You are wondering if there is a Bitcoin strategy. You are wondering if you are ready to start trading in crypto currency? You keep hearing about Bitcoin, and how it has made so many people rich, and you want to take the plunge? If so, this post is for you. If not, and you would like a little primer, please download this free e-book:
Bitcoin for beginnersDownloadIf you’re still here, or maybe you’re back, then what do you think? Is there a Bitcoin strategy? My feeling is – there definitely is. In fact there are many strategies for making money in crypto currency. Some take longer than others. A quick search online will show you dozens of approaches, and they will all work. There is a secret though.
Consider the following chart. It is a real chart taken by following a crypto currency, with a candle length of 6 hours.
So – what will the price do next? Will it do this?
If so – buy now! That is what we all want isn’t it? To buy a currency just before it shoots upwards. Then, if we sell at the right moment, we think we can make money so quick and easy.
But what if it does this instead?
Friends, this happens. You buy in, the price starts to climb, and then it declines. You hold on, knowing in your gut that profits await, that you just have to be patient. But then it goes down again, and again. Your total holdings drop lower and lower. When should you get out?
If you watch the talking heads online they will assure you that this is what is going to happen:
The previous two peaks were descending, so expect a peak roughly in line with the previous two. This still looks like a great buy – if you buy in at the low point you could make a great return. But is that likely? Will it automatically go back up as it has before?
Does a Bitcoin Strategy Exist?
There can definitely seem to be some patterns occurring. Some of it is a self-fulfilling prophesy – prices for crypto currency are purely driven by supply and demand. If enough people expect the price to rise, they will start buying, and this will cause the price to rise. Then too, they may start getting nervous when we get closer to that third peak price and will take their profits. This selling action can cause the price to drop. But humans are funny creatures, and we don’t always act in a consistent fashion.
So, is the search for a Bitcoin strategy hopeless? Is crypto trading a dead end, analogous more to a casino than an investment? I don’t think so. The key is to look at trading properly. With the right view, and enough discipline, you can make a consistent profit. Now, I’m not some sort of licensed financial advisor. All I have is what I have learned, both by reading and by doing. I won’t be telling you that “I have no financial interest” in crypto-currency, because I do. It always amuses me when so-called gurus tell everyone else to buy a stock they don’t own. If they were so smart they would buy the stock themselves. So here is my statement – I do have investments in Bitcoin and other crypto-currencies. If they go up in value, that is good for me.
The purpose of this page has always been to stand in contrast to the endless “get rich quick” pages out there. My Bitcoin strategy won’t turn into a fortune overnight. But, with a couple of hours per day, you can grow your investment. Consistent effort is the key, but it can work. Of course, you can make a mistake, lose discipline, and watch it all fade away. And there are no sure things in this world. But if you read the books I discussed in a previous post (HERE) about what can be learned from losing money, and if you internalized the lessons, this method could be the start of something amazing.
More on this in a couple of days. If you are looking to dive right in – may I recommend Binance as your exchange. If you sign up with this link – CLICK HERE – we both save money on every trade. Good for you, good for me.
