Bart Smith, the head of digital assets at trading giant Susquehanna, told that BTC remains the best option for those willing to invest in virtual currencies due to its functionality and widespread use. He called bitcoin “the currency of the Internet” and praised its numerous real-world use cases, such as cross-border payments or bitcoin ATMs, introduced in Europe for the first time in June.
Think of this as your guide to day trading cryptocurrency and you’ll avoid most of the hurdles many traders fall down at. When choosing your broker and platform, consider ease of use, security and their fee structure. There are a number of strategies you can use for trading cryptocurrency in 2017. Whichever one you opt for, make sure technical analysis and the news play important roles. Finally, keep aware of regional differences in rules and taxes, you don’t want to lose profit to unforeseen regulations.
Maybe you remember when, thanks to The Wall Street Journal, everyone thought the SEC was going to meet on May 7th to decide whether or not Ethereum (ETH) was a security. If you had taken up a large position in ETH prior to the 7th, you would have been disappointed when the price fell from ~$793 USD to ~$743 USD amidst news that there actually was no meeting after all.
I think the simplest place to buy, sell, and store coins is Coinbase (and our tutorial below will help you get set up with that), but you can only buy, sell, and store Bitcoin, Ethereum, Litecoin, and Bitcoin Cash on Coinbase. If you are serious about trading cryptocurrency, you’ll need another exchange like Coinbase’s GDAX, Bittrex, Binance, or Kraken (and you’ll likely want to find a wallet to store your coins in). See a top 5 list of cryptocurrency exchanges and the Best Bitcoin Exchanges ranked (those above are my picks).
This learning program will make you completely self-sufficient. There will be no need for you to pay for another course or to subscribe to different trading groups and live trade rooms. There is a ton of groups and individuals out there who are selling or giving away trade signals on their sites, Twitter, forums, etc. All these signals and tips can be useless or even very harmful, if you don't know how to do your own research. For instance, a fresh tweet saying it's time to buy a certain altcoin might not only be old news. There's also a chance it was written because the author wants to actually dump the coin, and he needs people to buy and raise its value at the same time he is selling it.
There are lots of studies about emotion in trading. Fear of missing out, greed, etc. are very common causes for people to make mistakes while trading. No matter how experienced you are, you will eventually be led by emotions and this might make you lose money, so you have to prepare yourself to do it as little as possible and to control yourself better or you will lose more than win.
An additional common mistake is searching for crashed coins, in accordance to their value against the Bitcoin, hoping they will return to their glory prices. So newsflash – there are coins which are light years away from their peak levels. Take Aurora for example; in March 2014 an all-time high price of 0.14 Bitcoin for one Aurora was recorded. As of the time of writing, Aurora trades at a 99.9% discount – 0.00014 Bitcoins. Could the (damned) Aurora make a move upwards 1000x? You’ll never know. You surely can’t assume a coin being lower than its peak price is an opportunity rather than a falling knife. There are also coins which disappeared and slowly got out of continuous trading – a scenario defiantly worth considering (especially with the low-cap and volume altcoins).
Traditional Crypto Exchanges: If you see yourself as someone who has enough experience of dealing in the stock markets, traditional crypto exchanges might seem familiar to you. These platforms operate in a similar manner except for the fact that they deal in cryptocurrencies rather than fiat currencies. They also charge a small percentage of the trade in the form of their platform fee. Example- Kraken
Bitcoin is different than any currency you’ve used before, so it’s very important to understand some key points. You can use them to send or receive any amount of money, with anyone, anywhere in the world, at very low cost. Bitcoin payments are impossible to block, and bitcoin wallets can’t be frozen. Actually, the Bitcoin network is unstoppable and un-censorable.
For stock market investors, investing in Bitcoin indirectly through a listed security such as an ETF, ETP, or trust may be suitable for those looking at taking a passive position. Active traders might find the limited trading hours and potential lack of volume a limiting factor that could hinder their trading. Overall, using listed securities that invest, track, or hold Bitcoin can be a viable alternative to diversify away from the risks of margin trading or safeguarding private keys when buying the underlying.
Sia is the very first decentralized storage platform that’s based on and secured by the blockchain technology. Through the blockchain tech, Sia can provide much reliable data storage options that do not have a single point of failure, can offer more storage space – at much lower costs than traditional cloud storage providers. Besides the obvious, investors are readily jumping on the Sia-train for one more reason: Privacy. Unlike cloud-storage provides, Sia’s tech gives you all the keys to your own (encrypted) data, and mandates that no third party will control nor access your files.
Ideally, a rookie trader should start by choosing a reliable exchange and playing with popular coins, such as Bitcoin or Ethereum. However, the learning by doing approach is too slow for those who want to succeed fast. Joining a community of like-minded traders could be one of the best decisions to make: there are plenty of groups on Telegram or regular meetups in the US and other countries.
Know thy taxes. Speaking of legal tender like the USD, it is what you use to pay taxes. If you don’t understand Bitcoin’s tax implications, brush up on them before you start power trading. One could get them into a situation where they make money on paper, but end the year down in Bitcoin without taking their loss, and thus end up owing a bunch of money they don’t have in taxes. Those who don’t have investment experience can get in trouble if they don’t understand the somewhat complex implications of trading crypto.
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The benefit of a USD wallet on Coinbase is that you can put money in that and then buy coins instantly from the wallet. If you try to buy directly with your bank account, the transaction can take about a week. A credit card doesn’t have this problem, but limits are usually lower on a credit card. TIP: I almost always deposit USD in my wallet as opposed to buying coins directly from Coinbase via my bank account when using Coinbase to buy (I do this on-the-go sometimes). You can also wire money if you need the funds to be in the wallet faster. On that note, I almost always then use GDAX to buy/sell coins when I’m on a desktop (then use Coinbase as my wallet and mobile app).