Tips For Cryptocurrency Trading You Probably Knew Nothing About
Every day we listen to reports on various news platforms about this or that with regard to cryptocurrencies and, with the recent market correction, the market has been in a state of confusion. Some, like ABC News as can seen in the video below, reported that there is a possible bubble in market prices months ago.
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But thats exactly the issue everyone seems to be pointing out the problem, but no one actually seems to be keen on providing solutions. And those that care enough to guide others, do so at a fee in the form of online courses, paid seminars, and more.
This is why I saw the need to put up this post and provide some useful tips to guide your trading in a time when the market seems to be bullish. Other than the tips, I will also share with some of the most volatile cryptocurrencies you need to watch out for and the best one among them for day trading.
These tips are more of safety rules and as the soldiers would have it, such rules are written in blood.
So, how can we avoid making costly mistakes? How can we ensure that we always remain on the green side?
With that, lets begin!
How To Get Started With Day Trading Cryptocurrency
So, youve decided youd like to try out day trading cryptocurrency. Where should you start?
You could check out A Complete Guide to Cryptocurrency Trading for Beginners, where we explain everything you need to know about trading, along with some tips for retail investors.
But which is the best online trading platform for day trading cryptocurrency? Well, we cant decide for you, but the Binance ecosystem offers hundreds of market pairs, margin trading, quarterly and perpetual futures, leveraged tokens, real-time market data, and much more. Just go to Binance, convert your fiat currency to cryptocurrency, and get started right away.
Trade With Lower Fees Via Binance Coin
Binance is special for one major reason low fees.
You pay just 0.1% on every trade you make!
Note: You are only required to hold BNB in your account to have the discount automatically applied. You do not need to trade any BNB crypto pairs and there are no notable benefits of doing so.
So, your goal is to always have enough BNB to cover your trading fees. If you enter and exit a $10,000 position 10 times a day thats $100,000 in daily trades. Using BNB will save you 0.1% which means you pay $50 less a day in trading fees.
Make sure to keep an eye on your BNB balance so it doesnt suddenly run out. Your account will automatically turn to whichever crypto you are holding when taking fees, at the rate of 0.1% per trade. Simply buy some more BNB and youll be back to the reduced rate.
Reminder: The discount rate for using BNB will decrease year-over-year and after five years this promotion will no longer be active. The discount halves each year which makes the rates as follows: 50% discount on Year 1, 25% on Year 2, 12.5% on Year 3 and 6.75% on Year 4.
How to Activate BNB Discount
You will notice that the stated fee changes to 0.05% when you have this activated. Just look above the sell order box before placing your trade to confirm its currently active. You should see the 0.10% slashed and faded and then 0.050% in normal font next to it.
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Coinbase Best Ethereum Trading Platform For Newbies
Coinbase is the largest cryptocurrency broker in terms of client accounts – with more than 35 million people now using the site. In fact, Coinbase has grown so quickly since its launch in 2012 that it is now a public stock listed on the NASDAQ.
You will find a wide variety of digital currencies on the Coinbase website that can be purchased with ease. You will pay 3.99% to buy a crypto asset direct with your debit card – which is expensive. Bank transfers are significantly cheaper – often costing less than a dollar.
The provider also offers Coinbase Pro – which is more conducive for day trading. Here, fees are lower and you will have access to more trading pairs. Coinbase also offers a top-rated day trading app – should you wish to buy and sell to trade cryptocurrencies on the move.
Your money is at risk.
Q How Do You Open A Cryptocurrency Exchange Account
Every exchange has its unique registration process, but generally, there are several requirements you need to meet to be able to open a crypto exchange account. You will need to provide personal information such as name, address, email address, social security number, and a photo or scan of a government-issued ID.
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Q What Are The Risks Of Using A Grid Bot
A. If the price goes down and stablizes there, you can lose out as the bot is unable to then sell the coin at higher than you purchased it. Though thankfully this is where stop-losses come into play. These let you automatically sell when a coin goes below a certain price level, ensuring you dont ride it down to 0.
