Bitcoin Trading Strategy
Bitcoin trading can be extremely profitable for professionals or beginners. The market is new, highly fragmented with huge spreads. Arbitrage and margin trading are widely available. Therefore, many people can make money trading bitcoins. Bitcoin’s history of bubbles and volatility has perhaps done more to bring in new users and investors than any other aspect of the crpytocurrency. Each bitcoin bubble creates hype that puts Bitcoin’s name in the news. The media attention causes more to become interested, and the price rises until the hype fades.

Bitcoin Trading
Each time Bitcoin’s price rises, new investors and speculators want their share of profits. Because Bitcoin is global and easy to send anywhere, trading bitcoin is simple. Compared to other financial instruments, Bitcoin trading has very little barrier to entry. If you already own bitcoins, you can start trading almost instantly. In many cases, verification isn’t even required in order to trade. If you are interested in trading Bitcoin then there are many online trading companies offering this product usually as a contract for difference or CFD. Avatrade offers 20 to 1 leverage and good trading conditions on its Bitcoin CFD trading program.

The strategy
Until Bitcoin goes through this change of slowing down in its volatility, the most profitable strategies to use will probably rank in this order: Entering early after reversals at counter-trend extremes, such as 1 or 2-day highs or lows, using price action to determine reversals. Entering early after reversals at support and resistance levels where a lower high or higher low is formed, using price action to determine reversals. Entering on breakouts after high-range moves in the direction of the trend. As cryptocurrencies like Bitcoin and Ethereum “mature”, these strategies will probably become more effective in the reverse order to that in which I have listed them, with breakouts after high-range moves being the most profitable strategy and using price action to determine reversals the least profitable.