How To Create A Trading Strategy For Bitcoin (BTC)

How to create a trade strategy for Bitcoin (BTC): a beginner manual

The cryptocurrency trade has increased with millions of global investors in recent years. Bitcoin (BTC), the first and largest cryptocurrency, is one of the most frequently traded assets on online exchanges. With its volatility and high price fluctuations, it can be difficult to navigate on the market. In this article we will offer a step-by-step instructions for creating a trading strategy for Bitcoin (BTC) for beginners.

Understand Bitcoin trade

Before creating a trade strategy, it is important to understand the basics of Bitcoin trade. Here are some key concepts:

* Market order

: A market order is an order that meets all remaining outstanding orders in the order book at the current best price.

Border order : A limit order is an order that is only carried out if the market price reads a certain level or reduces the current market value.

* Stopless : A stop loss is an automatic sale of sales to limit potential losses.

* Take-Profit : A take-profit is an automatic purchase order to benefit from a successful trade.

Define your trade goals and risk tolerance

Before you create a trade strategy, you must define your goals and risk tolerance. Here are some questions that you should ask yourself:

• What is my investment goal? (For example, day dealers, swing traders or long -term investors)

• How much can I get lost?

• Do I have the opportunity to lose 10% or more of my capital in a single trade?

Selection of your trading platform

There are serious online trading platforms on which you can buy and sell Bitcoin (BTC). Some popular options are:

* Binance

: An arbitrary cryptocurrency exchange that levers, margins and a user -friendly interface offers.

* Coinbase : A popular cryptocurrency exchange for US users who offers a simple and second platform.

* Kraken : A serious cryptocurrency exchange with advanced functions such as margin trading and a robust trading floor.

Create your trade strategy

A trade strategy should contain the following components:

• Market analysis : Identify trends, patterns and support levels in your chosen chart tool (e.g. candles, Renko diagrams).

• Entry and exit rules : Determine when you should buy or sell Bitcoin based on your market analysis.

• Risk management : Set Stopless and Take Profit values ​​to limit potential losses.

• Position size : Calculate the optimal size of each position to manage the risk.

Here is an example of a basic trade strategy for Bitcoin (BTC):

Strategy: “Buy BTC if it falls below 30,000 US dollars” -“Sell BTC when it reaches 40,000 US dollars”

• Set up the table with trend lines and support levels.

• Enter the purchase order when the price falls below 30,000 US dollars.

• Put a stop loss to $ 35,000 to limit potential losses.

• Enter the order order when the price reaches 40,000 US dollars.

Advanced trade strategies

Once you have defined your basic trade strategy, you can use advanced techniques to improve your results:

• Technical analysis : Use indicators such as RSI, Bollinger tapes and MACD to identify overbought and oversold conditions.

• Basic analysis : Analyze the financial data, the market mood and the Bitcoin economic data to inform your trading decisions.

• Market Making : Get involved with a market manufacturer to ensure liquidity and reduce the risk.

Diploma

The creation of a trade strategy for Bitcoin (BTC) requires careful planning, research and execution. If you understand the basics of Bitcoin trade, define your goals and risk tolerance, select a reliable platform and create a fundamental strategy, you can start building a successful trading career.