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The Best Bitcoin Trading Strategies (That Still Work in 2020)

Sponsored: This guide can introduce newcomers to some of the most common bitcoin trading strategies.

The post The Best Bitcoin Trading Strategies (That Still Work in 2020) appeared first on Bitcoin Magazine.

Republished by Plato

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This is a sponsored article provided by NordikCoin.

Bitcoin trading has never been more popular than it is now, and the market doesn’t show any signs of slowing down. So, if you’ve considered getting in on the action, now is the time to strike.

While there are numerous bitcoin trading tools available, you still need an understanding of the basic strategies to succeed.

We’ve created this guide to introduce newcomers to some of the most common trading strategies. But seasoned traders may also wish to refresh their memories and adopt new strategies for 2020.

Here’s what we’ll cover in this trading strategy guide:

  • HODling
  • Hedging
  • Trend trading
  • Breakout trading

If you’re eager to get started, then we suggest you head over to NordikCoin and create an account now. It only takes a few minutes, and then you’re ready to buy and sell bitcoin.

1. HODLing

The term “HODL” was coined on the Bitcointalk forum back in 2013. It’s not an acronym for a complex trading strategy — it’s simply the word “hold” misspelled. The author of the original post mused that traders who were new to the game or unsure of their trading skills were better off HODLing their bitcoin in a bear market.

Back in 2013, bitcoin saw a surge from less than $15 per BTC to over $1,000 toward the end of the same year. The term “HODL” has appeared in numerous cryptocurrency memes and is now a widely-recognized trading strategy.

The premise is simple: Hold onto your bitcoin and hope that the price will surge again so you can sell with massive gains. It’s not a very elaborate trading strategy, but it can be sound advice for new traders.

It’s worth noting, however, that the bitcoin price could also dip instead of rising. That’s why we advise you to have a plan for risk management in place if you choose to go this route.

2. Hedging

Ever heard of the term “hedge your bets”? That’s exactly what this trading strategy is all about.

Since bitcoin is volatile, there’s always a chance that you’ll lose money on trades in the short term. That’s why it can be a good idea to hedge your bets by opening a trade that’ll mitigate that risk.

There are a few ways to go about that.

You can short-sell, which means you sell your bitcoin with the expectation that the price will go down so you can buy it back at a lower rate. Many traders will borrow bitcoin from a broker, trade it on an exchange and then return the amount they borrowed.

But that can be risky if the price goes up instead of down.

You can also hedge with contracts for difference (CFDs), which are derivatives rather than actual cryptocurrency. In that case, you’ll hold your bitcoin in the hopes that the price will go up in the long run, but open a CFD that bets on the price falling. Whether the price actually goes up or down, your gain on bitcoin or the CFD will offset the loss on the other.

Finally, you can hedge your bets with bitcoin futures. These are contracts between two parties who agree to trade bitcoin at a certain price on a specific future date. Whether the price of bitcoin has gone up or down on that date, you’ll make the trade and take either the win or the loss.

3. Trend Trading

Trend trading is a strategy that relies on the current trends in the Bitcoin world. You’ll need to keep a close eye on what others are talking about and plan to do.

For example, bitcoin became incredibly popular in 2017, when the price rose to almost $20,000 per BTC. There were many reasons for that, but the main one was that bitcoin received a lot of publicity. That meant more people wanted to get in on the action, which increased demand — and thus increased the value of bitcoin.

You can engage in trend trading over any period of time, whether that’s days, weeks, months or years.

You just need to have an idea of what will happen next.

For that purpose, you can use technical analysis to help make an educated guess. Some of the indicators in technical analysis include relative strength index (RSI) and moving averages over time.

Although trend trading can seem less risky than other strategies, it’s worth remembering that there are hundreds, if not thousands, of factors that influence the price of bitcoin. These include businesses adopting bitcoin, other cryptocurrencies entering the market and governments implementing new trading regulations.

4. Breakout Trading

Breakout trading is similar to trend trading; the difference is that you aim to buy or sell bitcoin at the beginning or end of a trend.

You need to understand support and resistance levels, which are often referred to as the floor (support) of the bitcoin price graph and the ceiling (resistance). In other words, these are the price points bitcoin won’t drop below or rise above.

The points at which those levels are broken either upward or downward are called “the breakout points.” Once this happens, you can usually expect the price to become very volatile. 

Again, the trick is to correctly anticipate what will happen next.

If you’re able to do that, then you can make some really good deals. There are different ways to identify the support and resistance levels, including to look at volume levels, RSI or the moving average. Once you know that, you can create an order to buy or sell at a specific price point that makes sense.

As with the other three strategies we’ve covered, breakout trading is not without risk. So even though you’re able to create an automated buy or sell order, it’s wise to keep a close eye on the market movements rather than to remain passive.

