Simple and effective Bitcoin strategy
For many people, stock trading seems like something very complicated and accessible only to graduates of Harvard or another prestigious university.
This is not surprising, because most strategies intended for trading are striking in their complexity and intricacy.
But in fact, there are simple trading options that allow even a beginner to get a guaranteed profit.
Moreover, these strategies work great not only on the Forex or stock market, but also for digital currencies.
It can be used both for trading Bitcoin and for other types of digital money; at one time I managed to make good money with Ripple and Litecoin with its help.
Buy and hold strategy for Bitcoin
This strategy was widely used in the stock market in the 80s of the twentieth century, this is not surprising, the price of securities at that time was growing steadily.
What else could be simpler than buying cheaper and selling more? The essence of “Buy and Hold” is to find an asset at a low price, make a purchase, and then simply wait for the price of the purchased asset to go up. The relevance of this strategy was discussed - http://time-forex.com/interes/pokupay-dergi
At the moment, the most suitable asset for such a strategy is Bitcoin, not to say that this cryptocurrency is constantly growing, but it is very predictable and always after the next fall is growing.
Now let's move on to the very essence of our strategy for Bitcoin. In order for everything to become clear, you just need to look at the chart of the BTCUSD currency pair:
It clearly shows the price dynamics, and the fact that after reaching its minimum it usually goes up. That is, you can place a pending order or simply wait for the planned entry point and make a purchase.
How to determine what the next minimum price for Bitcoin will be?
Judging by the chart, most likely this minimum will be close to the $5,000 mark; at this price you can already buy.
True, you will have to wait for a long time, so try to learn to evaluate the news and the situation that caused the downward trend .
This will allow you to find a good entry point without waiting for the price to reach a global minimum. For example, an event such as a pandemic halved the Bitcoin rate, less significant news will have less impact on the price, and it will fall by only a couple of tens of percent, and then begin to rise again.
The main thing with all this is to remember the current current minimum of 5000. And if you make a purchase at a higher price and after that the price starts to fall again, then it is better to close such a deal and wait for a reversal to growth.
It’s better to sell when the price reaches $9,000, even earlier if you notice a change in the existing market trend or the release of important news:
As you can see, there is nothing complicated in the Bitcoin trading strategy.
The only downside to this stock trading option is that it is strictly for patient investors.
Under no circumstances should you rush into a purchase, even if there is a risk of missing the next minimum altogether. When trading using a strategy, it is highly not recommended to use leverage of more than 1:5, since the Bitcoin trend has a large correction size, and the strategy involves long-term maintenance of the transaction.