When you wish to trade Bitcoins you will obviously want the best strategies to make more money. Not all strategies are for everyone; some demand a high level of knowledge, experience, and skill. There are some however, like those mentioned below, that most Bitcoin traders can employ:
Buy and Hold Strategy
This is perhaps the simplest and most popular way of making profits through Bitcoin trading. The people doing this trading are the holders and these traders buy and hold onto their Bitcoins for the long haul. So, the expectation is that the prices will go up with time. This is definitely one of the easiest to master and one that is sure to bring in reasonable amount of profits. This is because Bitcoin prices are volatile and because there is a finite supply of Bitcoins, it already enjoys an advantage over any traditional fiat currency.
Some Bitcoin traders prefer to use trading bots for trades. These are computer programs that are capable of conducting trades on your behalf. So, you can actually have trades done even while you are sleeping. The bots conform to a set of pre-determined rules and they analyze market factors to take trade-related decisions. While there are many crypto trading bots readily available, you should choose one that is reliable such as bitcoin loophole and has been rated highly by users.
This is employed by traders who wish to hold onto their coins for the short term. This strategy focuses on trading at a specific price and moving between extremities. For instance, when the price does not follow a specific upward or downward trend, the traders will trade on the high and low price range. The swing trader will analyze multiple factors, focusing mostly on technical indicators which will show the overbought or oversold conditions. These indicate the market sentiment. When the prices attain a particular level the traders place wagers on price reversal.
This demands greater trade-related knowledge and is tougher to navigate. Traders will use prolonged trade patterns with the intention of capitalizing till the trend goes on. Unlike swing trading, there is no specific target here. All you must do is identify the trend when it is in the initial stages before others identify it. The more experienced and savvy traders can get into such trades fast, make more money, and get out before the crash happens.
This is for people who like to get short-term profits. To be successful, you need to know ways to retain your position at all times. Such traders have a 12-16 hour shift and trading is intense. It is something like the stock market and traders have to close their deals by the end of the trading day. Not everyone can be good at day trading. It requires a special kind of mindset. This is best for traders who want to make trading a career, and not simply a side hobby.