Wikicoin Eric Eissler

How to Choose a Cryptocurrency Exchange

📚 Wikicoin
When searching for a crypto exchange, you may have to try on a few before finding the best fit
How to Choose a Cryptocurrency Exchange

Headlines continually read that there are many hacks, thefts, frozen assets and exchanges closing up shop and disappearing overnight. This makes many newcomers to crypto a bit uneasy on where to place their trust in an exchange. While many may flock to Coinbase for its name, ease of use, and other reputable Bitcoin exchanges to get funds in and out of the exchange, there are other options out there, but the question is whether these other exchanges are a safe place for put hard-earned funds.

This article will help guide you to find the biggest cryptocurrency exchanges, ones with the best liquidy and security.

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How to get started in four simple steps

Step 1: Open a domestic cryptocurrency exchange in your country and verify your account. It is recommended to open an account with an exchange in your country, with an address. Should something go wrong, you would know where to find the exchange and the proper authorities to contact.

Step 2: Deposit funds from your bank account to your crypto exchange account and start buying Bitcoin. You can stop here if you choose. If you want to buy other cryptocurrencies other than the big ones, such as Bitcoin, Ethereum, Litecoin, etc. then move on to step three.

Step 3: Open a crypto exchange account that offers a variety of altcoins. These exchanges usually don’t accept fiat deposits, so that is why you, in steps one and two, bought Bitcoin to be able to exchange it for other coins.  

Step 4: After verifying your account, send the Bitcoin that you bought from the fiat-accepting exchange to the new crypto exchange. Once it arrives, you can start buying other coins with your Bitcoin. When you decide to sell, you will need to convert it back to Bitcoin and send it back to the fiat-accepting account. Once it arrives there, you sell it again to convert to cash and transfer it to your bank.

Top rated Bitcoin exchanges

Exchanges that allow fiat deposits: Best USD Bitcoin exchange

Exchanges that only accept crypto deposits: Cryptocurrency exchange comparison

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Factors to consider when navigating a Bitcoin exchange

Factors to consider when navigating a Bitcoin exchange

1. Coin Offerings

Many exchanges offer only some of the most popular coins, such as Bitcoin, Litecoin and Ethereum. There are only a handful of exchanges that offer a wider variety of coins. These exchanges are usually the ones that do no accept fiat deposits.

2. Liquidity

Liquidity refers to the ease of buying/selling in the market. High liquidity means that there is a huge number of buyers/sellers. High liquidity is good as it leads to better price discovery and it allows you to transact faster, you may be able to avoid the maker/taker fees, discussed below.

3. Security

The level and type of security mechanisms employed by an exchange is vital in ensuring that your coins are safe. Examples of good security practices undertaken by exchanges include:

a) Keeping deposits in cold storage; this means that your coins offline, beyond the reach of hackers.

b) Availability of two-factor authentication option- this will increase account security.

c) Email encryption and verification; for each transaction there will be an email sent to your account to confirm the transaction. If you get an email from a transaction you don’t recognize then your account has been compromised-act fast!

Factors to consider when navigating a Bitcoin exchange

4. Level of customer support

Quality, responsive customer support will save time and reduce stress, especially in fast-paced environment-crypto trading is not for the faint of heart. Problems regarding your verification process, deposit/withdrawals, funds reflection and trading orders should be solved quickly by the exchanges customer support team.

5. Trading fees

Low transaction fees on buying and selling are important if you are going to trading often. It is important to compare the fees of your exchange, with other exchanges to find the best rates.

6. Ease of use

This goes without saying, if it is not easy to use, you are probably not going to use it. For example, when an exchange only shows transactions in Bitcoin, it is hard to tell how much actual money you are spending. This is not user-friendly. General navigation should be straightforward, look for clean designs to ease the user experience.

Watch out for fees!

You cannot trade fee-free yet, well maybe on Robinhood you can, but for the majority, there are fees to be paid with each transaction you make. The following are some of the various fees you may have to pay when you buy or sell.

Network/Miner Fees

These fees ensure your transactions are quickly processed by miners. Many exchanges will set this rate automatically. This is where the “reward” for mining blocks comes from if you are a miner.

