- Cryptocurrency Day Trading 2020 in the Netherlands – Tutorial and Brokers
- Crypto Brokers in the Netherlands
- Go Wild – Though You Probably Shouldn’t
- Day Trading Cryptocurrency: How to Day Trade Cryptocurrency 101
- What to look for when day trading cryptocurrency
- How To Day Trade Cryptocurrency: What To Look For 2018 Tips?
- How To Trade Cryptocurrency
- How to Compare Brokers
- Simple Method To Make $100 A Day Trading Cryptocurrency As A Beginner - Tutorial Guide
- Market Rates
- Market Rates
- Cryptocurrency Trading For Beginners
- Subscribe To My Newsletter
- Swing Trading
- Utilise News
- Is Crypto Day Trading A Good Idea For You?
- Technical Analysis
- Study Metrics
- Best Bitcoin and Cryptocurrency Exchange for Day Trading: 2019
- Trade On Margin
- Rules & Taxes
Cryptocurrency Day Trading 2020 in the Netherlands – Tutorial and Brokers
Day trading cryptocurrency has boomed in recent months. High volatility and trading volume in cryptocurrencies suit day trading very well. Here we provide some tips for day trading crypto, including information on strategy, software and trading bots – as well as specific things new traders need to know, such as taxes or rules in certain markets.
We also list the top crypto brokers in 2020 and show how to compare brokers to find the best one for you.
Crypto Brokers in the Netherlands
BitMex offer the largest liquidity Crypto trading anywhere.
Contracts from $1
With the cryptocurrency pairs available on all accounts, NordFX traders can trade with spreads of just 1 pip. Trade 11 Crypto pairs with low commission.
IC Markets offer a diverse range of cryptos, with super small spreads.
Go Wild – Though You Probably Shouldn’t
They also offer many cryptocurrencies not available elsewhere, without the need of a virtual wallet.
Finq offer some really tight Crypto spread on the leading cryptocurrencies, plus 1:2 leverage
Cryptocurrency Trading is available via CFDs on the MT5 binary.com platform
Invest.com provide portfolio management plus standard trading. Leverage and spreads improve with each account level - Bronze, Silver or Gold
New Forex broker Videforex can accept US clients and accounts can be funded in a range of cryptocurrencies.
Payouts reach 95% per trade.
Zulutrade work with a range of brokers that deliver trading on a huge range of cryptos - See each brand for specifics
BinaryCent are a new broker and have fully embraced Cryptocurrencies.
In addition to offering many alt-coins to trade, BinaryCent also accept deposits and withdrawals in 10 different crypto currencies.
Alpari International Offer crypto trading on the major Cryptocurrencies including Bitcoin and Ethereum
Pepperstone offer trading on the major Cryptocurrencies via a range of trading platforms.
Fusion Markets are delivering low cost forex and CFD trading via low spreads and trading costs.
Their message is - Stop paying too much to trade
Day Trading Cryptocurrency: How to Day Trade Cryptocurrency 101
Leverage of 1:2 is also available.
76.4% of retail accounts lose money.
73% of retail CFD accounts lose money.
71% of retail accounts lose money with this provider.
All traded with tight spreads. No virtual wallet required, just a trading account.
69% of retail accounts lose money with this provider.
77% of retail accounts lose money.
What to look for when day trading cryptocurrency
Trade crypto with the safeguard of negative balance protection.
76% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
CFDs carry risk. 64% of traders lose.
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
77% of retail accounts lose money with this provider.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
70.16% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
How To Day Trade Cryptocurrency: What To Look For 2018 Tips?
You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
77.2% of retail accounts lose money with this provider.
80% of retail accounts lose money.
68.15% of retail accounts lose money.
72% of retail accounts lose money.
82.11% of retail accounts lose.
Companies under the FXCM umbrella are also regulated in Australia and Canada.
73.62% of retail accounts lose.
78.3% of accounts lose money when trading CFDs.
83% of retail accounts lose money.
68% of retail spread betting accounts lose money with this provider.
FCA and ASIC regulated.
68.5% of retail investor accounts lose money when trading CFDs with this provider
They also offer markets against a range of currencies, not just USD.
