Day Trading Bitcoins
The ever-increasing value of cryptocurrencies has meant that investing in these highly volatile currencies can lead to a significant profit. A lucrative option to earn money, this was always hampered by the fact that sometimes it would take days for the money to be credited to your wallet. With cryptocurrencies, you don't have to worry about that anymore. Money is left in the exchanges that you use to trade with and everything is done almost instantly with much lower fees than trading stocks would result in. With a few things to keep in mind, trading Bitcoins might be easier than you thought.
Day Trading
Day trading cryptocurrencies had always put off day traders, who trade in different currencies, watching the rise and fall of value deciding which to buy and which to sell- sometimes in a matter of hours. The delay in confirmation of transaction in Bitcoin meant these traders, or for that matter anyone wanting to make some quick cash would not prefer to deal in it.
Trading in Bitcoin
Bitcoin being the largest cryptocurrency is perfect for day trading. The volatile nature of the cryptocurrency translates into short but significant jumps in value. Coinbase, the largest US Bitcoin exchange, has led the way in day trading with their GDAX trading platform. At the moment, Coinbase offers trading through its digital exchange, GDAX. It is a complex procedure but the new policy means that causal buyers will have a much easier time in buying and selling. People now can buy Bitcoins and start spending (or saving to sell at a later date) right away.
How to Trade in Bitcoin
You will need three things to trade in Bitcoin:
Capital
You will need a bank account with funds to buy Bitcoins. Start with a small amount that will not hurt your pocket if you lose. Expect this in the beginning which you might if you are new to trading and have no experience in dealing with such a volatile currency.
Bitcoin Exchange
There are many exchanges in the market but only GDAX gives you the ability to check specific set time charts for day trading. Getting familiar with different exchanges is crucial because it all depends on which one you like most.
Action Plan
Watch the value of Bitcoin for a couple of days before deciding to buy. Trading is a based on technical analysis of many factors such as determining price charts, local and international politics etc. Markets can never be predicted so you need to be on your toes at all times. Besides technical analysis, make sure to check fundamental analysis. Check for what news there is coming up, if any.