Oct 23, · Bitcoin Trading Summary. Bitcoin trading is the act of buying low and selling high. Unlike investing, which means holding Bitcoin for the long run, trading deals with trying to predict price movements by studying the industry as a whole and price graphs in particular. May 07, · The E-Coin example is why it is important to understand that day trading Bitcoin and other cryptocurrencies will not always go to plan. You have to be able to accept losses when they happen, as this is a part of trading. Even the most successful traders in the world make losses, as it is impossible to always make the correct prediction. Sep 26, · Before day trading Bitcoin or any other alt coins, it’s also important to check how liquid the cryptocurrency you wish to trade is. You can do so by simply verifying the hour volume of the crypto trade. CoinMarketCap is a good free resource to read and gauge the market volume of /5().
Is bitcoin a day tradingHow to Day Trade Cryptocurrency: Strategy for Beginners - 3Commas Crypto Guide
Remember, crypto prices can crash just as fast as they have risen. This specific day trading strategy uses one simple technical indicator, namely the Money Flow Index. We use this indicator to track the activity of the smart money and to gauge when the institutions are buying and selling cryptocurrencies.
An MFI reading of shows the presence of the big sharks stepping into the markets. They inevitably leave tracks of their activity in the market and we can read that activity through the MFI indicator. Namely, during the current day, we need to skip the first two MFI readings of and study the crypto price reaction. We can now wait for the third MFI reading above The close of this candle needs to be near the upper end, giving us a candle with very small wicks.
This brings us to the next important thing that we need to establish when day trading cryptocurrency, which is where to place our protective stop loss and where to take profits.
The obvious place to hide your protective stop loss is below the low of the day. This can also signal a reversal day. However, the only rule you need to abide by is to take profits during the first 60 minutes or the first hour after your trade got triggered.
Holding the trade longer than one hour will result in a lower success rate. If you took the time to read the whole day trading crypto guide, then you should be able to buy and sell Bitcoin and alts and make some daily profits. If you are interested in learning how to day trade cryptocurrency , be sure to equip yourself with enough information before diving into the market.
Making a living day trading cryptocurrency can be a lot easier due to the high volatility nature of the crypto market. High volatility suits day trading very well, so you have the right environment to succeed. You may also be interested in reading our guide on the Best Cryptocurrencies Investments for Please Share this Trading Strategy Below and keep it for your own personal use!
Thanks, Traders! We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more. Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow. I am based in the UK How do i set default buying and selling levels from 80 to and respectively from 20 to 0?
Nice strategy, I live in Nigeria, what time will be appropriate for me to trade? And please, I really want to master the day trading, do you have more strategies to learn?
Which MFI did you use in traderview and how do you change the default buying and selling levels from 80 to and respectively from 20 to 0?
I would love to speak to you by phone because this is complicated. Where do I get the charts that have the Money flow indicator. Are you using Binance or Coinbase? Can we please speak by phone and you can charge to get me started please. My name is Lew and my is please call or give me a to call you.
Forex Trading for Beginners. It is also important to find an exchange that has lots of liquidity. This will ensure that you can always be matched with a buyer or seller, otherwise, you might not be able to close your trade when the price is falling! A good place to start would be Binance, as they have hundreds of trading pairs available and they also have one of the largest trading volumes in the market.
To find out more information on setting up an account at Binance, see my guide here! Once you have opened an account with an exchange, it is time to deposit some funds. If the exchange that you want to use does not accept real-world money deposits, then you can first go to Coinbase to buy some Bitcoin or Ethereum and then transfer it across.
You also need to consider how much you are planning to deposit. Never forget that the cryptocurrency markets are really volatile, so there is always a chance you could lose your entire investment.
Start off with smaller amounts first. Once you are set up and you have deposited some funds, take some time to understand the different features on the trading screen. Every exchange will have a chart, so it is a good idea to learn how to analyze pricing movements.
You can visit their free guide here. The green bars mean that the price has gone up, while the red bars mean that the price has gone down.
Learning how these tools work is really important as it will allow you to identify when there is a good chance that a coin is going to rise or fall. However, once again, there is no guarantee that your prediction will be right, so always make sure you are ready to exit a trade if things go badly!
I know I have given you lots and lots of information, but I think it is really important for you to understand all of the risks involved. If you have read my guide from start to finish, you should now know whether day trading is right for you, as well as how to trade Bitcoin, and how to trade cryptocurrency in general.
As you have probably noticed, there are a lot of steps to consider before you begin your trading career. In reality, it will take a really long time before you are able to trade successfully as if you do things correctly, you will need to build things up slowly.
