Best Practice For Day Trading Bitcoins

Best practice for day trading bitcoins

Bitcoin Day Trading 2020 – Tutorial and Brokers

Bitcoin day trading has seen a huge surge.

Is there a fake bitcoin market to practice trading?

With plenty of volatility and price movements, it’s an ideal day trading market with huge trading volume per day. This page will outline bitcoin strategies and tips, plus highlight why a day trader looking for profit should delve into the BTC world. Use the broker list to compare the best bitcoin brokers 2020.

Bitcoin Brokers

Plus500 accounts can trade CFDs on a range of cryptocurrencies 24/7, with competitive spreads (Just 1% for BTC).

Leverage of 1:2 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 1:2 leverage. [Not available in Canada]

BitMex offer the largest liquidity Crypto trading anywhere. Contracts from $1

With the cryptocurrency pairs available on all accounts, NordFX traders can trade with spreads of just 1 pip.

Trade 11 Crypto pairs with low commission.

IC Markets offer a diverse range of cryptos, with super small spreads. They also offer many cryptocurrencies not available elsewhere, without the need of a virtual wallet.

Finq offer some really tight Crypto spread on the leading cryptocurrencies, plus 1:2 leverage

Trade the major Cryptos against USD, EUR, GBP and AUD. All traded with tight spreads. No virtual wallet required, just a trading account.

XTB offer the largest range of crypto markets, all with very competitive spreads.

They also offer intra-crypto pairs such as ETHBTC and DSHBTC etc

IQ Option are a leading Crypto broker. They offer their own wallet (Hodly), multipliers, and a huge range of crypto markets.

IG Offer 11 cryptocurrencies, with tight spreads. Trade crypto with the safeguard of negative balance protection.

CMC Offer trading in 12 Cryptos, and the tightest spreads on the market.

Margin from 50%.

FXCM are an FCA regulated, London based broker. Companies under the FXCM umbrella are also regulated in Australia and Canada.

Zulutrade work with a range of brokers that deliver trading on a huge range of cryptos - See each brand for specifics

BinaryCent are a new broker and have fully embraced Cryptocurrencies.

In addition to offering many alt-coins to trade, BinaryCent also accept deposits and withdrawals in 10 different crypto currencies.

FXTM offer crypto trading via Exinity Limited Instruments offered are based on your country of residence.

Multi-Award winning broker.

Divvy homes public ipo

Specialising in Forex but also offering stocks and tight spreads on CFDs and Spread betting across a huge range of markets.

eToro lead the way in Crypto trading. The lowest spreads (from 1% for BTC), their own wallet service and the largest number of Cryptos to trade.

Best practice for day trading bitcoins

FCA Regulated.

Cryptocurrency Trading is available via CFDs on the MT5 binary.com platform

Trade 5 different cryptocurrencies via Markets.com feature rich platform. Leverage capped at 1:2 for EU traders.

Invest.com provide portfolio management plus standard trading.

Why Trade Bitcoin?

Leverage and spreads improve with each account level - Bronze, Silver or Gold

Investous offer crypto trading with some of the smallest spreads available, across all major cryptocurrencies.

New Forex broker Videforex can accept US clients and accounts can be funded in a range of cryptocurrencies.

Payouts reach 95% per trade.

Speculate on the leading cryptos, with ultra-tight spreads at City Index

IB Boast a huge market share of global trading. With a minimum deposit of $10,000 however, they remain an option for larger traders only.

A regulated bank, Saxobank offer CFD, Stocks and Forex trading on 35,000+ markets via the SaxoTrader Pro and SaxoTrader Go platforms

XM offer Crypto trading with tight spreads across 5 major cryptocurrencies

Trade Major cryptocurrencies with the tightest spreads.

Chose from micro lots and speculate on Bitcoin, Ethereum or Ripple without a digital wallet.

Trade Micro lots (0.01) of 12 cryptocurrencies.