If you dont set up the grid bot correctly, there are higher chances that you can lose a large amount of money. But its not the fault of the bot. Its your responsibility to not risk more money than you can afford, and to set it up correctly.
Risks Of Buying Safemoon
While a SafeMoon buy offers plenty of potentials, you should be aware of the fact that there are risks associated with crypto investing. For example, there is always a risk caused by the high volatility of cryptocurrencies, which can make the coins prices go up and down unexpectedly. This can be triggered by any event, or even by crypto whales who might engage in price manipulation. And, since most coins still follow Bitcoins lead, it is not enough to only keep a close eye on SafeMoon itself, but also on BTC, and the crypto market, in general.
Next, if you buy SafeMoon crypto, you might want to try trading it with leverage. This is typically quite profitable for traders who know how to handle the risks, but the greater the leverage you use, the risks themselves become greater. When it comes to trading with leverage, it is usually done through CFDs, and that means that you can make a profit whether or not the price is going up or down, as long as you can accurately predict its movement. In other words, SafeMoon price prediction is the most important thing here.
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Making Limit Orders On Binance
The price will be set at the last trade price by default. You can manually edit this number and select whatever you would like. Choosing a price far above the closest sell orders in the order book will result in a market buy up to that price-point .
Binance also gives you a quick, one-button option for placing limit orders. You can divide up how much you buy into 25% , 50% , 75% or 100% of your account balance . Also, there are arrows next to the order price which allows you to adjust your bid by one not very effective in a fast-paced market.
Types Of Trading Fees You Should Know About
Among the types of fees customers may encounter on crypto-derivative exchanges like Binance Futures, the main two include Maker and Taker fees. Traders act as takers or makers depending on whether they are providing liquidity and therefore increasing the depth of the order book or if they are taking this liquidity on . Maker and taker fees are also referred to as payment for order flow.
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How Does Binanceus Compare
|Open an account|
Binance, Webull, and Kraken all offer cryptocurrency trading for assets like bitcoin, ethereum, litecoin, and dogecoin. However, the three investment platforms have very different features, and you’ll find more or less crypto options, depending on which company you choose.
If you’re solely set on trading crypto, Binance.US and Kraken are the best options. Both offer staking rewards, services for individuals and institutions, and dozens of cryptocurrencies. But Webull is a better fit for those who want to trade stocks, cryptocurrencies, ETFs, and options all under the same roof.
Getting Started To Day Trading On Binance
Binance, in a very short duration, has built a huge user base and is one of the most trusted crypto exchanges in the market. It has established itself as a benchmark for the industry.
For day trading, Binance is a suitable trading platform. It offers trading opportunities in various markets with deep liquidity and a meager trading cost among all trading platforms.
The first step is to sign up on Binance using your email ID and register yourself to start trading. You dont need anything else at this moment to get started with Binance.
When you sign-up, you automatically agree to abide by the terms and conditions of the Binance exchange. Mainly, you should be above 18-years of age and a non-US citizen.
Dont worry if you are a US citizen, they have launched a separate platform for the US, Binance.US, which all US citizens can use after verifying their nationality through photo ID proofs.
I am coming back to Binance.com. Here you arent required to do a mandatory KYC check, and you can trade crypto to crypto without any verification.
Of course, if you skip KYC, your daily crypto limits will be low, but you can increase these limits later. For enhanced security of your trading account, use a strong password, enable 2FA, whitelist your device.
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How Do You Buy Crypto
To buy cryptocurrency, youll need to create an account with a crypto exchange. You may need to obtain a crypto wallet to hold your cryptocurrency, or your exchange may provide one. Be careful when picking a crypto exchange as some, like Robinhood, provide wallets that do not let you transfer your coins off of the platform. This may create security risks, for instance if Robinhood were hacked, or tax issues if you ever wanted to move your crypto off of the platform. Youd have to sell and rebuy your coins, which might cause you to realize some capital gains.
Once youve picked an exchange and a wallet, youll be able to buy crypto by transferring U.S. dollars into your account via an ACH or wire transfer. You may even be able to buy crypto with a credit or debit card, though this may carry additional fees, some of which can get quite high, possibly up to 5% of your transaction. Some crypto exchanges will let you use other cryptocurrencies or their own branded stablecoins to fund transactions.
