How to use commercial strategies for Bitcoin (BTC)
investments
The cryptocurrency world has exploded in recent years, Bitcoin (BTC) becoming one of the most recognized and negotiated digital currencies. With its high and low -risk yield potential, it is not surprising to know why many investors are impatient to participate in the action. However, investing in bitcoin and other cryptocurrencies can be complex and involves significant risks. In this article, we will explore certain effective commercial strategies for using Bitcoin (BTC) investments, helping to navigate markets with confidence.
Understand the trade in cryptocurrencies
Before immersing us in specific strategies, it is essential to understand what the trade in cryptocurrencies is. The purchase and sale of digital parts in online exchanges involve two main types of transactions:
- Market orders : These are automatic operations carried out at market price level, allowing investors to buy or sell cryptocurrencies according to current market prices.
- Limit requests : These are pre-established orders that can be used to limit the size of a trade, often used for risk management purposes.
Trade strategies for Bitcoin investments (BTC)
Here are some effective commercial strategies to use Bitcoin investments (BTC):
1.
Average reversion investment
This strategy involves identifying significant changes in the prices of cryptocurrencies and betting in their long-term bassist trend. By selling cryptocurrencies when they are overvalued, you can enjoy possible price reductions.
Example:
Use an impulse indicator to identify an upward trend which will soon be invested in a lower trend, then sell the cryptocurrency in its peak before its investment.
2.
Trade of Candle Matchs
This strategy is based on technical analysis and candle models to predict price movements in cryptocurrencies. By identifying specific signal models or combinations, you can make informed commercial decisions.
Example: Use a moving average crossing technique to identify an upward trend when the short-term mobile average of a cryptocurrency crosses its long-term mobile average, followed by a downward trend when it is again reversed.
3.
Support and resistance trade
This strategy involves identifying key support and resistance levels in cryptocurrencies according to historical price data. When you enter operations at these levels, you can limit your losses or block the benefits.
Example: Use technical analysis to identify the support areas (resistance) where a cryptocurrency has constantly shown a force, then enter long positions when the prices violent the area.
4.
NEWS – Trade based on news
This strategy involves reacting to news events that affect cryptocurrencies. In tasting of operations based on specific events or announcements, it can benefit from price movements.
Example: Use social networks and online information sources to identify potential commercial opportunities related to income announcement, adoption rate or regulatory changes in cryptocurrency.
5.
Technical analysis
This strategy involves the use of technical indicators, such as mobile averages, RSI (relative force index) and Bollinger bands, to analyze price movements in cryptocurrencies. By identifying specific signal models or combinations, you can make informed commercial decisions.
Example: Use a combination of mobile average and RSI to identify an upward trend when the short-term mobile average of a cryptocurrency crosses its long-term RSI, followed by a lower trend when ‘It is revealed again.
6.
Fomo (fear of getting lost) trade
This strategy involves reacting to market volatility and the purchase of cryptocurrencies during periods of high commercial volume and uncertainty. To tasting operations based on FOMO feeling, it can benefit from price movements.
