Buy low and sell high Bitcoin is an art that needs to be practiced before you can execute successfully. If you are day trading or swing trading Bitcoin, then you need much more expertise to make profits. But, if you are buying and holding for the long run and then selling Bitcoin, you may have higher chances of making a profit.
Here, you have to depend on predicting price movements and buy and sell only when it suits you. We are going to take you through fundamental, Marco, and technical analysis of Bitcoin prices to equip yourself with full trading information.
How To Buy And Sell Bitcoin?
Buying and selling Bitcoin is one the important profits to realize profits. You cannot be right, just on one end of the trade. You get profit only when you buy low and sell high bitcoin. Otherwise, traders with strategy will pounce on you and get their profits. Remember, trading is a zero sum game and bring your best game to the turf when you are ready.
How To Buy Bitcoin?
What matters when it comes to trading Bitcoin is choosing the best exchange. Trading Bitcoin might be challenging at first, but if you get it right, you will enjoy doing it. Keep in mind that the cryptocurrency market is a bit volatile. You can suddenly lose everything and you can double or triple the profit. Let us learn how we can buy Bitcoin:
- Choose the best Crypto exchange for US investors
- Download a Self Hosted Cold wallet
- Learn the importance of recovery phrase and private keys before signing up your wallet
- Go back to the Crypto Exchange and fill your personal information
- Verify your identity through in-built Know Your Customer setup
- Complete account setup and set up two factor authentication (2FA)
- Verify your phone number with the one time password (OTP)
- Add your bank account details or credit or debit card to buy bitcoin
- You are good to buy Bitcoin now
Compare prices on different exchanges as well as requirements. Work with an exchange that best serves your needs. Once you buy Crypto, it is better to move them to your hardware or software wallet, instead of keeping it in exchange. Crypto Exchanges are often attacked because they have huge balances. So, learning how to store crypto safely in wallets will go a long way in strengthening your future.
How To Sell Bitcoin?
Let us walk through the process of selling Bitcoin in a few brief steps
- Decide on which currency you would like to cash
- Getting signs to sell your Bitcoin? It’s time to proceed and take profits
- Create an account on the selling platform
- Transfer your Bitcoin to your wallet
- Create a sell order
- Learn the best time to sell Bitcoin And Take Your Profit In Fiat or Sell To Another Altcoin
How To Buy Low And Sell High Bitcoin?
Before you start trading Bitcoin, always keep in mind that its market is volatile. ‘Buy low, sell high’ strategy works, you have to know how to analyze the market for the long-term. This strategy simply shows that you are buying Bitcoin for the long-term.
Here, the investor is sure that the price will ultimately rise without considering the ups and downs along the way. Many people prefer trading in Bitcoin to other digital assets because they trust its technology, team behind it as well as ideology. Many people fail in this trading simply because they do not analyze the market differently. Let us analyze Bitcoin differently in the long term as stated below
Fundamental analysis long term
This method specifically makes efforts to predict the price by looking into the big picture. Here, you have to consider news about the currency, industry, technical developments of Bitcoin as well as other factors that can affect the success of Bitcoin.
This method considers Bitcoin’s value as a technology as well as other forces. All these factors will make you understand what will happen to every price in the future. For instance, if America decides to ban Bitcoin, this analysis will predict a probable drop in price.
Technical analysis long term
This method predicts the price by considering various market statistics such as the previous price as well as trading volumes. Look into patterns as well as trends in the price and decide the future prices.
Macro analysis long term
This method identifies a range of factors influencing Bitcoin price, facts as well as changes. These aspects are because of socio-cultural, legal, political, economic as well as technological levels. This method also looks at direct and indirect competitors, offers, and demand; it will also consider consumer habits especially those who are interested in Bitcoins.
The Problem with Bitcoin buy low sells high in the Short Term
The dream of every investor is picking short-term stocks when buying Bitcoin, buy low to make a large profit then finally sell high. This method is best for long term investments. New investors consider this method with intentions of doubling or tripling their money. Unfortunately, the probability of losing money is quite high.
