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26.11.2019

Bitcoin courseCryptocurrency earning methods.

 

 Hello dear readers, in this and the next article we will look at how you can use the Bitcoin exchange rate to earn money.

Theoretically, almost any cryptocurrency earnings is calculated on speculative actions with it. And Bitcoin is no exception.

If we consider the history of Bitcoin price changes for all the time, it becomes clear that long-term investment in this asset can be extremely profitable. But on the other hand, today the Bitcoin exchange rate is so unstable that professional crypto analysts cannot be 100% sure of the profitability of long-term investments.

And of course, a logical question arises: are there any other options for earning money using the Bitcoin exchange rate?

Yes, of course, there are many strategists who are completely different from each other in many ways (profit, time spent, risks, etc.).

We will consider 3 main trading strategies.

1) Scalping is the most risky and aggressive method traded, but the most profitable.

The meaning of such trading is a huge number of transactions, the essence of which is cheaper to buy Bitcoin and more expensive to sell in a minimum period of time. Huge profit is achieved through a huge number of such approaches. After all, the Bitcoin exchange rate is changing every second, now in a smaller, then upward direction on these micro changes and a trader plays.

2) Trending strategies – refer to medium-term investments, when the transaction remains open from 1 to 6 months.

The meaning of all trending strategies is to track the so-called technical indicators.

Example: a price chart crosses a simple moving average from the bottom up, this is a buy signal. In simpler words, the algorithm looks like this: upon a signal, a command comes to buy Bitcoin, a trader buys, and after 1-6 months a command comes from the indicator to sell an asset bought earlier, the trader sells it and, depending on the current exchange rate, Bitcoin takes off% of profit.

3) Level breakdown strategies – the meaning of this strategy is the breakdown of support and resistance levels.

As soon as the Bitcoin rate breaks through a resistance level, for example $ 150, there is a high probability that it will go further by inertia. Accordingly, immediately after breaking through the level, the trader gives the command to buy Bitcoin, and upon stopping the trend sells, the main essence of good earnings by this method is the ability to guess the trend reversal and sharply give the command to sell Bitcoin.

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