Cryptocurrency trading is currently one of the hottest trends in the investment landscape. Many people make money by shopping and with good reason. Cryptocurrencies can be exchanged 24 hours a day and are not controlled by financial institutions in the same way as fiat is regulated by central banks. This eliminates things like price manipulation. It is also relatively easy to change cryptocurrencies, and there are many opportunities in the market.
For many traders, it makes sense to trade Bitcoin, which is one of the many cryptocurrencies. One of the main reasons for this is that Bitcoin is one of the most volatile cryptocurrencies, and it also tends to affect the performance of high currencies. This was evident in the cryptocurrency 2017, where most currencies have accumulated since Bitcoin was collected.
Go into Bitcoin trading
Now you probably know that some people who claim to have made millions after investing in Bitcoin, managed to make the money because they invested when the price of Bitcoin was still low. Especially those who bought Bitcoin before 2016 and waited for the price to reach epic heights.
Unfortunately, this was a kind of opportunity for the cryptocurrency market, and we saw the cryptocurrency crash in early 2018, and most of the gains were lost. However, you can still exchange cryptocurrencies, but it is best not to do so speculatively, as cryptocurrency prices have now returned to normal.
Bitcoin day trading
If you check the price of Bitcoin, you will notice that it has significant volatility at any time of the day. This makes it an attractive asset to trade in a way similar to how forex pairs usually have volatile movements, only in this case Bitcoin can offer more volatility. So how do you take advantage of this?
You can use a Bitcoin trading robot that will do most of the work for you. Some crypto-trading platforms promise to offer crypto-trading robots that analyze the market for you, execute trades and even close trades for you. You just need to set the parameters according to your preferences and the crypto trading bot will do the rest for you.
You need to have a good understanding of how Bitcoin works and what really affects price movements if you would rather trade yourself instead of relying on a Bitcoin trading robot. The volatility of Bitcoin is mainly due to demand. Wholesale buyers or large accounts tend to affect the price of Bitcoin significantly. You can identify the direction in which the large accounts are otherwise called whales, and also act in their direction. You can access the data on platforms like Binance Futures in the sentiment segment.
Use technical indicators
In terms of design, you can use technical indicators to identify possible entry points. Keep in mind that indicators alone are not very reliable, so it would be necessary to combine them with other data, in which case it would make sense to have large accounts versus smaller accounts. One of the best indicators available for trading Bitcoin is the Equilibrium Volume Indicator or OBV.
OBV is a great tool for predicting strong trends. When OBV agrees with the Bitcoin price for a strong bull or bear movement, it is best to act in the direction of that trend. You can also cover Bitcoin Chart and Ethereum for another OBV strategy. This strategy is called smart money variance, and it is where the price of Bitcoin and ethereum both behave the same, but sometimes one fails to respect lines of support or resistance.
The above shows the monetary discrepancy, in this case the discrepancy between the prices of Bitcoin and Ethereum when linked to the US dollar. The trading platform
You need a reliable platform that provides access to key indicators, as well as a trading interface configured to meet trading requirements. TrailingCrypto is one such platform, and the beautiful thing is that you can switch from one exchange to another within the platform. It also provides flexibility to select different types of order types. It also uses measures such as API keys to connect to the various crypto exchanges, and two-factor authentication as security measures. When it comes to assets, you can swap Bitcoin pairs and other cryptocurrency pairs so you have a good selection.