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Bitcoin Trading Strategies: Study The Metrics Follow The News
Bitcoin Trading Strategies: Study The Metrics Follow The News
S T R AT E G I E S
Bitcoin trading isn’t for the faint of heart. It’s possible to see Bitcoin values double or drop by 50% within
hours or days. However, there are successful Bitcoin traders that make an excellent living.
If you’d like to throw your hat into the ring and try some Bitcoin trading, it’s important to learn all you can
about Bitcoins and adopt a Bitcoin trading strategy before making your first trade.
In the short-term, stock and Bitcoin prices are Many traders believe that the long-term value of
very sensitive to related news. Bitcoins can be predicted from the recent price,
the number of wallets versus the number of
Negative news regarding Bitcoins, such as active wallets, trading volume, and so on.
government regulation or the hacking of a
Bitcoin exchange, tends to drive the price down. Using this information, traders attempt to assign
a current value to a Bitcoin and make trading
Positive news items, such as a large company decisions based upon the current market price.
announcing the acceptance of Bitcoins as a form
of payment or a story about a Bitcoin millionaire,
can drive up the price of Bitcoins.
Pull out the historical price charts and look for If you’re feeling especially confident, there are
patterns. opportunities to take your trading skills to the
next level and trade on margin.
Experts claim to have their own formulas for
using price and volume data to predict short- Bitfinex and Huobi are two of the more popular
term price changes. margin trading platforms for Bitcoins.
There are many Bitcoin trading strategies. Like stock strategies, Bitcoin strategies are never a sure thing. A
little bit of luck and a lot of skill are required for consistent success. Educate yourself on how the
experts are making money and attempt to duplicate their success. Start small and avoid losing large
sums of money before you have the necessary experience to be successful.