Best bitcoin trading strategy for beginners

Bitcoin Trading

Bitcoin trading seems to be the most popular these days among all other financial assets. With the continual increase in the value of cryptocurrencies (despite some setbacks), it is only natural that it is rising in popularity among investors looking for quick profits in the short term or looking for a strategy for long-term gain. However, whether you are a novice investor or an expert in Bitcoin trading or any other traditional form of trading to build wealth, you need to be organized and have an effective trading strategy.

It is no secret that cryptocurrency is a very volatile market, especially for those starting to trade Bitcoin to find the most effective and most profitable strategy. With that in mind, the following will be a quick and simplified guide on the best bitcoin trading strategy for beginners.

Bitcoin trading – watch the news

What you declare while trading Bitcoin in recent years is that daily economic news is very important. Although Bitcoin does not usually interact with news and the economic calendar (numbers and financial statements for companies), some news has a lasting impact on Bitcoin futures. For example, when a certain billionaire says that he will invest more than a billion dollars in Bitcoin in the coming months, it will likely delight other investors. It will be enough reason to trade Bitcoin and even cause its price to rise, just as it happened when Elon Musk announced On his support for Bitcoin and accepting payments with it.

On the other hand, some of the major cryptocurrency investors may be reports of loss of interest. If so, the news is unlikely to move the value of Bitcoin. The trick for new Bitcoin investors is to keep abreast of market events and monitor the most important sectors that affect the performance and price of Bitcoin.

Bitcoin Trading – Technical Approach

Mastering technical analysis and reading challenging financial data is crucial in trading Bitcoin, especially before entering the general market. But new Bitcoin investors should be careful where they get their information from. For example, although many articles and websites specialize in Bitcoin and cryptocurrency trading, you cannot directly rely on all of these sources without making sure that their information is correct and reliable.

On the other hand, there are many trusted online Bitcoin trading platforms such as Axia Investment, which not only provides its clients with a reliable platform that enables them to trade Bitcoin with confidence and security but also provides them with more resources and technical data that new investors can use to make a wiser decision.

Smart money divergence

The term “smart money divergence” may seem strange to new Bitcoin investors, but it is a great strategy to make sure you get the most out of trading Bitcoin in your portfolio. For example, if the price of Ethereum is going through a resistance level or is going up, while Bitcoin fails to keep up, this pattern is known as an intelligent money divergence. This means that a cryptocurrency is (lying) or not keeping up with the market. Fortunately, many support and resistance guides that new bitcoin investors can use to make better trading decisions.

Hold your investment

The term HOLD is self-explanatory. This means preserving your investment while the market fluctuates around you. This may seem like a straightforward strategy and can be easily applied. But due to the temptation to sell every minute when the market is doing well, this strategy can be challenging to implement for some new investors.

You must hold your investment, especially if you are buying cheap. Historical studies of Bitcoin and other digital currencies have shown that holding is an excellent strategy to follow. It gives you time to evaluate the market and explore your options.

Many investment sites specialize in Bitcoin trading, such as Axia Investment, but you need to choose the right platform for you to start your trading journey.

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د. مرهف العطاسي

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