When the crypto market is entering a bullish or bearish trend, every investor must have prepared various ways of trading crypto assets that are believed to be the most effective for current market conditions. So if the market is in an uptrend, what should investors do? Here are three tips. If you’re wondering if bitcoin works click this link to learn more.
1. Hold Your Assets
Not selling Bitcoin in the long term, passive investors usually use this strategy. They are investors who don't like to monitor their assets all the time; the advantage of this strategy is that you don't need to have technical expertise and experience.
You only need to buy Bitcoin when the price is low; for example, it is supported, which indicates when the price will go up, and monitors news about anything that can affect the crypto market. Then, you sell your Bitcoin assets when the price is skyrocketing.
If this simple method can be applied correctly, digital assets can be profitable investments. For example, suppose we refer to the historical movement of Bitcoin after the halving day in the previous period. In that case, the average Bitcoin price increase can reach 29 xs in at least one year after the halving day.
2. Buy Bitcoin Gradually
In addition to holding your assets, you can also apply a more complicated way of trading crypto assets, namely buy and hold. Among investors, this strategy is known or called Dollar Cost Averaging (DCA), a method of buying assets in stages.
The advantage of this method is that investors don't have to worry about whether Bitcoin is at the top or bottom. Besides that, you also don't need to spend 100% of the money you want to allocate; you can invest in installments every month. So, for example, if you have IDR 2,000,000, you can save Bitcoin regularly for ten months or every month; you have to invest IDR 200,000. That way, you can reduce investment risk; avoid lousy timing and careless investment decisions.
The key to the DCA method is consistency in regularly saving in Bitcoin. To make it easier to invest in Bitcoin every month, you can take advantage of trading crypto assets through applications. For example, with a capital of only IDR 55,000, you can start investing in Bitcoin in the Bitcoin Era platform, which is guaranteed to be safe for every investor.
3. Buy Additional Digital Assets
The increase in an asset in a bullish condition does not just continue to experience a graph that continues to rise every day. Instead, there are times when it will experience a decline and then rise again due to taking profit by investors. When the market corrects, this is the right moment where you can buy other digital assets.
For example, you already have Bitcoin but want to add to your collection of other digital assets such as Ethereum (ETH). Investors often use this method as risk management and portfolio diversification to reduce market volatility. Because Bitcoin is the most valuable crypto asset today, the rise and fall in its price will inevitably affect other digital assets.
4. Bitcoin Price Movements
One of the main things you need to learn when trading Bitcoin is the "Bitcoin price movement." To make it easier for you to monitor Bitcoin price movements that are relatively volatile, you need an application or software to help you with this. Knowing the current and past Bitcoin price movements can help you determine the momentum of when to buy and when is the best time to sell your Bitcoin.
One of the best moments to collect the most valuable cryptocurrency right now, namely Bitcoin, is after the halving day. Bitcoin price is predicted to increase significantly during the 12 months since the halving day.
5. Applying Risk Management
For those of you who don't know what risk management is, risk management can be likened to the brakes when driving when conditions are dangerous. It is closely related to the psychology of novice investors who often feel selfish to reap the maximum profit, without realizing that the consequences of risk always accompany investors when trading Bitcoin.
You can apply the three ways of trading crypto assets above when the price movement of Bitcoin and other digital assets is bullish. In essence, every investor must have a trading plan for selling and buying digital assets by determining support and resistance levels with the Moving Average to get the right timing when buying digital assets at low prices.