Conversion fees - 0.5% to 5%

These fees are how exchanges make money on your transaction and vary greatly depending on your method of payment. For example, if you were to purchase Bitcoin through Coinbase, using a debit card, it would cost you 3.99 percent, while purchasing directly using your bank account would be only 1.49 percent, a significant advantage.

Maker and taker fees - 0.1% to 0.5%

The Maker/Taker Fee is another way that exchanges make a profit and not every exchange has them so if you can avoid these fees, which is more money in your pocket. The higher end of fee spectrum around 0.25 percent is associated with takers, who place orders that are immediately matched by another user. Conversely, makers, whose orders are not immediately matched by another user, add liquidity to the market and pay lower fees as a result. This fee is calculated as a percentage of your buy or sell, and that percentage is based on your trading volume over the last 30 days.

Armed with all this information, you should be ready to go out there and make a solid choice that suits your needs, provides a high level of support and security.

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📈 Pricewise Thomas Hughes

EOS Price Prediction: Will the Coin Leave the Bearish Market?

Pricewise
EOS could be the world’s fastest cryptocurrency if it can overcome obstacles and attract new users
EOS Price Prediction: Will the Coin Leave the Bearish Market?

Less than a year after its official release, EOS became one of the most attractive digital assets. Its protocol is designed to enable vertical and horizontal scaling of decentralized applications, which is achieved through an operating system-like concept. EOS is a form of cryptocurrency based on Ethereum and supports up to 50,000 transactions per second, twice as much as VISA cards.

EOS is not only interesting and attractive from a technological point of view but is also considered to be an alternative to Bitcoin. It is a more reliable financial instrument and represents a true implementation of blockchain into financial transactions.

EOS versus other cryptocurrencies

Currently, EOS is the sixth largest cryptocurrency, with a market value of almost 5 billion USD. At one point, just before the April 2018 fiasco, just days before launching its Dawn 4.0 release, its market cap exceeded 17 billion USD. However, after this thriving period, EOS’ cryptocurrency price wiped out almost 75% of its value compared to an average decrease of 30% for Bitcoin and the broader cryptocurrency market. The highly volatile digital currency entered into a bearish market, and investors started withdrawing assets from it. Despite this fact, the prediction for EOS is bright, featuring strong price growth.

The average daily trading volumes at the end of October reached 400 million USD, compared to almost 4 billion USD at the end of April, demonstrating a 90% decline. The short-term outlook for the digital currency is not so bright.

There was some impetus in the beginning of November, which pushed the price of EOS up, but the gains were small and did not last long. The daily trading volumes are steadily rising, reaching 750 million USD in Nov 7, stimulating the increase in prices. Several cryptocurrency rating agencies labeled EOS a “buy” based on their “adoption model” metric in regard to EOS' strong communities and app-building capabilities. The digital currency started the month with strong increases but later suffered some corrections, normalizing its value around 5.50 USD.

EOS versus other cryptocurrencies

EOS coin predictions: the medium-term trend

The medium-term outlook for the EOS coin remains in the bearish market. The positive start of the month gave some bullish pressure to the cryptocurrency, but later this impetus was lost at 5.83 USD in the supply area on Nov 7th. EOS price predictions remain negative during the month with expectations for some growth at the end of November, stimulated by small investors.

The price is below the ten days exponential moving average, putting it in a bearish market, which is not likely broken without some extraordinary events. The stochastic oscillator for EOS is at 26%, near the low end of its range, and its signal points down which implies a divergence with the price. The EOS forecast range in medium-term is 5.00-7.50 USD.

Even though EOS’ price prediction for 2018 is not so bright, the cryptocurrency is expected to gain high popularity in next months, gaining higher scalability, though there are numerous technical obstacles for the price to increase.

the medium-term trend

EOS future price: the short-term trend is down

In the short-term, EOS returns to a bearish trend and may extend losses to 5.05 or lower. The pressure was extremely strong on Nov 7th after the formation of a Tweezer top at 5.76 USD. The cryptocurrency moved down to 5.60 USD, breaking the 50 days exponential moving average.

The stochastic oscillator is at 27%, and its signal points imply downward price movement may occur in the short-term as the bears' momentum increases. EOS projection’s target in the short-term is 4.50-5.50 USD.

EOS future price

What can stimulate the growth of EOS?

