The trading strategy needs to be in synch with your individual goals, available capital, and risk capability. A bitcoin trading strategy will cover the exit and entry points. In the past few years, a few bitcoin trading strategies have become popular.

Popular bitcoin trading strategies you can give a try!


In 2013, when the prices of bitcoin were falling, a trader incorrectly typed ‘hodling’ instead of ‘holding’ to indicate he did not desire to exit his position. Since then a strategy revolving around long term bitcoin positions got evolved with the hope to gain good returns from increased price.

As bitcoin is notorious for being volatile, this strategy can result in losses. It is recommended to have a stringent risk management plan while using this strategy when you buy Bitcoin Australia.

Bitcoin Hedging

Bitcoin holders can consider hedging their bitcoin risk in situations they feel there will be a short-term drop in market price. Hedge your current holding by taking a short position, which means selling the asset for a current market price with a hope its price will fall. If you are fortunate and the price falls then buy it at a lower price and from the difference earn a profit or balance your losses.

If the short-sell strategy is used to hedge bitcoin there are risks because there is no limitation on the price fluctuation. It can be significantly more than expected! Have risk management measures planned.

Trend trading of bitcoin

The trending market means the one that reaches lower lows or higher high consistently. It is a strategy that suits different timeframes because the position is held until the moment you feel the trend will continue.

Technical analysis is used in trend strategy to predict the momentum of price movements. When you feel that the digital currency will move consistently in a specific direction or is ready to create a new trend, you can open a position.

Bitcoin breakout strategy

It means to enter the trade as soon as the trend sets in and be prepared for the bitcoin price breakout from its previous range. The concept is that once the market breaks out of the main support or resistance level, there will be a start of major volatility.

Valuable bitcoin trading tips

Get familiar with bitcoin market

Before implementing your strategy, it is necessary to understand the market environment. The prices get affected because of reasons like supply, news, regulation changes, macro-economic releases, and security hacks.

Choose a trading method

You can purchase bitcoin outright or speculate its price along with derivatives. The purchase of bitcoin needs to be done with a reliable cryptocurrency exchange and stored in a digital wallet. Wait till its value increases and sell for a profit. You can trade using derivatives without owning the bitcoin itself. You speculate on its price and earn from the rise and fall of value. There is no need to open a bitcoin wallet.

Create a trading plan

Determine your achievable goals, your trading style, and risk attitude before creating a bitcoin trading plan. Stick to it loyally!

Risk management strategy

Set limits and stop factors of your trades because volatility risk is a key element in the bitcoin market.

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