• Home
  • Authors
  • Write for us
  • Advertise
  • Contact
  • Privacy Policy
  • Terms and Conditions
Sunday, April 11, 2021
No Result
View All Result
ABC Money
PR Fire Press Release Distribution
  • News
  • Business
  • Economics
  • Finance
    • Investment
    • Tax
    • Mortgage
  • Property
    • Utilities
  • World
  • Technology
  • Fashion
  • Health
  • Holidays
  • News
  • Business
  • Economics
  • Finance
    • Investment
    • Tax
    • Mortgage
  • Property
    • Utilities
  • World
  • Technology
  • Fashion
  • Health
  • Holidays
ABC Money
No Result
View All Result
Home Finance

Using Trailing Stops to Protect Your Bitcoin Profits

by Jim Bevin
17/06/2020

RelatedPosts

Copy trading

Key to success in Bitcoins

Are Bitcoin cryptocurrency and block chain DataBase the same?

Digital Currencies Are the Future of Global Finance – Here are 4 Reasons Why

Load More

Many people don’t realize that the same investment strategies that they use when investing in more traditional assets like stocks can also easily be applied to trading cryptocurrencies such as Bitcoin. People often tend to look at Bitcoin as a currency only, which limits its scope. In terms of how its value rises and falls, it is much more in line with an asset such as a stock. As such, many of the same rules apply, as do the tactics by which traders earn their living. One of the most popular of these tactics is the trailing stop. When applied to Bitcoin, which is an excessively volatile instrument, it can help you protect your gains while limiting your losses, and that’s the kind of action you want out of your investment properties.

The characteristics of a trailing stop make it ideal for usage with Bitcoin. You can use it to prevent you from taking a major hit when the coin drops in value in a significant manner. But it also won’t stop you from accumulating massive profits. Many people would like to get involved in Bitcoin investment but aren’t sure about how to pull it off; if that’s you, a trading program such as Bitcoin Trader or thebitcoinsystem.io app will do the work for you. For those who like to get hands-on, here is how a trailing stop can really work for your Bitcoin investments.

  1. The Basics

A trailing stop is an order to sell an asset after it falls below a certain percentage level. But that percentage level is adjusted to wherever the price of the asset is. For example, if an asset’s price was at 50 units when bought and you put in a 20 percent stop level, that means that you would sell if the price immediately dropped to 40 units, which would be a 20 percent drop.

  1. Making the Adjustment

Now, what if that price rose first to 100 units? The percentage would be adjusted. Now the sell order would be placed if it dropped to 80 units. As you can see, this means that the investor will still have made a significant profit from the initial investment of 50 units. But they also will have prevented a precipitous drop in value that could have taken all those profits away.

  1. Applying It to Bitcoin

The trailing stop really works well with Bitcoin because of it such a volatile asset. Whereas a typical stop order might protect you from catastrophic losses in the value of your coins, it also neglects to keep a sudden reversal from eating away at your profits. And sudden reversals are part and parcel of volatile assets. The trailing stop provides just the right combination of aggression and caution to make the most out of Bitcoin investing.

A trailing stop might be the ultimate tool for the investor who wants to make their decisions based on the mathematics of the situation. With Bitcoin, where the math of rises and falls can get crazy fast, it’s especially crucial.

Tags: BitcoinBitcoin ProfitsBitcoin traderinvestor
Previous Post

What Might Happen If Bitcoin Becomes Regulated

Next Post

The Financial Implications of Buying a Home in a Flood Risk Area

Related Posts

Copy trading
Finance

Copy trading

09/04/2021
Bitcoin: High risk at what reward?
Finance

Key to success in Bitcoins

09/04/2021
Bitcoin: High risk at what reward?
Investment

Are Bitcoin cryptocurrency and block chain DataBase the same?

09/04/2021
Next Post
The Financial Implications of Buying a Home in a Flood Risk Area

The Financial Implications of Buying a Home in a Flood Risk Area

Understanding the Basics of Ethereum

Understanding the Basics of Ethereum

How Lawmakers Will Play A Determining Role in The Future of Bitcoin

How Lawmakers Will Play A Determining Role in The Future of Bitcoin

Latest News

WHY IS MARC RANDAZZA STILL AN ATTORNEY - DISBAR ATTORNEY RANDAZZA

WHY STATE BAR OF NEVADA ALLOWS CORRUPT MARC RANDAZZA TO PRACTICE LAW?

10/04/2021
Things Cryptopunks Nfts And The Mona Lisa Have In Common

Things Cryptopunks Nfts And The Mona Lisa Have In Common

10/04/2021
Exodus Allows You To Acquire Your Shares From Your Own Bitcoin Wallet

Exodus Allows You To Acquire Your Shares From Your Own Bitcoin Wallet

10/04/2021
Copy trading

Copy trading

09/04/2021
Trading on the China A50

Money Back Review – Get Your Money Back From Investment and Trading Scams

09/04/2021
Bitcoin: High risk at what reward?

Key to success in Bitcoins

09/04/2021

Social

Contact

For editorial enquiries:

editorials@abcmoney.co.uk

For advertising enquiries:

advertise@abcmoney.co.uk

Top Topics

  • News
  • Business
  • Finance
  • Property
  • Technology
  • Investment

Guides

  • Best UK Bridging Loans
  • Best UK Secured Loans
  • Best UK Commercial Mortgages
  • Best UK Business Loans
  • Best UK Payday Loans
  • Best Sites for International Money Transfers
  • Best Press Release Distribution Service

Social

  • Home
  • Authors
  • Write for us
  • Advertise
  • Contact
  • Privacy Policy
  • Terms and Conditions

© 2020 ABC Money

No Result
View All Result
  • Write for us
  • Contact
  • About Us
    • Authors
  • News Desk
    • Business
    • Finance
    • Property
    • Technology
    • Investment

© 2020 ABC Money

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.