The best bitcoin trading strategy is one that is mainly aligned with your individual goals, available capital you have, and the risk appetite.

However, few bitcoin trading strategies have become famous with bitcoin traders. These include:-

Do your research

Risk is implicit to investment, and investors must conduct proper research before putting their money into anything. In many traditional investments, such as bonds, carry, and stocks contain a certain level of risk, but bitcoin is more speculative.

The investor can look at earnings and revenue while evaluating a stock and similarly analyze interest payments when assessing a bond, but bitcoin’s fundamental indicators may be less particular.

In addition to these fundamental indicators, Bitcoin’s underlying technology is sophisticated, and learning and understanding about it can take significant time and energy. Fortunately, there are many useful resources available that present good information on Bitcoin and other cryptocurrencies. Such one source is BitmexResources.

Have a plan

Investors should make sure they have a solid plan before they start trading. Many beginners traders do make by not creating any solid plan for trading. Before many trades, investors must consider the best time for entering a trade. They also need to determine the best time to get out.

Before starting any trades, investors can benefit from determining their profit goals. Further, there are a couple of more things that they need to figure out, including how much they are willing to lose, at what stages they have to stop trading, and similarly appropriate stop losses.


Diversification is another good strategy that Bitcoin traders can use. By market capitalization, Bitcoin is the world’s largest digital currency, but yes, it is not only digital currency out there. There are many more options investors can consider if they are engaging in doing so.

The main idea of diversification is that they do not put all the eggs in one basket. Mainly, a diversified portfolio in different trades allows an investor to avoid losing money due to the fluctuation.

So, in other words, a diversified portfolio could, for example, consists of four digital currencies. These four different currencies could be Bitcoin, Ripple, Bitcoin, Ethereum, etc. If any of this currency makes up 30% of the portfolio, a loss in one currency would ideally go for corresponding gain in another currency.

Further, conditions are ideal, and investors who are interested in diversification can use different resources for their research.

Trend trading bitcoin

A trending market is one that moves consistently lower lows or higher highs. This trend strategy is suitable for different timeframes, or mainly you can hold your positions open for as long as you believe this trend will continue; either the trend impact will keep for few hours, days, weeks, or even months.

For many traders, bitcoin itself a trend. It experienced a significant change in popularity in 2017, which caused it to reach a high of almost $20K in December that year.

So trend following strategies uses research and technical analysis to predict the movement of market momentum. Trend trading bitcoin involves opening a position when you believe that the digital currency price will continue to move in its current direction, or it’s going to form a new trend. Bitcoin investors can use trading software such as Bitcoin Evolution to do research for them.


Risk is inherent to investment, and trade on Bitcoin is different compare to other cryptocurrencies. We have mentioned above some strategies that you can use to trade.

Moreover, there are many different strategies that traders can use to manage the various risks associated with bitcoin trading. By performing all the right strategy and research, traders can increase their chances of meeting their investment goals.