Best practice for day trading bitcoins

Major cryptos traded against USD, GBP and EUR

Trade the four largest Cryptocurrencies with 50% and ultra tight spreads

Ayondo offer trading across a huge range of markets and assets. They also offer negative balance protection and social trading.

SpreadEx allows European traders to spread bet on crypto prices, including BTC, XRP and LTC, with tiny spreads.

Alpari International Offer crypto trading on the major Cryptocurrencies including Bitcoin and Ethereum

Pepperstone offer trading on the major Cryptocurrencies via a range of trading platforms.

HighLow offer cryptocurrency trading via binary options with daily expiries across 5 cryptos.

Trade crypto with fixed risk.

24option offer crypto with the tightest margins.

Best practice for day trading bitcoins

They also offer markets against a range of currencies, not just USD.

Fusion Markets are delivering low cost forex and CFD trading via low spreads and trading costs. Their message is - Stop paying too much to trade

Trade 5 cryptocurrencies, and BTC against USD, GBP or EUR. Margin is tiered from 50%

Capital.com have some of the tightest spreads available on Crypto.

They also offer crypto pairs, so that traders can trade cryptos versus each other, not purely the $ or € price.

Best practice for day trading bitcoins

They one of the best brokers for trading Crypto

Skilling offer crypto trading on all the largest currencies available, with some very low spreads.

73% of retail CFD accounts lose money.

AxiTrader offers competitive spreads on a large range of Forex and CFD markets, integrated into the MetaTrader 4 platform. FCA and ASIC regulated.

68.5% of retail investor accounts lose money when trading CFDs with this provider

Show All Brokers ⇩

Bitcoin Chart

What Is Bitcoin?

Bitcoin is part of the emerging cryptocurrency market.

Best Bitcoin Brokers With Demo Mode Trading

Whilst cash is made of paper, bitcoins are basically clumps of data. Scrapping the bank or governmental middle man that act as an intermediary for your money, cryptocurrencies enable the transfer of money directly between individuals, utilising secure blockchain technology.

The blockchain is a secure ledger of transactions. Digital coins can be mined by processing complex mathematical algorithms. The blockchain network records each transaction, securing the entire process – but crucially – speeding it up.

Bitcoin Trading Guide for Beginners

Charges are made per transaction.

Bitcoin was the first cryptocurrency to utilise the technology, and subsequent growing pains have led to ‘forks’ in the process. This resulted in the introduction of Bitcoin Cash. Other currencies then tried to improve the process, both in terms of speed, but also, costs and energy requirements.

Ripple, Ethereum and Litecoin all claim to be superior to Bitcoin.

The vast wealth of bitcoins are held in the hands of a few, so bitcoin is bought in fractions as low as one-hundredth of a million, which equates to just less than one-tenth of a cent currently. This means anyone can dabble and explains the boom in bitcoin trading volume per day.

The current cryptocurrency market is estimated to be worth around $148 billion, but analysts believe that figure could climb to a staggering $1 trillion by 2019.

This makes day trading bitcoin an appealing proposition. Bitcoin makes up half of the cryptocurrency market and Roger Ver, Bitcoins CEO, believes ‘it’s the dawn of a better, more free world’.

Don’t Like to Read? Watch Our Video Guide Instead:

Whilst that remains to be seen, it does have certain attributes that make it tempting for those looking to make money day trading bitcoin.

Why Day Trade Bitcoin?

  • Never a dull moment – With swings of over 10% in a matter of hours, this volatile market should give you the chance to find traceable action, and a potential profit for a savvy bitcoin day trader.

    Put simply – it’s an exciting market to day trade in.

    Does tdametirade use dealing desk for forex trading

    So unless you hand over your trust to a  day trading bitcoin bot, you’ll have fun glued to the screen.

  • Ideal for those comfortable with Forex – You don’t need to understand the complex technical world of cryptocurrencies and bitcoin.

    It’s basically a currency, enabling you to apply the same thought processes when you’re day trading bitcoin as you would when you’re day trading Forex.

