CryptoSuite Review (Luke Maguire) - Honest Review From A Trader
The Bitcoin surge in price and cryptocurrency trading mania has got a lot of mainstream attention.
Today’s article is CryptoSuite Reviewthat you’ve probably been hearing so much about. There are tons of cryptocurrency trading strategies that promise to make you rich. Our team at Trading Strategy Guides understands that now everyone wants a piece of the pie and that is the reason why we have put together the best Bitcoin trading strategy PDF. We have also created a complete strategy article that has a list of all of the best trading strategies we have created.
The trading bitcoin for profit is actually a universal cryptocurrency trading strategy that can be used to trade any of the 800-plus cryptocurrencies available to trade as of today. If you’re not already familiar with cryptocurrencies it’s best to first start with a brief introduction.
Bitcoin traders are actively seeking the best possible solutions for trading and investing in bitcoin, we have some of the best methods explained right here in this article. We have learned this bitcoin wisdom by trial and error and we are going to show you what is working right now. The methods we teach are not dependent on the price of bitcoin, they can bue used whether bitcoin is going up or going down. Also please note that it is possible to lose money and your capital is at risk while trading cryptocurrency because it is still trading and speculative in nature. That is why we always recommend that you demo trade before risking any live money.
These big coin strategies can also be used for trading bitcoin cash as well as other cryptocurrency, in fact you can use this as a trade guide for any type of trading instrument. The blockchain technology is a big step forward for how to access information and many companies are starting to develop applications to use it in their favor. Remember that when trading digital currency it may seem like it is not a real currency but it actually is real, this is not some ponzi scheme. Before you buy bitcoins have a solid plan in place and don’t under estimate the cryptocurrency markets, you must do your technical analysis just as if your were going do day trade any other instruments.
What is This Free Bitcoin Trading Strategy?
At the most basic level, a cryptocurrency is really no different than the money you have in your wallet in the sense that they have no intrinsic value and cryptocurrency are just bits of data while real money is just pieces of paper.
Unlike fiat money, Bitcoins and other cryptocurrencies have no central bank that controls them which means that cryptocurrencies can be sent directly from user to user without any credit cards or banks acting as the intermediary. The major advantage of cryptocurrencies is that you can’t print them like central banks do to create fiat money.
When you print lots of money, inflation goes up which makes the currency value going down. Since there is a limited amount of Bitcoins and this holds true for the majority of the other cryptocurrencies, the supply side can’t increase which makes Bitcoin less prone to being affected by inflation.
Now, let’s move forward and see how we can profit from the cryptocurrency mania by using our best Bitcoin trading strategy.
The Best Bitcoin Trading Strategy – 5 Easy Steps to Profit
As we’ve explained before, this is a cryptocurrency trading strategy that can be used trading all the important cryptocurrencies. Actually, this is an Ethereum trading strategy as much as it’s a Bitcoin trading strategy. If you didn’t know Ethereum is the second most popular cryptocurrency (see AffiliateNinjaPro Review).
The best Bitcoin trading strategy is 85% price action strategy and 15% a cryptocurrency trading strategy that uses an indicator.
Before we move forward, we must define this mysterious technical indicator you need for the best Bitcoin trading strategy and how to use it:
The only indicator you need is the:
On Balance Volume (OBV): This is one of the best indicators for day trading bitcoin used to basically analyze the total money flow in an out of an instrument. The OVB uses a combination of volume and price activity to tell you what is the total amount of money going in and out of the market.
The OBV indicator can be found on most trading platforms like Tradingview and MT4. How to read the information from the OBV indicator is quite simple.
In theory, if Bitcoin is trading up and at the same time the OBV was trading down, this is an indication that people are selling into this rally so the move to the upside wouldn’t be sustainable. The same is true in reverse if Bitcoin was trading down and at the same time the OBV was trading up.
What we really want to see is the OBV moving in the same direction as the Bitcoin price. Later on, you’ll learn how to apply this information together with the cryptocurrency trading strategy.
No technical indicator is 100% effective every single time and in this regard, our team at Trading Strategy Guides uses the OBV indicator with other supporting evidence to sustain our trades and give some more confirmation of our trades. On this part comes the Ethereum trading strategy which will be used to identify Bitcoin trades.
Now, before we go any further, we always recommend taking a piece of paper and a pen and note down the rules of the best Bitcoin trading strategy.
How This Bitcoin Correlations Research Started
As someone who loves numbers, I’ve long had a theory that there had to be a better hedge for Bitcoin(BTC) than US Dollar Tethers (USDT). I don’t have a problem with USDTs but don’t like using a version of pseudo cash when hedging downside moves in Bitcoins.
While cash on the sidelines is a valid position when attempting to minimize risk and reduce losses, I’ve long suspected there had to be a better option.
To find that better option I had to research bitcoin correlations and ask questions others haven’t asked before.
I asked myself two simple questions.
1.Can I offset declines in BTC/USD without going to cash or USDT?
2.Is there a cryptocurrency that is correlated with BTC when it is rising and inversely correlated when it falls?
Yes, it is possible to offset declines in BTC/USD without going to cash or USDT.
And yes, there is a cryptocurrency that is correlated with BTC when it is rising and inversely correlated when it falls. (It sounds crazy but all I could do is smile in disbelief when I looked at the data.)
Seeing The Lite(coin)
After going through historical cryptocurrency data, I found that Etheruem and Litecoin met the minimum requirements I was looking for as a hedge for cash and USDT.
3.Mature Framework and Codebase
4.Strong Mining Network
5.Large and active community
After analyzing the data for BTC, ETH and LTC from August 9, 2015 to December 9, 2017 my findings were more surprising than I expected.
The correlation between BTC and ETH was almost non-existent.
The scatter plot shows almost no correlation between BTC and ETH.
The correlation between BTC and LTC was stronger than I expected.
The BTC to LTC correlation was nearly twice the value of the ETH correlation
The data meant that LTC moved more in correlation with BTC. This helps us to trade and invest more profitably in LTC because the data shows us that it is a more correlated when BTC is rising and falling.
Now to dig into my second question, which is whether there is a cryptocurrency that is inversely correlated when BTC is falling.
Lite(coin) At The End of The Tunnel
Due to the trade from BTC/USD being a paired trade, where the US dollar is base fiat currency, I needed to find a trading pair that would result in me only holding LTC/USD so I wouldn’t have to make two trades just to offset one position.
That solution came in the form of LTC/BTC (If your exchange doesn’t have LTC/BTC you will most likely have to execute two trades to exchange your USD for LTC. A sell of your BTC/USD which give you US Dollars and then use those US Dollars to buy LTC.)
As you can see below, when BTC/USD is rising, the LTC by comparison an may even be rising as shown by the correlation chart above, but when the BTC/USD falls, the LTC rises to offset your BTC losses when priced in US dollars.
Inverse correlation between BTC/USD and LTC/BTC when BTC/USD is falling.
One can successfully use LTC to offset BTC declines in a falling market and by holding a portion of their portfolio in LTC also profit from LTC gains when the BTC price is rising.
This minimizes and possibly even eliminates the need to go completely to cash or US Dollar Tethers in falling markets. Also, when market making, it provides LTC market making as alternative to market making in falling BTC markets where market making can be detrimental to one P&L statement.
Thanks for reading. If you like this article, follow me out on twitter where I share similar thoughts.
In my next article, I will research volume and price trends across cryptocurrency markets with the goal of determining if there is any link between Bitcoin dumps and Altcoin pumps.