Learn Technical Analysis For Day Trading And Swing Trading Cryptocurrencies Bitcoin Ethereum And Other Altcoins
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Cryptocurrency Trading Course. Learn how to:
Read chart correctly
Day trading cryptocurrency for beginners
Profit from day and swing trading bitcoins and other cryptocurrencies effectively
This Udemy cryptocurrency trading course will help you understand how the cryptocurrency market works.
This course will teach you how to trade Bitcoin, Ethereum, Litecoin and other cryptocurrencies using a unique combination of day trading and swing trading techniques used by professional traders in the market every day.
You will learn how to correctly read charts using candlestick analysis, technical analysis, and volume analysis to time your entry and exit strategies precisely.
The information contained in this course is geared toward cryptocurrencies, but it can be utilized for day trading and swing trading any type of equity: stocks, options, commodities, EFTs, forex, currencies…
increase your cryptocurrency trading success by using a unique trading method used by the pros of Wall Street. How to make money in cryptocurrency trading.
Crypto Trading 101: How to Trade Cryptocurrencies for Profit is a trading course designed to teach the visual power of technical patterns, Japanese candlestick patterns and volume analysis to trade in the market effective every single day.
Enroll in this course now and start trading the market successfully!
Direct Your Actions Based On A Plan
In the words of American entrepreneur William J. ONeil, The secret is to hop off the elevator on one of the floors on the way up and not ride it back down again.
While ONeil meant it for the stock market, the same principle can be applied to taking crypto profits, too. But, whether your strategy is to take profits off the table, let your winnings continue rising in the hopes of an even better return in the future, etc., it is important that you have a plan in place to direct your actions.
Asking yourself some or all of the questions listed above would be a good place to start when considering taking your crypto profits.
How Do I Start Trading Cryptocurrency
Trading cryptocurrency is not unlike trading stocks in the traditional markets. The principles are similar albeit there are a few differences in execution. To start trading crypto, follow these steps:
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Consult A Tax Accountant
One thing that you should absolutely do after earning a huge amount from crypto is pay your taxes. In the United States, the IRS has sent letters to over 10,000 crypto holders warning them to pay their taxes from crypto earnings or make corrections.
Avoiding paying your taxes could get you into trouble and youll end up losing even more money from penalties. Taxpayers could also be subjected to criminal prosecution for failure to pay their crypto taxes.
If you want to know more about how cryptocurrency is taxed, read our guide here.
How It All Started
Digital currencies have been around for more than a couple of decades in different experimental forms, but the first one to be successfully implemented was Bitcoin.
Bitcoin was created by Satoshi Nakamoto , who released its whitepaper called Bitcoin: A Peer-to-Peer Electronic Cash System in October 2008 and launched the network in January 2009.
Bitcoin has spurred a whole new digital coin class that can now be bought and traded on cryptocurrency exchanges worldwide.
Other than Bitcoin, there are other well-known and recognized cryptocurrencies like Ethereum which is currently trailing Bitcoin in terms of network value and Tether which is the leading stablecoin also in terms of network value.
A stablecoin is a digital asset whose value is pegged to the value of a fiat currency in order to avoid the wild price volatility that is common with other virtual currencies. The majority of successful and professional cryptocurrency traders use stablecoins while mitigating their trading plans.
Currently, there are more than 13,000 cryptocurrencies listed on CoinMarketCap, a leading data aggregator for the cryptocurrency market.
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Trading Crypto Is Risky
Risk management is also a significant aspect of trading. Prior to entering a trade, it is important to know how much you are willing to lose on that crypto trade if it goes against you. This can be based on a number of factors, such as your trading capital. For example, a person might wish to only risk losing 1% of their overall trading capital either in total or per trade.
Trading is simply a risky endeavor in and of itself. Its almost impossible to predict any future market activity with certainty. At the end of the day, its important to make your own decisions, using available information and your own judgement, as well as to make sure you are properly educated.
Additionally, trading strategies can vastly differ from person to person, based on preferences, personalities, trading capital, risk tolerance, etc. Trading comes with significant responsibility. Anyone looking into trading must evaluate their own personal situation before deciding to trade.
