Today’s article is all about the cryptocurrency trading strategy that you’ve probably been hearing so much about. There are tons of cryptocurrency trading strategies that promise to make you rich. Our team at Trading Strategy Guides understands that now everyone wants a piece of the pie and that is the reason why we have put together the best Bitcoin trading strategy PDF. We have also created a complete strategy article that has a list of all of the best trading strategies we have created.
The second one is Extraordinary Popular Delusions and the Madness of Crowds. This investment classic, written in 1841, is the best book ever written on market psychology and will explain everything you need to know about just why cryptocurrencies have captured the imagination of the investing public. While it’s a long book, you only need to read three chapters: John Law's Mississipi Scheme, the South Sea Bubble, and Tulipomania.
Be more cautious about investing your 401k into Barry Silbert’s Bitcoin Investment Trust $GBTC. The (European) XBT Provider ETN is an open-ended fund which means it maintains a premium to the NAV close to 0% at all times. The Bitcoin Investment Trust is an inferior investment vehicle because it is a closed-end fund (it does not increase its holdings of the underlying asset when demand for the product increases) which means it is subject to wild swings in its premium, which has been as high as 150%. So you could make the mistake of buying when the premium is high and suffer swingeing losses even when the Bitcoin price is stable.
The first thing you need to do before you invest in a crypto is to analyze its trading volumes. As a rule, always go for cryptos that have high daily trading volumes, unless there are some big upcoming news about a low volume crypto. High volumes signal to a Crypto’s liquidity, and the presence of an active community. The problem with low volume cryptos is that in most cases, they lack a strong community backing them, and they can easily get delisted from exchanges, leading to losses.
This is the perfect opportunity for investors with the available funds to buy the undervalued cryptocurrencies. As a trader, you use your expertise to assess the market conditions and fundamentals to predict when the market is most undervalued and likely to make a recovery soon. Then, just make your trades and hold out during the period of fear and uncertainty, all while making a nice profit when the market returns to sanity.
The ICON technology (ICX) is incredibly exciting because it aims to harbor the single largest decentralized global network. It aims to provide its users a certain degree of connectivity between countries and cultures around the world that’s currently just not possible or non-existent. This network gives way to businesses and individuals to communicate, transfer, deposit, and in many different ways cooperate with each other in a never seen before way. ICON shows extraordinary potential for the future, but it’s already boasting a large community made of reputable security institutions, banks, hospitals, insurances, universities and institutions in many other sectors. Crucially, ICON is NOT yet tradable in South Korea – when that changes I expect this coin to moon.
For example, if it was thought that things were getting very frothy, and most of the people who were getting in were just gamblers who were buying on credit, then that might be the time to cut loose using that as your signal rather than using a technical one. On the other side, if you have cryptocurrency that is just hammered to the floor with everyone thinking it’s dead and everyone’s out of it, one can use this opportunity to make a few purchases as a long-term investment and wait for the upturn.
I have been using Coindex for a long time now and am constantly impressed by the time and care Josh and Cellaflora put into the project. There is an emphasis on perfection and testing the app's features before release and this has amounted to a polished and irreplaceable part of my iPhone. Coindex will always have a space on my dock and can't wait to see what they add next :)
Watch out for odd Altcoins and ICOs. The market is tricky enough with the major coins, it is even trickier with odd alt coins and ICOs. Yes, sometimes you can buy these low and see insane gains. In fact, getting it right is the best bet in crypto. The problem is, almost all the odd coins down the list and ICOs will spend the majority of their life being near worthless. Then, you may see a short time span in which these coins preform well. You would think that you would be able to take profits then, but so many people do not. After that one event these can end up in the graveyard. Yeah, you could make it big on low cost alts and ICOs… but I’ve seen more than a few people lose money. Be careful bottom fishing, Bitcoin might not make you rich, but it is a way less risky bet than coins further down the list.
