The bitcoin bull market is in full force and people in the crypto community are beyond excited – and rightfully so. With the price of bitcoin surging high and several major resistance lines left behind, the trading volume is also multiplying. But now that the bull market is really and undoubtedly here, a lot of people (especially those who are only just starting out in crypto trading) ask the question: what should we do now? What are the best strategies to get the most out of the bull markets?
Of course, the common sense in all of us can tell us the most basic ideas here. Buy now when the price is still relatively low and then wait for the uptrend to continue. And when it tops, you can sell the assets and get the big profits in your pocket. That’s the gist of it, but it’s also a little more complicated than that.
For those who might be interested in knowing a bit more about how to trade during a bitcoin bull run, we have decided to compile some of the most important trading strategies. From the most basic ones to those that require a bit more expertise, here’s 4 possible trading strategies we can use during the bull run!
The simple long position – ‘hodling’ all the coins
This is really the most basic strategy we can do when we’re facing a bitcoin bull run or about to enter one. It works whether we’re trading with traditional assets like stocks or with digital ones like bitcoin. Buying at a low price and then holding it is especially great for passive investors and traders who can’t or don’t want to monitor the price changes every other second. It requires less attention and effort. But naturally, it also brings in a lower profit than some other possible strategies.
Other than passive traders, new investors might also find this simple strategy useful as you don’t need a lot of experience and expertise to get a good deal for yourself. It’s a good starting point. And later when you have seen more about how the market actually works, you can always switch to another, more aggressive strategy.
The more complicated buy and hold – increasing the stakes during the bitcoin bull market
This method is very similar to the previously mentioned buy and hold one. The only exception is that in this case, we are gradually increasing the amount of assets we own. But this steady increase is also a predetermined one. For example, if we’re looking at bitcoin which trades (as we are writing this article) at just over $8,000, we might decide to buy new assets at $8,050. Then a bit later when it reaches $8,100 we buy additional assets, and then later at $8,150. In a nutshell, we might decide to buy additional bitcoins for every predetermined amount – let that be $20 or maybe $100.
We can continue this method up until a certain level, let’s say, up until the price of 1 BTC reaches $9000 and then we can trade them for fiat currencies. Or we might continue to buy these additional assets until we see clear signs of a market reversal. This way we are raising the stakes gradually as we see how the market progresses. But we also have more to gain than with the previous method.
Taking advantage of market corrections
We have already seen that buying additional assets can be a great method for increasing our profits. But the previously mentioned gradual increase is not the only way to do so. A bitcoin bull market is not one continuous upward rising line. There are always little swings when the price of the asset goes down for a little before it continues its journey upwards. These retracements or downward corrections might seem a bit disheartening to those who are not that familiar with bull markets and financial analyses. But these market corrections are not bad at all. We can actually make them work for us.
A lot of traders look for these market corrections to buy additional assets. If you have reliable market analysis and forecasts and you assume that the upward trend is going to continue in the future, then taking advantage of these retracements can increase your investments’ value very efficiently.
Hopping on the swing – buying and selling at all times
This last one is the most aggressive trading technique out of all the methods we are talking about today. In this case, traders are again taking advantage of the little movements of the price of bitcoin. They don’t only assume that in the long run the price of the digital asset will go up. They are also calculating with the interim swings of the market. When the price goes down by a certain amount, they buy assets, and when it rises again, they sell.
This method does require a lot of monitoring as you always have to be aware of the market changes and react to them accordingly. Investors and traders who are engaging in this type of trading are usually experienced. They have very reliable market analyst sources and they can constantly check the advice of other experts, too. In a lot cases, they have their own charts that can also help them.
During a bitcoin bull market, these traders usually take larger buying positions than selling. This means that when the price goes down and they buy assets, those assets are usually bigger than when they’re selling at the higher price. Because even though these traders take advantage of the swings, they also weigh their buying as they are very aware of the bull market in the long run.
The time to start trading bitcoin is now
All in all, we have a lot of options to choose from if we decide to get started in crypto and bitcoin trading. Some methods are safer and require less effort and time spent on monitoring price changes. Others are more aggressive but can be very rewarding at the end.
But one thing is certain: the time to start is now. The bitcoin bull market has already started charging, and our destination – as always – is the moon.