What is Bitcoin Trading? Different Types of Bitcoin Trading

Bitcoin trading exhibits how to speculate movements in the price of cryptocurrencies. Traditionally involved in buying Bitcoin via exchange with the hope that the price increases with time. 

When you are planning to trade Bitcoins, here are some of the steps to follow:

• Learn what moves Bitcoin’s price.

• Pick a Bitcoin trading strategy and style.

• Select how to get exposure to Bitcoins.

• Decide whether to go long or short.

• Fix your stops and limits.

• Monitor and track trade.

• Close your position to take profit or incur a loss.

There are different types of Bitcoin trading:

• Day Trading

This means that Bitcoins are traded within the day they are bought and sold. This means that it will not have any exposure to Bitcoins overnight. It implies that day trading will avoid funding charges levied overnight. If you are looking for short-term price movements, this is the best style of trading. 

• Trend Trading

This means acquiring a position to match the current trend. For instance, if the market goes bullish, go long; and if the market goes bearish, go short. 

• Bitcoin Hedging

Bitcoin hedging means mitigating your exposure to risk by taking the position opposite to the already ones you have opened. You can go for it if you are worried about the market moving against you. 

• HODL (Buy and Hold)

The HODL Bitcoin strategy incorporates buying and holding Bitcoins. The name has come from a misspelling of the word, HOLD. Now, it goes as “hold on for dear life”. However, this phrase is only to lighten the mood. Buy and hold Bitcoins if you have a positive outlook on the long-term price.