Following this and into 2013 Plus500 added Bitcoin. I was going long at night and waking in the morning to see my money go up and up, but one night the price crashed, and I got margin called. Over the next two months, I was chasing and kept losing. Finally when my losses hit -£20k I closed my account. I felt sick, and I reckon it took a good month to get over, maybe longer.
First thing to consider when looking for the top bitcoin exchange is how safe are the website and server. This boils down to asking: is it a trustworthy exchange providing transparent data of coins in cold storage (more on this later) and are customers happy? It’s also good to lookout for which currency pairs are available: are you looking to trade bitcoin for USD, Euros, or other fiat currencies. The location usually gives an idea of what’s on offer. However, the largest bitcoin sites usually have many options for buying bitcoin with government issued currency and altcoins.
Fees, fees, fees: Multiple trade actions = More fees. It’s always advisable to post the command (maker) and not to buy from the order book (taker). In Poloniex exchange, the difference is 0.1% in favor of the maker. That’s quite a bit.
On Balance Volume (OBV): This is one of the best indicators for day trading bitcoin used to basically analyze the total money flow in an out of an instrument. The OVB uses a combination of volume and price activity to tell you what is the total amount of money going in and out of the market.
Price has come down sharply to the floor of the Cloud and has hit the Weekly S2 and the 50% fib of the recent upswing. There is also Hidden Bullish Divergence between current levels and the Feb 6 low, even though the current move hasn’t bottomed out just yet. The whole process of shifting trend on the daily timeframe takes time and I think that is what we are …
While there are people that state that investing in general is just gambling this is not really the case. Investment that are long-term. And broad investments are very different from active trading and more speculative investment, in the short term format it can go either way , like forex or retail commodity trading and cryptocurrencies trading falls into that category.
The human mind can only follow several indicators at a given time. A Bitcoin (or other crypto-currency) bot can follow and try all the indicators at any time on all the cryptocoins. A Bitcoin bot doesn’t need sleep – a bot can be active at any time you wish, this allows to have a better sound, because you can be sure, that the bot will trade if something crucial happens.
The STOCH indicator, also known as the stochastic oscillator, is yet another momentum indicator, only this one compares the closing price of a cryptocurrency to it’s range of prices over a certain period of time. The theory behind this technical indicator is that in a market trending upwards, the price will close near the high each day, and for a market trending downwards, the price will close near the low each day. The period of time the STOCH indicator is calculated in is typically 14 days.
Another strategy I use is to keep a 10x leveraged long position on Bitcoin permanently open on Bitmex. When the market rises then take profit off the table. My position gets closed out periodically when the market moves against me, in which event I simply re-open it.
Interesting article Michael.. im also interested in range daytrading Ethereum but am loathed to open a centralized trading account as decentralized will be the way to go in the future. Blocknet launches March 1st and hopefully this will be the first of many. Up until then which demo platform do you think will suit to paractice this on?
It’s important to learn, but for now, If you’re just interested in trading and investing, having a basic common-sense understanding of business, consumer demand, and economics is enough to give you an edge over other traders (at the moment). Most of the current batch of traders are early cryptocurrency adopters, cryptocurrency “miners,” programmers, and basically people that are more tech savvy than business/market savvy.
Bitfinex’s volume is key for traders as it ensures a low spread. More than 5.77 million bitcoins traded through it from April 2017 to October 2017 alone, which is double the volume of Kraken (3.6M BTC) and Coinbase (3.06M BTC). For newcomers, the complicated interface makes costly mistakes more probable while the lack of fiat funding options makes it impossible to use regular money to buy cryptocurrencies. However, experienced crypto traders will find everything they need at Bitfinex.