The main driving force for EOS are:

Technology News: The BancorX platform has enabled token conversion between a total of 110+ Ethereum and EOS-based assets. Thus, popularization of the protocol will become even stronger over the coming months as many more platforms are expected to take up the token's exchange. This has led many analysts to change their EOS coin price prediction to “buy” despite the near-term bearish activity.

Growth potential: The cryptocurrency still has strong potential for growth; due to its scalability, if it can overcome obstacles there is potential for exponential growth.

Higher spending: Holiday season is approaching, and people are more inclined to spend. This probably will flood millions of dollars into the cryptocurrency market at the end of November and beginning of December. Last year, this period was marked with record highs of the cryptocurrency market and that (cash inflows) is expected again.

Scalability: The main problem of old-fashioned cryptocurrencies such as Bitcoin and Ethereum is scalability. This has stopped their growth and is expected to dominate market sentiment in the near to short-term. EOS implements blockchain smart contracts to create a decentralized, scalable network that far surpasses ETH and BTC.

Role in governance and voting: The EOS protocol can be used for modern election systems. Since the US Presidential elections in 2016, the world is more and more shaken by voting issues and manipulations. The EOS protocol allows establishing a safe, decentralized election system that is trustless and verifiable.

The EOS protocol combines the best of the blockchain, opening doors for widespread usage of the technology in the future, which is driving force behind its price.

“The EOS blockchain is changing what is possible, and we are only just scratching the surface, and it is no longer just the fringes who are getting excited. EOS is an infant chain with excellent pedigree, but before she can spread her wings and fly, the basics need to be learned, practiced and enforced. A governed chain needs to learn how to govern, a trustless community needs to trust each other and set the culture which will last for centuries,” said the CEO of EOS Dublin, Sharif Bouktila.

EOS prediction 2018: is EOS a good investment?

The simple answer is – Yes, but not in November.

The long-term EOS predictions are the coin price will return to an uptrend. The analysts recommend waiting by mid-November before purchasing EOS coins due to possible depreciation to around 4.50 USD. The digital currency is currently in the sell zone and will remain there for a few more weeks. The EOS price prediction for the end of November is  a much more encouraging estimate of 5.50-6.00 USD with positive outlook.

The EOS coin forecast for December is for the return of bullish market sentiment and rapid growth.

EOS prediction 2018

EOS vs Bitcoin

Many analysts predict bright future for the blockchain technology and cryptocurrencies. Unfortunately, several scalabilities and legal issued have hampered their expansion and subsequently reduce their prices.

The EOS protocol integrates the modern technologies, creating a nifty platform for easily usable and accessible services of dApps or decentralized applications. EOS tries to combine the best aspects from the most well-known blockchain networks such as Ethereum’s versatile and intense computing power and Bitcoin’s safe and secure ecosystem.

And if you still do not see the advantages of the EOS versus Bitcoin, see the differences:

 

Bitcoin

EOS

Launch date

January 3, 2009

June 26, 2017

Max. number of tokens

21 million

1 billion

Token uses

Digital asset

Native currency of EOS dapp platform.

Supported language(s)

C++

Any language that compiles into WebAssembly (WASM)

Consensus algorithm

Proof of work

Delegated proof of stake

Decentralized?

Yes

Yes

Transactions per second

7

50,000

📈 Pricewise
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Darryn Pollock

Bitcoin vs. Bitcoin Cash: Co-Exists or Kill Each Other?

The Civil War may be over, but neither Bitcoin or Bitcoin Cash are going anywhere.
Bitcoin vs. Bitcoin Cash: Co-Exists or Kill Each Other?
Contents

Bitcoin Cash took on a serious goal when it was borne into the crypto community. It intended to become the ‘one true Bitcoin’ allegedly getting back to Satoshi’s Vision for digital currencies.

However, the popularity of Bitcoin and its effect on the mainstream, especially on bringing more people into the cryptocurrency space was unstoppable and juggernaut-like. Bitcoin may no longer be the currency that it was, and it may be suffering problems, but that does not mean people will turn away from it.

The same can be said for Bitcoin Cash, however, in terms of its supporters. Whatever your view on the forked currency, there is no denying its proposed usefulness, nor its ability to stay relevant.

So, will these two fight until one is dead or will they learn to coexist, which will be of benefit for the average cryptocurrency user.

