One of the biggest draws to Binance is the super cheap transaction fees. Since Binance are in the startup phase, the fees really are some of the least expensive out there. Binance charge nothing for new deposits of coins onto the platform and just 0.1% on the value of trades. To put this in perspective – if you were to use your Bitcoin to buy $100 of Ethereum, Binance would charge you 10 cents.
Stop limit orders are really only useful when selling coins. They allow us to set a condition: we specify a price, and if the price becomes less than or equal to that price, a market order is automatically placed for us. The advantage here is that if we need to step away and will not be able to watch the price, we have some protection if the market begins to plummet. The disadvantage is that we are counting on there being good buy orders available to fulfill our sells. If a massive amount of market sell orders were to be executed right before your stop is triggered, it’s technically possible to be left with the bottom of the barrel. This has happened before, but is not common.
If you choose to keep some stored on an exchange or a website such as Coinbase, then ensure you complete a full security setup and ALWAYS setup Two Factor Authentication, I recommend using Google Authenticator for this and not SMS Two Factor Authentication as your phone can be compromised by hackers. Google Authenticator creates a random number string each time you log in to protect yourself in case someone can get hold of your username and password.
Known for handling one of the largest Bitcoin volumes out of all the crypto exchanges globally, Bittrex allows you to decide the trading rates with a service fee of around 0.25%. Moreover, a lot of your time will be saved as the verification process in Bittrex is pretty fast which allows you to start the trading process without any major halt. The platform supports two types of accounts namely, Basic and Advanced with withdrawal funds up to 3 BTC/day to 100 BTC/day, respectively.
This is probably the most important factor to look at when deciding whether a cryptocurrency will survive into the future or not. Some cryptocurrencies, apart from acting as coins and trading assets, also provide platforms, serve as the fastest means to move money across the globe, try to solve a certain problem in society or in the cryptocurrency ecosystem, and do a lot more.
For instance, suppose you’re day trading Bitcoin and have a rule that you’ll close your position if its price hits 10% over the price for which you bought it. Bitcoin hits that marker so, like a good day trader, you follow your rule strictly and sell. But then, unexpectedly the price just keeps going up as the market continues to recognize Bitcoin’s value. By focusing on day trading, you missed out on greater potential profits.
Now, about mean reversion. When looking back at charts for cryptocurrency trading from the times gone by, most of the plays have been in the momentum category. If we have the condition for mean reversion with a range-bound environment, one should be very cautious when we have momentum. If everyone else is buying and you’re trying to sell you are going to get run over as if standing on the tracks in front of a freight train.
I came across Bibox around December when looking for an alternative to Binance. This one at a glance looked like inspired by Binance but with more features and many new coins. Bibox app is also pretty smart and you can use it to trade smartly from your smartphone. One thing that Bibox is doing better than Binance is charting. If you already use the Binance mobile app, then you should try Bibox to see how it is different than Binance.
From a trader’s perspective Smith also discussed key BTC prices, namely the $5,800 support level and the $6,800 resistance level, noting that the recent lows of bitcoin are practically the same ones that were touched in April and February, earlier this year. Curiously, these were the same points BTC was trading at last October when bitcoin futures were announced and the price of the world’s most popular virtual currency skyrocketed.
Finally, always check, double check and triple check while trading – a simple tip that even seasoned crypto holders forget. When setting up buy or sell orders, make sure your numbers add up, as even the smallest of typos can see you lose an eye-watering amount. Also, when dealing with an exchange, make sure you’re sending coins to the correct address.
Developing a facility with TA takes time, but there are good, free resources available to help beginners get acquainted with the basics. As a place to start, consider checking out the free educational material on BabyPips.com. While the site is focused on forex rather than cryptocurrency, its lessons on TA are relatively applicable to day trading BTC, too.
And remember, you don’t have to buy a whole coin — you can buy fractions of coins. The top coins are expensive, so consider buying fractions of a coin to start if you don’t have a big bankroll. It has historically been a mistake to buy only ETH and LTC because BTC costs more. You should consider which one is most likely to increase in and retain value.
Always pay attention to Bitcoin. Most altcoins (every cryptocurrency except Bitcoin) are pegged more closely to Bitcoin than Asian currencies were to the USD during the Asian Financial Crisis. If Bitcoin price pump drastically, altcoins price can go down as people try to exit altcoins to ride the BTC profits; inversely, if Bitcoin prices dump drastically, altcoin prices can go down, too, as people exit altcoins to exchange back into fiat. The best times for altcoin growth appear when Bitcoin shows organic growth or decline, or remains stagnant in price.