Best Cryptocurrency Trading Strategy | Bitcoin & Altcoin Trading Strategy
Best Cryptocurrency Trading Strategy | Bitcoin & Altcoin Trading Strategy:
As every stock requires a strategy, Cryptocurrency trading also requires trading strategy. There are a lot of cryptocurrency trading strategies. People introduce trading strategies daily. Some works perfectly but some do not work all times. Only a strategy cannot make you rich in trading. You need a complete system. A system have complete strategy and trade management methods or rules.
Cryptocurrency trading system is best way to trade market. So for that we need a strategy and trade management rules.
In this article i will give you a best system to trade cryptocurrency market. You can use this strategy on bitcoin, Altcoin, ripple, IOTA and all other coins. So let discuss.
Best Cryptocurrency Trading Strategy
I will say it breakout strategy but actually it is not a typical breakout strategy. We are using filter to get clear results. And to get ride of false breakouts.
This trading strategy is based on trend Lines and moving averages. So first we learn what is trend line and how to draw trendline.
How to draw trendlines?
Trend lines are best tool to analyze stock market and now they are playing very important role in cryptocurrency market analysis tool. Trend line clearly define the market trend and next move. They alert about next up coming move by breakout of bounce back. So we will use trendline breakout because breakouts are best place to enter in market.
You need to attach two highs or lows of market to draw a trendline. Actually it is not hard core rule you can touch more than two levels of price. If trendline draw on more than two levels then it consider as a strong trendline and breakout can consider very true.
Bitcoin trading strategy – Trendline example is here:
So as you can see in image there are three levels attached by a line and these levels were making a lower low. Its mean previous level high was more than next level. So after attaching maximum levels we have successfully drawn a trendline. This was the simple way to draw a trendline. It can upper and low at both sides of chart. Its depends on price of the crypto coin.
How to use this trading strategy for CryptoCurrency trading?
Now you know how you can draw trendlines. Second tool which we will use to confirm a breakout of trendline is moving average.
Moving average is also very powerful tool to analyze market future price. It predict upcoming price of any market that’s why we will use it in our crypto coins trading too.
How to use ?
First of all draw a trend line on graph and a moving average of 80 EMA. (Exponential moving average) Moving average should only 80 EMA not others. You can add moving average in your platform form tool option. It is also a indicator that’s why you can find it in indicators option of your platform.
Rules of trading strategy
To buy first of all watch trendline, if price will breakout the trendline below to above and price is also above the moving average then always place a buy order at same time.
To sell first to all check trendline, if price breakout the trendline form above to below and also current price of coin is below the moving average then place a sell order at same time.
But one thing you have to consider all time. Always use this crypto coin strategy on D1 (Daily) Time frame only. And always enter trade only when candle completely close.
Bitcoin trading strategy example is here:
Money Management in CryptoCurrency
Cryptocurrency trading strategy is not enough to make a lot of money. Money management plays a very important role in Forex market, Stock market and also in CryptoCurrency market. So there are some rules which you should follow during trade.
Always close your trade when you have profit double from your enter. Use ratio 1:2. Its mean if you have invested 25$ in a coin and your trade is running then always close only if you gain $50 from it. It will make your strategy 100% and you will gain a lot than loss.
So i hope you like this strategy. CryptoCurrency trading strategies are hard to define but it is very easy and simple cryptocurrency trading strategy which can make you rich in no time.It is bitcoin trading strategy and altcoin trading strategy too. Because they are also cryptocurrencies that’s why it is successful on these coins too.This strategy also works in forex market but always use D1 time frame.
Also Read: IOTA price prediction
Also Read: Bitcoin Price action Analysis