Bitcoin Cash’s relevance

Since Bitcoin was created, there have been increasingly more and more coins that have been created as an improvement on a digital currency that is now 10 years old and operating in much of a similar vein since its inception.

The improvements from other coins are different offerings that are supposed to help users overcome some of the problems. And because Bitcoin's biggest problem is scalability, which leads to slow transactions and high fees, Bitcoin Cash has honed in on that.

As a competitor, that is just six months old, Bitcoin Cash cannot be derogated too far. It has remained one of the top coins in relation to Coinmarketcap and is increasingly growing its adoption and interest.

It offers something that Bitcoin cannot, currently, and that is both good for Bitcoin Cash and for the cryptocurrency community.

Bitcoin’s limitations

Bitcoin is the most popular and powerful cryptocurrency by far, that is not up for debate. It is the gateway coin which attracts people to the market, but it is also a coin with limitations.

Limitations currently are tied to scalability and for some that is not a problem as its ability to hold and grow value is what certain sectors are looking for.

However, the fact that it is not great in Bitcoin ATMs, for microtransactions, for speedy transactions and general retail adoption means there is a gap in the market.

Simple economics

Because both Bitcoin and Bitcoin Cash offer something that each other lack, quick and cheap transaction compared with mainstream acceptance, they are competitors, but they are not direct.

The Bitcoin community may have vehement followers who will side with only one coin, but not everyone need do that, it is fluid enough to use certain coins for certain circumstances and others in other places.

It is competition economics that sees Bitcoin and Bitcoin Cash trying to fight for ascendancy which is only leading to better products being honed for users who can easily use both. And this is a positive going forward should they not kill each other.

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🤷 Opinions Cyril Gilson

Cryptodiplomat: Sweden is the Next Country Where Enthusiasts Will be Doing Their Crypto Business

Opinions
The standard IPO could be done faster and cheaper with all the benefits of ICO: George #Cryptodiplomat Paliani
Cryptodiplomat: Sweden is the Next Country Where Enthusiasts Will be Doing Their Crypto Business

 

 

George #Cryptodiplomat Paliani is a private Blockchain consultant, advisor for several startups and speaker in many international conferences.

A former diplomat, he’s advising Zeus.exchange and Swiss Smart Valley and has his own crypto channel called Crypto Diplomat. We speak with Mr. Paliani about the future of ICOs, why they happen to fail or succeed.

CG: The ICO is becoming more like VC financing and of course VC financing also learn from ICOs, so these two currents are merging in a way. Also, one can notice that ICOs are becoming more and more expensive, so what do you think of the future of ICO at all? Would the whole approach be replaced by something else, some other type of tokenization?

GP: To my mind, there is going to be some kind of a collision, cooperation. Right now big companies are watching small startups closing their ICOs and raising funds in a more efficient and easy, fast way. Getting $10 mln in 10 seconds is not a joke right now– it is the new reality.

I am not going to argue with the fact that maybe there are only VCs mainly investing in ICOs and this new ICO wave is turning into a classical market one. ICO and IPO could be done in a hybrid way like a digitalized IPO or something similar. From my point of view, this is the nearest future, we will see that happening in just two to three years.

The standard IPO could be done in a faster, cheaper, and, what is important, legal way with the use of all the benefits that ICO has.

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CG: But that would render ICOs useless if the IPOs take over in such a way.

GP: I wouldn’t say that the ICO will become useless. This could show us the third path, just as Sweden had its own original way between communism, socialism and capitalism.

The same goes here: it could be a whole new option. We have ICO from the one side, IPO from the other, and there is a third way- collaboration between these two worlds, the crypto and the classical financial one. Still, I wouldn’t say the ICO will become useless.

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CG: But one of the issues with ICOs, of course, is lack of accountability before investors. So what are the ways of solving these problems? Some talk of smart money or community regulation when the community has the world, or what is your take?

GP: I think the main question you are posing here is the lack of trust, lack of escrow and some fundamentals that are in the process of building. We see this right now at the conference, in different countries and legislations, companies, etc. It is just a matter of time, first of all. The second thing is that there are already some platforms addressing these problems.

