Bitcoin Day Trading Overview

Many in the technology and financial sectors have been talking a great deal about Bitcoins over the last couple of years. Bitcoins are a digital currency that was established in 2008. Generated through a process called mining, Bitcoins are earned by using available processing power on your computer to solve complex algorithms called blocks. A single block can yield around 50 Bitcoins. The challenge is that it can take a year or more for a computer to complete a single block resulting in Bitcoins. As a result, many people interested in engaging with this form of digital currency have turned to Bitcoin day trading.

Bitcoin daytrading is the practice of buying and selling bitcoins on exchanges for profit. Similar to the stock market, Bitcoin day trading involves buying low and selling high. Traders join a Bitcoin exchange, such as Mt. Gox or BitFloor, and deposit funds in an account. They then watch changes in the market for opportunities to make profitable transactions. As with stock exchange companies, Bitcoin exchanges typically charge fees for the transactions that are made, usually based on a percentage of trade.

The way Bitcoin trades make money is by converting one currency into another. Exchanges will convert Bitcoins into national currencies and national currencies into Bitcoins. By leveraging the shifting values of traditional currencies, skilled investors can realize a profit.

There are a lot of details of which someone interested in Bitcoin day trading needs to be aware. Like any investment, you run the risk of losing money. Not just Bitcoins, but real money. Bitcoin values tend to fluctuate significantly in a single day, which poses a greater risk to novice and seasoned investors alike.

It takes devoting a great deal of time and attention to the market to successfully participate in Bitcoin day trading. One tactic that can help is to spread out your inventory. Then establish a rule to only trade a percentage of your inventory in a given day. This will allow you maintain assets within the market and give you buying and selling options as market fluctuations occur.

One important consideration for Bitcoin day traders is to understand that because Bitcoins are seen as assets, they are taxable as assets. Whenever a trader cashes out their Bitcoins for currency or trades them for any type of bartering, the transaction is taxable.

Another challenge for traders is Bitcoin accounts have become a hot target for cyber thieves. Bitcoin wallets and exchanges can be hacked and compromised, just as with traditional currencies. But part of what makes Bitcoins so attractive to thieves is the relatively low risk of being caught.

For those interested in getting involved with the world of Bitcoins, it can be an exciting and worthwhile experience. There is an opportunity to build some profit, but many analysts believe the days of giant returns on investments are gone. Invest in some quality research before you jump in to Bitcoin day trading. Then build an investment strategy that includes a plan for protecting yourself and your assets. 

Bitcoin Day Trading Growth

I haven't updated this blog in awhile. So I have a bit to write about here. First off, I have moved all my day trading from CEX.io to Cryptsy. That means I have a little over 0.20 bitcoins at cryptsy. I still have 0.0044btc at cex.io and reinvesting all namecoins mined. Devcoin and Ixcoin will be moved to cryptsy to be sold for bitcoins. I also have another 0.003btc at Atomic Trade.

That is all my holdings in day trading right now. Not bad since all my bitcoins are coming from poker winnings and affiliate marketing. I will update you guys on my total holdings for day trading every time I move winnings and affiliate payments into one of the exchanges. Personally, I am trying to reach 10 bitcoins before I do any serious day trading. Right now its small profit here and there and the once in awhile lost.

Dogecoin investment into Pocket Rockets Casino. I invested 10,000 dogecoins (I would recommend at least 100k) and I withdraw my investment plus profits after 2 weeks or so. I made a 6.63% profit (or 663 dogecoins) from that investment. Not bad for a small investment. Maybe I will do it again once I can spare it from my day trading. Also, I am no longer a dogecoin believer, the marketcap is just too high to buy and hold until it reach the value of $1 (If it ever reaches that).

Now that my day trading account is over 0.20btc I can see a better profit on my small trades I do throughout the day. Wish I knew how to program a bot so I could make more trades in a day. Anyway, I seen on bitcointalk someone trying to run a pump and dump group via twitter but only did 1 pump and didn't tell its members when to dump. Not only that the guy didn't even post another pump and dump to his followers.

So I thought I would make a pump and dump group of my own. A group completely focused on making sure all its members profit from a pump and dump. Not just help pump a cryptocurrency and be left with an unwanted cryptocurrency because the founder of the group already dumped to make a profit. Go to the pump & dump profits group page and sign up. I will only do a pump and dump once we have enough members to do so.

Atomic Trade Launch Party, Day Trading, & Poker Freerolls

Last night Atomic-Trade officially launch their cryptocurrency exchange with 0% buy fee for the whole 3 hour launch party. They have USD/BTC, LTC/BTC, FTC/BTC, XPM/BTC, WDC/BTC, BLC/BTC, HBN/BTC, PXL/BTC, LOT/BTC, GME/BTC, ATP/BTC, and FRK/BTC. Yes, that is a lot of pairs to start with but you have to give the people what they want right?

