6 Ways to Start Day Trading Bitcoin

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Have you ever wanted to start day trading bitcoin? If so, then this blog post is for you! This article will discuss five different strategies that can help get you started. These tips are great for beginners and more experienced traders alike. So if you're new to the world of crypto or looking to expand your knowledge base, keep reading.

Here is a list of ways to do day trading bitcoin

1. Select a trading platform

Select a trading platform

There are many established cryptocurrency trading platforms available. Some of the most popular options include Coinbase, Kraken and Bittrex. These typically offer a variety of cryptocurrencies to trade between but may not necessarily be ideal for day-trading due to fees or lack of liquidity in smaller markets like altcoins (alternative coins).

Bitcoin Revolution is a popular application where you can easily trade bitcoins without much hindrance.

Platforms that do provide access to more obscure currencies tend to carry a higher risk than those with larger market capitalization; this is because these less known tokens experience greater volatility in price fluctuations, and it can take longer for large buy orders to execute without significantly affecting price (liquidity will depend on how actively users want the currency).

2. Pick your investments

There are hundreds of cryptocurrencies out there. Some are junk, scammers created some to take your money, and others have a chance to be the next Bitcoin or Ethereum. While it’s impossible to tell which ones will succeed, there are a few ways you can figure out how to choose the best investments.

If you have spare cash and want to try day trading but don’t want to risk too much of your capital, consider starting with an exchange-traded fund (ETF). ETFs track the price movements of an index or group of assets like cryptocurrencies.

3. Pick a particular strategy for trading

Pick a particular strategy for trading

Various strategies can be employed when day trading bitcoin. Some traders prefer to trade on technical analysis, others use fundamental analysis, and others use a combination of the two techniques.

Whichever strategy you decide to use, make sure you are comfortable with it and have backup plans if the trade goes against you.

4. Range trading

This is probably the simplest strategy. The idea here, with trading Bitcoin in jumps and waves, is to buy a security on its way up while it's still affordable or sell when it starts crashing down again.

5. Scalping

This short-term strategy involves buying and selling cryptocurrencies quickly to make a profit. Traders who scalp use software or an app to watch the markets closely and place orders as soon as they see an opportunity.

This type of trading requires quick decisions and can be stressful, but it can also be profitable if done correctly.

6. Technical analysis

Technical analysis

Technical analysis studies past price movements and their patterns to predict future price movements. There are a variety of indicators that traders use to help them make these predictions, including moving averages, MACD, RSI, and Bollinger bands.

The Bottom Line

Bitcoin is a volatile asset and can fluctuate greatly in price. Day trading carries significant risk and should only be attempted by those with experience in financial markets. Always consult with a financial advisor before investing any money into cryptocurrencies.

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