Trading cryptocurrencies happens to be one of many hottest trends in the investment landscape. Many folks are earning money through trading and once and for all reason. Cryptocurrencies can be traded 24 hours each 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 also be relatively simple and there are numerous opportunities in the market.
For all traders, it’s wise to trade Bitcoin which is one of many cryptocurrencies out there. One of many major causes bitcoin robot trading for this is that Bitcoin is one of the very most volatile cryptocurrencies and in addition, it tends to influence the performance of altcoins. This is evident in the 2017 cryptocurrency rally where most altcoins rallied because Bitcoin was rallying.
Engaging in Bitcoin trading
By so you probably realize that a number of the people who claim to have made millions after purchasing Bitcoin managed to create that money since they invested when the price tag on Bitcoin was still low. Especially those who purchased Bitcoin before 2016 and held on waiting for the purchase price to achieve epic heights.
Unfortunately, that has been one of a type opportunity for the cryptocurrency market and we saw the cryptocurrency crash in early 2018 and most of the gains were lost. However, you can still trade cryptocurrencies but it is best not to do 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 causes it to be a stylish asset to trade in a way similar to how forex pairs usually have volatile movements, only in this case Bitcoin might offer more volatility. So how can one make the most of this?
You can use a Bitcoin trading bot that will do the bulk of the work for you. Some crypto trading platforms promise to provide crypto trading bots that analyze the market in your behalf, execute the trades and even close trades for you. All you have to do is to create the parameters to your preference and the crypto trading bot is going to do the rest for you.
You need to have a great comprehension of how Bitcoin works and what really influences its price movements if you’d rather do the trading yourself rather than count on a Bitcoin trading bot. Bitcoin’s volatility is mainly due to demand. The bulk buyers or large accounts are apt to have a substantial impact on Bitcoin’s price direction. You can identify the direction in that your large accounts otherwise known as whales are trading and also trade within their direction. You can access that data on platforms such as for instance Binance Futures in the sentiments segment.
Using technical indicators
So far as the execution is worried, you need to use technical indicators to identify potential entry points. Note that indicators alone are not very reliable, thus the requirement to combine them with other data, in this case, sentiment data on large accounts vs smaller accounts will make sense. One of the greatest indicators available for trading Bitcoin could be the On Balance Volume or OBV indicator.
OBV is a good 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 best to trade the direction of this trend. You can even 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 demonstrates the amount of money divergence, in this case, the divergence involving the Bitcoin and Ethereum prices when pegged contrary to the U.S dollar. The trading platform
You will require a reliable platform that gives access to important indicators and also a trading interface that is tuned to meet trader requirements. TrailingCrypto is one such platform and the wonder is as you are able to switch in one exchange to some other within its platform. Additionally it offers the flexibility of selecting several types of order types. Additionally it uses measures such as for instance API keys to connect to the various crypto exchanges, and two-factor authentication as security measures. So far as the assets are involved, you can trade Bitcoin pairs and other cryptocurrency pairs, so you have good variety.