging

Hedging bitcoin is the strategy where traders open strategic trades to reduce or eradicate the risk of positions that already exist.

Most individuals often consider hedging a risky strategy because they believe that digital currency prices will decline in the short-term.

For instance, a trader hedge by open a position that includes selling bitcoin at the current market price, expecting that price will decline.

If the market price of bitcoin falls, as a trader, you can easily buy bitcoin back at less rate and make a profit.

It is imperative to know that hedging involves risks as you will use it as a short-term selling strategy.

You must have a proper risk management plan if you plan to hedge your bitcoin.

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