Seize the Opportunity: Invest in Bitcoin’s Potential with a Limit Order Strategy

Are you ready to take control of your Bitcoin investments and maximize your profits? With a strategic approach to limit orders, you can capitalize on Bitcoin’s potential while mitigating risks. By setting buy and sell orders at specific price points, you can time your entries and exits to perfection, avoiding the pitfalls of market volatility.

This is what I use. It allows me to look at my crypto account and be pleasantly surprised that orders have triggered on their own, even while I was sleeping. I found out how to create these orders for free, which helps to avoid fees and price spreads that eat up your account’s total $ value.

And best of all, I don’t have to nervously watch the crypto market and worry if I missed out on buying when I should have or selling when I should have. It’s already done ahead of time.

How to Get Into Crypto and Actually Make Money from It

Most people feel like they got to the party too late already. This is a normal response after watching the meteoric price of Bitcoin over the last decade and a half. But crypto is still very young and that means that the price movements are even easier to analyze, when compared to stocks and other assets.

Today I’m giving you not financial advice but a basic roadmap for buying Bitcoin or other cryptocurrencies, which I myself use. A lot of this blog post will be derived from over 6 years of crypto investing experience and following the cryptocurrency market.

But first, there’s still a ton of reasons to be bullish on crypto, much like gold and silver, which have just reached new all-time highs:

• Store of Value: Bitcoin’s limited supply and decentralized nature make it an attractive store of value, similar to gold. As inflation concerns rise, investors may seek alternative assets.
• Institutional Adoption: More and more institutional investors, such as corporations and hedge funds, are allocating funds to Bitcoin, increasing its legitimacy and potentially driving demand.
• Historical Performance: Bitcoin has demonstrated significant price appreciation over the years, attracting investors who believe in its long-term potential. It’s also one of a kind, so there is a spontaneous and unexpected positive quality to crypto as well.
• Network Effect: As more people and businesses adopt Bitcoin, its value and utility increase, creating a positive feedback loop. Buying and holding crypto now for the long term still makes you an early adopter. Imagine if you’d bought Google in 2004 and held it for 20 years.

It’s important to note that investing in Bitcoin carries risks, and past performance is not indicative of future results. Always conduct thorough research and consider consulting with a financial advisor before making investment decisions.

Understandably, many traditional investors sense the benefit of Bitcoin offering just one more asset class to diversify with, but there’s a few roadblocks holding them back beyond simply saying “yes” and going for it.

The Learning Curve: Some Investors Still Don’t Know How to Invest in Crypto

The volatile nature of the market and the lack of regulation surrounding cryptocurrencies can cause traditional investors to feel uneasy. Many prefer the stability of traditional investments like stocks and bonds. However, crypto investing isn’t limited to just buying individual coins.

There are ways to diversify your portfolio and manage risk, such as investing in crypto index funds or platforms that offer fractional ownership of coins. Additionally, some financial advisors now specialize in cryptocurrencies, providing guidance and expertise to those interested in exploring this emerging asset class. The downside is that you’re still in the stock market, so much like holding paper gold and silver; you’re not the direct custodian, and there’s no guarantee it will be there if and when you need it.

There’s also a slight user friendliness issue too, though it’s gotten a lot simpler over the years. While many diehard Bitcoin investors insist upon having a physical storage wallet, to gain a basic level of exposure to cryptocurrency, all you really need is a Coinbase account. There are pros and cons of holding your BTC on an exchange, but the pros and cons will continue to be debated regarding the most secure and reliable ways of storing your BTC, like writing down the long BTC address and hiding the paper away somewhere.

My Own Bitcoin Trading Strategy: How to Buy and Sell Crypto Worry-Free with Limit Orders

I would be remiss if I did not share my own cryptocurrency trading strategy. This is based on my overall bullish belief in Bitcoin for the long term, when compared to the waning purchasing power in the US dollar and growing global acceptance of crypto.

First of all, you want to avoid buying market orders. This is where you accept the current asking price for a certain amount of crypto, which is usually far above the current price. Limit orders allow you to tell your crypto account to buy and sell at certain price points, so you get the crypto at the price you set without worrying about the bid or ask price at the present moment.

1. Buy dips automatically by creating several free limit orders on Coinbase One, where I buy a small amount, 2 – 5% under the current market price of Bitcoin, staggered at $2,500 intervals.

2. Create limit sell orders above current price in similar fashion.

3. HODL – Hold on for dear life. Long term, I’m buying to hold and only looking to sell occasionally, to grow my account and to buy the dip in price after the next cyclical price downturn.

As you can imagine, this sequence takes advantage of the typical price movement of Bitcoin, which tends to move in a range. Your account automatically sells when the price of BTC is high and buys BTC after it has dropped in price and is temporarily on sale. Taking the emotion out of everything with a long term expectation that the price will rise over the years allows me to compound the gains automatically.

But it’s even better than that. By creating a list of market orders, you don’t have to pay the spread fee, and on Coinbase One you don’t get charged per trade, and they give you a free 7-day trial. I used this trial to create a bunch of orders that will execute on their own some date in the future, and they’re good until cancelled (GTC). I basically got to place a bunch of free orders that will trigger in time, devoid of any fee.

And if these orders never trigger, they expire worthless and cost me nothing.

Create Your Own Crypto Trading Strategy

Forging your own crypto trading strategy will take time. I take solace in the opinion and belief that signals on the BTC weekly charts, when viewed alongside standard indicators like Bollinger bands, moving averages, and the volume or relative strength index (RSI), are relatively easy to guess on, but the beauty of creating your limit orders ahead of time is you can walk away and know that your account is buying high and selling low automatically, whether or not crypto makes that next giant vault upward.

In the meantime, you are growing and compounding your account. As long as you’re bullish long term, this strategy makes sense. You can always come up with a crypto trading plan on your own or discover your very own trading techniques.

I have found that by simply checking out the candlestick charts for Bitcoin a couple of times a week and referencing the hourly, daily, weekly, and monthly data, I am able to get an intuitive grasp on the direction that crypto is set to move next.

Final Crypto Trading Tip: Don’t Get Distracted by Alt-Coins

Although some altcoins have shown promise and potential, many are largely unproven, and their value is often based on hype and speculation. Unlike established cryptocurrencies like Bitcoin and Ethereum, which have a strong track record and a solid foundation, many altcoins lack the same level of development, security, and real-world applications.

This makes them highly volatile and risky investments, as their value can fluctuate dramatically based on market sentiment and news events. They are also vulnerable to pump-and-dump schemes on social media that draw in latecomers with big hopes, only to run up the price quickly and leave unsuspecting newbies holding the bag on something that never really had a real-world use case to begin with.

Having a plan for the long term, avoiding the hype, and planning the crucial trading decisions beforehand will almost certainly make your life easier.

Thanks for reading How to Get Into Crypto with Better Trading Strategies