Choose A Platform To Trade
The first step a day trader has to take is deciding what platform to use. US-based traders can use only domestically regulated crypto-trading platforms, so this is a major factor to consider when researching the right platform.
Exchange liquidity, asset liquidity, and fees are at the top of a trader’s list when choosing the right platform for them to buy and sell crypto. The volatility of the crypto market means the value of digital assets can oscillate wildly. For traders looking to maximize profits in this market, they need to make moves fast.
The first choice isn’t always the best choice when figuring out where to conduct crypto trading. For budding crypto day traders, the options and differences between the many crypto exchanges can be overwhelming.
Here are the major things to consider when shopping around for the right trading platform:
Quick tip: For traders looking for a more detailed comparison of crypto exchanges, Cryptowisser and CoinMarketCap are trusted resources to compare different platforms according to liquidity, trading volume, and cryptos supported.
Exchange liquidity is influenced by a handful of internal factors. High trading volume for the listed crypto assets, the number of active traders on a specific exchange to fulfill orders, low fees that incentivize makers to open positions, and a variety of funding options that bring more traders to the platform.
The Dangers Of Keeping Positions Over The Weekend
There are a few reasons not to keep positions over the weekend, and here are some of them:
Price gap: It is not uncommon for the market to open with a big gap from the previous close. Just one piece of news is all it takes for the price to open on the next trading day with a wide gap, rendering your stop loss useless.
Stop loss hunting: Some brokers widen their spread when the market is about to close on Friday and again when the market opens on Sunday. If your stop loss is not far away enough, your position may be knocked off before the market even starts to move.
No rest of mind: When you have a position open over the weekend, and youre not used to it , chances are that you will be worried about the trade, especially now that a single tweet can do a lot of damage.
What Are The Most Popular Cryptocurrencies
Investors often wonder which cryptocurrencies to buy. Although there is no definite answer to this question, we can take a closer look at the list of most-traded cryptocurrencies at Capital.com and compare it with the list of the most valuable cryptocurrencies by market capitalisation from CoinMarketcap.
Although both lists are changing every day, driven by the volatile nature of the cryptocurrency market,the long-standing leaders in both ratings aside from bitcoin are:
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Top 10 Forex Brokers That Trade Cryptocurrency On Weekends
In this article, well look at forex brokers that trade cryptocurrency.
Youll need an internet broker to trade FX.
Trading with a reputable forex broker is essential for achieving success in the global currency markets.
You may have special needs as a currency trader or investor in platform, tool, or research requirements.
Understanding your investment style might assist you in deciding which forex broker that trades cryptos is right for you.
Why Trade On The Weekend
So, whilst there are weekend trading markets available, its an entirely different question as to whether you should get involved. Here are several reasons why you might want to:
- Strategy friendly Whilst some strategies will turn handsome profits in a high volume week, others will perform better on the weekends. The Asian markets that are open, for example, behave differently to many western markets. This plays into the hands of certain traders with strategies better suited for the different market conditions.
- More trading = more profit Whilst this is not always the case, in general, the more time you spend trading the greater opportunity you have to turn profits. If its a choice between housework and generating revenue, many will opt for the latter.
- Flexibility For some, trading in the week simply isnt an option. The weekend is ideal for those with busy schedules and intra-week commitments. You have the freedom to choose the hours that suit you.
- Focus If your week is hectic, the weekend may come with fewer distractions. This could translate into greater concentration and enhanced trading decisions.
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Price Moves Accompanied By Low Volumes
Though the price changes are big in size, volume is lower on weekends. The size of individual orders is usually big with overall fewer orders. It indicates that the large holders of the cryptocurrency, so-called bitcoin whales, are active during the weekend to amass or offload bitcoins in big number and cash in the weekend price swings. Activities of such large holders have a big impact on the price moves of the cryptocurrency, and they can be much more influential during weekends when trading volumes remain thin.
In addition to the activities of these large volume participants, there are other systematic factors at play.
Brian Kelly, founder and CEO of digital investment firm BKCM, told CNBC: “Over the weekend, there’s not much new money coming in to support prices. It’s a relatively thin market and news is exacerbated over the weekend when it’s even thinner.”
Cryptocurrencies Do Not Exist As Physical Coins But Instead Are Electronic
The technologies powering each cryptocurrency control a significant portion of its value, as we rely on this technology to identify and securely transfer money. The first digital coin to be widely used to buy and sell goods and services was Bitcoin. Today, Bitcoin continues to be the most widely exchanged cryptocurrency. However, there are now other highly valued options to choose from, such as Ethereum, Dash and Ripple. OspreyFX offers each of these cryptocurrencies for clients who wish to trade on them, along with many others.
