Anyone who deals with the development of the cryptocurrency Bitcoin knows that there are trends as well as indicators that can sometimes be understood as a harbinger of any price developments. But even if all the signs speak for a certain development, it does not mean that the course cannot go in the other direction. So were you wrong? No. It is spontaneous and unpredictable developments that sometimes ensure that the price moves in the direction that the trader does not want. Due to the fact that extreme fluctuations in Bitcoin are part of everyday life, it is important to follow a few tips such as tricks.

TIP NUMBER 1: INVEST SMARTLY

At first glance, this may seem strange, but every cent invested in Bitcoin should be declared as an expense. That said, it is advisable to expect to have lost the money. Why? If you correctly assess the development of the Bitcoin price, there can still be high losses because unforeseeable events blow the price down - this affects both beginners and experienced Bitcoin traders .

This is also the reason why you should only invest a fraction of your assets in Bitcoin. The market is extremely volatile, which can lead to serious gains and losses at any time.If you remember January 2017, Bitcoin was $ 1,000 at the time; in December of the same year, the $ 20,000 mark was almost reached. Anyone investing in Bitcoin at that time would never have thought that it would go down steeply again - a year later, the price of the cryptocurrency hovered around the $ 4,000 mark.

TIP NUMBER 2: RECOGNIZE TRENDS

How does the price react when it hits low points? Such lines are interesting for day traders who invest at the right time and sell shortly after the price has climbed again. This is extremely difficult with Bitcoin because it is extremely volatile, it's best to use an automated tool like Bitcoin Lifestyle. Of course there are trends, resistance and support lines, but these can be broken relatively quickly.

TIP NUMBER 3: NOTE DIFFERENT TIMEFRAMES

If you trade Bitcoin, you should concentrate on different time windows. This means that you deal with hourly, four-hour and daily candles so that you get a complete picture of short and long-term developments.

A 1-day chart would show long-term developments, while the 240-minute charts only show medium-term developments and the 60-minute charts only short-term developments. If you deal with different course trends, you can recognize trends that will subsequently help if you have to find the right time to start. However, it must be mentioned here that a short-term trend can also become a long-term trend. For this reason, you should always work with stop loss, so that you can avoid high losses if the market moves in the unwanted direction.

TIP NUMBER 4: DRAW UP A PLAN

It is important that a so-called target, i.e. the exit, is considered in advance. Here it is advisable if a certain value is fixed, no matter what the forecasts are. If the Bitcoin reaches value X, the sale is made.

Of course there is a risk that you jump off too early or too late. It is therefore advantageous if only part of the investment is sold.

TIP NUMBER 5: ALWAYS HAVE A LOOK AT THE DEVELOPMENT

You shouldn't invest in Bitcoin and only take a look at the price development again after three or four months . Due to the fact that the market is extremely volatile, one should periodically check the price development and also deal with the events related to the cryptocurrency and the blockchain.

TIP NUMBER 6: KEEP CALM

Once it goes down, then up again. Anyone who invests in Bitcoin needs nerves made of steel. Anyone who describes himself as a security-oriented and nervous investor should therefore stay away from the cryptocurrency.

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