Check out Best Bitcoin Trading Strategies here. Bitcoin prices are scaling; every day, bitcoin sets a new high in the world of crypto-currency.

It is also the biggest reason why people’s expectations in bitcoin trading have dramatically increased over the last couple of years. 

People are increasingly investing in Bitcoin and generating massive returns. 

Below we have brought you some mind-blowing strategies so that you don’t leave yourself behind amid this frenzied rush. 

Based on these strategies, you will be able to plan your next move. You will easily discover how to execute the right plan at the right time. 

What are these strategies? Let’s check out-.


Best Bitcoin Trading Strategies – List of Top Bitcoin Strategies for Investment

Here is the list of Best Bitcoin Trading Strategies which you can use to make more profits by buying & selling bitcoins –

RankBitcoin Trading Strategies
1HODLing
2Short Sell
3Trend Trading
4Break Out Trading

These are the most important Bitcoin Trading Strategies which a trader must understand in details before trading in bitcoin or any other cryptocurrency.

Lets have a detailed understanding of these 4 Top Bitcoin Trading Strategies.


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    HODLing – Best Bitcoin Trading Strategy

    HODling, also abbreviated as ‘holding on for dear life,’ is the most commonly used strategy among traders. 

    Best Bitcoin Trading StrategiesHowever, it is quite interesting that this simple strategy was wrongly named in 2013 by a trader when the market prices were constantly falling, but that trader was in mind to hold the position. 

    With time, the strategy grew popular. Traders have started using this strategy while trading bitcoins.

    Since it is a long-term strategy, hence only those traders should employ it who are ready to hold their investment for the long term.

    Suppose the price of assets has unexpectedly dropped over the last few days. Few traders are likely to sell the assets at this point.

    But traders who are fully confident that the bitcoin prices will surge in the upcoming days, months, or years are likely to hold the assets.

    Similarly, traders holding the assets will be utilizing the HODLing strategy. It’s no surprise that it is the simplest yet effective strategy. Still, traders shouldn’t ignore the major downside of it. 

    If you are a bitcoin trader, make sure you aren’t entirely relying on this strategy. Since bitcoin prices can unexpectedly fall or rise over time, so one can also struggle with big losses.


    Short Sell – Top Bitcoin Trading Strategy

    Short-selling is another popular strategy. Usually, traders employ this strategy when they observe a short-term drop in market prices. 

    In such events, traders follow the hedging strategy and enter in another trade to reduce the risk associated with the existing position.  

    Under this strategy, traders initiate short-selling in which they sell the bitcoin at the current price. 

    In the future, if the price of bitcoin rises, the trader would buy the asset at a lower price, which will offset the losses that the trader has incurred before.  

    However, there are plenty of instruments that a trader can use to eradicate the bitcoin risk value. If you don’t want to trade bitcoin to offset the loss, you can enter in another trading as well. 

    For example- you can choose Contracts for Differences (CFDs), a popular option among traders. 

    But do remember that a short-selling strategy must be employed carefully because, in most instances, the downfall in assets lasts for the short term. 

    So make sure you don’t sell the assets in a hurry, instead review the position correctly and make the right decision. You can also call it a risk management strategy. 


    Trend Trading – Best Bitcoin Strategy for Investment

    Many times, the position of market price continuously moves in one direction.

    Even though it is moving higher and creating higher or lower and creating lows, such type of events indicate the market is in a strong trend. 

    However, in bitcoin trading, the strategy isn’t ideal for every time interval, but only during special events, traders should think about trend trading.

    Still, you must have a thorough understanding and high familiarity with the market. 

    Such as-if you believe that the market is likely to move in a favorable direction, take action accordingly.

    For example- if you think that bitcoins’ prices will rise more, take the risk and hold the position. 

    Traders prefer to use a trend trading strategy when news or any rule and regulation set by the top-tier authority, e.g., government or Central bank, etc., indicates a positive or negative effect on asset prices. 

    Even though bitcoin is a decentralized digital currency, still such factors can negatively impact its prices. 

    Such as in 2018, when RBI imposed a ban on Bitcoin, prices dropped, but in 2020, prices surged when Supreme Court made a favorable decision. 

    Usually, traders prefer to use technical indicators before employing a trend trading strategy. It provides them a brief idea about the direction of the prices. 

    So make sure you don’t forget to take the assistance of indicators. Whether it is a strong uptrend or a strong downtrend, these indicators help you a lot to effectively use the trend trading strategy.


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    Break out Trading – Top Bitcoin Strategy for Investment

    Break out trading is another popular trend-following strategy. When a trader observes that a strong trend is likely to enter the market, you can employ this strategy. 

    However, the entire strategy is solely focused on resistance and key support level (which indicates the major buy and sell a position in the market).

    If the trader observes a strong resistance and support level, he/she will take action as the prices are likely to “break-out.” 

    However, for such decisions, traders first have to come up with the right prediction using technical indicators.

    For example- in such events, traders utilize moving averages, RSI, or MACD types of trading strategy. 

    Once you identify the right level at which the price will reach its peak, you can enter the market and obtain favorable results. 

    For example- suppose the current price of one bitcoin is $10,000 and as per your indicator, the prices will make a big high once it reaches $10,050. 

    Here it is undoubtedly the best decision to enter the market. If your predictions were right, you could generate a massive profit. 

