How To Successfully Trade Bitcoin Like A Professional Trader

Cryptocurrency trading is currently one of the hottest trends in the investment world. Many people make money trading, and for good reason. Cryptocurrencies can be traded 24 hours a day and are not controlled by financial institutions in the same way that fiat currencies are regulated by central banks. This avoids problems such as price manipulation. Trading cryptocurrencies is also relatively easy, and there are many options on the market. For many traders, it makes sense to trade Bitcoin, which is one of the many cryptocurrencies on the market. One of the main reasons for this is that Bitcoin is one of the most volatile cryptocurrencies, which also tends to affect the performance of altcoins. This was evident during the 2017 crypto rally, when most altcoins rose as Bitcoin trended upward.

Start trading Bitcoin. 

You already know that some of the people who claim to have made millions investing in Bitcoin were able to make that money because they invested when the price of Bitcoin was still low. Probably. Especially those who bought Bitcoin before 2016 and waited for the price to reach its all-time high. Unfortunately, this was a once-in-a-lifetime opportunity for the crypto market, and most of the gains were lost when crypto crashed in early 2018. However, although you can trade cryptocurrencies, it is best not to do so speculatively, as the prices of cryptocurrencies have normalized.

day trading with bitcoin. 

If you look at the price of Bitcoin, you will see large fluctuations at any time of the day. This makes it an attractive asset to trade in a similar way to how forex pairs typically exhibit high volatility movements; in this case, Bitcoin can be volatile. So how do you take advantage of this? Bitcoin trading bots can do most of the work for you. Some crypto trading platforms promise to offer crypto trading bots that will analyze the market, execute trades, and even close trades on your behalf. All you need to do is set the parameters according to your preferences, and the cryptocurrency trading bot will do the rest.

If you want to trade on your own rather than relying on a Bitcoin trading bot, you need to have a good understanding of how Bitcoin works and what actually influences price movements. Bitcoin volatility is primarily driven by demand. Large buyers or large customers tend to have a large impact on the direction of Bitcoin's price. You can see which direction large accounts, also known as whales, are trading, and you can also trade in that direction. This data can be accessed on platforms such as Binance Futures in the sentiment segment.

Using technical indicators

When it comes to execution, technical indicators can be used to identify potential entry points. Please note that the indicator alone is not very reliable, so it must be combined with other data. This is where sentiment data from large accounts compared to small accounts can be helpful. One of the best indicators available for trading Bitcoin is the on-balance volume, or OBV, indicator. OBV is a great tool for predicting strong trends. If OBV matches the price of Bitcoin and there is a strong up-or-down trend, it is best to trade in the direction of that trend. You can also apply another of his OBV strategies by overlaying the Bitcoin chart with the Ethereum chart. This strategy is called smart money divergence. Bitcoin and Ethereum prices behave similarly, but at some point, the support or resistance lines are no longer respected. The above shows the divergence of money, in this case the divergence of Bitcoin and Ethereum prices when pegged to the US dollar. trading platform

You need a reliable platform that provides access to key indicators and a trading interface tailored to traders' needs. TrailingCrypto is one such platform, and its advantage is that within this platform, he can switch from one exchange to another. It also gives you the flexibility to choose different order types. In addition, as security measures, we have implemented measures such as API keys and two-step authentication for connecting to various virtual currency exchanges. When it comes to assets, there is plenty of variety, as you can trade Bitcoin pairs as well as other cryptocurrency pairs.

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