Reasons to trade Bitcoin
Reading time: 14 minutes. Bitcoin's value, like that of any other commodity, will not continue to rise forever. Every trend has an end, and trading this new resource versus the Dollar gives some handy advantages over purchasing it outright.
Bitcoin isn't backed by any physical asset, making it very difficult to value, other than by applying technical analysis to assist with short-term trade setups. This is where trading systems and proper money management come into play. That is your advantage over others who have yet to learn about Bitcoin CFD trading. At this point, buying the dips would be a pretty logical choice until proven otherwise , so we will explain how to use the current trend to your advantage buying the dips.
Before we have a look at a specific strategy, let's review other important aspects of Bitcoin currency. Also, all of the additional add-ons for the MetaTrader 4 Supreme Edition are now also available for the latest version of MetaTrader 5 Supreme Edition. The process is as simple as the following steps:. Open a new account or log in ;.
We would say that BTC is a bit volatile. Bear in mind that volatility is your friend as long as you apply proper money management. It was not uncommon for individual traders to move back and forth between Hong Kong and Shenzhen, making profit through arbitrage by selling Bitcoin using smartphones on Chinese exchanges, withdrawing money through bank accounts or Alipay, and buying back Bitcoin on the Hong Kong side, where prices were more in line with international levels.
BTC showed a huge momentum, which can be easily seen on a weekly chart. At one point, the price was We can easily say that the price is trending, even on higher time frames. When you spot a big trend on higher time frames, it means that higher time frame momentum is also transferred to lower time frames. Accordingly, lower time frames H1, H4 piggyback the momentum from higher time frames and theoretically enable intraday traders to enjoy massive profits.
To always stay up-to-date with the cryptocurrencies price as well as possible movements and trading opportunities, Admiral Markets offers free live webinars with our experienced professional traders and analysts. Due to the lack of long-term historical data, we can only compare the current moment with recent history since , but it should be more than enough to go with the flow and use various strategies that might give us much more profits than simply buying the BTC commodity itself.
The beauty of trading lies in its diversity, and through price action studies, traders should be able to make profits that make them financially independent and stable. Bitcoin CFD traders should be focused on:. Proper money management is the holy grail of trading, and if applied correctly in a strong trending environment, it should theoretically make enormous ROI.
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Learn about the best trading indicators, the most popular strategies, the latest news, trends and developments in the markets, and so much more! Click the banner below to register for FREE! It is recommended to use a scalping strategy in order to exploit volatility to your advantage. There is also a complete template included with all indicators that you can automatically load into your MT4 with the help of the Forex trading course. If you decide to use the strategy without Forex , this is how you can set it up on your chart:.
Disclaimer: Charts for financial instruments in this article are for illustrative purposes and does not constitute trading advice or a solicitation to buy or sell any financial instrument provided by Admiral Markets CFDs, ETFs, Shares. Past performance is not necessarily an indication of future performance.
To be able to apply this strategy, you will also need to download the award-winning MetaTrader 4 Supreme Edition as it requires the Admiral Pivot indicator.
The Admiral Pivot indicator offers unpreceded customisability suitable for both intraday and intraweek swing traders. Admiral Markets enables professional traders to trade 24 hours a day, 7 days a week with the EUR and crypto cross, as well as the ability to go long or short on any cryptocurrency CFDs, with no actual crypto assets required for trading.
Click the banner below to open an account and start trading! Stop-loss is placed below the entry point, while the target is Admiral Pivot resistance.
Bitcoin is reaching new benchmarks of value in the trading market, and by using our strategies, you may be able to profit, no matter if the trend is to the upside or downside. Rest assured that we will provide you with the latest information should there be any changes. That is why we have regular, free live trading webinars with leading industry experts. Trader's also have the ability to trade risk-free with a demo trading account. This means that traders can avoid putting their capital at risk, and they can choose when they wish to move to the live markets.
For instance, Admiral Markets' demo trading account enables traders to gain access to the latest real-time market data, the ability to trade with virtual currency, and access to the latest trading insights from expert traders.
The pair started to retrace, but the sentiment is very bullish still. The media are also over-hyping the BTC currency, but the real reason might be the technology behind the blockchain.
Many industries have been exploring its benefits and limits, so we might expect the real estate industry to also take on the blockchain hype. BTC has gained popularity as the world's best and most profitable cryptocurrency, with more and more people joining the network on a daily basis.
This might create a bubble, and the uptrend might suddenly explode. People treat it as a commodity. The other problem with Bitcoin lies in the fact that as the price of Bitcoin rises, it is harder to get paid in fractional units. At some point, Bitcoin will have to re-issue coins increase supply , but mentioning that might cause panic in the market and tank it, easily. You will also be able to trade it and make profit, even if it starts to drop and a downtrend develops.
The process is very quick and simple, so you'll be ready to go in no time. In the end, Bitcoin might not be the undisputed cryptocurrency, the trend can always change or reverse, but the invention of Bitcoin has certainly changed the world forever! Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information hereinafter "Analysis" published on the website of Admiral Markets.
Before making any investment decisions please pay close attention to the following:. Leveraged products including contracts for difference are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the risks.
The price needs to pullback towards the EMAs. Ideally, it should stop at the EMAs or pullback slightly below them. Any of the Stochastics should be below 20 and pointed upwards ideally, cross 20 from below The target is the next Admiral Pivot with the stop-loss below the previous swing low. Trading With A Demo Account Trader's also have the ability to trade risk-free with a demo trading account.
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Each of the Analysis is prepared by an independent analyst hereinafter "Author" based on the Author's personal estimations. To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
Whilst every reasonable effort is taken to ensure that all sources of the Analysis are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. The presented figures refer that refer to any past performance is not a reliable indicator of future results. The contents of the Analysis should not be construed as an express or implied promise, guarantee or implication by Admiral Markets that the client shall profit from the strategies therein or that losses in connection therewith may or shall be limited.
Any kind of previous or modeled performance of financial instruments indicated within the Publication should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
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The Bitcoin CFD Trading platform – MetaTrader 4
However, is trading bitcoin as you would any other financial instrument possible? Is it traded on Forex? How volatile is it? And how van I analyse it to make sensible trading decisions? This and much more will be discussed in this article.
How to get set up on Bitcoin Exchange in Meta Trader 4