Trading cryptocurrencies is among the hottest trends in the investment landscape. Many individuals are earning money through trading and for good reason. Cryptocurrencies may be traded 24 hours a day and aren’t controlled by financial institutions exactly the same way fiat is regulated by central banks. This eliminates issues such as for example price manipulation. Trading cryptocurrencies can also be relatively easy and there are numerous opportunities in the market.
For several traders, it makes sense to trade Bitcoin which is one of many cryptocurrencies out there. One of the main reasons bitcoin robot trading for this is that Bitcoin is one of the very volatile cryptocurrencies and in addition it 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 buying Bitcoin managed to produce that money since they invested when the price tag on Bitcoin was still low. Especially those who purchased Bitcoin before 2016 and held on awaiting the cost to attain epic heights.
Unfortunately, that was among a type chance for the cryptocurrency market and we saw the cryptocurrency crash in early 2018 and the majority of the gains were lost. However, you are able to still trade cryptocurrencies nonetheless 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 so it has significant volatility at any time of the day. This helps it be a stylish asset to trade in a fashion much like how forex pairs normally have volatile movements, only in this instance Bitcoin might offer more volatility. So how does one make the most of this?
You can use a Bitcoin trading bot which will do the majority 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 have to accomplish is to create the parameters to your preference and the crypto trading bot can do the remainder for you.
You need to have a great understanding of how Bitcoin works and what really influences its price movements if you would rather do the trading yourself rather than count on a Bitcoin trading bot. Bitcoin’s volatility is principally caused by demand. The bulk buyers or large accounts tend to have a significant impact on Bitcoin’s price direction. You are able to identify the direction in that your large accounts otherwise called whales are trading and also trade in their direction. You are able to access that data on platforms such as for example Binance Futures in the sentiments segment.
Using technical indicators
So far as the execution is concerned, you should use technical indicators to recognize potential entry points. Remember that indicators alone aren’t very reliable, thus the requirement to combine them with other data, in this instance, sentiment data on large accounts vs smaller accounts will make sense. One of the finest indicators available for trading Bitcoin is 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 solid 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 named smart money divergence and it’s where the price tag on Bitcoin and ethereum are generally behaving similarly but sooner or later, one doesn’t respect support or resistance lines.
The above mentioned demonstrates the cash divergence, in this instance, the divergence involving the Bitcoin and Ethereum prices when pegged contrary to the U.S dollar. The trading platform
You will be needing a reliable platform that provides access to important indicators and also a trading interface that’s tuned to meet up trader requirements. TrailingCrypto is one particular platform and the wonder is that you could switch in one exchange to another within its platform. It also offers the flexibleness of selecting several types of order types. It also uses measures such as for example API keys to get in touch to the various crypto exchanges, and two-factor authentication as security measures. So far as the assets are concerned, you are able to trade Bitcoin pairs and other cryptocurrency pairs, so you have good variety.