When you know the best Bitcoin strategies you can make better trades. A strategy essentially refers to a methodology for conducting trades that will cover price points at which you will enter and exit a trade. You can visit bitcoin up for details on legit trading technology. There are many Bitcoin strategies to choose from like hedging, scalping, swing trading, etc.

Top 7 Bitcoin strategies that will work in 2020:

1. HODLing: This has always been the most popular and widely accepted Bitcoin trading strategy. It refers to “holding on for dear life” and implies a methodology whereby you hold onto your Bitcoins for the long term in the hope that prices of the cryptocurrency will rise eventually. It indicates a long-term strategy and one that is relatively safe, involving fewer risks. But the Bitcoin is known for being notoriously volatile and while you could win big, you could also lose big. So, you must always have a risk-management plan ready. However, the bitcoin trade is on the rise due to arrival automated apps like bitcoin era app and more.
2. Hedging: This is a common strategy adopted by Bitcoin owners. They can consider hedging their risks if they are convinced that the prices will come down for a short while. In hedging, you can open strategic trades for eliminating or reducing risks to existing position. So, traders short sell their Bitcoins and hope that prices will fall. Once that happens, they re-purchase the coins for a low price. They can thereby profit from this difference. Risks are high in this strategy because you never know how much the market can go south when you plan to short-sell your Bitcoins.
3. Trend trading: This is characteristic of a market marked by regular highs and lows. This strategy works for specific timeframes because you can hold onto the position only for as long as that trend will last. Trends can be upward or downward and trend-following strategies will use technical analysis for predicting the direction in which the market momentum will move.
4. Day trading: This is one of the best-known Bitcoin strategies and deals are executed within a single trading day. Here, investors focus on the short-term profits instead of long-term returns. But to make successful trades you need to have an in-depth knowledge of how the market works. Since the crypto market is highly volatile, investors will use protective orders like “take profit” and “stop loss” orders. To learn how your bitcoin trade will be in the coming year, you can execute the newspy test 2021 and learn it all yourself.
5. Arbitrage trading: This is a leading Bitcoin trading strategy used by most decentralized cryptocurrency exchanges. Here, traders will compare the prices of a common asset on many platforms. They will then buy that asset on the platform offering the least price and sell in on a platform offering the highest price.
6. Swing trading: This allows a trader to search for potential price differences because of some market circumstances like breaking news about any crypto asset or pattern changes on trade charts. This strategy is perfect when market volatility is high. Here, investors will observe changes in charts and try to catch a swing long before others can spot this.
7. Scalping: This is a tough strategy where a trader opens multiple deals that only last a short while. The focus is on earning money through quick crypto market movements and not long-term returns. This is a risk-laden strategy since you cannot predict when an asset with rise or fall.