Watch out for scams. There are a few different scams in the crypto world. Anything that isn’t buying a coin with a good reputation is a big risk. Learn more about scams. In short, be super careful about anything that promises free coins, sick returns, or wants you to lend your coins. Buy the top coins using a careful strategy and ignore all the sites promising you they can outperform the market if only you give them X, Y, and Z.
ACTION: Go out and find a few other people that trade, find people you trust. Start a group chat on Facebook messenger — or on whatever platform you prefer. Each of you should research 2–3 credible sources to begin following and then delegate the sources equally. Each day your team should study their respective sources and relay only the necessary information to the group, focus only on information that is crucial for advising trading decisions.
What makes the platform appealing is the easy process of opening an account and getting verified. It also provides users with the options of dealing in ample amount of crypto pairs with ultra-security features. Another noteworthy point here is that the platform offers 15+ free & automatically generated digital wallets as well as a variety of payment and withdrawal methods including cards, e-wallets, wire, and crypto-wallets.
As mentioned above, get ready for tracking and research. If you want to be successful, track the latest cryptocurrency news, ranking and key indicators daily. Join the discussion threads on Reddit and Telegram. And don’t be afraid to ask fellow traders questions. If you look at those discussion threads, you will see that it is a very engaged and helpful community. This will help you to make smarter decisions. But don’t do the FOMO trade (Fear Of Missing Out). Don’t be caught in the fear of missing out the next big opportunity in the crypto space.
Bitbuy.ca is a Canadian owned and operated digital currency platform. Originally founded as InstaBT in 2013, the company’s mission is to provide convenient, dependable and secure access to Bitcoin and other digital currencies. Customer service, ease of use, and quick turnaround times for deposits and withdrawals are pillars of this platform. They cater to beginners as well as experienced traders, and are one of Canada’s quickest growing buy/sell platforms. A great choice for users looking to buy and hold crypto, or users looking for a reliable on-ramp to turn their fiat into crypto quickly and easily.
For instance, you might have a day trading strategy that exploits differentials in tightly correlated cryptocurrencies: BTC and ETH, for example. If you think that BTC and ETH are tightly correlated and you see that ETH is disproportionately low, you might buy ETH with the expectation that ETH will rise up again to restore its typical relationship with BTC. However, this might be a case of contagion: the whole market is going down. In this case, your technical analysis could be your downfall: you’ve just bought into a position that’s still going down.
Back in the dotcom era many people made millions piling risk on risk as the market boomed then bubbled. When the bubble burst they lost everything. You must always look to spread your risk even when or especially when things are going great. Keeping all your money on the table and piling it up on each play will in the end break your bank. A lot of investors in crypto are feeling that pain right now and the “HODL” (a bitcoin community term referring to holding a cryptocurrency rather than selling it) incantation will not make them whole anytime soon.
Stop limit orders are really only useful when selling coins. They allow us to set a condition: we specify a price, and if the price becomes less than or equal to that price, a market order is automatically placed for us. The advantage here is that if we need to step away and will not be able to watch the price, we have some protection if the market begins to plummet. The disadvantage is that we are counting on there being good buy orders available to fulfill our sells. If a massive amount of market sell orders were to be executed right before your stop is triggered, it’s technically possible to be left with the bottom of the barrel. This has happened before, but is not common.
If your focus is to conduct crypto-to-crypto trading, Binance is one of the best options. Ranked as one of the most popular cryptocurrency exchanges worldwide, they provide you with impressive offerings along with an extremely low trading fee. Although the Binance platform is a young entrant into the market, it is rapidly growing, and holds a huge selection of altcoins with Bitcoin, Ethereum, and Tether pairings.
When Bitcoin forks into a new cryptocurrency… everyone gets free coins. When Bitcoin Cash was created, everyone holding BTC got 1 Cash for every BTC they had. Next time Bitcoin forks this will be true again. NOTE: Forks can be confusing; if you aren’t in the fork for the capture date (which isn’t always clear) you don’t get the free coins. DO NOT CHASE FREE COINS (see next point).
