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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.

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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

Blockchain

Indian Olympic Medal Winners to Get Free Bitcoin (BTC) and Ethereum (ETH)

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The cryptocurrency platform Bitbns intends to open a systematic investment plan (SIP) in digital assets for Indian athletes who win medals at the ongoing Tokyo Olympics. The exchange will reportedly grant around $2,700 in crypto for gold medal winners.

‘Faster, Higher, Stronger’ And Earn Crypto

The Economic Times reported that Indian athletes at the Olympic Games could receive cryptocurrencies as a gift if they manage to win a medal at the tournament in Tokyo.

The trading venue that will reportedly provide the offer is Bitbns. The first athletes that can get cryptocurrency exposure for free are the winners Mirabai Chanu and PV Sindhu. The former won a silver medal in 49 kg women’s weightlifting while the latter acquired bronze in the women’s singles badminton at the Tokyo Olympics.

Bitbns plans to roll out a SIP account and grant nearly $2,700 in digital assets for Olympic champions, $1,350 for silver medal winners, and $675 for bronze medalists. It will transfer the amount into their accounts, and after completing the Know Your Customer (KYC) norms, the athletes will have exposure to cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).

The trading venue explained that it would structure the SIP for a 3-5 year period, and thus the medal winners will be able to generate profits in the long term through Bitbns. Gaurav Dahake – the Chief Executive Officer at the platform – noted:


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“Bitcoin and Ethereum have been the best-performing assets in the last decade, and have given exceptional returns and we aim to get our winners indulge in this rewarding journey.”

Indians Love Cryptocurrencies

According to a recent research, Indian residents increased their digital asset investments from $200 million in 2020 to $40 billion for the first six months of this year, indicating that their appetite for cryptocurrencies surged significantly.

What is even more impressive is that Indians, who are well-known gold admirers, started switching their investment strategies from the precious metal to virtual currencies. A local investor explained:

“I would rather put my money in crypto than gold. Crypto is more transparent than gold or assets and yields higher returns in a shorter period of time.”

The survey added that the number of people who trade cryptocurrencies in India is 15 million. It significantly surpasses a well-developed country such as the UK, for example, where 2.3 million individuals have entered the market. Sandeep Goenka – the co-founder of the platform ZebPay – revealed the reasons why the second-most populated country saw this massive increase:

“They find it easier to invest in crypto than gold because the process is so much simpler. You go online, you can buy crypto, you don’t have to verify it, unlike gold.”

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Source: https://cryptopotato.com/indian-olympic-medal-winners-to-get-free-bitcoin-btc-and-ethereum-eth/

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Coinbase halts Bitcoin SV trading after yet another 51% attack

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Bitcoin SV is in trouble once again after Coinbase announced that it will be halting BSV trading on the platform. This update came on the back of a string of attacks the network has been facing since late June. As per the announcement made by the exchange,

“Due to the 51% attack that has occurred on BSV today we are stopping all BSV trading.”

Bitcoin SV was the target of a massive 51% attack early on Tuesday, an attack which was called “the largest since launch” by Blockchair developer Nikita Zhavoronkov. He further claimed on Twitter that the reorganization was 100 blocks deep and wiped out 570k transactions.

The attack was first brought to the community’s notice by CoinMetrics’ Lucas Nuzzi. Arguing that “some serious hashing power” was unleashed on the network early on Tuesday, he revealed that up to three versions of the chain were being mined simultaneously across pools.

Coinmetrics later confirmed that the firm’s own blockchain security monitoring tool FARUM identified the attack.

The Bitcoin Association also confirmed the incident on Twitter, recommending node operators to mark the fraudulent chain as invalid. It’s worth noting, however, that at the time of writing, the Association had released yet another statement on the same.

It said,

“…. believes that this is the same attacker that previously initiated block re-organisation attacks against the BSV network on June 24 and July 1, 6 & 9, 2021.”

Coinbase’s action made waves in the community. However, such steps are perhaps routine for the network now. In the past, BSV has been dropped by top exchanges like Gemini and Binance. It also saw several exchanges block withdrawals and deposits for the asset as liquidity providers suspended access to the token’s liquidity. This was preceded by more attacks in the last week of June and the first week of July.

As far as Coinbase is concerned, the exchange is yet to reveal when it might restart trading services for Bitcoin SV. With many in the community at sixes and sevens, it’s unlikely it’s going to be anytime soon.

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Source: https://ambcrypto.com/coinbase-halts-bitcoin-sv-trading-after-yet-another-51-attack

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Looking To Pull An El Salvador, Spain Considers Bill To Allow Mortgage Payments In Crypto

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Looking To Pull An El Salvador, Spain Considers Bill To Allow Mortgage Payments In Crypto

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Cryptocurrency and blockchain are becoming quite mainstream as of this year and it’s likely that just about any financial transaction will be able to be completed via the use of crypto in the next few years. Of course, there are bodies pushing against the integration given the lack of regulations and the fact that it could help finance illicit acts.

However, the crypto wave is continuing to grow despite all of the recent adversity. And, according to Spanish paper 20 Minutos, Spain could begin to allow persons to pay their mortgages with crypto pretty soon.

The publication reports that Spanish lawmakers are perusing a proposal that would see to the above. The Digital transformation Law, as it’s called, would make it so that crypto and blockchain become legitimized, while tax incentives are being considered for institutions keen on working under the artificial intelligence umbrella, which would include blockchain tech.

Spain’s incumbent People’s Party is intent on having the country’s banking infrastructure catch up to the times in terms of tech and will promote the use of digital currencies, as well as various other transformative technologies. The proposal suggests that the country’s whole mortgage system should undergo reform, in addition to having crypto payments possible.

El Salvador Took The Lead

This comes on the back of El Salvador’s move to accept bitcoin as legal tender. The Central American nation is very pro-crypto in such regard and it appears they have set the stage for other countries to naturalize digital assets, so to speak.

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Where Spain is concerned, the current proposal advises that banks use blockchain as a means of operating the mortgage system while making use of smart contracts for insurance.

“Introduction into the mortgage system – it also proposes that banks use Blockchain technology to manage mortgages, insurance and speed up compensation – it proposes to extend it to insurance policies, with ‘smart contracts’ with conditions depending on the procedures to be followed, the verification processes and potential incidents.“

El Salvador making bitcoin legal tender was a huge move and we aren’t yet to see the full scope, although the country’s population stands at just 6.5 million so they aren’t expected to have that great of an impact on a worldwide scale. Spain is a different case, however.

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Source: https://zycrypto.com/looking-to-pull-an-el-salvador-spain-considers-bill-to-allow-mortgage-payments-in-crypto/

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