Two have great influence to Bitcoin trading strategies. Bitcoin

Two kinds of traders in the Bitcoin market

Bitcoin market has two types of traders – the ‘long-term’ traders and ‘short-term’ traders. Each of them are categorized depending on how long they may wish to hold onto a given position of trade.

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Basically, long-term traders study the movements of the rates for  long period of time. Then they notify the consumers to buy and hold Bitcoin. The goal is to wait for a higher price than their Bitcoin’s original price where they can get more income. On the other hand, short-term traders study every single day fluctuation of Bitcoin price. They are even more sensitive of the sudden changes of the rates that have great influence to Bitcoin trading strategies.

Bitcoin Trading Strategies

1.    Prediction Markets

This is based on the expected history of the wisest member of the crowd and let the consumers track the cryptocurrency price like theKoCurrency, which is one of great strategy for those fresh investors.

2.    Fundamental analysis

This simply means tracking down vital information that has an effect on rates. These include the number of active wallets and deals in a day, total distribution of exchanges and total consumers conveyed by dealers who accept BTC.  This strategy also estimates whether Bitcoin is still underrated or overrated.

3.    Trading the News

This method is a bit complicated and considered as the main strategy. It depends on what will be the response of the traders after the news. Based on the news, the rate will probably increase or decrease. For instance, most people overemphasized big news and may easily jump to a conclusion without thinking the other possibilities. For example, for a 20% reduction, this would be eventually followed by a 5-10% growth. This will give way to further market strategy and make income as the traders try to reduce this over-reaction.

4.    Swing Trading

Among all of the strategies mentioned above, this is the most commonly used for Intraday strategy. It uses different procedural indicators to track the prices in short-term trades. Whether the long-term trend is increasing or decreasing, traders can benefit from the daily swings up and down to get income from the BTC market.

This may include observing whether it is for ‘support’ and ‘resistance’ levels. In support level, the decreasing level of rate is estimated to meet resistance when the consumers shop products at a low price to the designated marketplace. On the other hand, the resistance level is where an increasing rate is estimated to meet the resistance of traders while getting income.

5.    Bitcoin Technical Analysis

Bascialt, technical analysis estimates the forthcoming price direction. This method is used as a mathematical formula and in chart patterns. Technical analysis is different from the fundamental analysis because it is only created by previous price statistics. Technical analysts specify that in every market, there are common cycle patterns and trends. Thus, it will not matter whether the rate is accurately too high or too low.

There are some studies that the variations in actual fundamental worth are rated by the trade associates themselves. As a result from observing the activities of the traders, it provides all information regardless of what you need.