Investing isn’t poker or rather it should not be a gambling game. If you go all in with investing in an asset or two, you are almost certain to lose everything, it is just a law of probabilities. Diversify. Do not believe anyone who tells you otherwise, ever. Of course this new generation’s first instinct is to go all in and then when a correction or crash sets in, they lose everything. They then go away and never come back. It’s a never-ending cycle.
Certain candlesticks contain powerful clues about the direction of order flow and where the price is likely to go. The mighty engulfing bar is one of them and marks levels where reversals are likely to occur. Engulfing the entire price range of the preceding candle says much about where the big market players are putting their money. More about engulfing bar crypto trading coming soon!
Dad Advice: Don’t invest more than you can afford to lose. No really, there will be many great investments in your lifetime, there has been in Bitcoins lifetime. Bitcoin doesn’t cost $225 anymore. The chances that you’ll never have to work again if you invest your life savings in Bitcoin aren’t non-existent, but they aren’t as good as they used to be. If Bitcoin ends up down, you’ll be hodling the bag while others are on to better and brighter pastures.
You might buy in to your Ethereum position at $1000, you set your sell position $1300. Your sell order could take days, weeks, months, years or till the end of time to be filled. Once it has been filled, you then take that profit and you roll it over in to a new buy over at, say, $1100. Choosing good targets for your buy and sell orders is crucial if you want to be a successful swing trader but overall swing trading cryptocurrency is pretty easy – set your orders and then just wait.
Consider Bitcoin as the base layer coin for the market as many of the exchanges price their altcoins against Bitcoin. Also, Bitcoin is often used as your base currency to get started with an exchange. What I mean by this is you will not be able to buy with your regular credit card, you will need to transfer in your Bitcoin and use that as the currency to purchase.
Blockfolio is an extremely powerful digital currency investment tracking app that is ideal for individuals that hold an extremely diversified portfolio. Operating diverse portfolios can often be unwieldy and, due to their cumbersome nature, require constant scrutiny and management. The Blockfolio app has been specifically designed for highly diversified investors, and streamlines the process of tracking where and when you bought and sold, as well as the value of your current holdings.
Maybe you remember when, thanks to The Wall Street Journal, everyone thought the SEC was going to meet on May 7th to decide whether or not Ethereum (ETH) was a security. If you had taken up a large position in ETH prior to the 7th, you would have been disappointed when the price fell from ~$793 USD to ~$743 USD amidst news that there actually was no meeting after all.
The natural inclination for crypto investors is to identify a new altcoin with the potential for growth, invest heavily when it's still inexpensive to do so, and then reap the rewards when the value increases. That being said, the altcoin market is growing so quickly that many new digital currencies hitting the market might not be good long-term investments.
The market is so volatile that big movements up and down are pretty common and you can capitalise on this through swing trading. I recommend choosing a group of coins to be in and then sticking to swing trading in those coins rather than jumping constantly between different cryptocurrencies – it does help to have an understanding of what different coins do and how much volatility can be expected and you will gain that understanding with time. Good luck!
Now that you have identified the coins to invest in, you need to find an entry point for your investment. Technical analysis has always been the best strategy for finding an entry point when investing in financial assets. The best way to use technical analysis in finding an entry point is to understand candle stick patterns. For instance, if you are looking to buy Bitcoin, then a bullish engulfing candle stick pattern on the weekly chart would be a good indicator that it is time to enter the market.
Then there are the fundamental strategies. Some people say that fundamentals are the valuation of crypto, but it is challenging to value a cryptocurrency as there is no chart giving the earnings and the assets to derive a valuation from. Cryptocurrency is all about speculation, with one guy saying it’s worth a high price that reaches into the stratosphere while another says it’s worth squat.
Identifying sell levels to take profit: Using the order book we identify the areas of resistance that we previously analyzed. It is likely that being resistant, massive supply (a “wall” of sell commands) is present around these spots. The trick is to place our sell commands precisely one step ahead, at a slightly lower price, so in case the demands start to eat away the supply wall – our command has already been placed and sold to profit.
