Bitcoin Daytrading – Is this something for me?

Bitcoin Daytrading - is that something for me?

In this blog article, I’m going to talk about “Daytrading” of crypto currencies and the question: Is this something for me? This small guide is to help Daytrader to move controlled and with self-confidence in the market for crypto currencies. It is based on the experience I have gained over the years. I deal with numerous fundamental, technical and psychological trading techniques, which will help you to master short-term trading.

At the beginning it is important to understand that day trading of crypto currencies is not suitable for everyone. No matter whether it concerns Bitcoin, Ethereum, Litecoin, Ripple or any other digital coin.

What is my motivation?

Actually a simple question. But a question for which daytraders should take their time to answer honestly. Daytraders have to be aware that the market for crypto currencies is still in its infancy. But it is also a market that has attracted more media attention in the last two years than any other asset class. The media reports ranged from doomsday moods and the prediction of a “bursting bubble” to reports of experiences of fast wealth, jet-set lifestyle and Lamborghini in bright colors. Tip from me: Ignore all that!

The primary goal of a trader should be to feel comfortable with volatility. No matter if as a short term trading, as a long term investment, as a part time trader, as a full time trader or just someone who wants to be active in crypto currencies.

Do you feel comfortable in the market – do you feel comfortable with yourself

You have to practice and learn to feel comfortable and confident in the market. Gary Player, one of the greatest golfers in the world, once said: “The harder I practice, the more luck I have”. Yes, he is right with this statement, because practice leads to self-confidence. And not just by showing what you’re doing right, which helps to make it an integral part of your daily trading activities. It is equally important that it shows you what you are doing wrong. Because mistakes are the best way to learn from them.

“The harder I train, the more luck I have”

In addition, new traders should open a demo account before they enter the market with real money. And most importantly, try out different technical trading techniques in conjunction with rigorous fundamental market analysis and execution approaches.

Maintain an order book (trading diary) by recording successful and unsuccessful trades, why you entered the trade, why you set certain profit and loss limits, why you used that particular amount of money and how you felt after the trade was closed. Once again, be honest with yourself because these experiences will help you in the future. Avoid shortcuts in your trading analysis.

When preparing for a trading day, you need to be in a good, positive mood. If you’re tired, in a bad mood, stressed or uncomfortable, don’t trade on the market. Then turn off your computer and reassess your situation. The crypto market is a dream market for day traders. Because it has enough volatility every day, so you can follow your dreams at any time. Do not force trades. Do not trade when you are sick, tired or angry. Your discipline will weaken and you will end up on the losing side, for better or worse.

Bitcoin Daytrading: The crypto market is extremely volatile – and that’s good!

What makes the day trading of Bitcoin (BTC) and Co. particularly attractive is the extreme volatility. Prices that fluctuate quickly and within a wide range are also called “highly volatile”. This volatility is one of the most attractive aspects for daytraders, because it gives you the opportunity to enter the market quickly and to withdraw again – preferably at a profit.

Liquidity is one of the most important aspects. It is indispensable in day trading and has not only an important influence on the crypto-currencies you trade, but also on the marketplace in which you trade. The four at present most important crypto currencies are: Bitcoin, Ether, Ripple and Bitcoin Cash with a current market capitalization of over 20 billion dollar. Pay special attention to the market size of the coin(s) you choose.

Also check the total number of a particular coin in circulation and whether more coins can be produced or whether an original owner holds a significant position in that particular coin.

Bitcoin Daytrading: Work with care

It is not only the capitalization of a coin that makes it liquid. The stock exchange on which you trade the coins is also important. There are numerous market places. And remember: most of them are not regulated. There are many examples of how trading places for crypto currencies close abruptly and customers have lost some or all of their money.

So choose your marketplace with care and make sure that liquidity, reliability and, if possible, market regulation are at the top of your list before you even make a trade.

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