Let’s take the Smart Valley team as an example. What they do is selecting the most perspective startups and filtering off scam by getting the opinion of experienced investors and qualified business experts, checking with their analysts, gathering the information from all the accessible sources, and, finally, using so-called ‘wisdom of the crowd’. Everything is being done transparently on the platform built on Blockchain. Thus the lack of trust fades away.

It is just one of the solutions, though. Other guys are doing something like a community based on trust and a public Blockchain where people vote for ICOs. Well, it is a more complicated product, but could be an extra option too.

These institutions are forming right now, and everything is being structured. The crypto market itself is currently at the stage of formation.

Some governments are facilitating this process, others are just overcomplicating it because they cannot figure out what is Bitcoin, ICO, or whatever else that is dedicated to the cryptocurrencies. This all is just a matter of time, believe me.

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CG: Another reason why ICOs fail is the internal fighting. Take the case of Tezos where the foundation and the owners of the code are at odds. What can be done with it?  

GP: Nobody can be 100 percent sure that money gathered from an ICO will be distributed or managed properly.

Here is a nice Swiss example- they have a financial regulatory body which is now creating a protocol for crypto sphere and ICOs that says that after submitting and signing a certain plan it should be realized- this reminds me the core idea of smart contracts, by the way. Abu Dhabi is moving in the same direction in the regulatory aspect.

I can give you several examples of big businesses that also had such problems with the owners, investors or founders. We can recall the case of Facebook, when Mr. Zuckerberg thought he would be the only owner of the idea and later he got all those lawsuits from Winklevoss brothers. He had many more problems, but, well, that guy survived.

The main idea I wanted to share is that you cannot be 100 percent confident that any business, be it an ICO or the one functioning on the classical market will be 100 percent secure and that your investments will be safe. You know, it is business, after all. But, some people say that if you are buying Bitcoin, it is already an investment. Basically, if you are keeping some of your money in euros, this is also a type of risk hedging, it just depends on the approach you choose.  

You will probably agree that a multiple signature wallet gives you a really nice opportunity to gain more security as an investor. This way cryptocurrency funds cannot be spent with only one man’s decision. But, of course, there are pros and cons here as well.

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CG: But if they are locked, no one can use them.

GP: I understand this, but still, for instance, let’s talk about the corporate structure, but with Blockchain, so that any decision made by the CEO or any member of the board of directors is kept transparent and cannot be approved by CEO’s signature alone. Basically, this gives us a more secure way of building a new era- era of trust, possibilities and businesses where everything is 100 percent transparent and secure. Don’t you think it sounds really good? We are all living in that exact transition period right now.

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CG: I think these problems arise because of the whole crypto industry is still under-regulated. That’s why it lacks trust and it lacks the ways of enforcement. Besides of how can we make people share the tokens properly even if in the eyes of law enforcement they don’t exist, or they exist as some strange thing, they still have a problem to deal with. But if governments will be persuaded to introduce some really strict regulations that would kill the whole idea. Or you don’t think that this perspective is possible?

GP: Frankly speaking, I am moved by the idea of anarchy inspired by a concept of free will. Although, as a guy who has studied at Humboldt University in Berlin and lived in Germany for a long time, I like everything being structured, planned and regulated. So, to my mind, there has to be decent regulation, because we cannot live in a society where business grows without any rules or laws.

My favorite concepts include balance and opportunities. As does, for example, the idea of American capitalism where a state gives you the rules and if you abide by them, everything is fine. It may not be the best example in the cryptocurrency sphere, but Switzerland, Japan or Singapore, maybe Gibraltar, Malta and Lichtenstein are good examples of countries for doing crypto business.

I think there is a high potential in Sweden. Sweden is moving towards crypto sphere at a fast pace- they are studying the experience of other governments. There is a nice guy from Swedish Parliament named Mathias Sundin who is moving the crypto idea and Blockchain business forward in a progressive manner. Sweden is the next country that young enthusiasts will be doing their crypto business. Mark my words.

CG: Well, we all hope that normal governments will find a way to thread between these two paths very unpleasant for us.

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📈 Pricewise Daniel Osten

Growth Continues as More Buyers Enter Market; Bitcoin Price Reaches $9,000.

Pricewise
Market reversal is officially confirmed. Bitcoin price reaches $9,000 and is heading for the bulls’ targets.
Growth Continues as More Buyers Enter Market; Bitcoin Price Reaches $9,000.

