Three Bitcoin Day Trading Strategies and Guide

We’ve previously examined general Bitcoin trading ter depth. This article concentrates on day trading Bitcoin.

What is Day Trading?

Given the chaotic sleep schedule of most traders, “day trading” could be better stated spil:

Trading when it’s convenient to you, without holding any position while you sleep.

Day trading is an active and involved trading style which seeks to capitalise on brief but significant price moves.

The good news is:

Bitcoin has more than its fair share of brief but significant price moves! This makes Bitcoin a superb muziekinstrument for day traders.

Why Day Trade Bitcoin?

Wij might go so far spil to call Bitcoin the ultimate day trading muziekinstrument, based on thesis Five factors:

  • Trading-focused Bitcoin exchanges have very low fees and minimums compared to traditional exchanges. Zero fees for makers are common and you won’t pay more than 0.25% ter fees if you choose your exchange wisely. Our webpagina helps you choose!
  • Bitcoin can be traded from anywhere te the world, 24 hours a day, 365.25 days a year. It doesn’t matter where you are or when you have time to trade, you can be part of the multibillion Dollar Bitcoin market if you have an internet connection.
  • Day trading lets you profit from Bitcoin without having to understand its technical complexities strafgevangenis hold a long-term position ter a fresh form of money, which is still considered experimental.
  • Several Bitcoin exchanges suggest leveraged trading. This means you build up can more exposure to upside and downside price risk than your trading budget would ordinarily permit.
  • Bitcoin’s volatility remains much higher than most other trading instruments, with the exception of alternative cryptocurrencies. This means you’re likely to find slew of tradeable act te the Bitcoin market. For better or worse, Bitcoin seldom has abate, sideways price act!

Bitcoin volatility overheen time, presently averaging Four.5%

One Good Reason Not to Day Trade Bitcoin

  • Unless you’re a skilled professional day trader, perhaps with a bit of luck, it’s usually much lighter and more profitable to adopt a longer term strategy. Simply buy Bitcoin at a major low and sell it at the next major peak (or vice versa if you’re betting on a price fall). This strategy saves a loterijlot of screen-watching, stress, and trading fees.

Our guide to general Bitcoin trading covers the various timeframes and their related trading approaches. Be sure to consider all of them before committing to day trading! Day trading is requiring te terms of time, energy and attention. If you already have a busy lifestyle, it’s most likely not a good gezond for you.

How to Day Trade Bitcoin

You’ll need Four things to get commenced with day trading Bitcoin:

  • A good Bitcoin exchange for trading,
  • Trading capital,
  • A gameplan.

Let’s discuss thesis elements ter detail…

Bitcoin Exchanges for Traders

Check out our total article on the leading Bitcoin exchange by volume, Bitfinex. Other good options for traders include Bitstamp, Openbreken, BTC-e,, GDAX, Luno… the list goes on!

If you wish to search for a good exchange for your location and / or payment method, BuyBitcoinWorldWide exists for this precies purpose. Search for exchange (spil opposed to “broker”) entries which specifically mention low fees, deep liquidity, and an interface designed for traders.

Trading Capital

Only day trade with funds you can afford to lose. If you’re a fresh trader, the odds are utterly high that you will lose your initial trading funds. Always commence out with a puny amount while you learn and practice and consider this amount spil “school fees.”

Your Gameplan

Day trading is based on technical analysis, the capability to make market decisions based primarily on price charts. This skill takes a lotsbestemming of practice and screen time to master. Even more significant is a sound money management strategy. Markets can never be predicted with flawless accuracy so zindelijk money management is key. It will minimize your losses due to wrong calls and maximize your profits when you get things right.

For further informatie, check out our general guide to trading.

Related movie: THE Unlikely QUIZ?!?

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