Day Trading with Bitcoins

All over the world people are talking about crypto currency and especially the grandfather of them all, Bitcoins. The highly fluctuating nature of Bitcoins value makes it a great asset for day traders. For traders who want to turn big profits the BTC realm is something to look into. We will go through a few basics when trading in Bitcoin on a day to day basis, but first let’s give a brief explanation about what Bitcoins are.

Bitcoin and the General Crypto Market

bitcoin tradingBitcoins and other crypto currencies differ from normal currencies in that it is not tied up to any bank, money institute or any other physical items. Bitcoins are basically bundles of data. This means that there does not have to be any middleman for a transaction with this currency. Bitcoins can be bought either as whole coins or as parts; you can buy very small fractions of a Bitcoin and still gain on the fluctuations of value.

At the moment, estimates of how much the crypto market is worth goes as high as $370 billion, which might seem like a lot, but future predictions show it could reach as high as $1 trillion by 2019. Bitcoin is the most valuable of the cryptos out there with a massive price of $9,393.65 at moment of writing. In 2017 it reached a value of $19,783.21 which says something about the fluidity of this currency.

Perks of Bitcoin Trading

As mentioned above one of the major upside of Bitcoin trading is the many swings it will take during a day. This not only means you can make lots of profits on it, but also makes trading it is exciting. You need to be watching the market values all day to spot trends and exploit them. The value will sometimes swing a mindboggling 8-10% in a matter of hours, so you have to stay vary and aware when dealing in this market. If you have a background in ordinary Forex trading, making your way into the Bitcoin market will not be a big change, except for the bigger daily variations in value.

Another major perk of trading Bitcoins is that it is tied up to no controlling exchange markets, which means, you can trade at anytime from anywhere. All you need is your device and a good internet connection and you are good to go. Furthermore you can start out with very little start capital and still make some profits. These things combined make the market of crypto very accessible and easy to start day trading in.

Risks and Regulation

Given that the crypto market is a fairly new market, it is not fully regulated yet. A lot of countries are moving forward with new policies on cryptos, which could harm the market value of the Bitcoin. So be aware of the political environment if you want to start investing in Bitcoins. Besides the regulatory part the big value wavers Bitcoins make on a daily basis can in the same way as they create profit, end up creating huge losses. And last be aware of the reputation of the person or broker you trade Bitcoins with since the only one that can refund you if a transaction goes wrong is the entity you are trading them with.