If you wish to become successful in trading Cryptocurrencies Bitcoin you need to have perfectly defined and a clear strategy. You should know precisely what you wish while you open the trade – you should also identify the profit that you wish before building up, that how much loss you could easily stand prior to admitting defeat. You should also understand the timescale that you are looking at along with the type of changes that will make you think twice. To assist and to develop the strategy for Bitcoin trading you might also wish to look at some website that helps bitcoin investors to gain access to different insights which includes “smart crowd” which is well powered by price predictions of bitcoin.
There are some broad categories related to trading strategy that may give some idea about where to start:
- The Prediction Markets
Prediction markets, allow the users to follow the price predictions of cryptocurrency that is based on prediction history of “smartest” members in the crowd. However, financial brokerage is also paid to the brokers on every transaction.
- Riding latest Trend
Many financial markets will usually have the long-term trends of price, in which general direction of the motion will get in single direction for months at same time.
- Fundamental analysis
The Fundamental analysis might become familiar to the investors of stock market, but may even be used as the strategy for bitcoin trading. You need to look at fundamental data that affects price –wallets, active wallets, quantity of transactions each day, volumes being traded on the exchanges, volumes being reported by the retailers that accept BTC, and others.
- Trading of News
The price would fluctuate as per what is happening in news. For instance, a great exchange being hacked or the government proclaiming the draconian legislation might also make price move down, while exciting start-ups being funded, the well established businesses integrates the bitcoin which might lead to increase in price.