What to Know Before You Trade Bitcoin

Before you dive headfirst into bitcoin trading, there are some last points we need to touch on. As mentioned, it’s easy to get started with bitcoin but not as easy to become a master of the art.

1. Research Your Chosen Trading Strategy

There is more to each of the four trading strategies than we’ve covered in this guide. Make sure that you do proper research before you commit to any of them.

Fortunately, there are many resources online, including e-books, e-courses and videos that will teach you how to trade bitcoin.

Just remember that none of the strategies, regardless of how popular they are, come without risk.

2. Create A Bitcoin Trading Plan

Once you know which strategy you want to pursue, you should create a trading plan. Just like any other business venture, it’s important to have your criteria for success and failure in place.

Without a plan, you could become the victim of your own greed for more or fear of losing. The plan should include realistic goals for how much you hope to make and a risk profile that includes how much you’re willing to invest or lose.

3. Make Sure You Mitigate Any Risks

We’ve mentioned risk a few times now, and there’s a good reason for that.

All trade, whether it’s stock trading or bitcoin trading, involves a certain element of risk. One of the main risk factors in bitcoin trading is the volatility of the bitcoin price.

One of the ways you can mitigate risk is to put limit-close and stop-loss orders in place. That way, you can secure any profits or limit any losses before the market gets out of hand.

4. Find A Safe and Reliable Bitcoin Exchange

Finally, you should carefully consider your options when it comes to bitcoin exchanges. Not all exchanges are equally fast and safe to use, so we recommend you do your research.

NordikCoin is a convenient and secure bitcoin exchange. We enable you to buy and sell within minutes so you don’t lose out on a good opportunity.

At the same time, we take great care to protect your bitcoin. We use a multi-signature and cold storage solution to prevent unauthorized access to your funds.

Ready to Make a Killing in 2020?

We hope you’ve found a Bitcoin trading strategy that’ll make you rich in the new year. The four approaches we’ve covered are all tried and tested. But remember to do some further research, and don’t be afraid to reach out to us at NordikCoin if you need some extra advice on how to open an account.

The post The Best Bitcoin Trading Strategies (That Still Work in 2020) appeared first on Bitcoin Magazine.

Source: https://bitcoinmagazine.com/articles/the-best-bitcoin-trading-strategies-that-still-work-in-2020?utm_source=rss&utm_medium=rss&utm_campaign=the-best-bitcoin-trading-strategies-that-still-work-in-2020

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By The Numbers: The Rate Bitcoin Must Climb To Reach $100K By July

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Bitcoin is a numbers game through and through. There are only 21 million BTC. The code and its consensus algorithm are both made up of complex math. The total coins are slashed in half every four years, and so on and so fourth.

Most important of all, here’s the growth rate Bitcoin price must hit steadily to reach $100K per BTC by July 2021 according to one crypto capital manager – as well as the one thing that could get in the way.

Bitcoin Price Growth Rate Should Take Crypto Valuation To $100K By July

Bitcoin’s growth from virtually worthless to more than $60,000 per » Read more

” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin today is nothing short of incredible. Even beyond ROI that is simply incomparable, the story of how the » Read more

” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin came to be reads as if it was ripped from a sci-fi film: Mysterious person takes a shot at all money, and takes no credit for the monumental effort.

Related Reading | Crypto Analyst Expects “Escape Velocity” When Bitcoin Breaks $60K. Here’s Why

» Read more

” href=”https://www.newsbtc.com/dictionary/satoshi/” data-wpel-link=”internal”>Satoshi’s creation is now more than a decade old and has grown far beyond most people’s expectations. Over the last year alone, the leading cryptocurrency by market cap has grown at a daily average rate of 0.65% since April, resulting in a nearly a ten times climb in value.

At the current pace, according to crypto capital manager Timothy Peterson, Bitcoin price would reach $100K by June 30th.

bitcoin 100000 july

At only a daily growth rate of 0.64% the top crypto should hit $100K by July | Source: BTCUSD on TradingView.com

The One Factor That Could Cause BTC To Fall Short Of Target

Bitcoin price must maintain comparable momentum over the last year to keep climbing at a similar rate and reach more than $100K per » Read more

” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin. The number is now closer to the current price action than $10K is, and thus potentially more achievable.

Related Reading | Mathematical Mystery: Why Did The Bitcoin Rally Stop At The Golden Ratio?

Price predictions for the next cycle top reach as much as $400K, with estimates more steeped in reality ranging from $125,000 to $325,000 per BTC.

bitcoin btc pi cycle top indicator

The rally could really be over if the historically accurate signal is right again  | Source: BTCUSD on TradingView.com

There’s a chance, however, the cycle top is in, according to the Pi Cycle Top Indicator. If the historically accurate tool is right yet again, the leading cryptocurrency’s daily growth rate will begin to decline from here on out until another bull market breaks out.