Ethereum bounced from the demand zone twice forming a tweezer bottom BUT was unable to close above the EMAs, which does not bode well for bulls. The support level near the channel bottom and FIB seems to be holding so far but signs of resistance are creeping in. MACD signal line is trying to crossover bullish and histo has just now turned gree, however, RSI ...
Perhaps the deadliest mistake a trader can make is letting emotion get the best of them. Those with the wrong mindset will lose in the long run; Whether it’s losing a trade and trying to get it all back by chasing a phantom opportunity that was never really there, or winning a huge trade just to get too greedy and giving it all right back. Set a clear goal each time you sit down to trade and walk away once you’ve hit your goal. Do the same for loses. Walk away and come back tomorrow. There will be opportunities will be there the next day, I promise.
There are a number of tools you can use to maximize profits and minimize risks, such as margin trading, leverage, and stop-loss orders. Shorting Bitcoin and other cryptocurrencies can be done in a variety of ways. Just looking at the Bitcoin price chart for early 2018, you can see that those that spotted the downward trend in mid January and made a short trade would have made 40% profits by exiting one month later.
Volatility. It is perhaps the singular word that best encapsulates the cryptocurrency market and how people look at it. For crypto skeptics, volatility is their indicator to stay clear of risk. However, for crypto enthusiasts, volatility is the number one sign that faster and more meaningful returns are close at hand. Indeed, both of these groups of people are correct,…
As Bitcoin heads toward a new all time high, many are eager to reap profits. The ETF disapproval is a sign of changing attitudes for Bitcoin. It was unlikely the SEC was going to approve the ETF. This reinforces how important it is to stay up to date. Get involved; chat on boards, comment on blogs, and follow news on social media. A viable strategy for one person may not work for another. It’s all for naught if you don’t appreciate the power that cryptocurrencys mean.ower that cryptocurrencys mean.
Needless to say, Bitcoin’s place as an alternative digital asset among cryptocurrencies has become entrenched, despite likely headwinds it will continue to face as it evolves further. The U.S. Securities and Exchange Commission (SEC) announced in early August 2017 that certain Initial Coin Offerings (ICOs) – which use cryptocurrencies for financing – would be regulated as securities.
Cashaa is more than it's CAS Token cryptocoin. It's a centralized, completely free cryptocurrency exchange where users can exchange their online coinage into any other cryptocoin quickly and easily. Take a look at their site and you will see that the CAS Token is backed by a dynamic exchange economy that means it has massive long-term potential as an investment - because it's a cryptocoin that works with competing currencies instead of trying to beat them.
Technical analysis: . ZCOIN/ETHEREUM is in a range bound and the beginning of uptrend is expected. . The price is below the 21-Day WEMA which acts as a dynamic resistance. . The RSI is at 50. . While the RSI and the price downtrend in the Daily chart are not broken, bearish wave in price would continue. Trading suggestion: . There is a possibility of ...
I wrote the following simple guide to investing in Bitcoin and Crypto Assets back in Jan '17. After publishing version 3 of my strategy I felt a need to review and update it to reflect any changes in my approach, but upon review, I found very little needed changing. If you are new to Crypto, take your time to read this and the strategy, if you have any questions then feel free to get in touch, and I will do my best to get back to you.
These big coin strategies can also be used for trading bitcoin cash as well as other cryptocurrencies, in fact, you can use this as a trade guide for any type of trading instrument. The blockchain technology is a big step forward for how to access information and many companies are starting to develop applications to use it in their favor. Remember that when trading digital currency it may seem like it is not a real currency but it actually is real, this is not some Ponzi scheme. Before you buy bitcoins have a solid plan in place and don’t underestimate the cryptocurrency markets, you must do your technical analysis just as if you were going to day trade any other instruments. You can also read our best Gann Fan trading strategy.