How to Trade Bitcoin : Basic Trading Tips

There are a lot of ways that you can trade Bitcoin and other cryptocurrencies and it is entirely dependent on what you want to gain from your investments and how much time are you willing to give to trading, there are four main kinds of trading:

  • Day trading
  • Swing trading
  • Scalping
  • Passive trading

Day Trading

How to Trade Bitcoin: Quick Guide

Day traders open and close their position within one single trading day. This strategy works for traders who want to take advantage of short-term opportunities in the Bitcoin market which may come about in light of developing news or emerging patterns.

Swing Trading

How to Trade Bitcoin: Quick Guide

Swing traders catch trends in price movements the moment they form and hold onto it until the trend experiences a reversal.This strategy is great if you want to take advantage of market momentum.

Scalping

How to Trade Bitcoin: Quick Guide

Make several intra-day trades on minor price movements. If you are the kind of trader who would make several small frequent profits rather than wait for a big opportunity,

Passive Trading

If you are a long-term holder or you want to just get into the crypto market and try out your hand then passive trading may be ideal for you. The idea is as straightforward as it is timeless. Wait for the price to drop to a certain level and buy in. Wait for the price to go up to a certain level and buy out.

How to Trade Bitcoin: Quick Guide

Unlike the other forms of trading, the time length between buying and selling can last for several days, weeks, months, and even years.