It is curious how in less than 50 years, humanity moved from trading with coffee, corn and other inputs to establishing a whole market of digital assets whose prices are constantly fluctuating, thus opening the opportunity to obtain significant profits with your own capital. Such is the case of cryptocurrencies and therefore, we will talk about the best way to trade Bitcoin.

Bitcoin is undoubtedly one of the most volatile assets on the market and will continue to be as long as it is considered the mother of cryptocurrencies. We have seen the price of BTC fall and rise thousands of dollars in a matter of hours, multiplying the profits of those who decided to negotiate and infecting FOMO (Fear Of Missing Out) to those who did not.

BTC/USD trading

BTC/USD is the most popular pair in the cryptocurrency market as it is used by professional, intermediate and beginner traders. The objective of this pair is simply to make a profit equal to the amount of USD the price moved. For example, I bought 1 BTC for $5,000 because my analysis determined that the price would go to $5,500. As soon as the value of Bitcoin exceeds USD 5,000, we are already making profits because the token we have acquired is now worth more. This pair is definitely one of the best ways to trade Bitcoin.

Price patterns can be affected by important news for Bitcoin and the crypto ecosystem in general, large buy / sell orders, and use case deployments. After having considered these factors, we can proceed to establish a transparent analysis of what is happening in the market.

The charts teach us the behavior of the Bitcoin price through different timeframes, so we must detect where the support and resistance points are, where the price will rebound or break through. If the BTC price breaks a resistance point and has good volume, it is likely to continue to rise. Otherwise, it will be returned to the support point and the same scenario will be repeated. A solid analysis will translate to big profits for the trader.

BTC/Altcoins trading

Another of the best ways to trade Bitcoin is through altcoins.

Altcoins are alternative cryptocurrencies to Bitcoin with different characteristics, price and functions. While there is no other currency more valuable than Bitcoin (at the moment), altcoins may present more volume and volatility than BTC itself. In some cases, if Bitcoin increases 10%, we may see Litecoin increase 15%, which will give us a bigger profit considering that the percentage is higher and we are acquiring more tokens.

The trading strategy for altcoins is the same for the BTC / USD pair, although we must be very aware of the currency we choose. If a trader manages to detect an indication of a rise or fall in the price of an altcoin, this means that we will be able to spend less (or more BTC) to acquire a token. For example, if our analysis concludes that NEO is about to increase from 0.001 BTC to 0.0015, buying 100 tokens would give us as many 0.0005 BTC for each NEO. In other words, this trade would leave us 0.05 BTC of profit.

This process can be executed through a buy order (if price is going up), or a sell order if price is going down). In any case, the best way to trade Bitcoin is by developing a strong market analysis and being able to control your emotions.

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