Bitcoin deposits require six confirmations, which is about one hour. Now, navigate to the “Trade” tab. Using the black bar at the top of the page, you can switch trading . Let's get started learning how to trade bitcoin! Bitcoin trading is actually pretty straightforward once you get the hang of it. Being the premier cryptocurrency, it is pretty straightforward to buy and sell them as and when you want to. Bitcoin has a history of volatility which has brought in a lot of traders and media interest into the ecosystem. May 07, · The first step when looking at how to day trade cryptocurrency will require you to find a good exchange. A cryptocurrency exchange will allow you to buy and sell coins 24 hours per day. It is important to think about what kind of cryptocurrencies you are looking to get involved with.
Learn how to day trade bitcoinDay Trading Cryptocurrency: Crypto Trading Strategies
Binance is a fine example of a crypto-to-crypto exchange. These are the exchanges that are geared more towards the experienced traders than the beginners. Crypto exchanges deal with an insane amount of money on a daily basis. In fact, check out how much the top 5 exchanges ranked according to transaction volume in the last 24 hours measure up:.
So, where exactly do you get started? If you are Canadian then the answer is pretty straightforward. Bitbuy is a Canadian owned and operated digital currency platform. Founded in , Bitbuy has consistently provided Canadians with a dependable and trustworthy platform to buy and sell their cryptocurrencies. As already explained, Bitbuy was a fiat-to-crypto exchange where you can deposit Canadian dollars directly onto their website, to be exchanged for digital currency.
Their headquarters are located in Toronto, Ontario and their services are available for Canadian traders across the country. Another interesting feature of Bitbuy is that there are no fees for withdrawing your cryptocurrency. You can send your crypto to a private wallet , free of charge. This makes it ideal for long-term investors who want to hodl on to their cryptocurrency. Your first-time purchases will be held for one to three business days for security reasons.
If you have a verified account and have made more than three transactions on Bitbuy, your funds will be available in real-time. If you are American then the answer is pretty straightforward. Kraken allows users to fund their accounts in Canadian dollars and has several Canadian dollar trading pairs. Kraken operates a small office in Halifax, Nova Scotia, that handles their Canadian operations and support. Kraken has limited funding options compared to other Canadian exchanges.
Currently, the only way to deposit Canadian dollars onto Kraken is by bank wire, meaning you will need to physically travel to your bank and process a wire transfer in order to use the service. Certainly not the most convenient funding method, but if you are willing to complete the process, Kraken is a good platform to use for advanced features.
Maybe their best feature, Kraken allows users to margin trade, meaning users can borrow funds to buy digital assets. This is an advanced tactic that can be tricky, but it can profitable if you know what you are doing. Kraken also offers discounts to high volume traders, something not many other exchanges offer. Although Kraken offers some of the best feature sets and a selection of many altcoins, it suffers from a lack of popularity in Canada.
Some of the CAD pairings that they offer have low trading volume, meaning if you are planning on buying a large amount, you may encounter price slippage and pay a higher price than you would have hoped for your digital currency.
Kraken benefits from being a top international exchange and has good support as well as constant upgrades. The moment you become a verified member, you are entitled to use any payment method you want to fund your Bitbuy account.
For verfiication, you will need to submit the required KYC details. The documents you must submit are:. The entire verification process usually takes between one to three business days. Bitbuy also has very prompt customer support. You can do the following to receive support on your query:.
Bitbuy is a division of First Ledger Corp, which is a Toronto based blockchain and digital currency company. They have stated that the exchange complies with all Canadian laws. They have also taken the following precautions to keep your data safe:. If you are a Canadian citizen, then you can go to Bitbuy right now and create your own account to start trading. Click here to create your account. There are a lot of ways that you can trade Bitcoin and cryptocurrencies and it is entirely dependent on what you want to gain from your investments and how much time are you willing to give to trading.
As per IG , there are four main kinds of trading:. Day traders open and close their position within one single trading day.
This strategy works for traders who want to take advantage of short-term opportunities in the Bitcoin market which may come about in light of developing news or emerging patterns.
Swing traders catch trends in price movements the moment they form and hold onto it until the trend experiences a reversal. This strategy is great if you want to take advantage of market momentum. Make several intra-day trades on minor price movements. If you are the kind of trader who would make several small frequent profits rather than wait for a big opportunity,.
If you are a long-term holder or you want to just get into the crypto market and try out your hand then passive trading may be ideal for you. The idea is as straightforward as it is timeless. Wait for the price to drop to a certain level and buy-in. Wait for the price to go up to a certain level and buy out. Unlike the other forms of trading, the time length between buying and selling can last for several days, weeks, months, and even years. The two most important tools to keep in mind while trading, are fundamental analysis and technical analysis.
This analysis looks at the big picture instead of price movements. When you are doing a fundamental analysis of a coin, you are looking at:. Keeping yourself up-to-date on all the current events is imperative for solid fundamental analysis. Technical analysis is a tool, or method, used to predict the probable future price movement of a currency pair, cryptocurrency pair, or stock.
