Hi, Welcome to this analysis about Bitcoin, we are looking at the minute timeframe perspective. Since Bitcoin formed this significant bull-trap yesterday after moving above the level and pulling back to previous zones with an emerging impulse it is forming an interesting formation now that will be the determining source within the upcoming times. Universal access – You can start day trading bitcoins anywhere on the planet, 24 hours a day, 7 days a week, days a year. You simply need an internet connection. Plus, because you’re day trading you don’t need to have a long term view about whether cryptocurrencies will succeed. Dec 14, · If approved, a bitcoin ETF could allow the earn a day day trading bitcoin youtube South Africa cryptocurrency to be listed alongside stocks on many brokerage platforms. Straight on earn a day day trading bitcoin youtube South Africa banks, multinational corporations. Alina Alpeeva 12 .
Day to day trading bitcoinBTCUSD — Bitcoin Chart and Price — TradingView
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. Once the trade is open, it is important to monitor the market to make sure it moves in the direction of anticipation and takes further calls accordingly.
Traders can finally decide to close the position whenever they feel like taking a profit or to cut a loss that has reached a level that makes them uncomfortable. Profits will be paid directly into trading accounts, while losses will be deducted from the account balance.
Bitcoin Trading steps 1. Learning to Speculate The first step in Bitcoin trading is understanding what moves Bitcoin prices. Several factors impact Bitcoin prices like : Supply of Bitcoin: The bitcoin supply gets capped from time to time. Lessers the supply, the greater would be the demand, and hence the price surge can be expected with limited availability.
The more is the demand, and the more would be the price. Government regulations: Security breaches, caps, or terms introduced by the Government might have an impact on bitcoin operations 2. Choosing the best bitcoin strategy There are several bitcoin strategies. Understanding the market and different strategies and selecting the best as per need of the hour plays a significant role in deciding how fruitful trading turns out to be Few bitcoin strategies are as follows : HODL : It is one of the most popular bitcoin trading strategies.
Hod-ling should be maintained as long as the trader is confident the long term price will be rising for sure. If circumstances demand the selling of Bitcoins, the same must be done to get maximum profit.
Trend trading : It means trading by following the market trend. If the market is following a bullish trend, then trading should be for the long run, and it should be for the short run if the market is following a bearish trend.
If the trend is slowing down, then-current positions might be closed, and new ones to be opened to match the emerging trend. Bitcoin hedging strategy: It means taking the opposite position of what a trader already has. It is an investment undertaken to mitigate the risk of adverse price movements. For example, if investors are playing long, then they must create a hedge by investing in short term opportunities so that the benefits of this short term gain can assist in compensating the loss, if any, that arises due to long term play.
Day trading: As the name suggests, the day trading strategy implies opening and closing a position within a single trading day and having no overnight bitcoin exposure. Overnight funding charges might be avoided with this strategy. When aiming for profits from short term price movements, this is one of the best strategies that traders could opt for. It also enables a trader to make the most out of daily price volatility.
It is based on the idea that major price fluctuation will start once the market breaks through a resistance level. Getting exposure to Bitcoin After learning to speculate and having ideas about trading strategies, the third step in bitcoin trading would be getting exposure to bitcoin. It can for example, be traded within a forex pair against the US dollar. Our broker table will show which firms offer one-click trading of bitcoin. Whilst you find your feet, using a small amount is advisable.
Some people seek the assistance of a bitcoin day trading bot, others rely on their own technical analysis and judgement. Nearly all bitcoin day trading tutorials will suggest you utilise price charts and have an effective money management strategy. This will help you keep losses at a minimum and profits high. Candlestick charts offer you the most information in the smallest amount of space.
From them you can learn several essential bits of information:. When using your chart ensure you have the right timeframe settings. For day trading bitcoins you want charts that are between minutes. Whether you were day trading bitcoin in , or day trading it now in , consider using the on balance volume OBV indicator.
It utilises an intelligent combination of price and volume activity to tell you what is the total money flowing in and out of the market currently.
How do you apply it to Bitcoin? If bitcoin trading is on the rise whilst the OBV trading is heading south, then you know people are selling into this rally, however a move to the upside would not be sustainable. The same logic can be applied in reverse. Another one of our top tips — It is imperative you utilise multiple news sources. Bitcoin value is extremely reliant on public perception, so news events can trigger spikes. Some of the most useful and user friendly news sources out there are:.
When it comes to useful bitcoin day trading tips, many suggest that if there is zero negative news about bitcoin and cryptocurrencies in general, then it could well be the right time to sell. Trading bitcoin for beginners introduces numerous risks — traders must be aware of them before putting money on the line.
Learning bitcoin trading can involve expensive mistakes, so this list of risks with hopefully offer new traders some tips to avoid the pitfalls:. The cryptocurrency market and bitcoin, in particular, are an exciting market for the aspiring day trader. Demo Accounts offer a risk free way to learn how to trade Bitcoin. Bitcoin Brokers in Russia.
Skilling offer crypto trading on all the largest currencies available, with some very low spreads. Leverage of is also available.
Regulated in 5 continents, Avatrade offer a very secure way to access Crypto markets. They offer a great range of Crypto, very tight spreads, and leverage. BitMex offer the largest liquidity Crypto trading anywhere.