    However, not all traders use this strategy; only expert traders who have strong experience and expertise in technical analysis choose this strategy.

    That’s why if you are just a fresher, you can avoid this strategy but select other options.


    How to Implement these Bitcoin Trading Strategies?

    Here are few things which any bitcoin trader must consider before implementing these 4 major Bitcoin Strategies –

    Research the Bitcoin Market

    Beginners should never choose a hefty amount for investment in the absence of intense research about the market. 

    However, this point isn’t essential in bitcoin trading only, but one should consider this critical thing in other trading markets too. 

    Even though no government or central bank manages the bitcoin, its prices can still rise or fall due to numerous external factors. 

    If you see positive news about Bitcoin, you can expect a price surge. Similarly, you can utilize these strategies and secure profits. 

    However, there can be negative news about bitcoin, so make sure you pick the strategy accordingly.

    Any negative news, such as regulation changes or macro-economic impact, can severely impact an asset’s price. 

    In such events, traders either exit the position with a minimal loss or hold it in the expectancy that the prices will surge. 

    Your intense research on Bitcoin can make you a steady player and make these strategies more powerful.

    Meanwhile, if you are taking assistance from technical indicators, these strategies become essential. 

    Learn How to Trade

    It’s no surprise that bitcoin trading is currently popular due to its rising prices that yield higher returns. But more than trading, it is essential to consider your style of trading. 

    Make sure you are clear and confident about how you trade bitcoin. You must be confident about the method and strategy you have picked for your style of trading.

    For instance- you must have a clear idea of whether you are a short-term trader, long-term trader, or an active trader.

    If you are an active trader, pick the strategies accordingly. Such as- you can pick the indicators that highlight the short-term moves of prices. 

    You will have to manage your portfolio actively, so make sure you are already aware of all such things.

    Moreover, you can trade bitcoins in numerous ways, so always move ahead with a well-informed decision. 


    Know the Real Differences between various Cryptocurrencies:

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    Build a Trading Plan

    Expert traders never forget to prepare a strong plan based on which they take all the essential steps in the future. 

    That’s why if you are just a beginner, come up with a robust plan first. Bitcoin trading is similar to any other trading with modest differences. 

    Therefore, it is essential to give extensive time to research and build a strong foundation of planning. How much amount can you invest? Don’t forget this critical point of planning. 

    Right from the beginning, stick to a clear plan, and don’t forget to choose strategies and trading styles. 

    Moreover, it would be best if you had a clear goal. It will keep you motivated about trading.

    Remember, that end result isn’t necessarily to be similar to your goal. It can vary with either modest or major differences. 

    In most cases, the ultimate returns can be lower or higher than your goal.

    Try to build a plan accordingly so that if the market trend isn’t performing well as you have expected before, you can take the right action. 

    Also, due to numerous factors, the prices of assets can drop and invite a big loss for you.  

    Manage Risk

    As said before, numerous factors can affect the prices of Bitcoin. Resulting in, you may have to experience a big loss. 

    Market volatility is the key factor that brings a dramatic drop or rise in assets’ prices. 

    That’s why robust risk management planning becomes essential right from the beginning. 

    Before you start trading, make sure you are aware of all the key principles and strategies that avoid risk while trading bitcoin. 

    You must realize the power of stops loss and limits to avoid a loss being transformed into a big loss. Your trading platform will automatically close the position if you are familiar with such features. 

    These features give commands to the system about your acceptable losses and profits. 

    You can consistently generate profit and avoid losses without any need for frequent portfolio management.

    Moreover, few platforms are also offering advanced options so you can fully automate your trading journey.  

    Diversify 

    Try not to park your entire money in bitcoin; look for other options as well. Bitcoin isn’t the only option; you can invest in other crypto-currency, too, as more than 4000 crypto-currencies exist. 

    So instead of putting the entire amount in one place, invest in alternatives. 

    It will offset the loss because if one of your assets underperforms, the profit from the second asset will balance your position. 

    Also, it is a better idea to invest in other instrument categories as well to reduce the volatility impact that varies from one market to another.  

    Choose a Reliable Exchange and Wallet

    Bitcoin traders should never forget this most valuable point. Bitcoin is a digital currency; hence it is vulnerable to budding hackers and online threats. 

    Make sure you are picking a reliable exchange, else your entire investment won’t take a few seconds to fall into a big loss. 

    A reliable and licensed exchange will safeguard your transaction and your details. Also, don’t forget to choose a separate digital wallet. 

    It is way better to choose an offline wallet than an online one because they are much safer. For instance- you can store bitcoins in a hard-drive to shield your precious digital currency. 

    Before trading, it is the essential thing that you must consider because your entire efforts will go to waste if hackers have accessed your account. 

    Nothing can be worse than this, so make sure you pick a reliable exchange and wallet first. 


    Bitcoin Trading Strategies – Conclusion

    All these bitcoin strategies are highly effective. Still, we can’t forget the methods of their execution. You will have to understand your risk appetite, goal, and trading style. 

    Only then you can generate good results. Bitcoin trading is unlike normal trading; you must know about its nature, how it works and which things affect its prices. 

    Only then can you take the assistance of technical indicators and employee strategies to derive favorable results. 

    Whether you are a beginner or an advanced player, it is highly advisable to use these strategies and consider a few essential things that make these strategies a powerful trading tool.  


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