86.24%% of retail accounts lose money with this provider.
76.2% of retail accounts lose money.
Show All Brokers ⇩
How To Trade Cryptocurrency
Scared of missing out?
Here is a quick plan to get you trading cryptocurrency quickly;
- Decide if you want to own the cryptocurrency, or simply have a hunch that it’s value will go up or down.
- If you want to own the currency, you need an exchange – Try Hodly – It is a simple, user friendly app
- If you want to speculate on the price, you need a broker. Check the list above or use the broker page for a full list.
- Fund your account
- Buy the Cryptocurrency you want, or open a trade on it’s price.
Congratulations, you are now a cryptocurrency trader!
Remember, you can run through the purchase or sale of cryptocurrencies on a broker demo account. Unfortunately, you cannot practise on an exchange.
Trading crypto generally revolves around speculating on it’s price, rather than owning any of the actual coins.
For this reason, brokers offering forex and CFDs are generally an easier introduction for beginners, than the alternative of buying real currency via an exchange.
How to Compare Brokers
Which cryptocurrency platform you opt to do your trading on is one of the most important decisions you’ll make.
The exchange will act as a digital wallet for your cryptocurrencies, so don’t dive in without considering the factors below first.
Some brokers specialise in crypto trades, others less so. Others offer specific products. IQ Option for example, deliver traditional crypto trading via Forex or CFDs – but also offer cryptocurrency multipliers.
Simple Method To Make $100 A Day Trading Cryptocurrency As A Beginner - Tutorial Guide
These offer increased leverage and therefore risk and reward. Innovative products like these might be the difference when opening an account cryptocurrency day trading.
Apps & Software
Day traders need to be constantly tuned in, as reacting just a few seconds late to big news events could make the difference between profit and loss. That’s why many brokers now offer user friendly cryptocurrency mobile apps, ensuring you can stay up to date whether you’re on the train, or making your sixth coffee of the day.
The cryptocurrency trading platform you sign up for will be where you spend a considerable amount of time each day, so look for one that suits your trading style and needs.
Exchanges like Coinbase offer in-depth platforms, such as their Global Digital Asset Exchange (GDAX).
It’s always worth setting up a demo account first to make sure the exchange has the technical tools and resources you need.
Always check reviews to make sure the cryptocurrency exchange is secure.
If your account is hacked and your digital currency transferred out, they’ll be gone forever. So whilst secure and complex credentials are half the battle, the other half will be fought by the trading software.
Each exchange offers different commission rates and fee structures.
As a day trader making a high volume of trades, just a marginal difference in rates can seriously cut into profits.
There are three main fees to compare:
- Exchange fees – This is how much you’ll be charged to use their cryptocurrency software. What currency and coins you’re trading can influence the rate.
- Trade fees – This is how much you’ll be charged to trade between currencies on their exchange. A marker fee is the cost of making an offer to sell.
A taker fee is the cost of taking an offer from somebody.
- Deposit & Withdrawal fees – This is how much you’ll be charged when you want to deposit and withdraw money from the exchange. You’ll often find it’s cheaper to deposit your funds. Also keep in mind some exchanges don’t allow credit cards.
Using debit/credit will usually come with a 3.99% charge, a bank account will usually incur a 1.5% charge.
Final Word On Brokers
This isn’t a decision to take lightly. Do the maths, read reviews and trial the exchange and software first. Coinbase is widely regarded as one of the most trusted exchanges, but trading cryptocurrency on Bittrex is also a sensible choice.
CEX.IO, Coinmama, Kraken and Bitstamp are other popular options.
Cryptocurrency Trading For Beginners
Before you choose a broker and trial different platforms, there are a few straightforward things to get your head around first.
Understanding and accepting these three things will give you the best chance of succeeding when you step into the crypto trading arena.
- Find out what’s growing – Bitcoin, Ethereum and Litecoin top the list for tradability and ease of use.
However, there are also Zcash, Das, Ripple, Monero and several more to keep an eye on. Do your homework and find out what’s on the up and focus your attention there.
