If you are too boring to trade Fixed Time with familiar currency pairs, you may find something new by adding digital currencies to your portfolio of assets. Maybe you would be more appropriate to choose cryptocurrencies as your second portfolio in addition to your favorite currency pairs. This article will guide you on the Fixed Time trading strategy with Bitcoin in Olymp Trade.
- 1 How does Bitcoin work?
- 2 Reasons for you to trade Bitcoin
- 3 Why is Olymp Trade platform the best option to trade Bitcoin?
- 4 Breakout trading strategy for Bitcoin in Olymp Trade
- 5 To conclude
What is Bitcoin?
Bitcoin is a completely undocumented digital currency. There is a dedicated encrypted peer-to-peer system that can secure Bitcoin on your computer.
Bitcoin is a new asset class. It is impossible to predict its movements, so it is very normal for prices to change very quickly in a short time.
How does Bitcoin work?
Once you understand how Bitcoin works, you will also be able to trade other cryptocurrencies. Basically, they are decentralized. Traditional currencies relate to banks. Cryptocurrencies do not.
Bitcoin is completely different. It is a decentralized cryptocurrency. It is not issued by a central bank like ordinary currencies. Bitcoin is created as a reward in a process known as mining.
Transactions are decentralized, so the money can be sent directly from person A to person B in the peer-to-peer Bitcoin network. Each operation is verified by this connected computer network through advanced cryptography and then stored in a ledger called a blockchain.
Reasons for you to trade Bitcoin
Any trader wants his investment that has the potential to make a big profit. Bitcoin is a relatively new trading asset. It is still a very promising investment channel for people who love technology.
You cannot predict its volatility. Although the risk is still very high, with huge profits, investors are still very interested. There is still much to exploit in the fertile land of cryptocurrencies.
Essentially, all other assets and regular currencies depend on the economy. Bitcoin does not. It works independently of governments and cannot be regulated by anyone. High volatility is just a common feature of digital currencies and grasping it will bring great profits for you. You can trade for a short period of time but still make a big profit.
Become a currency for everyday transactions
Bitcoin is also becoming useful day by day. Today, we can pay with Bitcoin just like any other currency. There are more and more places where you can actually use Bitcoin as a payment method. You can transfer Bitcoin to the individuals and organizations that you want to trade with. Just be careful and always check that the purchase is reliable or not as this is an anonymous transaction.
The value of Bitcoin
Without a fixed price, Bitcoin does not depend on the economy of any country. Bitcoin is capped at 21,000,000 which can be listed on the assets with a limited amount. Similar to gold, silver, and land, everyone understands that their quantity is limited to a certain extent.
The price of Bitcoin is influenced by the law of supply and demand of the market. As more people buy it, the greater the demand will become, the higher the price will grow during that time. Likewise, if no one is buying it, the price will automatically drop as there is no demand.
At the moment, Bitcoin is considered as digital gold.
Why is Olymp Trade platform the best option to trade Bitcoin?
Now you are definitely aware of the fact that Bitcoin fluctuates by a very wide margin. You need to turn this feature into your advantage. In Olymp Trade, you will have the best tools to do that. Olymp Trade offers chart layouts, available technical indicators, detailed historical quotes, expert market analysis, and many more utilities.
You can deposit your Olymp Trade account using Bitcoin
Olymp Trade has supported users to deposit with Bitcoin which is an extremely interesting feature. However, the rate of volatility is quite strong, you should consider before making a deposit. That is, you can use your Bitcoin to deposit for trading and withdraw with real money after getting some profits.
Combine Fixed Time Trade with cryptocurrencies in Olymp Trade
Unlike other financial markets, Fixed Time Trade is not an independent market. It needs to rely on the trading assets of another market. Most of us trade FFT with forex pairs. Fixed Time Trade is a very new field, not only in Vietnam but also in the world (less than 10 years). Hence, there is a lot of potential growth in the future.
The cryptocurrency market, although born late, has captured the attention of the majority of traders. So can we combine these two markets together? The answer is yes.
Several major trading platforms have allowed us to trade a few crypto/fiat pairs (such as BTC/USD, ETH/USD, etc.). However, the transaction volume is not much, so the payout rate is usually very low (sometimes below 50%). On the contrary, you have more information to analyze than forex. For example, the crypto market is very easy to FOMO, once you have news, the price often runs in one direction.
Breakout trading strategy for Bitcoin in Olymp Trade
With the Breakout strategy, when using it to trade Bitcoin, you should open long-term FFT orders to stay safe. Once breaking out of resistance or support zone, the price will follow the broken trend, but it takes time to form.
Therefore, long-term orders will have very high accuracy. When large money flows into Bitcoin, we can realize it with basic technical analysis indicators. From there, we can make an investment decision with the highest probability of winning.
Open UP orders when the price breaks out of the important resistance with the expiration time of more than 30 minutes.
Open DOWN orders when the price falls out of the important support with the expiration time of more than 30 minutes.
The breakout trading strategy is very effective when applied to digital currencies. They bring a win rate of about 75%. Does it sound attractive to you? If you feel it is reasonable, you can test it on a Demo account to verify, before adding it to the list of your divine strategies.
We will have a review of trading entry points with the Breakout strategy. Please look forward to it in the near future.