Back in 2009, Bitcoin started its journey. For the last 11 years it has owned the hearts of millions of people. Bitcoin has changed the concept of online transactions. People are no longer relying on the old infrastructure in which the middleman takes a big cut for securing transactions of money. Due to this huge popularity and massive embracing on cryptocurrencies, hundreds of brokers have listed BTC in their trading instrument list. Just like trading Forex pairs, you can trade BTC/USD with any reputed broker.
Those who are thinking of utilizing the market volatility of BTC/USD are not on the right path. To boost up the profit, you have to learn a strategic way to trade the cryptocurrency. By doing so you can manage to make a decent profit at any market conditions. Let’s learn some amazing techniques which you can use to trade Bitcoin like the professionals.
Identify the trend
There is a saying in the investment business, trade with the trend. If you have ever traded Forex you know the importance of the trend trading method. Bitcoin trading is no exception to this rule. So, how do we identify the trend line like the professionals? To find the trend, traders have to rely on the daily or the weekly time frame. The technical analysis which is done in a lower time frame never gives you the full picture of the market. In most cases, the traders have to deal with too many false signals and readings. If you have access to an advanced trading platform, you can use the 100 or the 200 days SMA to work out the course of the trend.
Learn price action trading method
The price action trading strategy is based on the complex patterns of the candlestick. The traders use the candlestick pattern to find the potential trade setups in the higher time frame. In most cases, you can buy BTC at the perfect price by using the support and the bullish price action signals. But knowing about the entry point is not enough. Luckily, the price action trading method allows you to use the stop loss in a very professional way. Usually, the stops are placed by using the tails or the pattern structure. In the case of taking profit, you have to focus on the nearest support or the resistance level. Open a practice account and try to learn price action trading so that you don’t have to lose any real money.
Managing the risk
Managing risk exposure is the most complicated task for professional BTC/USD traders. They have to fight with emotions since accepting the losses are not so easy. This is where most of the rookie traders fail. They are focused to make a big profit and they trade with a big risk. At times they earn huge money but in a few weeks they wipe out their investment. As a cryptocurrency trader, you must not take more than a 2% risk in any trade. Try to use a low leverage account so that you can’t trade in big volume. Though it will limit the profit to a certain extent it can reduce the stress at trading. Always remember, no one can become a professional Bitcoin trader by being aggressive. It requires skill and hard work to master this unique technique.
Pay attention to the economic news
The elite traders always listen to the major economic news. They never become aggressive to earn more money during the economic news. News factors can create massive volatility and it can ruin the career of retail traders. If you want to stay safe, you must learn to trade with discipline. Think about your long term goals and pay attention to market dynamics. Once you become good at analyzing the major news, it won’t take much time to master the art of trading.