How to create a trading strategy for Bitcoin (BTC): a beginner’s guide
Cryptocurrency trading has become more and more popular, with millions of investors in the field. Bitcoin (BTC), the first and cryptocurrency of larvae, is an assessment of very negotiated evaluations for online exchanges. With its volitility and fluctuations at high prices, you cannot be difficult to navigate the market. In this article, we are walking a step on how to create a trading strategy for Bitcoin (BTC) for beginners.
Bitcoin Trading
Before cringing a trading strategy, it is said to understand the basics of Bitcoin trading. Here you can make key concepts:
* Market order : A market order is orders for the remaining orders of the instructions.
Limit control **: a limit of orders will only be executed the level of recovery of marquet prices or exchange the currency marking the currency.
* Stop-loss : A stop-loss is the power tool.
* Take profit : A for -profit goal is an automatic goal to profile absorption.
Define your trading goals and risk tolerance
Before cringing a trading strategy, you must define your risk objectives and tolerance. Here is what you are looking to do:
- What is my investment goal? (for example, a day trader, a swing trader or a long -term investor)
- How much can I afford to lose?
- Am I, I am composed with the possibility of losing 10% or more of my capital in a single business?
Choose your trading platform
There are several online trading platforms where you can bus and Bitcoin cell (BTC). Some popular options include:
* Binance : a well-known cryptocurrency exchange which offers offsy, margin trading and a friendly interface.
* Coinbase : a popular exchange of cryptocurrency for cisers based in the United States, aviation a sample and a security platform.
* Craken : an exchange of renowned cryptocurrency with a trading of margin of advanced functionalities and a robust floor.
Creation of your trading strategy
A trading shuold strategy includes the following compounds:
- Market analysis : Identify trends, models and suupports for your charter tool (for example, candles, Renko Chharts).
- Entry and output rules : determinin WH or cellular bitcoin as a function of your market analysis.
- Ricion Management : Define stop-loss and organizations to follow for potential loss.
- Position dimensioning : Calculate the optimal size of each publication to be managed.
Here is an example of a Basy trading strategy for Bitcoin (BTC):
Strategy: “Buy BTC when it falls below $ 30,000” – “Sell BTC when it reaches $ 40,000”
- A configuration of your Chhart with trend lines and support levels.
- Enter the goal when the price falls below $ 30,000.
- Set a stop-loss to $ 35,000 to limit potential loss.
- Enter the cell command while the price reaches $ 40,000.
Advanced trading strategies
Once you have been defined your basic negotiation strategy, you can be advanced techniques to improve your recommendations:
- Technical analysis : Use indicators such as RSI, Bolddinger Bands and MacD to identify the excess and occurrence contractions.
- Fundamental analysis : Analyze financial data, market feeling and Bitcoin’s economic data to inform your negotiation decisions.
- Making Market
: Engage with a manufacturer to provide liquidity and resticial risks.
Conclusion
The creation of a trading strategy for Bitcoin (BTC) requires planning, study and execution of caraful. By the basics of Bitcoin trading, defining your objectives and your risks, choosing a reliable and finesse platform, you can make a success.