If you are wrong about the prices and they suddenly rise, you are out of the difference
It has worse implications in Bitcoin as well as the cryptocurrency market.
It is difficult to find the best time to buy or sell your Bitcoins. Most investors panic when the prices plunge and they opt to sell regardless of suffering losses.
Buy Low Sell High Bitcoin for long term
Buying Bitcoin on a long position is an action of buying the coins hoping that its value will rise over time. For instance, you can buy open BC at $200000 today then come a year later the price doubles to $400000. The difference here is profit.
How New Crypto Investors Can Practice Buy Low Sell High Crypto Technique?
New investors who want to consider this technique should look into some factors. This technique can be a bit challenging to new investors hence they have to consider some markers to make an informed decision.
Look at the price fluctuations as well as the entire Bitcoin market. It is crucial to look at Bitcoin prices for a long period to pay attention to any short-lived price drops. You can also look at the historical prices as well as the current market conditions. It is important to buy only when the prices have gone low and sell only when the prices rise.
Buy Low and Hodl Crypto
The term ‘hodl’ simply means ‘hold on for dear life’. It encourages investors to stay strong even when the prices drop. This term first appeared in the limelight in the Bitcoin talk forum in 2013 when investors thought that it was a misspelling for “hold”. One user posted, “I am holding”.
This trading strategy encourages an investor to buy crypto when the prices are low. It also encourages you to hold them and only sell in a bear market especially if you are an experienced day trader.
Frequently Asked Questions
Can You Buy Bitcoin Low And Sell High?
Yes, you can always wait until the prices are low, buy, hold, and only sell when the prices are high. You need to have a solid strategy to execute both buying bitcoin at low and selling bitcoin at high. Profits will follow once you have some experience and start trading with good strategy.
Should You Buy Low And Sell High Bitcoin?
Yes, buy low and sell high Bitcoin works best for long term traders. Buying low and selling high is easy to say but dificult to execute in the actual trading setup when you day trade Bitcoin. But, your probability of success increases with this technique if you do it for long term Bitcoin investing.
How To Make Money Buying Low Selling High Bitcoins?
You can buy low and wait for a few years before you try selling your Bitcoins. When you do long term Bitcoin investing, there is a higher chance you will get profits more than losses. In fact, anyone who bought Bitcoin at its all time high in 2017 is already in profit at the end of 2020. You just need to stay put with huge volatility in Bitcoin. It is all about holding your coins until the current market situation suits your needs. Don’t make the mother of all investing mistakes by constantly rejigging your portfolio.
Takeaway – How To Buy Low And Sell High Bitcoin?
Buy low, sell high Bitcoin is a strategy where an investor buys Bitcoin when the prices are low and sell them when the prices rise.
In the US, most Bitcoin platforms require you to produce an identity card among other personal information to prevent money laundering aspect.
Bitcoin will continue to experience a great deal of price volatility as its tax status as well as legality remains questionable in most countries across the world.
To buy Bitcoin, download a Bitcoin wallet, where you will store all your Bitcoins for future use.
You can use traditional payment methods such as credit cards, debit cards as well as bank transfer to buy Bitcoin on any exchange and store them in your wallet.
Buy low; sell high Bitcoin strategy is challenging as prices show emotions as well as psychology thus difficult to predict.
Expert Bitcoin traders opt for other strategies such as the business cycle, moving averages as well as consumer sentiments to decide on the market. If you want to earn more crypto, you may want to try lending too.
Buy low sell high Bitcoin seems like a simple strategy for investors, but it may not be the best idea for average investors. It times the market and only encourages you to release Bitcoin at the best time. That depends so much on prices and not other techniques. It is a suitable strategy for seasoned Bitcoin traders. But, make sure you don’t fall for Crypto Trading scams!
I am a data analyst by profession who loves to crunch numbers at daytime and come home wondering how my passive income numbers for the day look like. I believe in being rich rather than looking rich. Follow me for Cryptocurrency, FIRE, Personal Finance, Credit Cards and Digital Nomad updates