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3 Crypto Trading Strategies When Bitcoin Prices Are Bullish

After falling at the start of the year, crypto assets continue to strengthen as investor confidence increases. For crypto investors, there are three types of trading strategies that can be executed during a bull market.

Bitcoin (BTC) is up 7.6% over the past week and 2.65% over the last 24 hours to $42,197.1 per coin.

Another flagship cryptocurrency, Ethereum (ETH), is up 12.34% over the past week and 1.82% over the last 24 hours at $2,949.9.

Also, there is BNB (BNB), up 8.2% on a weekly basis and 1.49% on a daily basis to $403.13.

When the cryptocurrency market enters a bullish or bearish trend, every investor should be prepared with various ways of trading cryptocurrencies that are believed to be the most effective for the current market conditions.

For example, if an investor invested in Bitcoin between January and August 2020, that investor has earned up to 67.4% of his Bitcoin funds.

If you invested IDR 1,000,000 in Bitcoin in January 2020 and sold it in August 2020, the value of your investment has grown to IDR 1,674,000, an increase of 67.4%.

So what should investors do if the market is in an uptrend? The following tips are quoted from Pintu Academy.

When Bitcoin price action is in a bullish trend, in the current economic uncertainty, investors need to understand several things, namely:

Bitcoin has a high level of demand but is not supported by the Bitcoin rate. supply in the market. As a result, the price of Bitcoin is gradually increasing.

Investors prefer Bitcoin, which promises high returns, over other assets such as deposits and USD.

If you want to invest in Bitcoin when the price is soaring, you can apply the following trading methods:

Hold your assets

This strategy is often used by passive investors. They are investors who do not like to monitor assets all the time, and the advantage of this strategy is that they do not require any technical expertise and experience.

Investors only need to buy Bitcoin when the price is low, such as at support levels that indicate when the price will rise, and monitor any news that can affect the crypto market. 

Then, sell your Bitcoin holdings when the price spikes. If these simple methods are implemented correctly, digital assets can be a profitable investment.

Buying Bitcoins Gradually

Apart from holding assets, investors can also take a more sophisticated approach to cryptocurrency trading, namely buy-and-hold.

Among investors, this strategy is known as dollar cost averaging (DCA), a method of buying assets in stages.

The advantage of this approach is that investors don't have to worry about whether Bitcoin is up or down.

In addition, investors do not need to spend 100% of the money they want to share, they can pay in installments every month.

For example, currently business partners have IDR 2,000,000 in cash, so business partners can store bitcoins regularly for 10 months or around IDR 200,000 per month.

This approach is believed to reduce investment risk and avoid inappropriate timing and careless investment decisions.

The key to the Dollar Cost Averaging (DCA) approach is to maintain Bitcoin consistency on a regular basis to make it easier to invest in Bitcoin every month, to be able to take advantage of cryptocurrency trading methods through the application.

Only with a capital of IDR 55,000, investors can start investing in Bitcoin in many applications that are guaranteed to be safe for every investor because they are registered with CoFTRA.