How to accumulate bitcoin? What are the best strategies according to traders?
The first one we examined was that of Josh Rager, co-founder and technical analyst of Blockroots, according to whom the best way would be to use margin trading and trade altcoins for bitcoin when the price moves sideways.
In a tweet Rager explains:
“Margin Trading Vs Trading Alts: both of these strategies can be used to accumulate more Bitcoin. In a downtrend market or when Bitcoin is consistently outperforming altcoins, it’s best to use margin trading on low leverage. Margin can be used to “short” Bitcoin in a downtrend”.
With other comment tweets, he explains in detail how to do this.
According to Rager, low leverage margin trading is used when the crypto-market as a whole goes through a bearish phase, or when bitcoin constantly outperforms altcoins. Rager suggests minimum leverage, 3x or 5x, to be applied when
“Bitcoin pullbacks in a macro uptrend, especially when alts make new lows vs BTC”.
Alternatively, he proposes the flipping alts strategy, which should be adopted when bitcoin consolidates and lateralises for an extended period of time. According to Rager, a great way to accumulate bitcoins is to buy them through trading pairs with altcoins when the price of BTC rests on support, setting a stop-loss with it.
However, the analyst adds that, paradoxically, even just buying and storing bitcoins over the long term could be a good way to accumulate them, especially for those who are wary of altcoins or do not feel comfortable with margin trading.
Other analysts also seem to agree on this hypothesis. For example, Rhythmtrader says:
“Anyone that’s lost money buying bitcoin is just impatient”.
Obviously, these are not the only possible strategies and they don’t really have to be the best ones either.
Josh Rager is a very popular analyst with nearly 55,000 followers on Twitter, whereas many of the other strategies circulating online have been developed or published by sources that are not so authoritative in the industry. Also, it is not so common for an established trader to publish their best strategies, hence it’s not easy to find reputable trading tips.