Crypto currency day trading is offered by Forex/CFDs brokers. You should be careful when selecting a broker to open an account with since there are many scam brokerages out there.
Best Cryptocurrency Day Trading Brokerages
If you’re considering to get involved in day trading of cryptocurrencies, make sure to check with us first. We will be able to tell you if the brokerage you are planning to sign up with (or already signed up with) is a scam brokerage or a legitimate and trustworthy company. We recommend working with regulated brokerages that have been around for a long time without accruing many negative reviews. Investing only with a brokerage which is regulated in the region where you reside will ensure the safety of your deposited funds.
For recommendations, feel free to send us an email or visit SimplifiedForex.com, a site which specializes in Forex and CFDs Day Trading, including day trading of cryptocurrencies.
Crypto Currency Auto Trading
The fact is that most Bitcoin and crypto currency auto traders are scams. Only rarely do we find an auto trading system that is legit. And even then, we would only recommend such a system to an experienced trader who is knowledgeable about technical and fundamental analysis.
DupliTrade offers an automated trading solution for Forex as well as cryptocurrencies. They work with FXpro and currently have one strategy provider that trades cryptos. During 2017 their top strategy provider made 491%!
Learn more in our DupliTrade review. Currently, DupliTrade is only available in Australia, Singapore, South Africa and Malaysia.
GunBot – TheCryptoBot
Our most recommended cryptocurrency automated trading software would be GunBot (available also for Binance!)
Learn more in our GunBot (TheCryptoBot.com) review.
Another recommended automated cryptocurrency trader: CryptoTrader.org.
Know any other great auto trading systems for cryptocurrencies? Please enlighten us by commenting below.
Day Trading Crypto Currencies
Now that you have a broker account, what’s the next step in order to start day trading? First of all, you should read as much as you can about the basics of forex trading. There are plenty of materials online for free. We’ll be glad to point out specific material to you if you reach out to us. While you are learning, only practice on your free demo account. All of the brokers we recommend provide such demos so make sure to use them before you put your money at risk.
Ready to trade some Bitcoin? Here’s a FREE trading pattern you can start with. It’s very simple to implement. Again, make sure to use a demo account until you’re confident in your ability to use this pattern profitably. You will also need to read as much as you can about what’s known as the fundamental factors influencing your assets. This is more significant for long term trading, but can also have an effect on short term trading due to increased volatility.
We will upload a lot of great trading patterns to this page so make sure to check back often.
What are the Differences Between Forex/CFDs and Binary Options?
Binary Options and Forex/CFD trading represent three ways for traders to get into the game, three ways which – in some aspects – are quite similar, while in others, they’re indeed radically different. Virtual currencies can be traded through all the above said methods, although the degree of direct exposure one’s investment has to the actual price-variation of the said currency is different from one to the other.
Let us start with the beginning, by taking a look at what binary options is. Binary options are financial derivatives, which allow traders to essentially place wagers on the direction of the price-change of the underlying asset. There are two basic things one needs to understand about binary options contracts. First off, they never grant the trader ownership of the traded asset in any shape or form. As financial derivatives, they are instruments which act as a layer between actual ownership-based trading and the investor’s money.
Secondly, binary options contracts feature propositions, every variable of which is known before the trade is actually launched. The trader knows the amount of money he/she invests, and he/she also knows exactly how much a win would yield. The win condition is also known, obviously. In a nutshell: binary options contracts operate with fixed risks and fixed rewards According to some, binary options trading is little more than gambling. If the trader’s prediction goes wrong, he/she ends up losing his/her full investment. It if is right, the trader gets the investment back, plus a return. To be profitable over the long run, the trader needs to win the majority of his/her trades.
Some binary options brokers use the exchange-based format, which allows traders to trade against their peers. Most brokers licensed by CySEC though, trade against their clients themselves, taking on the role of the “house” and thus giving birth to an irreconcilable conflict of interest.
With CFDs, guessing the direction of the price movement is still important, but the actual size of the said price-movement is also important, as it determines the eventual size of the trader’s profits.
With Forex (FX) trading, the focus is on the size of the price-movement, which means that in order to be profitable, one doesn’t actually need to end the majority of his/her trades with a profit. A single successful trade can be profitable enough to make up for losses incurred through several other trades.
Another difference between spot FX and binary options/CFDs is in the fact that with the former, the trader can actually choose to close a position any time he/she wants to, while with the latter two, the expiry time is set before the launching of the trade.
Everything considered, it is safe to say that binary options and FX represent the two opposite ends of this spectrum, while CFDs are a sort of halfway-point between the two.
Lately, many FX and CFDs brokers have added other cryptocurrencies (mostly Bitcoin, Ethereum and Litecoin, but also Iota, Ripple, Dash, Monero, Zcash, Bitcoin Cash, BlackCoin, Peercoin, Primecoin, Reddcoin and others) to their tradable asset selection, so those drawn to this vertical do indeed have the opportunity to trade digital currency through derivatives and FX.
Which of these trading instruments is the best fit for you? It all depends on your trading style and money management preferences. The depth of your involvement in trading is also a factor in this regard, as is the method through which you make your market predictions. One thing is certain though is that if you’re serious about day trading, you should avoid trading and investing with binary options brokers.
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