  • Potential for leveraged trading – Some bitcoin exchanges offer leveraged trading, which could give you greater exposure to upside and downside price risk than your trading budget may normally allow.
  • Universal access – You can start day trading bitcoins anywhere on the planet, 24 hours a day, 7 days a week, 365 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. In addition, whilst the stock market can be a pricey place for normal investors, with Facebook and Apple shares costing around £110 per share, you can dive into the cryptocurrency market with just a dollars or pounds.

  • Low day trading bitcoin fees and taxes – Compared to many traditional exchanges, bitcoin focused exchanges offer low fees and minimums.
  • Go Long or short – Each day is different, you can be bullish and bearish the same week.

Bitcoin Wallet

To actually own bitcoin (rather then speculate on the price), you need a digital wallet to store your cryptocurrency.

There are a whole range of wallet providers out there, but we like Hodly. It offers higher levels of security than most and is backed by large, regulated brokers.

Coinsquare offer a similar service in Canada and across Europe.


What You’ll Need To Start Trading

So you want to make money day trading bitcoin?

Now you understand why to trade and what you’re trading, but here’s a bit more detail on the how.

Step 1 – Find out the price

One of the first things you’ll need to know is what the price is. To do that you’ll need to head over to an index or broker to see the latest traded value.

Best practice for day trading bitcoins

You can also use orders – open orders or limit orders – to enter the market at the point you want to.

Step 2 – Pick a broker

One of the biggest decisions you’ll have to make is which exchange or broker to deposit funds with. Day trading bitcoin on Coinbase has become particularly popular in recent years. Coinbase acts like a digital wallet, allowing you to transfer currency with ease from an app. However, there are other choices too, including:

  • Bitfinex
  • Bitstamp
  • Kraken
  • BTC-e
  • GDAX
  • Luno

Away from the direct exchanges, there are also brokers that will allow you to trade the underlying asset of Bitcoin, without actually owning it.

It can for example, be traded within a forex pair against the US dollar.

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Other brokers, such as IQ Option, will also allow you to speculate on bitcoin via CFDs or spread bets. Our broker table will show which firms offer one-click trading of bitcoin.

Step 3 – Capital

Before you can make money day trading bitcoin you’ll need some capital to start with.

The internet is packed full of warnings about losing all your money so let’s keep this brief. Whilst you find your feet, using a small amount is advisable. It’s also worth highlighting that you should never trade more than you’re willing to lose.

Dfw cryptocurrency mining facility

Be strict and regimented with what you can and can’t afford to lose, and you’ll never need to worry about losing out to the cryptocurrency market.

Useful tip – If you’re using credit cards, you may get charged up to 3.99%, so keep an eye out for credit cards that offer 3% cash back so you can negate part of the cost.

Step 4 – Bitcoin strategies

Rodger Federer doesn’t step onto the tennis court without a clear trading strategy, and you shouldn’t start day trading bitcoin without one either.

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.

Reading the charts

Whilst you will find an abundance of line and bar charts, don’t make them your bread and butter. Candlestick charts offer you the most information in the smallest amount of space. From them you can learn several essential bits of information:

  • What was the price when it opened and closed.
  • How high the price got during the time frame, as well as how low it dropped.
  • If the candlestick is green, then you know the price closed higher than when it opened.
  • When it’s red, it tells you it closed lower than when it opened.
  • If the chart is mostly green and heading upwards, you’re in an upwards trend.
  • You know if the chart is mostly red, you’re in a downwards trend.

When using your chart ensure you have the right timeframe settings.

I Tried Day Trading Bitcoin for a Week - Beginner Crypto

For day trading bitcoins you want charts that are between 1-30 minutes.

If you want to make money day trading bitcoin you’ll need to get familiar with candlesticks and their indicators (see example below). It isn’t uncommon for bitcoin to fall into a repetitive trend for months on end.

If three of the last four candlesticks have been red, then there’s a good chance it’s going to carry on heading that way, unless the RSI suggests it’s been seriously oversold.

On Balance Volume Indicator

Whether you were day trading bitcoin in 2015, or day trading it now in 2017, 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.