3 Profitable Strategies for Trading Bitcoin

The best Bitcoin trading strategy, Bitcoin traders and investors have grown significantly in recent years. They are trying to make profits in this turbulent market. Traders and investors use different types of strategies to succeed.

The Best Bitcoin Trading Strategy

1. Try Using a Hold Strategy

This is one of the simplest ways to exchange bitcoins. This Hodl strategy requires skills or no trading experience. The only thing you need is money and patience. Long-term Hodl strategies are reliable in the past and many investors believe that it will work in the future.

Why Hodl? It's misspelling the word Hold. The word appeared in 2013 when Bitcoin fell and a drunk trader posted his comments on Bitcointalk. Then, Hodl became popular and was widely used by many traders.

What are the main ideas of this strategy and why do I like it more than others? You do not need any technical analysis knowledge at all. The only important thing is to monitor the price of digital assets (Bitcoin in this case).

To be more useful, I also use fundamental analysis, which means that I am all important news and that I do my own analysis by thinking about how they can affect the cryptography market. What are these events and why are they affecting the price of Bitcoin?

2. Strategy to Follow the Latest Bitcoin News

Well, every Bitcoin trading strategy is based on the principle of supply and demand which means the price of the cryptocurrency depends on the two basic parameters. When demand is higher than supply, Bitcoin grows. Otherwise, the main cryptocurrency drops down. When offers and requests are the same, prices stand somewhere without significant change.

The news is one of the main price drivers! They may be positive or negative. Depending on the nature, the price of Bitcoin can grow or decrease. One of the most influential events is a fork. When that happens, the decline in the price of the coin and there is nothing strange here because the experts and holders are also divided by the fork.

There are several other important events that I will explain here. Some data may be expected or not expected. Being a professional FX trader, I know and understand that the news that is expected in the cryptocurrency community is something very rare. There is no special event calendar that you can open on Monday, for example, and see that there are some important data on Thursday.

When I trade FX currency pairs, I often use calendars like that because I want to know what events might affect the market for a week. However, for Bitcoin, there are no such calendars at all meaning almost no events can be expected or predicted in advance except those that are widely discussed by the community.

Other important event groups are related to cryptocurrency policies and all Blockchain technology. To be honest, Blockchain adoption is far from fast. However, I can see that we have made great progress in this field compared to previous years. The situation with cryptocurrency is much more difficult because it is banned in many countries where blockchain technology has been adopted.

Let's take the example of China. Blockchain is considered a very promising technology by local governments, but they are fighting against ICO, TGE, and cryptos in general.

How do you generate profit trading news? This Bitcoin trading strategy is real when important events occur. All you need is experience and patience. This strategy is not hodl, but it's close to it because you can buy Bitcoin, for example, and hold it for a long time.

3. Technical Analysis Strategy for Bitcoin Trading

Bitcoin trading is very popular nowadays and many investors try their best to make money. Bitcoin is very unstable and allows for significant profits for everyone. However, before you start trading in cryptocurrency, you need to calculate your risk as well.

Me, personally, prefer the technical analysis of trading because hodling is a long-term strategy, which freezes money with unspecified results. I will show you some interesting solutions that can help you make money when trading Bitcoin.

Let's look at the first picture. Here you can see a clear downtrend and a simple descending trend line. The price is reached at one point and here we have a clear signal to sell Bitcoin. This situation is good for traders who prefer margin trading because they can sell BTC / USD currency pairs and benefit from these activities.

This is one of the easiest Bitcoin trading strategies, but you need to learn about trend lines and how to use them. They look very easy on my pictures but I have great experience using them. You must first learn how to place it on the chart and how to handle it too.

Let me give you another example. In the second picture, you can't see the trend at all, but we have a strong resistance area here. The currency pair tries to break it several times without the chance to succeed.

This tells us that bulls cannot reverse trends. This is the first signal that shows us that we will have some further downtrends in the nearest future. However, here we have some clear signals that predict further price fluctuations.

BTC / USD forms a falling star pattern which is a very strong candlestick model. BTC prices move down first but then retest the resistance area again. As you can see, the bull failed again and the price dropped towards the red flag.

This strategy does not include indicators or other tools except resistance areas and candlestick patterns. It seems very easy, but you must have experience in graphical analysis before using it.

Another example of the Bitcoin trading strategy is here. Look at the next picture. Here I have placed the Bollinger Bands indicator to show how it works. As you can see, I have highlighted some interesting points on the chart. Here is a signal that will help you make a profit.

The Bollinger Bands indicator is rather simple. There are many Bitcoin trading strategies that you can use when implementing this algorithm. However, I want to show you the easiest. Here you can buy when prices touch (or approach) to the lowest limit of the indicator and sell when Bitcoin reaches higher.