Bitcoin continues to be the cornerstone of the crypto market, directing liquidity and shaping market sentiment. Investors are employing various strategies to enhance returns and manage risks.
Swing Trading Bitcoin
Swing trading is a popular method for profiting from Bitcoin's volatility that does not require constant monitoring.
Investors utilize moving averages, RSI, and Fibonacci retracement levels to capture medium-term moves.
For instance, buying around the $100k support level and trimming profits in the $105k-$110k range has been repeated over months. This may require discipline but can outperform simply holding.
Hedging with Stablecoins
One of the overlooked strategies in crypto is hedging. Selling a bit of Bitcoin into stablecoins during parabolic rallies can help preserve profits and provide dry powder to re-enter.
With Bitcoin's tendency to pull back sharply, hedging with stablecoins has proven valuable for traders looking for returns with relatively less risk. This strategy also allows for investing in altcoins during market dips.
Dollar-Cost Averaging (DCA)
Despite intermittent volatility, DCA remains a major strategy for building Bitcoin exposure. By investing a fixed amount weekly or monthly, an individual takes advantage of market swings and avoids poor entry points.
Over the years, DCA has outperformed most active strategies of retail investors, particularly in sideways markets. Investors can secure one of the best and most affordable entry points, ensuring reliability and longevity.
Traders leverage layered strategies to achieve better returns while Bitcoin remains the anchor of the market. There are multiple methods to increase portfolio gains beyond just holding, including swing trading, DCA, stablecoin hedging, and liquidity rotation. Together, these approaches contribute to a balanced thinking on the key phases of the market.
