To trade altcoins, it is exactly the same procedure as to trade Bitcoin. You’ll start by opening an account on the trading platform of your choice. We recommend Binance for . Dec 10, · Sometimes, you can sell Bitcoin when it rise in value to Tether and then buy it back with Tether when Bitcoin drops in value. The main reason that you need to use Coinspot is you can buy and sell Bitcoin or other Altcoins with AUD and send the coins to Bittrex to trade. There are three different markets at Bittrex. Jul 25, · Bitcoin is a safe commitment for a new trader as it can be used as a long-term store of value. It also comes with relatively fewer risks compared to altcoins. Furthermore, trading bitcoin doesn’t need to occur every single day. You only need to day trade bitcoin when all conditions align in Author: Mikhail Goryunov.
How to trade bitcoin with altcoinsHow to Day Trade Cryptocurrency: Strategy for Beginners - 3Commas Crypto Guide
Most users prefer it because of the added security it offers them. Moreover, you only need to carry your phone around to access your altcoins, which is something you already do. However, you need to protect it with a strong password to avoid losing your altcoins along with your phone in case of theft. Once you realize that your phone is lost, you need to deactivate it and transfer your altcoins to a new wallet immediately.
A hardware wallet is a special type of altcoin storage device that you can use to store your private keys. You need the private keys to trade your altcoins; if you lose it, you will lose your altcoins. They are the same keys that you may choose to store in the Mobile wallet. The hardware wallet stores them in an encrypted format and transfers them out still in encrypted form to prevent hackers from accessing them.
The hardware wallets are immune to virus attacks and the keys are stored in the microcontroller. Most of them have an LED screen that allows you to input an access key to transfer the private keys.
Overall, there is no record of the hardware wallets being hacked or altcoins getting lost. However, the hardware wallets are most expensive thanks to the complex circuitry involved.
The software wallet was the first one and you probably have one if you have the blockchain software installed in your PC. As you would expect, some software wallets are prone to malicious attacks. However, they are often free to use and they offer great flexibility to online traders. Most of them are web-based, and you can access them from anywhere.
The only tools you need are a networked device, and an internet connection. However, you need to be careful not to store most of your bitcoins in a software wallet.
There have been cases of software wallets being hacked and users losing their altcoins. Once you have invested in an altcoin wallet, the next step is to buy your altcoins so that you can start trading. You can go about it two ways. The first option is to exchange your Fiat money with altcoins. To do that, you will have to open an account with a platform that supports the altcoins you wish to buy. The other option is to first exchange your Fiat money with Bitcoin. You can then use the Bitcoins to buy your preferred altcoins.
In that regard, the first step of buying altcoins is to open an account with a peer-to-peer Bitcoin trading platform or with an altcoin exchange. All exchanges such as Binance offer a software wallet that you can use to receive or send your altcoins. Virtually all of them accept Bitcoins, but some may not accept fiat money.
You can then transfer your Bitcoins to that exchange. This is one of the easiest methods to buy altcoins and Bitcoin around the world. Unlike an altcoin exchange, you will be dealing directly with other altcoin traders. There will be no brokers to take a commission from you. Moreover, you get to see a list of offers, and therefore, you are likely to get to get the best offer price. This step involves a lot of research and self-discipline.
For starters, you need to ensure that you do not risk more than you are willing to lose. Day trading is a numbers game, and you are bound to make some losses here and there. Another vital factor in cryptocurrency trading is the stop-loss limit or as commonly known, your exit strategy.
Most exchanges allow traders to set a stop loss that automatically exits a trade at a certain price level. Limit sell order is another important concept in cryptocurrency trading. Unlike the stop-loss order, the limit sell order automatically closes a trade one once your digital asset hits a specific high price.
Once the asset hits that price point, the limit sell order will automatically sell your asset. The cryptocurrency trading market is currently filled with a large number of trading bots and trading algorithms.
Some are freely available on open-source platforms while others are given at a fee. As tempting as it is to utilize the services of these trading bots, extreme caution is recommended.