Way#6 Help Out With Cryptocurrency Microtasks
If you have extra time, you can also do some small tasks for individuals or cryptocurrency platforms and get paid for it. The tasks can widely vary it could be apps testing, adverts viewing, taking surveys, watching videos, and more.
You can get microtasks from sites such as Bitcoins Rewards, Coinbucks, or Bituro.
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How To Start Day Trading Bitcoin And Other Cryptos
A trader must know all the ins and outs of the market and bitcoin or any other cryptocurrency to become a successful day trader. Usually, the idea is to purchase a cryptocurrency whose price is likely to rise over the next few hours and then sell it to earn profit. Although this might seem easy to beginners, cryptocurrency trading is demanding and risky. It takes massive discipline, knowledge, and dependable cryptocurrency day trading strategies to succeed.
To get started, you need to open an account in a suitable bitcoin trading exchange that meets your day trading needs. Notably, the crypto market is incredibly fragmented, and exchanges operate under multiple jurisdictions scattered worldwide. Having that in mind, you need to select a crypto exchange platform that is supported in your country.
After choosing a reliable crypto exchange, the next step is to deposit an initial investment capital and kick off your day trading journey. However, it would be best if you had a reliable day trading strategy to succeed. So, what are the best bitcoin day trading strategies?
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.
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What Is The Tax Rate Of Crypto Day Trading
Governments around the world are scrambling to create regulatory frameworks for cryptocurrency. In the United States, the legal classification of cryptocurrency as securities, commodities, currency, or property remains somewhat ambiguous. However, the Internal Revenue Service does already recognize gains in the value of cryptocurrency as taxable. Visit their website here or contact the agency directly for more information.
What Is Crypto Trading
The act of speculating on cryptocurrency price movements via a contract for difference trading account, or buying and selling the underlying coins via an exchange is known as cryptocurrency or crypto trading. CFD trading is a type of derivative that allows you to bet on Bitcoin price changes without possessing the underlying currencies.
For example, you can go long if you believe the value of a cryptocurrency will rise, or short if you believe the value will fall. Both are leveraged instruments, which means that you only need a little deposit, known as margin trading crypto, to have total exposure to the underlying market. However, because your profit or loss is still determined based on the total size of your investment, leveraging trading crypto magnifies both earnings and losses.
Furthermore, cryptocurrency options are used by investors to reduce risk or increase market exposure. Crypto options trading refers to the derivative financial instrument that derives its value from the price of another asset in this case, the underlying cryptocurrency.
Before even thinking about venturing into crypto trading, it is important that one has a comprehensive understanding of the assets and technologies involved. Bitcoin is the soil from which thousands of other cryptocurrencies have grown.
Related: Read Cointelegraphs What is Bitcoin? guide.
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Things You Should Know Before Trading Cryptocurrency
The price of cryptocurrency is highly unstable and can fall down significantly in a short amount of time. And the reverse is also true that the price can hit highs in a very short span of time. It can be good for making quick profits but the risk included in also high. It is advised not to invest more than you can risk of losing. See the graph below which shows the price of Ripple in Bitcoin and $.
Know the Right Time to Sell
In crypto trading, it is not always necessary that you sell to make profits. Sometimes you need to sell in order to minimize the loss and prevent further loss. The money can be invested in other coins which have high chances of good return.
Avoid Margin Trading if You are a Beginner
Some cryptocurrency exchanges allow margin trading or leveraging. It means that you can borrow money from the exchange against your current deposited funds. It allows you to invest more. But it should be done when you have a deep understanding of the market.
Purchasing Bitcoin By Atm
Although the cheapest possible method of direct purchase is usually through online exchanges, it can take a while to open an account and fund it, by providing ID and other required proofs, and making the bank or credit card transfer. It is also true that many exchanges do not yet accept deposits from residents in many countries. This means that if your country has an ATM where cryptocurrency can be purchased, this may be your only option, even though the fees are higher.