- Embrace volatility – Cryptocurrencies are famously volatile. The price of Bitcoin, for example, went from $3,000 down to $2,000 and then leapt up to nearly $5,000, all within three months in 2017. Whilst this means risk is high, it also means the potential for profit is great too.
It’s always sensible to check the volatility of the exchange you decide to go with.
- Understand blockchain – You don’t need to understand the technical complexities, but a basic understanding will help you respond to news and announcements that may help you predict future price movements.
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It is essentially a continuously growing list of secure records (blocks). Cryptography secures the interactions and then stores them publicly. They serve as a public ledger, cutting out intermediaries such as banks.
If you want to own the actual cryptocurrency, rather than speculate on the price, you need to store it.
There are a huge range of wallet providers, but there are also risks using lesser known wallet providers or exchanges.
We recommend a service called Hodly, which is backed by regulated brokers:
Once you’ve decided on a broker, got familiar with your platform and funded your account, it’s time to start trading. You’ll need to utilise an effective strategy in line with an efficient money management system to make a profit.
Below is an example of a straightforward cryptocurrency strategy.
This straightforward strategy simply requires vigilance. The idea is you keep a close eye out for a correction in a trend and then catch the ‘swing’ out of the correction and back into the trend. A correction is simply when candles or price bars overlap.
You’ll find trending prices move quickly, but corrections, on the other hand, will not.
Let’s say on your cryptocurrency chart at 250-minute candles, you see 25 candles where the price stays within a 100 point range. If the price contracted to a daily move of just 20 points, you’d be seriously interested and alert. You should see lots of overlap.
This tells you there is a substantial chance the price is going to continue into the trend.
You should then sell when the first candle moved below the contracting range of the previous several candles, and you could place a stop at the most recent minor swing high. It’s simple, straightforward and effective.
Even with the right broker, software, capital and strategy, there are a number of general tips that can help increase your profit margin and minimise losses.
Below are some useful cryptocurrency tips to bear in mind.
Short-term cryptocurrencies are extremely sensitive to relevant news.
When news such as government regulations or the hacking of a cryptocurrency exchange comes through, prices tend to plummet.
On the flip side, if a big company announces they’ll be incorporating the use of a currency into their business, prices can climb quickly.
Is Crypto Day Trading A Good Idea For You?
If you’re aware of any news and can react rapidly, you’ll have an edge over the rest of the market.
Analyse historical price charts to identify telling patterns. History has a habit of repeating itself, so if you can hone in on a pattern you may be able to predict future price movements, giving you the edge you need to turn an intraday profit.
For more details on identifying and using patterns, see here.
This is one of the most important cryptocurrency tips. By looking at the number of wallets vs the number of active wallets and the current trading volume, you can attempt to give a specific currency a current value.
Best Bitcoin and Cryptocurrency Exchange for Day Trading: 2019
You can then make informed decisions based on today’s market price. The more accurate your predictions, the greater your chances for profit.
Trade On Margin
If you anticipate a particular price shift, trading on margin will enable you to borrow money to increase your potential profit if your prediction materialises.
Exchanges have different margin requirements and offer varying rates, so doing your homework first is advisable.
Bitfinex and Huobi are two of the more popular margin platforms.
Remember, Trading or speculating using margin increases the size of potential losses, as well as the potential profit.
Rules & Taxes
The digital market is relatively new, so countries and governments are scrambling to bring in cryptocurrency taxes and rules to regulate these new currencies.
If you’re not aware of these before you start trading, you may find yourself in a spot of expensive bother further down the line.
Many governments are unsure of what to class cryptocurrencies as, currency or property. The U.S in 2014 introduced cryptocurrency trading rules that mean digital currencies will fall under the umbrella of property. Traders will then be classed as investors and will have to conform to complex reporting requirements.
Details of which can be found by heading to the IRS notice 2014-21.
On top of the possibility of complicated reporting procedures, new regulations can also impact your tax obligations.
The U.S, the ‘property’ ruling means your earnings will now be deemed as capital gains tax (15%), instead of normal income tax (up to 25%).
Each countries cryptocurrency tax requirements are different, and many will change as they adapt to the evolving market. Before you start trading, do your homework and find out what type of tax you’ll pay and how much.