Crypto trading bots are only as good as their programming. Therefore, any corruption in their code, and you can expect them to make mistakes. Features such as bot performance analytics, social trading, portfolio creation and tracking make it a robust option for any trader interested in automated cryptocurrency day trading. The trader undertaking scalping hopes to profit by exploiting the bid-ask spread. Scalping is a quick, paced strategy that tends to be dangerous at times. Therefore, you need to be hot on timing and vigilant for unpredictable assets.
This is a popular strategy that depends on following up on news sources and recognizing price moves. Inversion is a commonly discussed strategy utilized all over the world. This strategy follows a fundamental rationale as it fixates on buying and moving day by day low and high pull-backs. Therefore, it requires the capacity to anticipating pull-backs quality and precisely distinguishing them.
Bitcoin is more volatile than any other type of asset in the cryptocurrency market. Therefore, day trading bitcoin comes with a considerable amount of risk. Bitcoin prices are highly sensitive to public sentiments and regulatory changes.
They fluctuate quickly depending on the types of news circulating in the industry, whether positive or negative. Therefore, before trading bitcoin, you want to wait until there is a high reading of volatility to make correct entries. Not having enough liquidity could trigger a substantial slippage that could lead to even more significant losses. Bitcoin is a safe commitment for a new trader as it can be used as a long-term store of value.
It also comes with relatively fewer risks compared to altcoins. You only need to day trade bitcoin when all conditions align in your favor. Therefore, avoid trading on weekends and limit trading only to days with the highest volume.
The safest altcoins to trade are those that are the top by market cap. These are the ones that are less volatile and are most likely to serve as long-term stores of value. A great example is Ethereum, Ripple, Bitcoin Cash, among others.
These coins are less apt to disappear. Smaller altcoins are profitable in the short-term, but the risks associated with them are much higher. Their prices can be artificially boosted through pump and dump.
Therefore, the risk of your funds going up in smoke is much higher compared to bitcoin. A little dash of due diligence is needed in determining which altcoins to day trade. Different countries hold different tax views concerning cryptocurrencies. Alternatively, you may want to utilize the services of an accountant to make your work easier.
The following tax overview is U. How much tax you pay is conditional to how long you have owned your digital assets. Tax for crypto held for less than a year is divided into three transaction types. If you purchase digital assets with fiat currency, you are not liable to pay any tax on that transaction.
The taxable event comes in when you sell your digital assets for fiat currency. For instance, if you sell Bitcoin for U.
The same applies to crypto to crypto sale. All profit made from transactions will be taxed. Any crypto held for more than a year under U. Moreover, capital gains tax is much lower compared to income tax. Some of these risks include:. For some people, trading is like gambling.
Just the mere thought of making thousands of dollars at the comfort of your house is thrilling. This addiction can be especially dangerous to your bank balance.
It can damage your life, put you in debt, and destroy relationships with family and friends. The cryptocurrency market is extremely speculative. Therefore, almost everyone in the market has an opinion of how the value or price of a digital asset will move. All these conflicting information tends to saturate the market and mislead new traders into making trades based on false information. Almost all day, traders fail in their first year starting. Day trading is extremely challenging for novices as it requires a lot of knowledge, experience, and discipline- qualities that most beginners lack.
Therefore, you are bound to make significant losses before you move on to make profits. Day trading is a lucrative career.
That means hours will be spent on the computer monitoring price movements and making adjustments whenever necessary. You are bound to make losses. Put theory into practice by signing up to a demo brokerage account and make trades in real time with fake cryptocurrency. Day trading is an acquired skill. Therefore, you need to train and hone your trading skills through education and training. The cryptocurrency space is full of scams, pyramid schemes, and fake digital assets.
The risk of losing money in a day is real. Ensure that you diversify your investments and only use a section of it to day trade. This minimizes the risk of losing all your hard-earned cash. Below are some useful cryptocurrency tips that can help increase your profit margin and minimize losses. They include:.
With day trading, you want to get in and out of a trade as quickly as possible.