You’ve probably read about various cryptocurrency strategies for profit. Many of them promise to make you rich in no time. Well, making a profit in cryptocurrency trading depends on you- the trader. How you use the strategy is what makes you a good trader.
Bitcoin is undoubtedly the hottest asset in the market right now and investors believe it is the future of money. The blockchain is a technology that allows transactions to be made without a central exchange. There is no middleman and this is the reason why people love Bitcoin so much. It provides privacy and anonymity.
Trading Bitcoin for Profit Strategy
This is actually a universal strategy that includes any of the many cryptocurrencies available today. So it is not limited to Bitcoin alone. If this is your first time learning about Bitcoin and alt-coins, it’s best, to begin with a brief introduction.
What is Bitcoin?
Bitcoin is a type of cryptocurrency that is really no different from the money you have in your purse in that they have no intrinsic value. The paper you have in your wallet is of no value just as the bits of data that make up Bitcoin. The government has placed value on pieces of papers to serve as money, while the general public chooses Bitcoin as a form of money online.
Unlike fiat money, Bitcoin is not controlled by any organization, financial institution or central banks. This means you can send and receive Bitcoin without any credit company or bank standing as the middleman. Cryptocurrencies cannot be printed or held physically.
The supply of Bitcoin is limited, which is why inflation cannot affect it like fiat money. However, the value of Bitcoin fluctuates every now and then due to the law of demand and supply. How can you profit from this fluctuation?
How to Profit from Bitcoin Trading
This step of making a profit from Bitcoin also applies to many cryptocurrencies. So, you can also apply it to Ethereum, Ripple, Dash and so on.
Almost all Successful Bitcoin trading strategy involves price action, while the rest just makes use of indicators. There is a mysterious technical indicator you need for the best Bitcoin strategy and this article will show you how to use it.
The Balance Volume (OBV):
This is the mysterious indicator responsible for most successful Bitcoin trades. It is an instrument for analyzing the total money flow in and out of an asset. The indicator uses a combination of volume and price activity to pinpoint the actual amount of cash transmitting in and out of the market.
If you are wondering where to find the OBV indicator, it is easy to get. OBV indicator can be found in some trading platforms like the MT4 and TradingView. It is easy to use the OBV indicator.
How to Read the OBV indicator
Open the OBV indicator on a Bitcoin chart. If the Bitcoin price is going upward, and the OBV indicator is looking downward, it means people are selling this rally so the upside Bitcoin move would not be sustainable. This also applies if the reverse is the case.
The advantage of the OBV indicator is that it helps you confirm if you are about to do the right thing or not. The OBV may not be 100% profitable as there is no such thing, but it will get you some good profit.
Also posted at: https://dailygoldanalysis.com/bitcoin-trading-indicator/