Bitcoin Trading System – Cryptocurrency Algorithmic Trading

For the past few years, cryptocurrency has been making brought up a lot in all media outlets. Some say that it will eventually die down while the opposing side says it has the potential to replace fiat money.

Either way at the present moment bitcoin is still around and the bitcoin market can be a very profitable market. There are 2 ways to make money through bitcoin:

  • Owning – Buying or Mining them and selling them when the price goes up.
  • Trading – Trading them in the financial markets with the use of CFD.


In this particular article, we will be focusing more on trading the bitcoin. With the use of CFD, you are allowed to trade the bitcoin price movement. CFD is a leveraged product similar to trading a currency pair you are only paying a small percentage of the current bitcoin market price.

How to start trading Bitcoin?

You can trade bitcoin through brokerage firms. You just need to go to the website of a particular brokerage firm that you like and see if their platform offers bitcoin.

BTC/USD Trading System based on Swing Strategy

Above is a chart of the BTC/USD.


Factors that Affects Bitcoin's Price Movement

Bitcoin is a volatile financial instrument to trade due to the underlying uncertainties around it. However, unlike traditional currency pair bitcoin is a decentralized currency.

Being a decentralized currency makes bitcoin unaffected by most of the political and economic matters that are usually affecting traditional currencies. However, trading bitcoin does have its own concerns in terms of what moves its price.
Here is a list of factors that impacts bitcoin’s price movement:

  • Supply – There is a limited supply of bitcoin that can be mined, thus depending on how fast these bitcoins enter the market it will greatly affect the price of bitcoin.
  • Market Value – The perceived value of the bitcoin market will also affect its price movement. Whether traders/investors perceived bitcoin to be a currency that is sustainable for the future or just another bubble.
  • Press Releases – Good or bad press releases on bitcoin will move the price up or down.
  • Adoption – Currently businesses and governments have yet to adopt the use of bitcoin. There is a high chance that the price will be very bullish if it does get adopted.
  • Key Events – Events like change in regulation or macroeconomic events will impact bitcoin’s price movement as well.

ETH/USD Trading System based on Swing Strategy

Above is a chart of the ETH/USD.


Strategies and Ways To Trade Bitcoin

Similar to any financial instrument bitcoin can be traded in a number of ways:

  • Day Trading – Entering and exiting a position within the same day.
  • Scalping – Entering and exiting a position frequently, profiting from small price movements.
  • Swing Trading – Catching a swing in the market and holding on to that swing until it hits the targeted profit or shows signs of reversal.
  • Automation – Using software to trade for you.