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Do you want to know which trading strategy will work in 2020? This decision depends on what your goals are, how much risks you can afford to take, and the capital at hand. These are some of the more popular Bitcoin trading strategies that are guaranteed to work this year as well:

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  1. Day trading is a leading Bitcoin trade strategy where investors will execute trades within a day itself-; so they open and close all the trades at the end of a trading day. Here an investor will focus on short-term gains and immediate results rather than future investments. But to use this strategy you must have a great deal of experience and market know-how. It becomes important to use protective measures like stop-loss or take-profit during day trades. This will prevent the trader from losing any more after a deal has been closed automatically. Likewise the take-profit order ensures that he can get profits when prices reach a specific level. Now that the automated trading bots like bitcoin profit have come, they can execute the trade irrespective of the time in a day and experience of the trader.s 
  2. Arbitrage Trading is being carried out in many cryptocurrency exchanges. This can be time-based or platform-based. In the first type, the investor will buy and see currencies through one platform but will get the profits from price changes over time. In platform-based arbitrage, the traders will compare prices for one asset on multiple platforms. They will then buy this asset from the platform offering the lowest rates and make profits by selling that asset on a platform that gives the highest price.
  3. Swing trading is active trading where a trader will look for potential price fluctuations in the market. This may be anything ranging from news about a specific crypto asset to a change on trading patterns. So, this strategy works best when the market is highly volatile. The investors must keep an eye out to “catch a swing” faster before others. This strategy may be risky but can assure traders with good returns.
  4. In scalping, traders will open many deals for a very short time-period. They hope to earn money through fast crypto movements. This strategy is very risky since you cannot predict when an asset will go up or down.
  5. HODLing is the most popular strategy for Bitcoin holders. It means “holding on for dear life” and focuses on buying Bitcoins and holding these for the long term. The idea behind this is that prices will eventually rise. But the Bitcoin being volatile, this strategy is risky and there could be huge losses.
  6. Hedging is another popular Bitcoin trading strategy where people already owning Bitcoins may hedge their risks if they think there will be a short-term fall in prices. So, they open strategic trades to eliminate risks by short-selling Bitcoins. Traders following hedging will open positions for short selling Bitcoins which means they will sell their assets for the current prices in the hope that the prices will decline. Then they will buy back the coins at the lower price. So, any losses incurred in the original Bitcoin will be offset by gains made through the short selling. Hedging is risky because the downside risk is unlimited. For instance, when you are short-selling Bitcoins, there is no knowing how much the price will move against you or how much loss you may incur because of this movement.

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