CRYPTOCURRENCY
How To Create A Trading Strategy For Bitcoin (BTC)
How to create a Bitcoin Trade Strategy (BTC): Beginner’s Guide
Cryptocurrency trade has become increasingly popular in recent years and millions of investors around the world have become more and more popular. Bitcoin (BTC), the first and largest cryptocurrency, is one of the most widely sold assets on the online exchanges. Volatility and high price fluctuations can make it difficult to browse the market. In this article, we will provide a step -by -step guide on how to create a Bitcoin (BTC) trading strategy for beginners.
Bitcoin’s understanding
Before developing a trade strategy, it is necessary to understand the basics of Bitcoin trading. Here are some basic concepts:
* Market order : Market order is an order that fills in all the remaining outstanding orders in the order book at the current best price.
* Marginal Order
: Mound order is an order that will only be executed if the market price reaches a certain level or trade at the current market value.
* STOP-LOSS : STOP-LOSS is an automatic sales order to restrict potential losses.
* options : Profit pursuit is an automatic purchase order to make a profit from successful trading.
Define your trade goals and tolerance for risk
You must define your goals and tolerance for risk before developing a trade strategy. Here are some questions to ask yourself:
- What is the purpose of my investment? (eg the day trader, Swing Trader or long -term investor)
- How much can I afford to lose?
- Do I like the opportunity to lose 10% or more of your capital in one trade?
To select your trading platform
There are several online trading platforms where you can buy and sell Bitcoin (BTC). Several popular options are:
* binance : Of course cryptocurrency exchange offering leverage, marketing marketing and comfortable consumer.
* Coinbase : A popular cryptocurrency exchange in US users offering a simple and safe platform.
* Kraken : Reliable cryptocurrency exchange with advanced functions such as marketing marketing and sturdy shopping floor.
Creating your trade strategy
The trading strategy should be the following components:
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- Risk Management : Set Stop-Loss and Paint-Profit levels to limit potential losses.
- Position Size : Calculate the optimal size of each position to control the risk.
Here’s an example of Bitcoin (BTC) trade strategy:
Strategy:
“Buy BTC when it falls below $ 30,000” – “Sell BTC when it reaches $ 40,000”
- Set your chart with trend lines and support levels.
- Enter a purchase order when the price is reduced below $ 30,000.
- Set the loss of $ 35,000 to reduce potential losses.
- Enter a sales order when the price is $ 40,000.
advanced trading strategy
By defining your main trading strategy, you can use improved methods to improve results:
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- Market Development : Communicate with the market manufacturer to ensure liquidity and reduce risk.
Conclusion
To develop a Bitcoin (BTC) trading strategy, you need to plan, conduct research and carry out. By understanding the basics of Bitcoin trading, defining your goals and tolerance for risk, choosing a reliable platform and creating a basic strategy, you can start creating a successful career in a trade career.
