Trading cryptocurrencies is one of the hottest trends in the investment landscape. Many individuals are earning money through trading and for good reason. Cryptocurrencies can be traded 24 hours a day and aren’t controlled by financial institutions the exact same way fiat is regulated by central banks. This eliminates issues such as price manipulation. Trading cryptocurrencies can be not too difficult and there are lots of opportunities in the market.
For many traders, it makes sense to trade Bitcoin that is one of the many cryptocurrencies out there. One of the major causes bitcoin robot for this really is that Bitcoin is one of the most volatile cryptocurrencies and additionally it will influence the performance of altcoins. This is evident in the 2017 cryptocurrency rally where most altcoins rallied because Bitcoin was rallying.
Stepping into Bitcoin trading
By so you probably know that a few of the people who claim to possess made millions after buying Bitcoin managed to produce that money simply because they invested when the price tag on Bitcoin was still low. Especially the ones that purchased Bitcoin before 2016 and held on looking forward to the price to achieve epic heights.
Unfortunately, that was certainly one of 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 but it is most beneficial not to accomplish it speculatively since cryptocurrency prices have now normalized.
Day trading Bitcoin
If you monitor the price tag on Bitcoin, you will notice that it has significant volatility at any time of the day. This makes it a nice-looking asset to trade in a manner similar to how forex pairs will often have volatile movements, only in this case Bitcoin might offer more volatility. So so how exactly does one take advantage of this?
You need to use a Bitcoin trading bot that’ll do the majority of the job for you. Some crypto trading platforms promise to offer crypto trading bots that analyze the market on your behalf, execute the trades and even close trades for you. All you have to accomplish is to create the parameters to your preference and the crypto trading bot will do the remainder for you.
You need to have an excellent comprehension of how Bitcoin works and what really influences its price movements if you’d rather do the trading yourself as opposed to count on a Bitcoin trading bot. Bitcoin’s volatility is mainly due to demand. The bulk buyers or large accounts tend to have a significant impact on Bitcoin’s price direction. You can identify the direction in that your large accounts otherwise referred to as whales are trading and also trade within their direction. You can access that data on platforms such as Binance Futures in the sentiments segment.
Using technical indicators
In terms of the execution is worried, you should use technical indicators to identify potential entry points. Observe that indicators alone aren’t very reliable, thus the requirement to combine them with other data, in this case, sentiment data on large accounts vs smaller accounts would make sense. One of the greatest indicators available for trading Bitcoin could be the On Balance Volume or OBV indicator.
OBV is a superb tool for predicting strong trends. Once the OBV aligns with the price tag on Bitcoin for a strong bull or bear movement, then it is most beneficial to trade the direction of that trend. You can also overlay a Bitcoin Chart and that of Ethereum for another OBV strategy. This strategy is known as smart money divergence and it is where the price tag on Bitcoin and ethereum are both behaving similarly but at some point, one fails to respect support or resistance lines.
The aforementioned demonstrates the money divergence, in this case, the divergence between the Bitcoin and Ethereum prices when pegged from the U.S dollar. The trading platform
You will need a reliable platform that provides usage of important indicators and also a trading interface that is tuned to generally meet trader requirements. TrailingCrypto is one such platform and the sweetness is that you can switch in one exchange to another within its platform. In addition, it offers the flexibility of selecting several types of order types. In addition, it uses measures such as API keys to connect to different crypto exchanges, and two-factor authentication as security measures. In terms of the assets are concerned, you can trade Bitcoin pairs and other cryptocurrency pairs, so you’ve good variety.