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Tip#5 Underlying Assets Create Volatile Market Conditions
The simpler version of this is that when the value of Bitcoin goes up, the value of altcoins goes down and vice versa.
The market is normally foggy when the Bitcoin price is volatile and, as you would imagine, this prevents most traders from gaining a clear understanding of what goes on in the market. At this point, it is advisable to either have close targets for our trades or simply not trade at all.
How To Trade On Binance
If you know how to trade on Binance exchange, let us tell you that you would really enjoy the trading experience in this platform. In order to start with your trading activities, you will have to open an account.
The process to open an account is quite simple and you can just follow the instructions provided by the platform. Take into consideration that they might require your ID. Moreover, if you are a U.S. user, then you should use Binance.us.
If you already have an account, you will also be able to learn how to day trade on Binance and how to trade Bitcoin on binance. It is very easy to do so because the exchange makes it straightforward as well.
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Where Binanceus Falls Short
Accessibility: Binance.US isnât available in all 50 states.
Regulatory issues: Global parent company Binance has run into regulatory issues and controversy in some countries, moving operations from China to Japan at a May 2020 tech conference, founder Changpeng Zhao claimed the parent company doesnât have a headquarters because âBitcoin doesnât have an office.â
Etoro Overall Best Crypto Day Trading Platform 2021
We reviewed more than 50+ provides and found that eToro is by far the best crypto day trading platform for 2021. Firstly, and perhaps more importantly, this popular trading site is heavily regulated. Not only does this include a fully-fledged license with the FCA, ASIC, and CySEC but eToro is also authorized by and registered with FINRA.
This means that traders in the US and around the world can use eToro in a safe and secure manner. In terms of what you can trade, eToro allows you to buy and sell 18 popular cryptocurrencies. This is inclusive of Bitcoin, EOS, BCH, Ethereum, Uniswap, Ripple, Cardano, Binance Coin, etc. Additionally depending on your location, you might also be able to trade crypto derivatives.
This includes fiat-to-crypto pairs that contain the US dollar, euro, British pound, yen, and more. You can also trade crypto-to-crypto pairs such as BTC/XRP and ETH/BTC. These crypto CFD derivatives are available to most eToro clients unless you are from the US, UK, or Hong Kong. Nevertheless, when it comes to fees, eToro is a 100% commission-free crypto day trading website. This means that you can enter and exit the market as often as you like without being charged any fees.
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
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Crypto Day Trading Reddit
It will come as no surprise to learn that Reddit is home to a huge community of cryptocurrency traders. Although you should never enter positions on the back of somebody else’s viewpoints – forums like Reddit can be a great way to share trading ideas and ultimately, gauge the current sentiment of the market popular.
The Path To Compensation
The two clauses mean that if all 700 traders wanted to act individually, they would, under the terms of service, have to pay more than $45 million in international arbitration fees for the chance to win a tiny fraction of that sum back.
However, they now have a secret weapon: the backing of Lejniece and litigation finance strategist David Kay. Kay, through his startup Liti Capital, has provided $5 million in financing to bring the claim before Hong Kong’s international arbitrators, drawing on Lejniece’s expertise in litigation and cross-border disputes, the pair announced Thursday.
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Should I Start Day Trading For A Living
Day trading can be a highly profitable strategy, but there are a few things to consider before starting. Since day trading requires fast decision-making and quick execution, it can be highly stressful and very demanding. Day trading can also be quite risky and requires a solid understanding of the market. Naturally, it will also require you to look at screens for extended periods.
Are you able to handle all this weight on your shoulders while potentially losing money? Youll have to carefully consider if day trading suits your individual investment goals and personality style.
If youre unsure whether day trading is the right strategy for you, check out A Beginners Guide to Cryptocurrency Trading Strategies. In that article, we explain many different strategies that can be suitable for active traders, for example, swing trading. Getting familiar with these strategies can help you make a better choice when trying to find your trading style.