The Simplest Bitcoin Trading Strategy
If you follow any Bitcoin whale on Twitter, you might be mistaken they have some magical trading strategy that is making them rich. They’ll tweet lots of charts with lots of lines. And they’ll discuss things like moving averages and elliot waves.
But after following crypto twitter for many years, I’ve discovered most of the big winning trades follow a much simpler strategy. And it’s something you can do to.
It’s very simple:
- Look for a big dump — I’m talking at least 5%
- Wait for things to calm down — Trying to jump in at the perfect time is a fools game.
- Go long, with a small amount of leverege
That’s all there is to it. Most traders get rekt trying to trade during volatile times using too much leverage. If you trade without leverage or at the very most 2x leverage, you’ll be able to keep your position open.
Bitcoin has shown that it has no interest in going to zero. There are too many people using it for both speculation and a store of wealth. And therefore buying after a dump won’t be a terrible idea in the longer term.
Now this sort of trading strategy might not make you super rich overnight. It’s tempting to trade with huge leverage. But i’ve seen trader after trader burst onto the scene with a couple of lucky trades. And then get wiped out when a single trade goes south.
Remember all trading is risky. If you’re risk averse than the best thing you can do is just buy and hold (and chances are you’ll beat the returns of many crypto traders)
If you’re looking to trade this strategy, then I’d recommend trading on a platform where you can change the leverage or use no leverage at all. For example on PrimeXBT leverage is set based on trade size — which isn’t ideal. On SimpleFX you’re able to change it. If you want to trade with fiat, then eToro offer no leverage trading on cryptos (as well as an option to set leverage)
