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BTC USDT Trading Strategies for Short and Long-Term Gains

cryptocurrency

No wonder the BTC (Bitcoin) and USDT (Tether) trading pairs are among the most popular in the cryptocurrency industry due to Bitcoin’s significant price moves and Tether’s stable value. The BTC USDT trading pair represents a significant exchange rate between Bitcoin and Tether, which is a stablecoin pegged to the US dollar. Investors can acquire various short-term and long-term gains while trading the BTC/USD. However, it is crucial to understand the implementation of trading strategies that are not only effective but also scalable.

Short-Term Trading Strategies  Long-Term Trading Strategies
Scalping HODL (Hold On for Dear Life)
Day Trading Swing Trading
Breakout Trading Trend Following
Range Trading Value Investing

 

Short-Term BTC USDT Strategies for Short-Term Gains!

The BTC/USDT pair is among the most liquid in crypto markets due to their high demand. The pair ensures tight spreads and faster trade execution, which rapidly increases its demand. Here are a few strategies that you can implement for short-term gains. 

Scalping Trading Strategy 

Scalping cryptocurrency involves numerous smaller trades performed throughout the day to capture minor price movements. Scalping is a high-frequency trading strategy that relies mostly on volatility and liquidity to generate massive profits. The trading technique requires strict discipline from investors with a prediction for stop loss orders and predetermined profit targets. Investors and traders should only risk a small percentage of their total capital per trade while following this strategy.

Day Trading Strategy

Day trading with the BTC/USDT pair aims to capitalize on intraday price movements by buying and selling the cryptocurrency within a single day. The trading process solely relies on rapid decision-making and in-depth technical analysis. It is essential that the traders don’t limit their exposure by risking more than 2 to 3% of the total capital on any single trade. Setting evident stop losses and take-profit levels is not only essential but also a necessity for traders.

Breakout Trading Strategy

The breakout trading strategy involves trading price breakouts outside a defined support or resistance level or chart patterns. The strategy significantly aims to capture price movements that mainly follow breakouts. While following the strategy, traders identify patterns like triangles, flags, or head-and-shoulders. They strategically place orders that are either above or below the breakout levels to capture the breakout momentum.

Range Trading Strategy

Range trading often involves exploiting Bitcoin's sideways price movement within a definite range to identify the upper and lower boundaries, where prices consistently bounce off. Traders buy the cryptocurrency at the Support level and sell it at the resistance level to gain maximum profit.

Long-Term BTC USDT Strategies for Long-Term Gains! 

BTC and USDT are the largest cryptocurrencies in the current market capitalization pool. They are widely accepted and traded, significantly making them a benchmark for other cryptocurrencies. If you are looking to gain long-term profits while trading the BTC/USDT pair, here are a few detailed trading strategies you should follow. 

HODL (Hold On for Dear Life) Strategy

The hold-on-for-dear-life strategy involves holding on to Bitcoin and other cryptocurrencies for the long term, irrespective of its short-term market volatility. This strategy solely relies on the belief that Bitcoin's value will increase over time and is probability-based. Many investors usually buy Bitcoin during a dip or keep investing periodically using the dollar cost averaging method. They aim to retain their holdings through market fluctuations while looking for long-term benefits.

Swing Trading Strategy

Swing trading strategies are often used to capture medium trends over a significant number of days or weeks and gain enormous profits from market movements. Investors analyze the daily or weekly charts and use several key indicators, such as moving averages and oscillators, to identify the entry and exit points for trading.

Trend Following Trading Strategy

The trend-following strategy involves identifying and capitalizing on longer-term market trends. This strategy is based on the moving average or following the MCD indicator to identify the established profits. Once traders establish the trends, they follow the direction until there is a signal reversal.

Value Investing Trading Strategy

Value investing involves identifying undervalued cryptocurrencies with solid fundamentals and huge potential. By buying low, investors are banking on the asset's potential increase in value.

KeyTakeaways

While there are several long-term and short-term strategies for the BTC/USD trading pair, it is essential for traders to have knowledge of technical analysis and tools like moving averages, candlestick patterns, and RSI to gain better market movements. Incorporating these strategies will only be fruitful if the traders are disciplined and eager enough to maximize their potential for both long-term and short-term gains.

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Andrew Gosselin CPA

Written by Andrew Gosselin CPA

Andrew Gosselin, CPA is a former senior strategy consultant for a global, multi-billion-dollar software company. He is the Senior Contributor / Editor at MoneyInc, and he holds degrees in accounting, finance, and international business from Bentley University, where he played varsity basketball and was the Lead Tutor of the accounting and finance curriculum for the Bentley Athletic Department. Andrew was named a President's Academic Scholar and was inducted into the Falcon Society, a distinction awarded by the Bentley faculty and his peers for being among those with the highest achievement and abilities in his graduating class.

Read more posts by Andrew Gosselin CPA

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