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Smart Strategies For Trading In Bitcoin

04 July 2019 14:36, UTC
Smart Strategies For Trading In Bitcoin

Once again, bitcoin is on the rise. You’ve probably been hearing that cryptocurrency is the currency for the future. Just like any other currency, you can also trade bitcoin in the market, and there are many strategies for this. Here, smart strategies for trading bitcoin will be discussed to enlighten you.

1. Invest In The Top

27.06.2019  |   in Forecasts
This strategy is perfect for those who do not have extensive knowledge and research in bitcoin. Although the risk is lower, the profits are also lower. However, the takeaway is that opting for this road is safer. It’s also perfect for those who don’t have enough time to invest in bitcoin. In this strategy, you just need to invest 50% of your capital in bitcoin. The remaining 50% should be spread out among the other 9 top cryptocurrencies. Here are some of the top cryptocurrencies that you should include in your list:

  • Ethereum
  • Ripple
  • Bitcoin cash
  • Litecoin
  • Cardano
  • EOS
  • NEO
  • Stellar
  • IOTA

Those are just the top ones at the moment so you need to keep yourself regularly updated on which cryptocurrencies take the top spot at a certain period. Distribute the remaining 50% evenly among the rest of the 9 top cryptocurrencies. You just need to check up on them every quarter or month. Once a cryptocurrency drops out of the top 10, you need to sell those and buy cryptocurrency of the ones that have replaced it.

The advantage of this strategy is that you are betting on those that have grown faster. By spreading the risk among the 10, you don’t need to give it a lot of attention. However, with this conservative strategy, you are also aiming for lower profits with lower risk. If you want to learn more, read the Review of James Walker about a bitcoin trading platform.

2. Play On The Company

For this strategy, you need to research on the companies and see which business model works the best. Select the companies that you believe will be a success. After that, buy it when the price is low, then sell when the price is high. Once it dips again, buy it once again, and sell at the top. This is one of the most secure ways to do speculative trading.

3. Utilize The Graphs

If you have time, you might want to use the strategy of studying the charts. By looking at the charts, you might notice that the prices are wavelike. Usually, there is a pattern that you’ll observe, and by looking at the charts, you can assess whether or not the price is at a high or a low.

Moreover, there have been algorithms developed to allow traders to make hypotheses about the prices of bitcoin. Some indicators are the following: MACD (moving average convergence divergence), RSI (relative strength index), and the Bollinger Band. If it’s your first time to look at it, it might all seem very confusing. So, before you do this, you must perform your own research and learn the meaning of the graph.

4. Day Trading

From the name itself, this strategy entails that you never hold any type of cryptocurrency for longer than a day. By doing this strategy, you will be abandoning the core values of investing and purely go into 100% speculation. Day traders use graphs to plan their moves. By using this strategy, you’ll be utilizing short-term fluctuations in the market. Good traders usually profit 1% to 2% daily.

5. Accumulate At The Lowest Prices

26.06.2019  |   in Cryptocurrencies analysis
During the lowest prices, it’s best to buy and accumulate bitcoin. Usually, traders and investors will tend to withdraw some of their bitcoins when the prices go down, which brings down the prices further. Do the opposite and buy when the prices go down. Don’t panic when the prices go down, and instead buy those coins.

6. Cost Averaging

By using the cost averaging strategy, this requires you to purchase a fixed amount of bitcoin at the same intervals whether or not the prices are moving down or up. By doing this, you will average out those prices within the set intervals you make. The price will end up being lower than the price point at which you were willing to buy it at a lump sum. This will also spread out your risk. In a longer period of time, you will notice how cost averaging your bitcoin will protect you from price risks.

7. Patience Is Key

With all strategies, patience is key. With trading, you must be able to stomach fluctuating prices in the market. Ignore the noise in your head and move strategically. Here are some rules you must abide by to trade smart in bitcoin:

  • Do not panic buy and chase the price as it goes up
  • Accumulate during low prices
  • Don’t get impatient and sell your bitcoin too early
  • Don’t panic sell at the first sight of losses

8. Invest The Money You Can Lose

During financial crises, many investors’ money were lost. Since a lot of people were putting their savings into the stock market or real estate, they all got burned when both markets crashed. Taking a lesson from history, don’t invest money that you are not prepared to lose. Not only is this a smart strategy on bitcoin that you must always follow in all your trades, but it is the most important strategy of them all. As soon as you use your money to buy cryptocurrency, consider it lost already. There will be no guarantee that you’ll get it back. So, as a rule, only invest money that you are willing and can afford to lose. Re-evaluate your financial situation to see if you can stomach this kind of loss.


Whether or not you know much about bitcoin, you can always apply these smart strategies to trade this cryptocurrency. Just do your own research as well and pick one strategy listed above that suits you, and you will be well on your way to make the big bucks by trading bitcoin or any kind of cryptocurrency in the market.

Disclaimer: the article is for informational purposes only and does not guarantee a return on investment. Readers invest at their own risk. Bitnewstoday authors and editors are not responsible for the readers’ actions.

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