The Best Platforms for Day Trading Bitcoin
As the name suggests, day trading Bitcoin is the act of opening and closing a Bitcoin position within a short period of time, and of course, within the same day. This can mean holding a position for a just few seconds, minutes, or hours, with the aim of making a quick profit.
More often than not, this style trading involves repeating this action many multiple times in a day, accumulating a number of smaller successes to total greater net profits over time.
Why is Day Trading Bitcoin so Popular?
Bitcoin is one of the most fitting asset markets to participate in day trading, by virtue of its volatile nature which provides many opportunities for traders to take advantage of and profit, granted they can predict which way the price action is heading more than less of the time.
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Which are the Best Trading Platforms for Day Trading Bitcoin?
There are two major qualities that are essential for a trading platform to be qualified and advantageous for day trading Bitcoin.
First, it must be reliable and fast-performing so as to execute orders instantly, even under extreme trading loads — when the opportunity to profit is highest.
Second, it should feature a range of advanced order types and technical indicators that allow for market analysis and risk management strategies so that traders can follow a plan and set clear entry and exit points, etc.
Provided these two bases are covered, a margin trading platform is ideal for day trading Bitcoin, due to the fact that margin trading allows for both long and short positions, which means traders can profit from market rallies and declines.
Also, leverage can be used when margin trading to increase a position’s size, meaning the ROI on successful trades are increased to the same proportion, e.g. by up to 100x times if 100x leverage was utilized.
This advanced strategy is best applied to small yet predictable price actions, which ties in perfectly with day trading as it magnifies the returns of these many small trades, while the losses are limited to the initial investment — before leverage was applied.
Best Margin Trading Platforms for Day Trading Bitcoin
Today’s best margin trading platforms are:
#1.
PrimeXBT — distinctly stands out as the best, by offering up to 100x leverage on Bitcoin and all available crypto-assets (9 pairs) + the best feature suite and UI on the market.
Final Thought
The risk of loss is increased when margin trading, as the room for opposing market movement is decreased. Fortunately, less of a trader’s capital is required which traders would be wise to take advantage of — particularly when day trading Bitcoin, as small losses can very easily be outweighed by the amplified earnings of successful leveraged trades.
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