Is Day-Trading ONLY Bitcoin to USD Crazy?


#1

So I was thinking…

If my goal is to get more BTC, I should focus on just buying low and selling high, and really nailing the ups and downs of the day.

Is it stupid, or crazy, to think that we can make 1-5% per day simply by focusing on the BTC/USD chart?

It seems lately most of the ups and downs are less than 1%, which is fine if we can catch the waves because trading fees are only 0.01% so… if we only gain 0.02% that’s still an accumulation of bitcoin.

Is this crazy or stupid? How many ups and downs on an average BTC day can we expect to catch while day-trading?

Second question: Is it insane to try to do this with the 1 minute chart? Is catching one or 2 waves on a 15 minute chart the only reasonable way?

Does ANYBODY successfully trade only BTC on the 1 minute?


#2

Not sure if its possible with fees for selling. I know coinbase charges a certain amount.


#3

Trading fees vary, but they tend to be 5-150x the amount you listed. Consider that you pay that fee when you buy, and then again when you sell, it makes it trading on the minute chart prohibitive.

The cheapest decent exchange that I can think of is Binance, which is 0.1% per trade, or 0.075% per trade with Binance Coin. Double that for a swing in and out, and you’re looking at 15x the fees you previously mentioned. And that’s if you’re trading with USDT or another coin.

If you go with USD or another fiat pairing, it’s going to be exponentially worse. An example is Coinbase, which is 1.49% per trade, so that’s nearly 3% per swing in and out.

Also if you factor in trade related tax (depending on where you live), you’re going to be broke quickly even if you’re the world’s best trader. :stuck_out_tongue:


#4

Yes it’s very possible to make 1-5% a day(or lose) though scalping seval small percentages throughout the day.

Alternatively use higher leverage and play a 1% move for example. 1% move with x10 leverage, mean your account just moved 10%.


#5

Sounds good, but crazy dangerous. I still feel like my trading moves are a gamble and almost never feel certain about the buy, especially in recent months when everything is down down down.

I might consider leverage if I felt like my moves are rock solid nearly every time.


#6

using leverage is VERY risky. I do not recommend it to a begginer, you will lose your capital 99%

I use leverage but don’t tend to go above x6.


#7

As @Danosaurs mentions, it is certainly possible to make daily gains, however you really need to use longer time frames to secure swings that are large enough to counter the fees. Micro trades on the minute chart just won’t get you there, however 5 and especially 15 minute charts can. Good luck, and be safe!


#8

Hold back and transfer out the required amount of fiat on every trade for taxes… And keep detailed records. Don’t play with the tax man’s $$$.