7 Best Bitcoin Trading Strategies for 2020
There are more than 1200 cryptocurrencies out there and Bitcoin seems to be leading the pack; but what are the best trading strategies for you in 2020? You will find that when you can identify the best strategy, profit making becomes easier.
Here are some of the leading trading strategies that you can benefit from when you are into Bitcoin trading:
- Buy-and-hold strategy: This involves identifying a currency having strong fundamentals and getting it at low prices when the value is less. In this strategy you basically hold onto your coins and wait for the situation to improve. It is best to invest in a cryptocurrency that has already undergone a fall; this often leads the prices to fall even below the original ICO costs.
- Breakdown strategy: This helps to limit risks and offers many benefits to Bitcoin traders when used correctly. Operators tend to use this strategy in many markets for negotiating and trying to enter markets when a trend starts. Both novices and experienced traders can use this strategy. Here, the trader will seek precise entry points indicating places where prices are likely to go through strong breaking movements. In cryptocurrencies, a price of a currency is liable to break a ceiling to open buy position. Check avis bitcoin revolution which is an automated trading software application that helps even the beginners to trade bitcoins efficiently.
- Balanced portfolio: This is a great Bitcoin strategy for investors keen to balance their portfolios; it involves buying many cryptocurrencies. This way the smart investor distributes risks across multiple crypto coins. This is also a good way to test the different crypto coins when you are not sure how each will perform. It helps you to identify the coins that are most successful.
- Trend tracking: Since markets keep moving cryptocurrencies cannot be any different. So, trend tracking strategies may be effective over the years; these are profitable especially when the trader manages to enter long-term trends. The trends can last for weeks or years and tracking trends can turn out to be quite profitable. There are usually filters that will ensure you only get to view the most influential trends in order to eliminate false signals, and consequently losses.
- Average cost in dollars: This strategy requires minimal expertise. This implies buying a fixed quantity of digital currency at regular intervals when the prices move up or down. Since purchases will be made within specific intervals, they can be averaged at average prices. This price is usually a point lower or higher than if the purchase was of a lump sum at one interval.
- Unbalanced portfolio: This entails choosing a series of cryptocurrencies, designating a specific percentage of investment depending on how you think an asset will perform. So, you will only assign high rates to currencies that you feel will be most successful. This is a good strategy for Bitcoin investors who have already done ample research on every currency.
- Investing benefits in other crypto coins: When you have succeeded in creating a crypto portfolio that has yielded enough profits, you can choose other currencies showing great potential. So, you can take part of the profits earned through one currency and invest them into other cryptocurrencies having high-profit chances.