Apr 14, · While long term traders prefer to hold their bitcoin positions for extended periods of time, day traders have discovered that Bitcoin is lucrative for many reasons: Crypto trading is more volatile than stock trading. Bitcoin is traded 24 hours per day 7 days a week. /5(48). Feb 09, · The best times for trading cryptocurrencies for those that hate surprises Very busy but not that risky. A significant amount of crypto trading takes place in South Kore, and so does a lot of Medium sized action when the focus is elsewhere. Forex . Jul 31, · How New Traders Choose a Time Frame. Many new traders spend days, weeks, or even months trying every possible time frame or parameter in an attempt to find the one that makes their trading profitable. They try second charts, five-minute charts, and so on and then they try all of the non-time-based options, including ticks and volume.
Best times to day trade bitcoinThe Best Bitcoin Trading Strategy - 5 Easy Steps to Profit
The speculators keep a watchful eye over the cryptocurrency market for news and activities that may indicate that particular crypto will lose or gain value.
Their main concern is outside market influences such as coin hacks, developments, and significant partnerships, among others. Analysts, on the other hand, are concerned about the internal workings of the cryptocurrency market and tend to rely on financial patterns and charts for their insight.
You may find that being unique and true to yourself extremely beneficial. The first step towards your day trading journey is to pick a marketplace. Different marketplaces offer different fee structures, coin pairings, trade amounts, etc. This is extremely important because little profits on large trade volumes can quickly disappear into fees.
Once you find a viable marketplace, go ahead and find two to three other marketplaces and register accounts on each. Doing so gives you flexibility in terms of cryptocurrency fees, liquidity, and availability. Next, you need to develop a solid trading strategy. This step involves a lot of research and self-discipline. For starters, you need to ensure that you do not risk more than you are willing to lose. Day trading is a numbers game, and you are bound to make some losses here and there.
Another vital factor in cryptocurrency trading is the stop-loss limit or as commonly known, your exit strategy. Most exchanges allow traders to set a stop loss that automatically exits a trade at a certain price level.
Limit sell order is another important concept in cryptocurrency trading. Unlike the stop-loss order, the limit sell order automatically closes a trade one once your digital asset hits a specific high price. Once the asset hits that price point, the limit sell order will automatically sell your asset. The cryptocurrency trading market is currently filled with a large number of trading bots and trading algorithms. Some are freely available on open-source platforms while others are given at a fee.
As tempting as it is to utilize the services of these trading bots, extreme caution is recommended. Crypto trading bots are only as good as their programming. Therefore, any corruption in their code, and you can expect them to make mistakes.
Features such as bot performance analytics, social trading, portfolio creation and tracking make it a robust option for any trader interested in automated cryptocurrency day trading. The trader undertaking scalping hopes to profit by exploiting the bid-ask spread. Scalping is a quick, paced strategy that tends to be dangerous at times. Therefore, you need to be hot on timing and vigilant for unpredictable assets. This is a popular strategy that depends on following up on news sources and recognizing price moves.
Inversion is a commonly discussed strategy utilized all over the world. This strategy follows a fundamental rationale as it fixates on buying and moving day by day low and high pull-backs.
Therefore, it requires the capacity to anticipating pull-backs quality and precisely distinguishing them. Bitcoin is more volatile than any other type of asset in the cryptocurrency market.
Therefore, day trading bitcoin comes with a considerable amount of risk. Bitcoin prices are highly sensitive to public sentiments and regulatory changes. They fluctuate quickly depending on the types of news circulating in the industry, whether positive or negative. Therefore, before trading bitcoin, you want to wait until there is a high reading of volatility to make correct entries.
Not having enough liquidity could trigger a substantial slippage that could lead to even more significant losses. Bitcoin is a safe commitment for a new trader as it can be used as a long-term store of value. It also comes with relatively fewer risks compared to altcoins. You only need to day trade bitcoin when all conditions align in your favor. Therefore, avoid trading on weekends and limit trading only to days with the highest volume.
The safest altcoins to trade are those that are the top by market cap. These are the ones that are less volatile and are most likely to serve as long-term stores of value. A great example is Ethereum, Ripple, Bitcoin Cash, among others. These coins are less apt to disappear. Smaller altcoins are profitable in the short-term, but the risks associated with them are much higher. 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. In general, the trading volume may be somewhat lower, and air pockets can appear due to low liquidity. Caution is warranted at all times on the weekend, but to GMT may be a wiser time to trade. Information on these pages contains forward-looking statements that involve risks and uncertainties.
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The bulls ride the Brexit optimism wave, with a potential breakthrough likely to be announced at GMT. According to multiple sources, a Brexit deal has been reached. Increasing chatters over Brexit deal, US stimulus favor the risks. The central bank, however, could take note of the worsening coronavirus situation in the country before doing more amid a dearth of ammunition already deployed.
Gold traded with a mild positive bias through the mid-European session, albeit lacked any strong follow-through buying. Here are the times to trade, starting with weekdays: Very busy but not that risky Asian morning, but not too early: to GMT A significant amount of crypto trading takes place in South Kore, and so does a lot of news that moves the markets.
Medium sized action when the focus is elsewhere European mid-morning to the American mid-morning: to GMT Forex traders know that these may be the busiest hours and that the release of American news around and GMT can be perilous. Weekends - Warnings around Asian times still apply Trading in cryptocurrencies differs with forex in that markets are open also on the weekends.