Traders and investors are constantly looking for the most effective strategies to trade and invest in Bitcoin. Few of the best possible methods are mentioned throughout this article, as these strategies have been tried and tested over the years, and have shown positive and profitable outcomes. Trial and error are what roots these strategies.
However, these strategies are not based on the value of Bitcoin. They can be utilized whether the price of Bitcoin is increasing or decreasing. Additionally, one thing that is imperative to keep in mind is that there are potential chances of one losing their money. The capital is always at risk when it comes to trading cryptocurrency.
Top Exchanges for Trading Bitcoin & Cryptocurrencies
The biggest reason why Bitcoin has become so famous among the day traders is that today multiple Bitcoin exchanges are accessible in the crypto market. However, the same exchanges might not suit everyone. Many factors come into play when it comes to selecting an exchange. One can make use of platforms, like the Bitcoin Compass to have the most profitable gains as it does the trading on exchange platforms itself.
Here are some of the top cryptocurrency exchanges in the market:
Coinbase is considered to be the biggest crypto exchange in the market. This exchange is accessible in the U.S, Canada, and mostly all of Europe. It provides multiple payment methods and has a fairly convenient and user-friendly interface. Binance is the second-biggest crypto exchange that covers 130 different currencies. Another benefit is that it has a cheap trading fee, 0.1%, which is almost negligible by the market standards. Bitmex is the third-largest exchange but it only trades BTC. This is best when it comes to short selling and margin trading.
Robinhood exchange charges its user a zero trading fee, with over six million users. OKEx provides trading facilities for over 145 different cryptocurrencies. GDAX is another US-based exchange allowing trade through Bitcoin, Litecoin, and multiple more. With an extensive global reach, Coinmama exchange makes buying and selling easy and accepts payments through credit cards as well. Lastly, itBit exchange works as both a global over-the-counter trading medium as well as a global bitcoin exchange to provide an accessible platform to the traders.
Ways to Enhance Bitcoin Day Trading Strategy
Even though this is a risky market, there are multiple ways to ensure sustainability. A trader should work with multiple currencies, and select multiple trades so that they are not entirely dependent on any one of them. This technique helps in reducing the chances of loss. They should choose those exchanges which offer a low exchange fee and can be trusted upon.
Furthermore, traders should observe the timings of carrying out their trades. It is an idea to choose a time that suits the trader for their ease and convenience. They are also expected to keep up with the political and economic news of the global market. Observing the news regarding crypto can be decisive in planning the next financial decision effectively. Using technical analysis by considering strong technical indicators such as OBV also helps with justifying trades.