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Cryptocurrency Brokers What To Look For
Here are some of the more understated details about your cryptocurrency broker that could make your trading experiences so much more efficient and successful.
1. What Are The Weekend Hours Like?
This is a key detail that distinguishes cryptocurrencies from other prominent trading markets like forex, futures, and equity. Cryptocurrency brokers operate during the weekends as well.
There is virtually no difference in purchasing bitcoin at the end of the week as opposed to the middle of the week during peak hours.
But there is a catch. While digital currency exchanges are available during the weekend, your broker may not . So in effect, if there is considerable movement within your relevant cryptocurrency market during a weekend when your broker is not operating, you may not have the ability to respond in any way.
2. How Is It Hedging?
Your broker is probably not keen on revealing if it is hedging cryptocurrency traders but it is important information for you to know.
Why is it so important for you to know?
Swing Trading Cryptocurrency Strategy
Swing trading is a longer-term trading strategy. Traders usually hold positions for longer than one day, but usually no longer than a month. Swing traders usually try to benefit from volatility waves, which often last for several days or weeks. They use a combination of fundamental and technical analysis to make thorough trading decisions. Swing trading enables you to make more rational decisions with less rush.
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Bitcoin: Biggest Price Swings Happen On Weekends
Saturday night is eagerly awaited by many as a much-needed break from the workweek, but it is apparently emerging as the most crucial time for bitcoin traders to buy and sell the most popular cryptocurrency.
Cryptocurrency trading continues non-stop on a 24/7 basis across the various exchanges spread all over the planet. While many see this as an advantage with the potential benefits of making profits at the convenience of the active traders, it also comes with the challenges of constantly monitoring prices and making timely trades to book profits and cut losses during the odd-hours. It is essentially turning out to be a case of frequent sleepless nights and busy weekends for the active crypto traders.
Day Trading Cryptocurrency How To Make $500/day With Consistency
Would you like to learn day trading cryptocurrency and make a consistent $500 per day? We often hear about all the money you can make by day trading stocks. But what about crypto day trading? In todays lesson, youll learn how to day trade cryptocurrency using our favorite crypto analysis tools.
Our team at Trading Strategy Guides is lucky to have over 50 years of combined day trading experience. Were going to share with you what it takes to day trade for a living, and hopefully, by the end of this trading guide, youll know if you have what it takes to succeed in this business.
First and foremost, when day trading, its essential to have a structured approach and a rule-based strategy. The same as swing trading or positional trading you are not going to trade every day, and youre not going to make money every day. So, you need a day trading cryptocurrency strategy to protect your balance.
The high volatility nature of Bitcoin and other cryptocurrencies has made the crypto market like a roller-coaster. This is the perfect environment for day trading because during the day youll have enough up and down swings to make a decent profit.
Moving forward, were going to teach you what you need to learn how to day trade cryptocurrency and were going to share some out-of-the-box rule-based day trading strategies.
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When Are Crypto Markets Busiest Or Most Volatile
Given that the USA, Russia and the UK are the three biggest crypto trading countries, it is unsurprising that the American through European crypto trading hours tend to be busier. The Asian market hours can be very volatile times for cryptocurrency, even on weekends.
It is not uncommon to see big moves occur in cryptocurrency prices over Sunday night this can be damaging for people trading in European time zones. The peculiar thing about cryptocurrency exchanges is the extent to which the price can differ between each exchange.
For instance, there have been times where bitcoin has had up to a $500 price disparity across exchanges. The reasons for this disparity are related to the differences in liquidity across exchanges and often the geographical location of these exchanges. Price disparity becomes more noticeable just after big moves in the price of cryptocurrencies.
Best Crypto Broker For Mt4
The best cryptocurrency brokers for Mt4 are listed below.
Compare the minimum deposits, regulation, headquarters, benefits, funding methods, and fees of the Best Crypto Broker for Mt4 on a side-by-side basis.
All of the firms listed here are the finest cryptocurrency brokers for MT4.
Watch the video below to learn more about Forex brokers that trade Cryptocurrency:
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Tools And Software For Day Trading
There are many types of tools and software programs designed to help day traders, but you shouldnt complicate yourself. You can use only the most essential tools required to analyze the price action and improve your trading decisions.
Obviously, you will need a laptop or mobile device with a stable Internet connection. The cryptocurrency exchange or the broker you choose should provide you with charting software that lets you analyze the price and trade without any hassle. Many platforms would use the charting software developed by TradingView, which is convenient, fast, and accurate. Otherwise, seek a trading platform that provides API integration for customization.
Besides this, it is important to keep an eye on the latest cryptocurrency news so that a crypt news aggregator site might do the trick. Alternatively, you can regularly check popular websites like news.Bitcoin, , Coindesk for the latest crypto updates.
