Technical trading can be somewhat daunting for newer cryptocurrency investors. And, to be honest, there is a bit of a learning curve. Yet there are also some widely-used indicators that are both highly useful and extremely simple to understand.
And perhaps no indicator better fits this description than the simple moving average.
With the introduction of cryptocurrencies, particularly Bitcoin, the financial sector has undergone an upheaval. New and interesting fintech products are springing up daily that allow traders to buy, sell, and trade, with massive improvements to trading efficiency with the right digital currency investments.
You’ve either been hearing the hype about Bitcoin (BTC) for years or like most of us suffer through the ups and downs, you might be looking to invest and protect current assets. You may be curious whether cryptocurrency trading operates like the conventional stock market or not, and what might be the best way to start day trading with cryptocurrencies.
We’ll quickly go over some of the basic topics in this article, as well as some fundamentals on how to trade Bitcoin and other cryptocurrencies, often referred to as altcoins. This is by no means an exhaustive guide to crypto day trading, but new traders will come away from this article versed in the basics.
If you’re a relative newcomer to cryptocurrency trading, it’s natural to feel a bit intimidated by the thought of using technical analysis. At first glance, technical trading is a discipline that features a lot of unusual jargon and some fairly advanced-sounding concepts.
Yet the truth is that almost anyone can become an effective technical trader — you just need to build a proper foundation by learning the basics. Once that foundation is in place, even the more sophisticated analytical indicators will become fairly simple to grasp, allowing you to trade with a powerful new set of tools at your disposal.
It is no secret that in traditional markets like Forex or stocks a large portion of these trades are being executed by trading bots managed by institutional, day traders, and other entities. These high-frequency trading techniques have changed the landscape of fintech and traders and companies alike are constantly fighting to maintain their edge. With the explosion of Bitcoin in late 2017 this cutting-edge method of trading has grown rapidly on cryptocurrency exchanges. Digital asset exchanges are more plentiful and rarely shutdown as compared to their traditional counterparts. The new age day trader must adapt and learn to use these advanced forms of trade automation.
Individuals, organizations, and companies are all looking for creative ways to improve profit margins and efficiency. One way of doing this is by automating manual trading strategies that have historically proven to be profitable. In its most basic form, the platforms used for most Bitcoin trading bots allow a user to configure variables that exist inside the scripts, which are typically thresholds for values generated by technical indicators. Other features found in trading bots might include features like copy trading, external signals, scripting languages, charting, and more.
In our review guide, we will take a look at our top 5 Bitcoin trading bots for 2020, features we like (or don’t), supported exchanges, and other features necessary for a day trader to grow new skills with trade automation.
Trading cryptocurrency has become easier than ever, thanks to the development of sophisticated exchange platforms and new, user-friendly storage options. Yet there is one issue that can prove challenging for even relatively advanced traders: Cryptocurrency and taxes.
Given that the penalties for failing to accurately track, file, and pay taxes on cryptocurrency gains can be substantial, it’s vitally important that traders are equipped with up-to-date tax information.
For newer cryptocurrency traders, learning how to successfully time market entries and exits is a fundamental challenge. It’s also often a difficult one, given the considerable volatility of the market.
Technical trading tools help level the playing field, giving traders access to indicators that can help identify developing market trends and opportunities. One of the most popular and useful of these indicators are “Bollinger Bands.”
To help you learn more about technical trading strategy, let’s take a closer look at the ideas behind Bollinger Bands, and how the bands are used in cryptocurrency trading. This article is merely meant to serve as a helpful resource, not advice.
If you’re a new or beginning cryptocurrency trader, you’ve likely noticed there’s a bit of a learning curve. Even if you have experience trading stocks, options, or futures, getting acclimated to the cryptocurrency space can take some time.
Fortunately, you’re not alone — there are a variety of helpful resources you can tap to become a better trader. With that in mind, let’s take a closer look at some of the most relevant crypto trading tools and industry news resources on the market.
All traders — whether in equities or cryptocurrencies — want any edge they can get in their quest for profits. Skillful use of arbitrage is a more advanced skill, but is one of the most tried and true techniques for making money in bull, bear and sideways markets.
To help you better understand how it works, let’s take a closer look at the concept of arbitrage, and some possible strategies to pursue when applying it.