Over the last 12 months, cryptocurrencies, and particular bitcoin trading strategies have gone from being something that people were aware of, but didn’t really dabble in, to something that everyone is aware of, and everyone wants to dabble in.
But like most things in life, it is good to have a plan in mind before you jump in at the deep end.
From day trading to the more complex scalping, in this article, we will take a look at five of the top Bitcoin trading strategies and hopefully give you a bit of the information you need to decide which is the perfect strategy for you.
Have you heard of Forex? Forex is the trading of foreign currencies on a market, based on the increase and/or decrease in their value.
Bitcoin trading is the trading of Bitcoin against the value of other cryptocurrencies, or fiat currencies, depending on your preference.
There are many different ways of trading cryptocurrencies such as Bitcoin, and which one you go for will depend a lot on your skill and experience level and of course, whether you are looking to make a serious profit, or you are just doing it for the enjoyment.
Remember, never to invest more than you can afford to lose, particularly if you are just starting out, as this is a highly volatile and unpredictable market. Keep your head on your shoulders, don’t get carried away, and don’t bet the kids college fund. To find out more, let’s read on!
Bitcoin for Fiat vs Bitcoin for Cryptocurrency
The power of Bitcoin trading is the CFD. They mean that you can trade Bitcoin without ever actually having to use them.
CFDs were originally created for the purpose of getting your paws on Bitcoin without having to actually own it and because of this, CFDs are a great option for those that are looking to start trading for the first time.
It is a popular belief that it is always more profitable to trade BTC for another altcoin, rather than against a fiat currency such as dollars or euros. This is due in part to the fact that altcoins and bitcoin are particularly volatile so if you are trading one for the other, you can experience bigger jumps in value, and therefore more profit for you.
The price of the dollar and euro, as well as other fiat currencies, tend to be pretty stable so trading with them doesn’t offer such valuable returns as with cryptocurrencies.