Bitcoin has high volatility and rapid price changes, making trading methods that feature 'quick response, high-frequency observation, and strict risk control' suitable.
Here are several common and suitable trading methods:
✅ 1. Short-term Trading (Short-term Swing / Short-term Long/Short)
Applicable Audience: Traders skilled in technical analysis who can monitor the market for long periods.
Key Tools: Candlestick Chart, RSI, MACD, Bollinger Bands, Moving Averages.
Advantage: Quickly enter and exit using small fluctuations, flexible and efficient.
Risk: Frequent operations, need to control transaction fees and emotional fluctuations.
✅ 2. Day Trading
Characteristics: Buy and sell within the same day, no overnight positions.
Strategy Example: Determine trends based on trading volume and price fluctuations in the first hour after market opening.
Suitable for periods of rapid market changes (e.g., BTC active zones corresponding to US stock market opening times).
✅ 3. Quantitative Trading / Algorithmic Trading
Applicable Conditions: Have the technical ability to write strategies (e.g., Python / TradingView Pine Script).
Advantage: Disciplined execution, unaffected by emotions, can engage in high-frequency trading.
Strategy Examples:
Trend Following
Mean Reversion
Grid Strategy (suitable for range-bound markets)
✅ 4. Contract Leverage Trading (High Risk, High Reward)
Characteristics: Use leverage to amplify capital efficiency, can short/sell long.
Applicable Market Conditions: During large fluctuations and clear directional trends (e.g., after events like FOMC, ETF approvals, etc.).
Pay attention to risk control: Strictly set stop-loss to avoid liquidation.
✅ 5. Event-driven Trading
Operational Logic: Layout in advance or follow the trend based on major news (ETF, policies, celebrity comments).
Tool Combination: Crypto Twitter/X, Telegram Channels, Crypto Panic, Google Trends.
✅ Supplementary Strategies:
Trend Trading: Determine direction using moving averages.
Reversal Layout (Reversal / Scalping): Focus on RSI overbought/oversold zones, combined with low time frame operations (e.g., 3-minute K, 5-minute K).
Range Bound Strategy: Use support/resistance levels to repeatedly enter and exit, suitable for short-term non-trending markets.
