Trading the Trend in Bitcoin

Feb 07, 2022

Recently I signed up for an investing course about trading trends in cryptocurrencies.

Trading the trends means that you try to buy just before an asset goes up in value and then sell it near the top of its current trading trend.

It's a great idea, but a little hard to put into practice.

Take a look at this photo:

This is a three minute trading chart of Bitcoin the other day.

Do you see how you could have traded in and out of Bitcoin three times and made money?

Here, let me show you:

Three times, Bitcoin climbed up before dropping again. 

My trading guru points these out and they really are so obvious.

Anyone could make money trading this.

In fact, if you had gotten in close to the start of each run and gotten out near the top, you would've made 1.66%, 1.46%, and 1.49% for a total of 4.61%.

Not bad earnings for a few hours of trading.

In fact, if you could earn about 5% per day, you could get rich pretty quickly!

Here's the thing: you have to figure out when these moves are going to happen.

You can use all the fancy indicators and software and chart pattern tea leaves that you like, but you still have to decide to put your money into a trade and then watch it (or not!) and hope for the best.

Now I'll show you what it usually looks like when I look at the charts:

See those arrows? That is when I usually check on the chart.

Arrow #1: huh. Bitcoin has gone up. Do you think it will keep going up? Maybe I should wait for the price to dip a little before I buy.

Arrow #2: well shoot. Bitcoin kept going up, but now it's going down! Argh. I missed my chance. Shouldn't buy now. Who knows how low it will go?

Arrow #3: oh dear. I should've bought it the last time....look it went up again! But now it's been red for a long time. And who knows when it will turn green again?

I tell you what: trend trading crypto is not for wimps.

Sometimes the market does nothing but go up and anyone who buys and holds for the ride can make a lot.

And sometimes (like lately), the market seems to go down and sideways a lot. I'll be honest with you: my crypto holdings have NOT done well over the last two months.

But I'm not giving up.

I am still fascinated by it and I am still determined to figure out this trending trade thing.

But in the meantime, boy am I glad I have my bot automations that earn me money from the coins wiggling around. They may not make as much money when the market drops and the coins fall out of range of the bot grid, but I've learned some tricks lately to keep them more active and they are STILL earning more than I would earn trying to time trends in a down market!

If you're interested in learning more about earning from crypto while you wait for the value to go up, sign up for our newsletter or read about our number one recommendation for new crypto investors who want to benefit without watching charts, worrying, and losing sleep at night over their investments.