Top 5 Biggest Bitcoin Trading Concepts You Should Know

According to CNBC, more than one individual amongst ten tends to invest in Bitcoin. 

Now, if you calculate it with regard to the world population, that’s around 106 million people walking on the same path as you. 

So, how do you plan to beat them in getting more Bitcoins?

Well, it’s pretty easy. You can start your journey by creating a full-proof strategy. Although it probably won’t save you from the volatility of the Crypto market, you can surely lower your overall loss from the same. 

Besides, we’ll also ask you to opt for a transparent trading platform like Quantum AI to avoid giving up too much trading charge. Visit the Quantumai site to know more in this regard.

However, if this is your first time trying to get into the market of Bitcoin, strategizing your way won’t be easy for you. 

But there’s no need to worry, though. In this article, we’ve shared a few points to curate a perfect Crypto-marketing strategy for you.

So, let’s get started.

Top Bitcoin Trading Concepts To Know About

When it comes to trading Bitcoin, we tend to use five specific strategies for our purpose. But, before we get started, each of these suggestions is unique on its own and, thus, should be used for different reasons. Let’s keep reading to know more about it.

Concept – 1: Range Trading

Range trading, in essence, is an active investment strategy that focuses on finding a proper range at which you’ll sell or buy Bitcoin. For instance, if you see a stocking trading at $35 and think it’ll rise to $40, then trade BTCs within the same range for a few weeks.

Benefits

  • Helps you play safe and avoid the volatility of the BTC market.
  • Gets you better parameters to strategize your next move in the market.

Concept – 2: Day Trading

This trading concept involves taking a position in the market and exiting it on the same day. In this aspect, your aim will be to adopt a proper strategy to book profits and diversify your total investment properly. But, you have to rely too much on technical indicators to succeed here.

Benefits

  • Can be used to make a lot of money within a short amount of time.
  • Ideal for investing a small amount of cash and getting the highest profit out of it.

Concept – 3: HFT Or High-Frequency Trading

A staple for quant traders, high-frequency trading is a type of algorithmic strategy that involves using trading bots and developing specific algorithms. The aforesaid elements can help you understand when to enter or get out of a crypto asset.

Benefits

  • Can ease market fragmentation due to the benefit of creating high liquidity.
  • Helps in discovering the price formation and price discovery process.

Concept – 4: Scalping

Scalping is all about increasing the overall trading volume to book as much profit as possible. Although there’s a little bit of risk of losing money involved here, you can decrease the same by focusing on the margin requirement. As a scalper, you’ll also have to analyze the trading history of a crypto asset, standard investment volumes, etc.

Benefits

  • Extremely profitable if you succeed.
  • Can leverage small changes in the market, as you’re investing a lot of money.

Concept – 5: Dollar-Cost Averaging

Dollar-cost averaging, also known as DCA, is a safe-bet investment strategy where you have to divide up your investment through periodic purchases. 

Let’s say you have $100, and you want to invest it in Bitcoin. So, if you’re following this strategy, you’ll put $20 in the same during the first week. 

Now, for the 2nd week, investing somewhere around $30 would be your goal. This way, you have to diversely invest your money to minimize the effect of Bitcoin market volatility.

Benefits

  • Does not require a massive amount of cost (ideal for beginner traders).
  • Prevents investing during a relatively bad period.

Getting Started

The world of Bitcoin has always been quite volatile, and it’s become even trickier now due to the sudden influx of investors. Therefore, if you want to succeed in this segment, creating a proper strategy will be necessary for you.

However, as you’re working in a volatile market, sticking to a single plan wouldn’t help you much at all. Also, you should be a little more aggressive when it comes to trading. Being too safe or defensive wouldn’t do much help for you.

All in all, you need to be vigilant about the trading decisions. At the same time, you need to be prepared to lose all your investment. The trading market is volatile, and even a simple mistake can haunt you. So, prepare yourself well before entering the market.

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Jonathon Spire

Jonathon Spire

Tech Blogger at Jonathon Spire

My diverse background started with my computer science degree, and later progressed to building laptops and accessories. And now, for the last 7 years, I have been a social media marketing specialist and business growth consultant.

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Jonathon Spire

I blog about a range of tech topics.

For the last 7 years I have been a social media marketing specialist and business growth consultant, so I write about those the most.

Full transparency: I do review a lot of services and I try to do it as objectively as possible; I give honest feedback and only promote services I believe truly work (for which I may or may not receive a commission) – if you are a service owner and you think I have made a mistake then please let me know in the comments section.

– Jon