Bitcoin price wouldn’t make it to $100K by July, and a return to prices much lower would follow. If that’s the case, crypto investors would have to wait a while longer for the number one cryptocurrency by market cap to reach that ultimate target.

Featured image from Deposit Photos, Charts from TradingView.com

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.newsbtc.com/analysis/btc/rate-bitcoin-100k-by-july/

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Bitcoin’s time has come: TIME magazine to hold BTC on balance sheet

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Institutional fund manager Grayscale has partnered with acclaimed New York-based magazine TIME to produce an educational video series on the subject of crypto assets.

The partnership was announced on April by Grayscale’s CEO, Michael Sonnenshein, with Sonnenshein revealing that TIME and its president, Keith Grossman, will receive payment in Bitcoin.

Further, TIME does not intend to convert the Bitcoin it receives through the deal into fiat, and will hold the crypto asset on its balance sheet. No further details of the partnership have been revealed so far.

TIME was first published on March 3, 1923, with the magazine and online publication having been active in the crypto space of late. In March, TIME cashed in on the NFT mania by dropping a set of tokenized magazine covers on NFT marketplace SuperRare, with the “TIME Space Exploration – January 19th, 1959” NFT fetching 135 ETH worth almost $250,000 on March 30.

The company also revealed they were seeking a crypto-friendly Chief Financial Officer in the same month after listing the position on Linkedin.

“The media industry is undergoing a rapid evolution. TIME is seeking a Chief Financial Officer who can help guide its transformation,” the listing said.

According to Bitcointreasuries.com, TIME will become the 33rd publicly traded company to hold Bitcoin on its balance sheet. TIME joins the ranks of top U.S. companies Microstrategy — who have invested billions into BTC from August 2020, Square — who added 4,709 BTC to their treasury in October, and Tesla — which purchased $1.5 billion worth of BTC in January. Multinational investment corporation Blackrock also began dabbling in crypto during February, profiting more than $360,000 from a small long using Bitcoin futures.

This deal marks a significant partnership between giants of the mainstream and crypto worlds. Grayscale was founded in 2013 and has $46 billion worth of crypto assets under management, including roughly 3% of Bitcoin’s total circulating supply.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/bitcoin-s-time-has-come-time-magazine-to-hold-btc-on-balance-sheet

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Moonstake integrates with Sylo to bring their staking protocol to the Sylo Smart Wallet

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Moonstake, a staking pool protocol and service provider, has announced a new partnership with Sylo, a decentralized software development firm and the creators of the Sylo Network and Sylo Smart Wallet.

Through this collaboration, Moonstake will connect Sylo with their robust API/SDK solution, thereby enabling staking functionalities in the Sylo Smart Wallet and allowing Sylo users to earn passive income from their idle crypto assets.

Founded in 2010, Sylo is committed to decentralization and has created an ecosystem consisting of digital consumer wallet software, applications, infrastructure, and developer tools in order to usher in a decentralized future worth looking forward to.

A unique wallet app that combines digital asset management with decentralized communication, the Sylo Smart Wallet is a savvy decentralized e-wallet that enables users to purchase, store, track, send, and receive crypto assets, explore the world of Ethereum dApps by means of a Web3 Browser, pay with cryptocurrency in the real world, and provides secure communications by chat or audio/video call.

“We’re pleased to offer our community of global users yet another way to access the benefits of crypto. As always, our user flow has been designed with simplicity in mind, and staking via Moonstake in the Sylo Smart Wallet will make earning from digital assets simple enough for people everywhere.”
– Dorian Johannink, Co-Founder and Business Director of Sylo

Born over a year ago with the aim to create the largest staking network in Asia, since its inception Moonstake has developed highly user-friendly wallets for both Web and Mobile (iOS/Android) that are compatible with over 2000 cryptocurrencies.

After a full-scale operational launch in August 2020, Moonstake’s total staking assets have grown rapidly to reach USD 800 million in staked assets over just six months. Within a year of its founding, Moonstake became ranked in the top 10 of the world’s premier staking service providers and it continues to strongly expand its business.

“The Sylo Smart Wallet is an interesting e-wallet that combines the functionality of a flexible digital asset management tool and a secure instant messaging app. We are happy to help proper crypto projects like Sylo enable staking in their wallet so that users can have more ways to earn with crypto. With a wide selection of PoS coins and attractive yield rates from our high-quality staking pools, we are confident that users will be pleased with their staking experience on Sylo powered by Moonstake.”
– Mitsuru Tezuka, Founder of Moonstake

Source: moonstake.io

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.cryptoninjas.net/2021/04/13/moonstake-integrates-with-sylo-to-bring-their-staking-protocol-to-the-sylo-smart-wallet/

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