Trading online is nothing new. Trading online and making money is a whole other prospect. The key to making money, in any opportunity, is using a sound strategy.
These days the significant opportunities lie in cryptocurrency. We've all seen the stories online and on the evening news of people making millions with bitcoin and people losing money.
So the question is if you are going to invest in bitcoin, how do you do it successfully? To start, you need to use reliable, bitcoin trading strategies.
Do you want to learn how to trade cryptocurrency for profit? Read on to learn about three trading strategies that will help you make bank!
Three Bitcoin Trading Strategies You Can't Afford to Miss
To invest in anything, you should always use money that you will not miss if you lose it. A smart way to come up with the cash, without using your own money, to grow your bitcoin portfolio is by using instant loans.
Accumulate Bitcoin at The Lowest Price
We've all heard the saying buy low and sell high, right? While it is cliche, it is also true. Anytime you can get a cryptocurrency at a low price and enable yourself to buy a higher volume, you stand to cash in later on when the price goes back up.
The trick is to stick with your bitcoin trading strategies and not jump off the bandwagon as the market fluctuates.
As investors and traders pull their investments, the price will come down, this creates an opportunity for you to buy low and accumulate more bitcoin.
Dollar Cost Averaging
This strategy relies a bit on the history of bitcoin but does not take a lot of knowledge to execute. It does require you to do your due diligence by checking historical data and looking for trends that will give you the best chance of averaging down on your bitcoin.
Dollar averaging is purchasing a fixed amount of currency at a specified interval while the price action is moving up or down. Let's take a look at how this strategy works.
Let's say you had $2000 to invest in bitcoin and you determined that you would buy $500 on the first of the month.
- Month 1 — $500 worth of bitcoin purchased, the cost of Bitcoin is $9000
- Month 2 — $500 worth of bitcoin purchased, the cost of Bitcoin is $7000
- Month 3 — $500 worth of bitcoin purchased, the cost of Bitcoin is $8,500
- Month 4 — $500 worth of bitcoin purchased, the cost of Bitcoin is $10,000
So in this strategy, you end up with more bitcoin than you would if you would have spent the entire $2000 at once. In this example, your spend was $2000 with an action price of $8,625.
Trading bots are relatively common for bitcoin day trading strategies. If you are more of a risk taker, then you may want to consider using a trading bot.
I would not recommend that you set it and forget it, because a bot will only do what you've set it up to do.
If you set it up to buy and sell under certain circumstances and those circumstances change, then it will not be doing what it should.
So a bot does require some supervision but automates some of the activity, which helps you to work smarter and not harder.
Which Strategy Will You Use
As you can see, there are plenty of bitcoin trading strategies and more than we've covered here.
Whichever you choose, it is essential to stay the course with that strategy for it to be effective.
No matter which route you decide to go with, before you do, take the time to do your due diligence to make the investment that is best for you and your goals.
Want to know more about bitcoin and where you can use it? Go to our website today.