The usual method is as follows:
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Way#10 Create Cryptocurrency Content
Over the last decade, content has become one of the most effective ways of communicating any message to your existing or potential clients. If you need to launch a new product or services, content is the best way to do that.
The crypto sector, especially, relies on content marketing a lot due to the fact that most projects are virtual. It may, therefore, not be possible to use conventional marketing ways to reach the target audience. And this is where the opportunity lies you can create video content, infographics, or written content for various cryptocurrency brands.
Some of the websites that offer regular gigs for content creators in the cryptocurrency space include Yours, Yalls, and Steemit.
What To Watch Out For
Cryptocurrency trading incurs many of the risks of trading on any other market, as well as some unique challenges.
- Volatility. Cryptocurrency is volatile. This is one of the things that makes it attractive to traders, but it also makes it very risky. Double-digit intra-day price swings are common, and drastic shifts can happen in just minutes.
- Unregulated, manipulated markets. The cryptocurrency markets are largely unregulated compared to more traditional markets. Its an open secret that wash trading and market manipulation are common. Theyre also a lot less liquid than many other markets, which can contribute to the volatility and make it easier for well-moneyed whales to manipulate prices, force liquidations and similar. Exchanges themselves are sometimes accused of manipulating their own markets against their own customers.
- Inaccurate patterns. Markets will often follow patterns, but often they wont. This is a risk when trading anything, but the unique characteristics of the cryptocurrency market means its a particular challenge there.
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Pros And Cons Of Relative Strength Index
The Relative Strength Index is a technical analysis indicator first developed by J. Welles Wilder that measures the strength, speed, and change of price movements.
The RSI can top off traders when trends are running out of momentum and a reversal could follow, and also indicates when an asset is currently oversold or overbought.
The RSI is easy to read, and even easier to use to build a successful trading strategy, especially when combined with chart patterns, candlesticks, and other formations.
Its generally considered among the safest strategies providing very few cons. However, traders should experiment with their sensitivity for what they consider oversold or overbought, or else positions may be taken early, leading to losses.
Knowing Some Good Strategies
Furthermore you need to have a set of trading strategies in the bag which you can apply in certain market environments. Trading cryptos for profit requires that you know when to buy a coin and why, how to protect your positions from bigger losses when youre in the trade and when to take profit. You need to know the triggers that you will react to in a predefined way.
High Probability Crypto Trading Strategies are kind of the core knowledge of crypto trading. Once you have learned the theory of how such strategies work, the next step is practicing. Its important to practice trading with very small amounts at low risk. The best crypto trading strategies are presented in our ebook full version.
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Direct Purchase Of Cryptocurrencies
For most investors today, the cheapest purchase method once transaction fees are included, is just to buy cryptocurrency directly and store it. This leaves you, the investor, with the legal ownership of the asset as well as the responsibility of storing and protecting it. The worry is in protecting the code, as the proof of ownership of most cryptocurrencies is like a bearer share: anyone with access to the code can spend the cryptocurrency. Remember that even if you have the code on a piece of paper, and receive and store it by email, it is just as vulnerable to hacking as your email is. An alternative storage and protection method is to use a digital wallet and/or vault. These can be a third partys server, a smartphone app, or a program you store on your computer or on a flash drive. You can download any of these for free.
There are two main direct purchase methods:
How To Trade Cryptocurrency For Profit
The Cryptocurrency Certification Consortium is a non-profit organization with the objective to develop a globally-recognized requirement of proficiency for blockchain professionals. The certification program has been developed by skilled market specialists who have played crucial roles in leading tasks within the space.
The C4 project is intended to be an open-source effort with contributions from its members and other developers operating in the area of cryptocurrencies, decentralized applications, and dispersed computing networks.
The C4 Blockchain Professional Certification Program is created to provide people with a standardized technique of examining their competency level within the field of cryptocurrencies. People need to pass one or more tests to make an accreditation credential that acknowledges this competence. The certification test material will be established based upon the collective feedback from C4s membership body through a survey of its members and other developers working in the area.
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