Day Trading Bitcoin: Is It Profitable?

So you want to try your hand at day trading the Bitcoin; but, is this a lucrative option? This is a question that bothers most of us who are not really aware of the right method of trading when it comes to crypto trades. The truth is that day trading Bitcoins will only be profitable if you can manage risks better than average traders. The simplest way to make profits is to simply accumulate the crypto asset and wait for a bull cycle.

Day trading, on the other hand, can be quite hectic and stressful for the trader. It is simpler to stick to the swing trade strategies but this demands a lot of expertise and patience and you may have to wait for months on end for trades to become successful. When you day-trade, if there is a loss, there is some profit that the exchange and the counter parties are making; so, you will be losing money in any case.

Some individuals are more adept at day trading just like some people can play better poker. There are some techniques that are of use to day traders. So, when you have a good strategy, you can make one trade and boost your position right away, as happened in 2018 when the Bitcoin value hiked over 10% in one minute. But, if you are someone who shoots in the dark, you are trading without a strategy in place and you are liable to take a huge hit in that minute.

What are the common mistakes that do not make day-trading profitable?

Day trading implies making trades every couple of minutes, but it does not mean that every second you will detect a potential trade. Rather, you may be more successful if you were to take ample time and identify opportunities that assure you of returns and execute your trades from time to time.

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