Needless to say, a day trader cannot do without technical analysis indicators and tools, which are providing great insight into the historical price data.
Example of BTC/USD chart provided by TradingView, with some technical indicators on it.
The Risks And Rewards
Virtual currencies, including bitcoin, experience significant price volatility. Fluctuations in the underlying virtual currency’s value between the time you place a trade for a virtual currency futures contract and the time you attempt to liquidate it will affect the value of your futures contract and the potential profit and losses related to it. Investors must be very cautious and monitor any investment that they make.
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Crypto Day Trading Strategy
The idea behind crypto day trading is to look for trading opportunities that offer you the potential to make a quick profit. If day trading suits your own personality, lets dive in and get through a step-by-step guide on how to day trade cryptocurrency.
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.
In this article, were going to look at the ‘buy’ side.
Trade Crypto For Less Coin
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- Seamlessly access crypto markets through IBKR’s professional grade desktop platform and intuitive mobile and web platforms
- Cryptocurrency trade execution and custody are provided by Paxos Trust Company
- Trade stocks, options, futures, spot currencies, bonds, funds and more from a single integrated platform at IBKR
- Cryptocurrency futures also available on the same platform
- IBKR Rated #1 Best Online Broker 5 out of 5 stars by Barrons 20212
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Trading Hours For The Biggest Us Futures Exchanges
Do Futures Trade On Weekends?
With the availability of electronic trading platforms, such as the Globex platform, futures contracts are now traded globally. So once any exchange is open in any part of the world, futures can be traded.
The round-the-clock global market starts with Australian market which opens around 5 p.m. Eastern time and ends with the close of the U.S. markets at about 5 p.m. ET, by which time the Australian market has opened again for a new trading day. As a result, the futures market is open for 24 hours each day from Sunday to Friday.
However, there are slight differences in the trading hours of the various types of futures in the biggest futures exchanges in the US. Lets look at some of the exchanges and their trading timetable.
Trading Cryptocurrency Vs Trading Stocks
Crypto vs stocks, whats the difference when investing and trading?
The history of stock exchanges dates back more than 400 years, and today we know them as primary marketplaces for buying or selling company stocks. Cryptocurrency trading has sprung up over the past decade, which makes it a relatively new part of the global financial marketplace.
Trading cryptocurrency or stocks present many trading opportunities and can be a valuable part of a diversified investment portfolio. However, regulators believe cryptocurrencies come with much higher risks.
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How To Buy Cryptocurrency
There are two popular ways to get started buying cryptocurrency. One way is to buy cryptocurrency on exchanges, such as purchasing bitcoin on an exchange like Currency.com. Here you own the cryptocurrency yourself, wait for the price to rise significantly so you can sell it for a profit. Note that the market can go against you, the price might fall and you might make a loss.
Alternatively, you can trade a contract for difference on a particular cryptocurrency.
Cryptocurrencies Can Help To Diversify Your Portfolio
If you are ready to start trading crypto, a balanced portfolio might include a small portion of cryptocurrencies. Trading digital currencies have high potential for profit , if you make thorough decisions, use risk management tools, such as stop-loss and take-profit and trade with money you can afford to lose. If you are a long-term cryptocurrency investor, rather than a CFD trader, you can hodl your coins, until it feels right to cash out.
Please note that cryptocurrencies are volatile and hundreds of thousands of traders have seen losses as prices fall rapidly. You should do your own research, consider your attitude to risk and be prepared to lose money before deciding whether or not to invest.
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How To Choose Your Cryptocurrency Broker
Is Leverage Really Necessary? Cryptocurrency markets are volatile in nature with prices fluctuating immensely thereby generating high profits even in the absence of leverage. But for some traders, the desire for more earnings justifies the use of leverage.
Before choosing your broker, settle yourself on whether the already immense profits that come from a cryptocurrency market are enough for you or you would like to use leverage to enhance them even further, bearing in mind, of course, that will also significantly increase the risk factor to your funds.
Negative Balance Protection: It is always advisable to trade with a broker that affords the negative balance protection facility. That way, you will never be at risk of losing more than what you invested in case you sustain very heavy losses.
How Suitable Is The Required Capital For You? This is another subjective part to your decision. Do you prefer trading with a small capital or bigger one to help you zero in on bigger returns? Find out what size trades your broker is offering before you open an account.
Narrow Spreads for the Win: Let us be honest, it is only fair that your broker gets a cut from the money you generated having provided you with the essential facilities for it and all. But let us be honest, you definitely want every last dime for yourself.
Lets go into what aspects you as a trader must consider when choosing a broker to trade cryptocurrencies.