We’ve previously examined general Bitcoin trading in depth. This article focuses on day trading Bitcoin. Trading when it’bitcoin day trading taxes convenient to you, without holding any position while you sleep.
Day trading is an active and involved trading style which seeks to capitalise on short but significant price moves. Bitcoin has more than its fair share of short but significant price moves! This makes Bitcoin a great instrument for day traders. Trading-focused Bitcoin exchanges have very low fees and minimums compared to traditional exchanges.
Zero fees for makers are common and you won’t pay more than 0. Bitcoin can be traded from anywhere in the world, 24 hours a day, 365. Dollar Bitcoin market if you have an internet connection. Day trading lets you profit from Bitcoin without having to understand its technical complexities nor hold a long-term position in a new form of money, which is still considered experimental. Several Bitcoin exchanges offer leveraged trading. This means you gain can more exposure to upside and downside price risk than your trading budget would ordinarily allow. Bitcoin’s volatility remains much higher than most other trading instruments, with the exception of alternative cryptocurrencies.
This means you’re likely to find plenty of tradeable action in the Bitcoin market. For better or worse, Bitcoin seldom has dull, sideways price action! Bitcoin volatility over time, currently averaging 4. Our guide to general Bitcoin trading covers the various timeframes and their related trading approaches. Be sure to consider all of them before committing to day trading! Day trading is demanding in terms of time, energy and attention. If you already have a busy lifestyle, it’s probably not a good fit for you.