Government regulations have cracked down on Bitcoin activities in countries like Singapore and China. Additionally, the growing concerns about the environmental impact of Bitcoin mining have been a serious threat to the growth of Bitcoin in the last couple of years.
However, during this period, the total market capitalization of the cryptocurrency market grew to more than $1 trillion, and over 18,000 other cryptocurrencies have been created since Bitcoin was launched in 2009. Blockchain technology is gradually being adopted and applied in various fields such as medicine, education, supply chain and logistics tracking, international remittance, and the insurance industry.
If the widespread adoption of Bitcoin and blockchain technology continues regardless of the crackdown and government regulations, it’s possible that Bitcoin will thrive for many more years to come, and there will still be many trading opportunities for Bitcoin traders to hopefully maximize.
It might not be too late to invest in Bitcoin if you are playing the long game and if you believe in Bitcoin as an invaluable store of value and its potential to disrupt traditional financial systems in the coming years. However, if you share the sentiment that government regulations and a crackdown on Bitcoin mining activities will lead to a crash in the cryptocurrency economy, then you might just be too late to the party.
Bitcoin is a high-risk crypto asset, and trading without a plan or style can be disastrous and might result in a loss of capital and a waste of time. There are no perfect or better trading styles, but you’ll learn about four major styles; day trading, scalping, swing trading, and position trading.
The trading styles are similar but are only different due to the time periods the trades are held. Scalping trades are done within a few seconds to hours, while swing trading is done within hours to a few days. Position trades can be done in days or even years.
To choose the trading style that works for you, there are a few factors you may consider. They include risk tolerance, personality, and goals.
This is a trading style that might be challenging to a beginner if not done properly. This Bitcoin trading style involves buying or selling Bitcoin positions within a single day. The possible gain is lower than expected in other trading strategies.
However, day trading requires constant monitoring of market trends, Day traders cannot afford to be as patient as swing traders, and making use of trading platforms like Chainwizard AI might be beneficial.
This is the exact opposite of swing trading; it takes a longer time for the price to reach the desired target. A position trader purposely waits for a long period of time, knowing the target price might be worthwhile.
Also, there’s a big possibility of encountering a larger loss in this kind of trading. It can be considered a buy-and-hold strategy as opposed to the buy-and-sell strategy that’s practiced in swing trading. It’s a trading strategy that is best suited for patient traders.
A position trader will have to be determined in order not to be deterred from the big price. One of the most important factors in this strategy is the ability to point out the entry and exit points in the market trend. This ability might make any loss experienced tolerable.
This trading style is done by going in and out of the market within a few hours. The target of traders here is to create gains out of the smallest price movements. It involves buying and selling crypto assets almost immediately.
Traders, also known as scalpers, need to be fast and precise with the timing of market entry since it can close within a few seconds. It’s an exciting trading style, and its risk level is high. To be a good scalper, a trader must not be emotional or overridden with sentiments.
This trading strategy requires a lot of patience and determination. Time is essential in this type of trading in order not to miss out on potential gains, which are mostly due as a result of drastic market moves.
It can’t be said which is better because it depends on the trader’s personality, knowledge, and risk tolerance. It also depends on the goals the trader has in mind; for example, a trader with retirement plans in mind might consider position trading, while a trader with the goal of making a living might prefer day trading or swing trading. All trading strategies can be useful.
If you wish, you can signup for Chainwizard AI and customize your trading strategy together with your account manager based on your style, or you can also use one of several back-tested trading strategies.
Next, you will receive a confirmation email to verify your identity. Click on the link provided to be connected with your broker’s website, and you’ll be redirected to the platform.
Step 2: Once your Chainwizard AI account is up and running, if you wish to start live trading, you will need to fund your account with a minimum deposit of $250, and then you will be readystart trading using that initial deposit, but before you dive right in, there are a couple of things you need to do.
Step 3: Create a trading strategy
If you are just starting out, make sure to learn as much as you can about the market, analyze the information provided by the platform, and research trends and fluctuations. By doing so, you might be in a better position to devise a trading strategy that suits your goal - such as grid trading styles, trends & trend reversals, price action, as well as the use of indicators like EMA.
Another crucial step is to utilize the various features provided by Chainwizard AI. You can use the “Demo” account to practice your skills and test your strategy before you move on to live trades. And more importantly, you can share your parameters and limitations with your account manager, so he / she can present you with trading options that meet your criteria.
Step 4: Select the Bitcoin trading pairs you want to trade
Once you complete all the steps, you can start, but keep on learning, analyzing, monitoring the market, and testing your skills. To dive into live trades, you can choose from numerous Bitcoin trading pairs across multiple crypto exchange platforms. Just don’t forget to start slowly and responsibly, and never invest more than you can possibly afford to lose.
Explore Chainwizard AI to hopefully enjoy your trading journey!
Bitcoin trading involves speculation of Bitcoin price movements; just like in the traditional trading markets. It provides an opportunity for traders to try and maximize Bitcoin’s volatility by monitoring the market and analyzing fluctuations as they happen.
You are probably familiar with the popular saying that “those who fail to plan, plan to fail.” Well, this principle also applies to Bitcoin trading, and you must have a back-tested trading plan before you start trading Bitcoin. You can follow these steps to create a sound Bitcoin trading plan:
Scalping, day trading, position trading, and swing trading are the most common Bitcoin trading styles that professional traders use. They differ only in the duration it takes for the price to hopefully reach their targets. If you are a beginner, you can try all the trading styles until you find one that is suitable for you.
Invalidation points and stop loss limits are important risk management tools. A stop loss is a buy/sell order that is executed only when the price hits the invalidation level of trade. For instance, setting a stop loss order at 5% below your entry level for a long Bitcoin position might limit the loss to 5% if market sentiment changes and the price goes against the prediction.
In January 2022, the crypto market saw a cascade of liquidations to the tune of $343 million within 24 hours across all the cryptocurrency exchanges. About $122 million of this figure was associated with Bitcoin trading positions.
These liquidations might have been prevented if Bitcoin traders had set stop loss orders at their invalidation levels.
Like every speculative asset, Bitcoin's price can be in an uptrend or downtrend, or it can be in a ranging market. You can determine the direction of trend and trend reversal using trend lines, support, and resistance, market structure, EMAs, RSI, etc. It may be rewarding when you flow with the tide rather than against it. Establishing trend direction might help you prepare your trades.
Monitoring your open Bitcoin trades is just as important as determining the direction of the trend and setting a stop loss. Monitoring your open trades might help you spot trend reversals quickly, so you might be able to cut your losses if the trade is not successful. When monitoring trades, it is also paramount for you to always document the progress of all your trades. Journaling will help you figure out what you did right and what you can improve upon.
In conclusion, you must learn to accept responsibility for losses, learn from mistakes, and stick to your trading plan, regardless of the timeframes you use or whether you use fundamental or technical analysis. Always be in control of your emotions and wait for confirmation of your trade setups before opening or closing a position.
If you wish, you can sign up for Chainwizard AI and start your trading journey with a user-friendly platform.
A Bitcoin trading platform is a tool that facilitates the Bitcoin trading process by helping you monitor all the necessary market data in one place.
It is strongly recommended that you have some basic understanding of technical analysis of financial markets, whether you trade with a platform like Chainwizard AI or with any other. Please note that Bitcoin trading is extremely unpredictable, and while it might hopefully provide some opportunities, it also involves a significant level of risk.
Chainwizard AI works with all operating systems, including Mac, Linux, Windows, and ARM.
Chainwizard AI has several in-built trading strategies that you can run. It also allows you to customize these strategies with your desired indicators and create your own trading strategy.