According to the news of Switzerland listing Bitcoin in financial reserves or its impact on the market, a **profitable trading strategy on Binance** can be developed based on this kind of influential news. Here is the strategy plan:
---$BTC
## **News-Based Trading Strategy**
### **1. Understanding the impact of news on the market**
- Switzerland's inclusion of Bitcoin in its reserves reflects strong institutional confidence in Bitcoin.
- This type of news usually leads to:
- **Increased demand:** Prices rise due to large purchases by institutions and individual investors.
- **Improved Confidence:** Attracting more traders to invest in BTC.
- **General market rally:** May positively impact other Bitcoin-related cryptocurrencies (e.g. ETH, BNB).
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### **2. Short-term trading strategy**
#### **A) Preparation before the news:**
- If you expect the news to be announced soon:
- Open a small long position on Bitcoin or a Bitcoin-related asset (such as BTC/USDT).
- Use a tight stop loss to protect against any unexpected movement.
#### **B) Enter directly after the news:**
- If the news is announced and the market starts to respond:
- Open a buy trade at the first slight pullback after the initial rise.
- Use the **1 minute or 5 minute** time frame chart to determine the entry point.
#### **C) Making profits:**
- Use a **1:2 or 1:3** reward/risk ratio.
- Set your take profit at the next resistance level based on technical analysis.
**Practical example:**
- Current price: $30,000.
- Entry: $30,200.
- Stop Loss: $29,800.
- Profit: $31,000.
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### **3. Long-term trading strategy**
#### **A) HODLing Bitcoin:**
- Due to the impact of the news, the price of Bitcoin may rise over weeks or months.
- Buy and hold Bitcoin if you believe in a long-term rise.
#### **B) Portfolio diversification:**
- Invest in coins that are pegged to the price of Bitcoin such as ETH or BNB.
- Take advantage of the expected rise in the market in general.
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### **4. Risk Management**
1. **Determine the risk ratio:**
- Do not risk more than 1-2% of your capital on each trade.
2. **Using Stop-Loss Orders:**
- Place stop loss at close levels to avoid big losses.
3. **Not trading with money you need:**
- Commit to a capital allocated for trading only.
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### **5. Monitor the impact of the news on the market**
#### **A) Follow the price after the announcement:**
- After the news is announced, follow the price action to determine the continuity of the effect.
- If the price continues to rise with increasing volume, continue with bullish trades.
#### **B) Monitoring of linked currencies:**
- Major news like this usually affects the market as a whole.
- Trade currencies that move in tandem with Bitcoin.
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### **6. Tools on Binance to implement the strategy**
#### **A) Spot Trading:**
- Use this section to buy Bitcoin directly.
- Set up a Market order if you want to enter quickly or a Limit order to specify a specific price.
#### **B) Trading in Futures:**
- Use leverage carefully to make larger profits from small price movements.
- Choose low leverage (2x-3x) to reduce risks.
#### **C) Using OCO orders:**
- Place an order that automatically combines stop loss and take profit.
- Example:
- Entry price: $30,200.
- Profit: $31,000.
- Stop Loss: $29,800.
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### **7. Analysis of the long-term impact on Bitcoin**
- If other institutions and countries continue to adopt Bitcoin as part of their reserves:
- The price may reach new record levels.
- You can use the HODLing strategy to maximize profits.
**advice:**
- Invest a small portion of your capital in Bitcoin on a continuous basis (Dollar-Cost Averaging) to increase your exposure to the asset while reducing the impact of market volatility.
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**Practical example:**
1. **Switzerland news sends Bitcoin up 5% on announcement.**
2. Open a buy trade on BTC/USDT at $30,200.
3. Set your take profit at $31,000 and stop loss at $29,800.
4. If the market continues to rise, raise the stop loss level to protect profits.
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### **a summary**
Taking advantage of major news like Bitcoin being listed in Swiss reserves on Binance can be profitable if short- and long-term strategies are applied carefully with good risk management.
