Bitcoin trading is different from Bitcoin investing.

Trading means you buy low and sell high usually in a short period. While investing means holding Bitcoin for the long run, trading deals while understanding and predicting price movements, and learning the cryptocurrency in general.

Some people prefer trading over-investing because of the immediate return of investment rather than having to wait a long period. However, it could be very risky too.

Here are 3 types of Bitcoin trading methods people commonly use;

Day trading 

Day traders typically practice technical analysis and a trading strategy in managing multiple trades in a given day and trying to make a profit from short-term price changes and will usually use margin to increase buying power.

They are also called active traders because they spend a lot of time staring at their computer screens since they aim to close their deals by the end of each day.

Scalping 

Scalping is a trading method that specializes in profiting off of small price fluctuations. This usually happens after a trade is completed and becomes profitable.

Scalping concentrates on super short-term trading, and it’s based on the concept that making small profits repeatedly restricts risks and generates advantages for traders.

Swing trading 

Swing Trading is a method that specializes in getting smaller gains in short term trends and cutting losses faster. The profits might be smaller, but made consistently over time they can combine into outstanding yearly returns.

This method of trading take account of the natural “swing” of the price sequences. Swing traders locate the origin of a specific price change and enter the trade. Then, they hold on until the price change dies out and ultimately take the profit.

Traders have different techniques and methods of trading that they use and others even have their systems. But whatever method you are comfortable with, make sure that you always do your research and practice, practice and practice more to make yourself better in trading.