Is it Profitable to Trade Bitcoin on a Daily Basis (5 SECRETS)

Is it profitable to trade bitcoin on a daily basis

If you are like me, the world of crypto currencies is strange to you. While I would want to get involved in this investment, and in trading things like Bitcoin, there are a few questions I need to find answers for. One such question would be; is it profitable to trade Bitcoin on a daily basis?

You agree with me that this is a basic question. I want to find out how bitcoin trading works, and whether day-trading of Bitcoin is profitable to a beginner like me.

My interest is grounded on my background in the investment markets. I have been involved in the stock and money market for the last twelve years.

I understand how day-trading works in the stock market. Would like to find out if the system is the same, and whether the ideas or strategies would be applicable to Bitcoin trading or crypto currencies in general.

You are going to join me in this journey of trying to find out if it is profitable to trade bitcoin on a daily basis.

Let us start here.

Is it Profitable to Trade Bitcoin on a Daily Basis

It is profitable to trade Bitcoin on a daily basis, based on a strategy that allows you to benefit from the short-term movements and volatility of the Bitcoin’s daily price.

Steps to Trade Bitcoin on a Daily Basis and Make Profit

In order to make a profit when day trading bitcoin, you should consider taking the following steps;

  1. Learn factors that move bitcoin prices.
  2. Create a day trading strategy.
  3. Decide if you want to go long or short.
  4. Set your trading limits.
  5. Monitor your trades on a monitor.
  6. Close your position.

What is Bitcoin – Understanding if it is Profitable

In simple terms, Bitcoin is a software; a digital or virtual currency that uses peer-to-peer technology to facilitate instant payments.

It was created in 2009.

Bitcoin is popular and also one of the most volatile crypto currency.

This means that if you choose to trade Bitcoin on a daily basis, you can make profit. However, you should also be aware the volatility means you can also make a loss.

The main goal or objective of Bitcoin is to store value and also as a payment system.

As this technology and system evolves, it is expected that more functionalities are going to be added to use of Bitcoin.

The main goal of the Ethereum project is to have a platform where these “smart contracts” can occur, therefore creating a whole realm of decentralized financial products without any middlemen and the fees and potential data breaches that come along with them.

What is Bitcoin Trading and Is It Profitable to Day Trade in Bitcoin

Bitcoin trading is how you can speculate on movements in the cryptocurrency’s price.

In traditional bitcoin trading, you would buy bitcoin through an exchange and hope the price would rise in time.

However this is changing. Cryptocurrency traders are now using derivatives to speculate on both rising and falling prices.

This is where you might wonder if it is profitable to trade bitcoin on a daily basis. It would be a strategy of leveraging on the volatility of the bitcoin daily markets.

Is it Profitable to Trade Bitcoin on a Daily Basis – 5 Reasons Why 

One aspect that I would like to bring to your attention are the features that are unique to bitcoin trading. This makes it profitable to trade bitcoin on a daily basis.

These are 5 reasons which makes it profitable to trade bitcoin on a daily basis;

  1. You have 24/7 market.
  2. Volatile markets.
  3. Bitcoin trading is un-regulated.
  4. Availability of trading data.
  5. Young and immature market.

These are advantages that help you to maximize your gains when you are day trading bitcoin. They include;

  1. You have a 24/7 market

It is one of the most potent and unique aspect of day trading bitcoin. The markets are open 24 hours a day and 7 days a week.

This means you can be able to trade or take positions, and possibly make a profit at anytime of the day across the entire week.

  1. Volatile Markets

As mentioned earlier, the crypto currency market is very volatile.

As a bitcoin trader, you should be aware of this, and leverage on the opportunities that market volatility brings.

If you want to start day trading though, this volatility can be a very lucrative instrument as the opportunities to profit are many.

  1. Bitcoin Trading is Unregulated

As at now, bitcoin trading is not regulated. It does not have restrictions that you would find in the stock or forex market.

This means you can easily get involved in this business.

You can start trading regardless of experience, account size or even age in many instances!

That means if you would like to start day trading – the barrier is significantly lower than the barrier to day trading other asset classes.

  1. Availability of Trading Data.

In the bitcoin trading market, you generally do not have to pay fees to use exchanges.

That means that data vital to day trading is available for you to see with no strings attached. If you want to check out the order book, you will get it 99% of the time.

On the same note, these exchange interfaces will often come with a range of technical analysis tools built in too. These tools will equip you with what you need to become a better trader.

  1. Young and Immature Market

Fortunately for you, the cryptocurrency market is so easy to get into that there is an abundance of newbies and less-experienced traders who trade in it.

The number of novice traders means that one with a little bit more knowledge automatically has an edge and can get in and out of positions or react quicker to situations and avoid loss.

Conclusion

In conclusion, you should note that blockchain technology, has the potential to transform the financial systems.

Bitcoin trading, which is part of the blockchain technology has the opportunity to make you money.

After reading this article, you might be wondering if day trading bitcoin is still worth it.

My opinion is that it is worth it. Day trading bitcoin is a profitable venture, but you need to know what you are doing.

In this regard, I would recommend you take time to learn and acquire as much knowledge as possible about bitcoin trading.

Information is one way of de-risking an investment.

However, you should also be aware that trading bitcoin on a daily basis carries risks. If you are okay with the risks, then you go ahead and start doing it.

Day trading bitcoin is a profitable investment activity. However, you need to have the time and the patience.

With a combination of technical analysis, market understanding and common sense, you can successfully day trade and make a profit.

I would like to know you views at this point from our conversation. Is it profitable to trade bitcoin on a daily basis?