It can be creative and dynamic which helps you gain a very deep perspective into the coin. You can read the first part of our two-part guide on technical analysis to gain more insight. Sure you can gain a lot but you can lose a lot as well. Take your time and do some research. Learn about the coins and learn about certain trading strategies. Learn about the exchanges and choose the one which will benefit you the most.
Also, people tend to invest in the same coins that their friends are investing in. While there is nothing in taking advice, you should combine advice with your own research. Fear and greed are the two most common emotions when it comes to investors. Fear can cause you to not dive into a coin when it is ready or it can cause you to leave your trade prematurely.
Conversely, greed can cause you to have blind and baseless faith in a particular coin or it may make you hold on to a trade way past its expiry trade. Do not give in to emotions, stay as rational as possible. However, what separates the professional traders from the novices is the ability to learn and grow from those mistakes. If you misread the same pattern a second time then it is completely on you.
Actually, this point provides a pretty awesome segue into our next section which is…. Every exchange has its own wallet , however, it is not the safest of options. If you plan on holding on to your crypto for a long time then you should look into cold wallets. The two kinds of cold wallets that we would recommend are hardware wallets and paper wallets.
Hardware wallets are physical devices where you can store your cryptocurrency. They come in a few forms but the most common is the USB stick style typified by the Nano Ledger series. Although many swear by them, hardware wallets are still prone to compromise. This applies to those bought from the company themselves, but particularly if a hardware wallet has been acquired second hand. Under no circumstances should anyone ever use a pre-owned hardware wallet. Although loss or damage can spell disaster for the unprepared, hardware wallets can be restored.
You should keep restoration details in a safe place that only you, and anyone you plan to leave the money to know about. Otherwise, your experience can be like skydiving without a parachute.
Day trading the cryptocurrency market can be a very lucrative business because of the high volatility. Since the crypto market is a relatively new asset class, it has led to significant price swings. The good news is that even when we have a low reading of volatility relative to other asset classes, this volatility is still high enough that you can generate a modest profit on your trades.
You can do so by simply verifying the hour volume of the crypto trade. CoinMarketCap is a good free resource to read and gauge the market volume of any particular coin.
We only like day trading cryptocurrencies when all the conditions align in our favor. In this case, avoid trading on weekends and limit trading only on the highest-volume days.
The idea behind crypto day trading is to look for trading opportunities that offer you the potential to make a quick profit. Now, before we go any further, we always recommend taking a piece of paper and a pen and note down the rules of this scalping strategy.
As previously discussed, the number one choice you need to make is to pick coins that have high volatility and high liquidity. There are more than coins on the market and growing. Day trading smaller cryptocurrencies can also be a very lucrative business, but there are higher risks. Remember, crypto prices can crash just as fast as they have risen. This specific day trading strategy uses one simple technical indicator, namely the Money Flow Index. We use this indicator to track the activity of the smart money and to gauge when the institutions are buying and selling cryptocurrencies.
An MFI reading of shows the presence of the big sharks stepping into the markets. They inevitably leave tracks of their activity in the market and we can read that activity through the MFI indicator. Namely, during the current day, we need to skip the first two MFI readings of and study the crypto price reaction.
We can now wait for the third MFI reading above The close of this candle needs to be near the upper end, giving us a candle with very small wicks. This brings us to the next important thing that we need to establish when day trading cryptocurrency, which is where to place our protective stop loss and where to take profits.
The obvious place to hide your protective stop loss is below the low of the day. This can also signal a reversal day.
However, the only rule you need to abide by is to take profits during the first 60 minutes or the first hour after your trade got triggered. Holding the trade longer than one hour will result in a lower success rate.
If you took the time to read the whole day trading crypto guide, then you should be able to buy and sell Bitcoin and alts and make some daily profits.
If you are interested in learning how to day trade cryptocurrency , be sure to equip yourself with enough information before diving into the market. Making a living day trading cryptocurrency can be a lot easier due to the high volatility nature of the crypto market.
High volatility suits day trading very well, so you have the right environment to succeed. You may also be interested in reading our guide on the Best Cryptocurrencies Investments for Please Share this Trading Strategy Below and keep it for your own personal use! Thanks, Traders! We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more. Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow.
I am based in the UK How do i set default buying and selling levels from 80 to and respectively from 20 to 0? Nice strategy, I live in Nigeria, what time will be appropriate for me to trade?
And please, I really want to master the day trading, do you have more strategies to learn? Which MFI did you use in traderview and how do you change the default buying and selling levels from 80 to and respectively from 20 to 0? I would love to speak to you by phone because this is complicated. Where do I get the charts that have the Money flow indicator. Are you using Binance or Coinbase? Can we please speak by phone and you can charge to get me started please. My name is Lew and my is please call or give me a to call you.
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