Simple method to know when to buy or sell Bitcoin

Simple method to know when to buy or sell Bitcoin

The market is bleeding right now and many investors are wondering whether now is the right time to buy Bitcoin or whether to sell it instead. The strategy revealed in this article makes it easy for even a beginner to detect where to buy and sell. This method can be applied to all cryptocurrencies. By analyzing this method over the long term, you will see that it allows you to make strategic purchases and optimized sales. Therefore, this is not a trading method reserved for the experienced, but rather a technique that anyone can apply.

Essential indicators

It is essential to open an account on tradingview. This is a site that allows you to analyze the price of cryptocurrencies. Then, it will be necessary to add two indicators:

- MA: Mooving Average (MM: Moving Average)

To use this indicator effectively, it must be set up correctly. To do this, you click on indicator, on MA, then you put 150. There will be a line that appears on the chart. It represents the average price of Bitcoin or the selected cryptocurrency, over the last 150 days.

- RSI (Relative Strength Index)

You click again on indicator, then on RSI. To set up this technical analysis indicator, click on RSI and enter 50. We have now set up everything we need to know about when to buy and when to sell.

The strategy 

First, we'll see how to buy Bitcoin at strategic points. Then we'll see when to sell, when prices are overpriced. Indeed, when prices are overpriced, the price can turn around at any time.

When to buy Bitcoin?

You should buy Bitcoin whenever its price is above the Moving Average. When the price of digital gold is below the Moving Average, you should refrain from buying. This strategy, it should be remembered, is reserved for those who want to invest for the long term. That's why when the Moving Average is favorable, to buy, you have to use Dollar Cost Averaging. This is a method that consists of investing a given amount in a previously identified cryptocurrency on a monthly basis.

When to sell Bitcoin?

To know when to sell Bitcoin, you need to use the RSI indicator. However, it is important to note that you should always sell your crypto-currencies in increments and never in blocks. When the RSI reaches 70, then you should sell part of your capital. The RSI tells us whether the cryptocurrency is overbought or oversold. When the asset is overbought, its price will potentially fall. Therefore, it would be smart to sell a portion before the price collapses.

Buying and selling Bitcoin automatically is now possible

The method outlined above will undoubtedly generate gains over the long term. This method has been refined, supplemented with other indicators and smart strategies and automated. This is the Smart Strategy, developed by the Fructify.io platform. It will be released soon. This new strategy allows to optimize the method revealed in this article, since it is designed with features that cannot be set manually. You just have to allocate a capital to the smart strategy and the algorithms will take care of investing on the long term thanks to artificial intelligence. To experiment this method, click on the link at the bottom of this article.

This text does not constitute investment advice. Do your own research and only invest the money you can afford to lose.

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