Anyone who has been dealing with cryptocurrencies long enough knows how the price of the bitcoin varies and how frequently it varies. The basic idea is to buy when the price is low and sell when the price is high. It is considered risky for people who are just holding their assets.

Bitcoin Trading:

Many people in to trading of bitcoins know that one of the simplest and most trusted strategies to trade with bitcoins are– buy as many bitcoins as possible when the price of the bitcoin has dipped and hold it until the price soars. Let us say the price soars by 15% and you sell it during that period. Well, you never know right after you sell, the price may soar to 30% and you lose your chance of gaining a higher profit, but no can really predict the price of bitcoins correct each time. It may so happen that instead of the price soaring, dipped to a lower price than when you bought it. It is a loss. Thus, this is not really safe for the people who are utterly relying on bitcoins for income and profit.

The Hodler’s Choice: Dollar Cost Averaging:

This is a simple strategy where the rise and fall in the price of bitcoins does not affect your profit or income. In this strategy, you purchase a fixed number of bitcoins, irrespective of the price. The advantage of this strategy is that one need not have to continuously watch the charts for the best time to buy or sell the cryptocurrency. DCA strategy is a long term one and the fluctuations in the day to day cryptocurrency market is sheer meaningless to them. They can see the bitcoins for a fixed price only when they are ready for it.

Recurring Purchases:

Some companies offer the choice of recurring purchases i.e. purchasing a fixed amount of bitcoins at fixed intervals. A schedule is drawn up and followed. The service provider will then deduct funds from your account at fixed intervals and the purchase of cryptocurrency just became easier, organized and more automated.

Holding Cryptocurrency on the long term might pay off:

Recent analysis has shown that simply by just holding your cryptocurrency for a long time is paying off with better profits since overall, with the passage of time, the average value of the bitcoin only seems to rise, when the bigger picture is considered. This option too is a safe bet. Constantly monitoring for dips and rise in the prices of the cryptocurrency can be stressful and time consuming.

Events such as the price of bitcoin dipping, just after you have made the purchase or the price rising just after you sell your stock, are minimized.

So basically, if you need to understand the micro techniques of bitcoin trading, you will have to dabble with some experience first, with smaller amounts. Once you get the hang of it, you can decide whether to trade frequently or use the DCA method or hold off for a couple of years before you sell or a combination of all of these.
Carve a niche which basically works for you.