Even though losses are never a good thing, when you do experience them in your early days of trading, it will help you learn not to make the same mistake again! So what do you think about day trading cryptocurrency? Is it something you are going to consider, or do you prefer the sound of long-term trading instead? Just make sure that you never invest more than you can afford to lose and that you never chase your losses.
Now that you know how to day trade, and how to make money with cryptocurrency, let me know your thoughts in the comments section below. We do not publish biased feedback or spam. So if you want to share your experience, opinion or give advice - the scene is yours! Picking out the best crypto exchange for yourself, you should always focus on maintaining a balance between the essential features that all top crypto exchanges should have, and those that are important to you, personally.
That said, many users believe that Coinbase is one of the simpler exchanges on the current market. The exchange platform i. Binance acts as a middleman - it connects you your offer or request with that other person the seller or the buyer.
When considering cryptocurrency exchange rankings, though, both of these types of businesses exchanges and brokerages are usually just thrown under the umbrella term - exchange. This is done for the sake of simplicity. No, definitely not! While some of the top cryptocurrency exchanges are, indeed, based in the United States i.
Coinbase or Kraken , there are other very well-known industry leaders that are located all over the world. While there are many reasons for why an exchange would prefer to be based in one location over another, most of them boil down to business intricacies, and usually have no effect on the user of the platform. Day Trading Cryptocurrency: How to Day Trade Cryptocurrency Day trading cryptocurrency: find out how to day trade cryptocurrency and become n expert in no time.
By Laura M. All the content on BitDegree. The real context behind every covered topic must always be revealed to the reader. Feel free to contact us if you believe that content is outdated, incomplete, or questionable. Aaron S. After that, if you are still interested, I am then going to show you how to get started!
So what are you waiting for? Table of Contents 1. Volatility 2. Accepting losses 2. Practice makes perfect 2. Targets 2. Stop losses 3. Their prices can be artificially boosted through pump and dump. Therefore, the risk of your funds going up in smoke is much higher compared to bitcoin. A little dash of due diligence is needed in determining which altcoins to day trade.
Different countries hold different tax views concerning cryptocurrencies. Alternatively, you may want to utilize the services of an accountant to make your work easier. The following tax overview is U. How much tax you pay is conditional to how long you have owned your digital assets. Tax for crypto held for less than a year is divided into three transaction types.
If you purchase digital assets with fiat currency, you are not liable to pay any tax on that transaction. The taxable event comes in when you sell your digital assets for fiat currency. For instance, if you sell Bitcoin for U. The same applies to crypto to crypto sale. All profit made from transactions will be taxed. Any crypto held for more than a year under U. Moreover, capital gains tax is much lower compared to income tax. Some of these risks include:.
For some people, trading is like gambling. Just the mere thought of making thousands of dollars at the comfort of your house is thrilling. This addiction can be especially dangerous to your bank balance. It can damage your life, put you in debt, and destroy relationships with family and friends.
The cryptocurrency market is extremely speculative. Therefore, almost everyone in the market has an opinion of how the value or price of a digital asset will move. All these conflicting information tends to saturate the market and mislead new traders into making trades based on false information.
Almost all day, traders fail in their first year starting. Day trading is extremely challenging for novices as it requires a lot of knowledge, experience, and discipline- qualities that most beginners lack. Therefore, you are bound to make significant losses before you move on to make profits. Day trading is a lucrative career. That means hours will be spent on the computer monitoring price movements and making adjustments whenever necessary.
You are bound to make losses. Put theory into practice by signing up to a demo brokerage account and make trades in real time with fake cryptocurrency. Day trading is an acquired skill. Therefore, you need to train and hone your trading skills through education and training. The cryptocurrency space is full of scams, pyramid schemes, and fake digital assets. The risk of losing money in a day is real.
Ensure that you diversify your investments and only use a section of it to day trade. This minimizes the risk of losing all your hard-earned cash. Below are some useful cryptocurrency tips that can help increase your profit margin and minimize losses. They include:. With day trading, you want to get in and out of a trade as quickly as possible.
Therefore, you need to have a clear objective in place before entering a trade. You may want to avoid being greedy as a massive swing in the market can translate to substantial losses. A lot of new traders tend to succumb to the pressures of FOMO. As soon as they make a good trade and crypto rallies again for a sizable profit, they go all in. Yielding to the fear of missing out is one of the fastest ways to lose money.
A slow winning approach is most helpful. Exchanges have different fee structures. Therefore, you want to do your research and find ways that you can minimize your trade fees. This tip applies only to risk takers who wish to work smarter and not harder. At the most, day trading involves sitting at the computer monitoring charts and making trades all day.
This can become monotonous in the long term.