 

Tuesday turned out to be another day of purchases, and despite the caution that not only we exercise in our estimates, but also market participants in their trading operations, there can be no doubt about the uptrend. History is repeating: first smart money enters the positions, then professional traders and investors, and only then — the crowd.

We observed the entry of smart money: large volumes were being bought at different levels and at a leisurely pace, without significantly affecting the price. Professional traders turned the market around, since the culmination of the correction could be determined by conducting a thorough and competent technical analysis. In a little while the crowd, finally assured of the trend change, will also return to the market.

Altcoins closely follow the trend in the absence of significant news

Meanwhile, Bitcoin is trading at $9,000, and market capitalization has reached $350 bln, having increased by $15 bln in the past day. Altcoins are maintaining their correlation with the underlying asset and are almost universally gaining in price, albeit not as rapidly as yesterday or the day before.

IOTA and Cardano are in first place with an increase of 10 percent; most of the other assets in the top 10 gained 4-6 percent, similar to Bitcoin. EOS and Ripple are taking a break after a two-day rally: the former hasn’t changed in price, and the latter even managed to lose 1.5 percent.

In the media space, everything is quiet - no news has appeared in a day, at which we would like to draw the reader's attention in the context of its possible impact on the market situation.

BTC/USD

Bulls can be congratulated on achieving a local victory: by Wednesday they have not just broken through the descending channel, but found a foothold above it, while the maximum value of Bitcoin in the past day was $9,040. Now the boundary of the channel becomes a support, and due to its negative incline, a slight price decrease to $8800 will not post a threat to further growth.

Growth Continues as More Buyers Enter Market; Bitcoin Price Reaches $9,000

The volume profile data tells us that we are entering a zone of significant resistance. In the course of a month, a huge number of transactions took place in the $8,900 - $9,400 range, in the end leading to a correction. This means that there will be players again who will want to sell the asset at the same prices. At the same time, buyers are benefitted by a young ascending trend, in which the price is likely to move until it reaches $9,400.

A more detailed, but no less hopeful picture is revealed by the hourly chart. It clearly shows that the retest of the boundary of the descending channel was successful, and subsequently the price pushed away from it cheerfully, confirming the strength of the bulls and the significance of the support.

Growth Continues as More Buyers Enter Market; Bitcoin Price Reaches $9,000

Further on the path to growth there is an entire set of resistances in the form of the upper boundary of the local (blue) and the lower boundary of the previous ascending (green) channel. A return to it will give bulls occasion to celebrate their triumph.

The first growth target, described in yesterday’s review, has been reached. The next one up is $9,400. Today we are expecting a day of lateral price movement — buyers need time to restore their strength.

However, if even in the current situation the upward movement will remain active, and within the next 24 hours the local and global ascending channels will be broken, we can announce the bears’ capitulation with a clear conscience. We however recommend that our readers wait until the fallback to $8,800 before augmenting long positions.

LTC/USD

At the time of writing, the price of Litecoin is $173. Throughout the March correction, the asset was doing quite well compared to most altcoins, and sometimes showed better results than its forefather Bitcoin. Nevertheless, this does not cancel the fact that the price is inside a descending channel, though anxiously trying to break out.

Growth Continues as More Buyers Enter Market; Bitcoin Price Reaches $9,000

The break through the channel is just a matter of time. It will be much more interesting to see how active the upward movement will be. Just like with Bitcoin, there is a number of constraints: first, the turbulence zone $175 - $190, where a lot of transactions took place. Second, the mirror level of resistance, which was formed during the February correction.

If buyers can overcome these obstacles quickly, they will be rewarded by achieving the $195 target. This target has two confirmations: first, it’s the value of the 1.618 Fibonacci extension, and second — it’s the horizontal mirror level.

📈 Pricewise
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🎓 Trading Guide Andrew Strogoff

3 Best Bitcoin Trading Strategies- How to Trade Bitcoin Profitable

Trading Guide
Trading strategies that will help you to improve your results, novice or professional
3 Best Bitcoin Trading Strategies- How to Trade Bitcoin Profitable

Hello, dear readers and subscribers. This is Andrew Strogoff again and I’m going to describe some interesting Bitcoin trading strategies in this article. The number of Bitcoin traders and investors has increased significantly in the past couple of years. They are trying to get profits in this volatile market. Traders and investors use different types of strategies in order to succeed.

