Bitcoin day trading is an activity that is experiencing a huge turn up in current times.Bitcoin was developed through technology that executes completely online. It is stored virtually, on wallets or exchanges. Everything is online and one can remotely transfer and send value to anyone online.
In summary ,Bitcoin day trading Is all “buying when the price is low” and “selling when the price is high” then sitting back to let the profits roll in. The hard part however is identifying your entering and exiting positions in case the lows get lower or the highs get higher.
What is Bitcoin day trading?
Bitcoin trade” is simply the buying and selling of bitcoin. These activities usually happen on cryptocurrency exchanges like Binance, Cobinhood, Coinbase, etc.
There are two types of trading ,long-term and short-term. The type is determined by how long you keep your Bitcoin before selling it. Each type of trading is suited for specific kinds of objectives that you had In mind before you started trading. While long-term trading is drawn out over an extended period and, in turn, is far less stressful,Bitcoin day trading is a very short-term trading. This means that you sell your asset before the end of the day with the objective of making a fast profit.
Benefits of Bitcoin day trading
1. Round the clock trading
Due to Bitcoins decentralized nature, the digital currency has no official Bitcoin exchange for Bitcoin day trading, unlike stock markets. It can be traded anytime across the world 24/7 and it will create an opportunity for exchanges too.
2. Volatile nature
Bitcoin is popular for its frequent price movements. Hence, this volatile factor of Bitcoin creates a lot of opportunities for people involved in Bitcoin day trading.
3. Bitcoin and Bitcoin day trading is Global
Bitcoin is a digital currency that clearly means it is not related to economy of any country. Many countries like Japan and Australia have legalized Bitcoin as a payment method and demand of Bitcoin is increasing day by day. Therefore ,there are no restrictions for Bitcoin day trading were ever you are in the world.
4. Regular profit
If you follow recommended tips and tutorials on Bitcoin day trading, you can rack I a reasonable amount of profit at the end of each day of trading. This can turn out to be a very good source of income and sometimes pays more than an office job.
Best cryptocurrency exchanges for Bitcoin day trading
GDAX (Global Digital Asset Exchange) is a U.S.-based bitcoin exchange for professional Bitcoin day trading . It is owned and operated by the people behind Coinbase, a very popular cryptocurrency exchange of Bitcoin and many other alt-coins.
Founded in 2011 and currently operating in the United States, Canada, the EU, and Japan, Kraken is the leading Bitcoin exchange in euro volume and liquidity. Kraken has a tiered user verification system, and it only requires its users to submit their address to make deposits, withdrawals, and trades. It has built a very user friendly eco-system for Bitcoin day trading.
Binance is the largest cryptocurrency exchange by trade volume. While its main focus is the Chinese market, the exchange also supports English, Korean, and Japanese users. Binance is available in two versions: basic and advanced. Bitcoin day trading is carried out on this platform with ease and a good user experience.
Bitstamp is a secure and transparent Bitcoin exchange based in Luxembourg. Bitstamp is great for EU residents as it allows money to be deposited through the European Union’s Single Euro Payments Area.
Tips on how to master Bitcoin day trading
1. Understand the risk involved
Bitcoin is a volatile cryptocurrency. Bitcoin and practically any other type of asset, including gold or the stock market. Cryptocurrency is still a young technology, and faces many challenges. Bitcoin day trading comes with considerable risk. Bitcoin prices are highly impacted by public sentiment about the currency.
2. Sign up for an exchange
All currencies are traded against Bitcoin, so it is important to acquire it by paying with fiat currency. All the transactions are shared in exchanges, and many have been hacked, so it is essential to choose the correct exchange FC or your Bitcoin day trading ,to make sure your coins are secure.
3. Study charts to find trends
If you, like me, believe that bitcoin and the entire market capitalization of cryptocurrencies will increase in value over time, then the goal is to collect as many coins as possible, getting in at the right prices, and build a strong diversified portfolio of crypto assets that you can hold.
4. Make chart Analysis
chart analysis is when traders look at trends by examining the fluctuations in the price of a specific cryptocurrency. Based on its previous patterns, the traders then guess how the price will change next.
6. Learn about blockchain
Bitcoin day trading is an incredibly fast-paced and profitable activity, but you will need to act quickly. It is very critical that you understand the technology behind what you are trading to make the best decisions.
7. Be up-to-date on cryptocurrency news
Follow well know cryptocurrency dedicated websites and channels to know TV he latest in the cryptocurrency. This is importance when practicing Bitcoin day trading . because certain happenings in the cryptocurrency world have an effect on the price of bitcoin.
8. Learn advanced trading analysis
There are several kinds of analysis that can help you assess currencies and make informed projections, fundamental analysis, technical analysis, sentiment analysis, and momentum analysis. This will help you become a Pro in Bitcoin day trading .
9. invest amounts that you know you can lose
Invest an amount of money that you can afford to lose. No loss should affect your life in a fundamental way.
Conclusion -Bitcoin day trading
Bitcoin day trading can be a very exciting and lucrative activity to invest your time in. It is also very important to keep in mind that beginner traders undergo a lot of losses before they become successful.
Starting small and only trading the money you can afford to lose is what makes the difference between the traders who fail and the ones who stick with it.That is why we have taken time to prepare this guide for you. Follow this path to success and do well to send us your feedback.