Trading cryptocurrencies is currently among the hottest trends in the investment landscape. Many individuals are earning money through trading and once and for all reason. Cryptocurrencies can be traded 24 hours a day and are not controlled by financial institutions the exact same way fiat is regulated by central banks. This eliminates issues such as for instance price manipulation. Trading cryptocurrencies can be relatively simple and there are many opportunities in the market.
For most traders, it makes sense to trade Bitcoin that will be one of the numerous cryptocurrencies out there. One of many main reasons bitcoin robot trading for that is that Bitcoin is one of the most volatile cryptocurrencies and it also tends to influence the performance of altcoins. This was evident in the 2017 cryptocurrency rally where most altcoins rallied because Bitcoin was rallying.
Stepping into Bitcoin trading
By now you probably understand that a few of the people that claim to own made millions after investing in Bitcoin managed to create that money simply because they invested when the price of Bitcoin was still low. Especially those who purchased Bitcoin before 2016 and held on looking forward to the price to achieve epic heights.
Unfortunately, which was among a form opportunity for the cryptocurrency market and we saw the cryptocurrency crash in early 2018 and the majority of the gains were lost. However, you can still trade cryptocurrencies however it is better not to do it speculatively since cryptocurrency prices have now normalized.
Day trading Bitcoin
If you monitor the price of Bitcoin, you’ll notice that it has significant volatility anytime of the day. This helps it be an attractive asset to trade in a fashion just like how forex pairs will often have volatile movements, only in this instance Bitcoin might offer more volatility. So so how exactly does one make the most of this?
You can use a Bitcoin trading bot that’ll do the bulk of the task for you. Some crypto trading platforms promise to supply crypto trading bots that analyze the market in your behalf, execute the trades and even close trades for you. All you need to do is setting the parameters to your preference and the crypto trading bot will do the rest for you.
You will have an excellent understanding of how Bitcoin works and what really influences its price movements if you’d rather do the trading yourself rather than depend on a Bitcoin trading bot. Bitcoin’s volatility is especially due to demand. The bulk buyers or large accounts tend to have an important impact on Bitcoin’s price direction. You can identify the direction in which the large accounts otherwise called whales are trading and also trade inside their direction. You can access that data on platforms such as for instance Binance Futures in the sentiments segment.
Using technical indicators
As far as the execution is concerned, you can use technical indicators to recognize potential entry points. Observe that indicators alone are not very reliable, thus the requirement to combine them with other data, in this instance, sentiment data on large accounts vs smaller accounts would make sense. One of the best indicators available for trading Bitcoin is the On Balance Volume or OBV indicator.
OBV is a great tool for predicting strong trends. When the OBV aligns with the price of Bitcoin for a solid bull or bear movement, then it is better to trade the direction of this trend. You may also overlay a Bitcoin Chart and that of Ethereum for another OBV strategy. This strategy is named smart money divergence and it is where the price of Bitcoin and ethereum are both behaving similarly but at some point, one fails to respect support or resistance lines.
The above mentioned demonstrates the cash divergence, in this instance, the divergence between the Bitcoin and Ethereum prices when pegged contrary to the U.S dollar. The trading platform
You will be needing a trusted platform that provides access to important indicators and also a trading interface that is tuned to generally meet trader requirements. TrailingCrypto is one platform and the wonder is that you can switch from one exchange to a different within its platform. Additionally, it offers the flexibility of selecting various kinds of order types. Additionally, it uses measures such as for instance API keys for connecting to different crypto exchanges, and two-factor authentication as security measures. As far as the assets are involved, you can trade Bitcoin pairs and other cryptocurrency pairs, so you have good variety.