Before I start describing the three of the best methods of trading Bitcoin, I would like to enlist them. Here they are:

  1. Fundamental Hodl strategy.

  2. Technical analysis different timeframes strategy.

  3. Scalping.

Fundamental Hodl strategy

This is one of the easiest ways of trading Bitcoin. This Hodl strategy requires nor skills neither experience in trading. The only thing you need is money and patience. Long term Hodl strategy was a reliable one in the past and many investors think that this one will give good results in the future.

Why Hodl? This is a misspelling of the word Hold. The word appeared in 2013 when Bitcoin was falling and a drunk trader has posted his comment on Bitcointalk. Later, Hodl became popular and is used widely by many traders.

What is the main idea of this strategy and why do I like it more than the others? You need no technical analysis knowledge at all. The only thing that is important is to monitor the price of the digital asset (Bitcoin in this case).

To make it more fruitful, I use fundamental analysis as well, meaning I follow all the important news and make my own analysis thinking of how they can influence the crypto market. What are that events and why do they influence Bitcoin price?

Bitcoin trading strategy, news and events

Well, every Bitcoin trading strategy is based on supply and demand principles meaning the price of the cryptocurrency relies on those two basic parameters. When the demand is higher than the supply, Bitcoin grows. Otherwise, the main cryptocurrency goes downwards. When the supply and demand are equal, the price stands at a place without significant changes.

The news is one of the main price drivers! They may be either positive or negative. Depending on their nature, Bitcoin price may grow or decline. One of the most influential events was a fork. When it happened, the coin’s price decline and there is nothing strange here as the adepts and holders are also divided by the fork.

There are some other important events that I will describe here. Some data may be expected or unexpected. Being a professional FX trader, I know and understand that expected news in cryptocurrency community is something very rare. There are no special events calendar that you may open on Monday, for example, and see that there is some important data on Thursday, e.g.

When I trade FX currency pairs, I use such calendars frequently as I want to know what events are likely to influence the market during the week. However, as for Bitcoin, there is no such a calendar at all meaning there are almost no events that may be expected or predicted in advance except those that are widely discussed by the community.

Another important group of events is related to policies towards cryptocurrencies and the whole Blockchain technology. To tell the truth, Blockchain adoption is far from being fast. However, I can see that we have a huge progress in this field as compared to previous years. The situation with cryptocurrencies is much more difficult as they are forbidden in many countries where blockchain technologies are already adopted.

Let’s take China for example. Blockchain is considered to be a very promising technology by the local government, but they are fighting against ICOs, TGEs, and cryptos in general.

How to make profit trading news? This Bitcoin trading strategy is actual when important events take place. All you need is some experience and patience. This strategy is not a hodl one, but is close to it as you may buy Bitcoin, for example, and hold it for a long time period.

Technical analysis Bitcoin trading strategies

Bitcoin trading is very popular nowadays and many investors try their best in an attempt to earn money. Bitcoin is very volatile and allows gaining significant profits for everyone. However, before you start trading this cryptocurrency, you need to calculate your risks as well.

I, personally, prefer technical analysis trading as hodling is a very long-term strategy, which freezes money with undefined results. I am going to show you some interesting solutions that may help you earn money when trading Bitcoin.

a clear downtrend and a simple descending trend line

Let’s take a look at the first screenshot. Here you can see a clear downtrend and a simple descending trend line. The price reaches it at one point and here we have a clear signal to sell Bitcoin. This situation is good for those traders who prefer margin trading as they may sell the currency pair BTC/USD and get profit from such activities.

This is one of the easiest Bitcoin trading strategies, but you need to learn about trend lines and how to use them. They look pretty easy on my screenshot but I have great experience in using them. You need first to learn how to put them on charts and how to deal with them as well.

strong resistance area

Let me give you another example. On the second screenshot, you can see no trend at all, but we have a strong resistance area here. The currency pair tries to breach it several times without any chance to succeed.

This tells us that bulls re-unable to reverse the trend. This is the first signal that shows us that we will have some further downtrend in the nearest future. However, here we have some clear signal that predicts further price fluctuations.

