One of the most sought after trading strategies for online trading involves the incorporation of a cryptocurrency known as Bitcoin. Bitcoins, a type of digital currency, has sky-rocketed in value since it was presented into the marketplace back in 2010. Having increased in value at an exponential rate the ability for newbie day-traders to invest in this booming asset has been made nearly impossible except for those willing to dish out between 5 to 6 figures just to get started. A rather hefty price to invest which is why many newbie investors have turned to other forms of investing like binary options and forex.
Bitcoin Demand and Incorporation
Luckily for us though, the demand to invest Bitcoins has resulted in many binary option and forex brokers to incorporate Bitcoins into their online trading platform. Making the once inaccessible investing available to traders of all experience levels. What’s the catch though? Well the catch would be that you aren’t actually investing the full value of Bitcoins but instead a derivative value created by your online investment broker. So what are the advantages of investing Bitcoins through binary options or forex? Well one significant advantage would be that you don’t need to pay an arm and a leg just to invest in the hottest new trend.
A second advantage, which is often overlooked, would be that you can greatly minimize your risk while maximizing your earning potential when properly investing Bitcoins through binary options and forex. However, as many of you may have experienced by now, that is much easier said than done. So how can you maximize your earnings through Bitcoin investing? The answer is quite simple, all you need is an accurate and consistent Bitcoin trading concept! Which brings us to why we are here today, to discuss a reliable trading approach that you can apply when investing Bitcoins through binary options and forex!
Bitcoin Concept Set-Up
Now that we have distinguished the demand for Bitcoin investing and how to pursue investing Bitcoins through binary options and forex lets move forward. It is important to note that this Bitcoin trading approach is based upon technical analysis through price action trading concept, both of which have been extensively covered on my website.
Due to this Bitcoin investment concept being based upon technical analysis access to a charting solution that supports Bitcoin (BTC, BTC/USD) is a necessity. A free online charting solution that you can use that supports Bitcoin charting would be www.tradingview.com. Now that you have your charting solution up and running make sure you have BTC or BTC/USD as your asset of choice. Once you have completed those simple steps you can move forward to changing your charting solution to a timeframe between 5 to 15 minutes.
One side note that you may want to jot down would be since we are applying PATS would be that you can, in theory, use any time frame you deem necessary. So even if you venture outside the recommended time frame between 5 to 15 minutes just know that is okay. However, there are a few contingencies that you should know before experimenting and using this investment approach in a live investment situation.
Contingency #1: Keep your expiration time near the same time value as your time frame.
(So if you are using a 5 minute time frame on your charting solution this means keep your expiration time between 3 to 7 minutes)
Contingency #2: No matter which time frame you use all trading signals are generated in the same format (refer to concept steps below).
Contingency #3: Avoid investing during intra-trading hours.
Applying Bitcoin Investment Concept
The most accurate and reoccurring set up that we will be applying with this Bitcoin concept would be the execution of PUT investments with support levels signals. In order for a PUT signal to be generated we require a total of 5 steps to be completed. The first step, as you can better understand in the image provided above, would be the creation of a support level. Support levels are created when the price of an asset bounces off an “imaginary” price level and heads back in an upward direction. This is symbolized by a bearish candle closing at the same value that the following bullish candle opens.
The second step would be that after your support level has been created you need to confirm that price heads back in a bullish (upward) direction. Meaning that the price of the asset, which in this case would be Bitcoin, is increasing in price value. This step should automatically occur due to the following bullish candle that subsequently occurs after the bearish candle starts the formation of the support level. The third step that needs to occur would be that we need the price of Bitcoin to retrace back below our support level in a strong downward break.
After the third step has occurred you can move onward to the 4th step which would be that we need the price of Bitcoin to retrace back above our support level in a decisive upward (bullish) break. Once this has occurred we only need to wait for one more step to take place which would be that we need price to once again break our support level in a bearish fashion. Once this break has occurred then you are clear to go ahead and place a PUT investment with a expiration period near your time frame value.
Now there is a vetting process that you can add to this Bitcoin concept to help reduce the amount of false signals generated. (Not that they are many false signals with Price Action Trading but an additional confirmation step never hurt). The confirmation step you can add when using this approach would be to wait for the bearish candle that breaks our support level to close while making sure the next candle that forms is heading in a bearish direction. Now if you are using this trading approach on a time frame of 5 minutes or less I don’t encourage you to perform this confirmation step since your entry level is more crucial and time is of the essence.
Bitcoin Trading Approach Conclusion
Learning to adapt and becoming resourceful will better secure your probability of success as an online trader. For years I have helped thousands of online traders get started with reliable brokers and profitable trading strategies which is why I encourage you to maximize your efforts by diving right into all the free, educational content made available to you on my site. If you follow the contingencies correctly and don’t rush the application portion of this bitcoin investment concept there is no reason why you cannot consistently supplement your income online from home.