BTC/USD forms a shooting star pattern which is a very strong candlestick model. BTC price goes downwards first but then retests the resistance area again. As you may see, bulls fail again and the price declines towards the red flag.

This strategy includes no indicators or other tools except resistance area and candlestick patterns. It seems very easy, but you need to have experience in graphic analysis before using it.

Bollinger Bands indicator in order

Another example of Bitcoin trading strategy is here. Take a look at the next screenshot. Here I have put Bollinger Bands indicator in order to show how it works. As you may see, I have highlighted some interesting points on the chart. Here there are signals that will help you to take profits.

Bollinger Bands indicator is a rather simple one. There are plenty of Bitcoin trading strategies that you may use when applying this algorithm. However, I would like to show you the easiest one. Here you can buy when the price is touching (or is close to) to the lowest border of the indicator and sell when Bitcoin reaches the upper one.

Pros and cons of technical analysis Bitcoin trading strategies

I prefer those strategies for the following reasons:

  1. They are illustrative. Every time you look at the chart you can see something that may give you an idea of what is happening with the price. No matter what kind of tools do you use, you always have something to look at.

  2. Wide range of tools. Bitcoin trading strategies of this type use different tools including technical indicators, graphics tools etc. You don’t need to know all of them. You can just choose one or two in order to succeed.

  3. All data is available. Those who choose technical analysis, are able to use all data that is available for them meaning they have the current price and history of quotes that help to forecast future fluctuations.

  4. The price includes everything. This is one of my favorite advantages. No matter what type of asset do you trade all the news and events are already included in the price. The only thing you need is to understand the future direction of fluctuations.

As for the disadvantages, they are the following:

  1. Technical analysis is sometimes subjective. All the results that you have when analyzing the price using technical means may be subjective as they are coming from your head. All professional traders try to be objective, but sometimes it doesn’t work at all.

  2. Your forecasts may fail no matter what you do. Yes, it happens and I would say that such situations are frequent. You do your analysis, find signals but the price goes the opposite directions. As for me, I establish some limits for my personal trades meaning I know when to exit my positions if the forecast is wrong.

Scalping Bitcoin trading strategies

Those ones are part of technical analysis trading strategies. Scalping is also known as pips trading. The main idea of this method is that you open a huge number of positions within one single trading day. Scalping is not a new method as it was used already in Forex and stock trading for a long period of time. Those scalping traders sometimes are able to make significant gains due to the big number of positions they open.

When trading with this method, you use the very same analysis tools that you apply in technical analysis. Those are the indicators, the candlesticks and the others. This method is supposed to be the best for all traders, but I would like you to pay attention to its advantages and disadvantages before opening real trading positions using it.

The main advantages are:

  1. This method offers great opportunities for the traders. You can open 10+ positions during one single trading day meaning you can win a huge amount in the end.

  2. Fast enter and fast exit. You don’t need to wait much until the price “matures.” Once you have some 10+ pips profit, you can exit your position and look for another one.

  3. You don’t need to hold your positions for long so you don’t “freeze your money.”

  4. Bitcoin price volatility is huge, offering you many opportunities during the day.

Those are the pros of this method that are not numerous naturally. As for the disadvantages, they are the following:

  1. The main disadvantage of this method is that this one requires full-time presence in front of the chart. This means that you are to monitor the price for several hours opening and exiting your trades. Otherwise, it makes no sense to use this strategy.

  2. You need to focus on the price. This is another great disadvantage of this method. You need to be focused on charts. Scalper traders are under significant pressure and they get tired 100-time faster than the others. They have to constantly follow the price as one mistake may lead to significant losses. Remember that in scalping high volumes of your capital are involved.

  3. The next disadvantage is exchange fees. The more positions you open, the more you have to pay. However, there is one great exception. The more volumes you do within one exchange, the more money you save as most trading platforms give discounts for high trading volumes.

Those disadvantages of scalping show that this method is not suitable for all traders’ categories. Those who use scalping are always very skilled and they know what to do in every situation.

Those are the three main trading strategies for Bitcoin. You can use them separately or even combine as I do sometimes. I prefer to follow the news and events first, but to take the decision, I always get down to charts and look through them trying to find the best trading opportunities.

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