If you dont know what all the pairs are. Here is the list of them all vs the bitcoin (BTC).

• USD = US Dollar
• LTC = Litecoin
• FTC = Feathercoin
• XPM = Primecoin
• WDC = Worldcoin
• BLC = Blakecoin
• HBN = Hobonickels
• PXL = Pxlcoin
• LOT = Lottocoin
• GME = Gamecoin
• ATP = Atomic Points (Earn these by trading and referring other traders to the site)
• FRK = Franko

And that's the full list of the trading pairs at Atomic-Trade. During the launch party in the websites chat box the developer was doing giveaways and I was lucky enough to have received coins during the launch party. I received 10 blakecoins, 10 pxlcoins, and 10,000 lottocoins. In my account the estimated value of these coins are $4.11. I plan on holding onto these coins and wait for them to go up in value a bit before I sell for bitcoins.

Since its new not that many crypto traders are there yet. So the volume is low for now. I believe once some mining pools catch hold to it and day traders the volume will jump up. Also the fees are low compared to other exchanges. Also, this exchange I feel safe with my coins there. The exchange is owned by a US based company and not some guy that threw up an exchange in his spare time.

Anyway, the price of dogecoins jumped up a bit yesterday and I was able to sell the 200 dogecoins I bought in the late night day before yesterday for a small profit. I don't know what I took on the challenge of day trading my poker winnings since lately I have been losing at poker. I even began playing the freerolls at Betcoin Poker to rebuild my poker bankroll to keep my day trading fund growing. Because day trading with less than 1 bitcoin is a struggle to grow fast.

Renting GHs & Day Trading At The Same Time

For a week, I rented 55ghs for ฿0.07+ while the 55ghs was mining at cex.io (ghash.io) I was waiting on dips to buy and sold for a bit higher. I even played both sides of the trade with the NMC/BTC. I did that a lot before buying the ghs. Besides the ฿0.01+ profit I made from renting the 55ghs. I also made around ฿0.04 profit from day trading GHS/BTC, NMC/ BTC, and GHS/NMC.

Also, in the last week or so I bought 10,000 dogecoins and invested them into Pocket Rockets Casino. I also bought another 1,800 dogecoins to giveaway 100 per person for anyone to sign up to cryptsy using my referral link but nobody took me up on my offer on bitcointalk. So now I am holding them just in case the price shoots up out of nowhere. In other news, my 10k dogecoin investment on Jan. 29th is up 6.95% today on Feb. 3rd and today isn't over but its still 1 day short of a week.

P.S. Seattle Seahawks won the super bowl over the weekend. :)

Cryptsy: Buy And Hold Dogecoin

Today, I deposit ฿0.025 into Cryptsy and bought 10,000 dogecoins for ฿0.00000216 each for a total of ฿0.02164320 . The price dropped a bit right after I bought which means I could have gotten more for my bitcoins but this is a buy and hold strategy since so many people support dogecoins.

My plan here is to hold until selling is running through my mind for a week straight so I would have no choice but to sell. Even if the price drop I will not sell. The only way I would is if the price per dogecoin goes to ฿0.01 or higher.

Well that is my only play for today. I will post more when I make another move.

Week #5 On CEX.IO: The 24 Hour Test

I took a break from day trading to bet on the NFL playoffs. I used the ฿0.10 to bet ฿0.05 on each game and I won them both. I sent ฿0.10097823 back to cex.io and bought more ghs. Then I sold for a very small profit and rebought went the price dipped a bit. However, it dip even more so I have been holding my position for now as it looks like its back on the climb.

Also, I seen someone renting out their mining hardware (50+ ghs) on bitcointalk.org and I did a 24 hour test. For now, it wouldn't take 100 ghs to make ฿0.01 per day, it would only 50ghs. So I am working on somethings to make more bitcoins besides playing poker because I am starting to tilt these days at the poker tables. Anyway, I bought more ghs with the bitcoins and namecoins I made from resting the mining hardware. Also, I found a devcoin faucet and made 20dvc from it. Not bad but faucets are a waste of time in my opinion.

Total CEX.IO Holding

• Ghashs: 2.66713068
• Bitcoin: 0.00
• Namecoin: 0.00
• Litecoin: 0.00
• Ixcoin: 0.39326277
• Devcoin: 34.53599003

 Well I am back to day trading and hopefully this week I can do a lot better than in the past. I just have to remember to set my sell price before I log out of cex.io. All the times I have gotten stuck in a buy and holding or sell for a lost was because I forgot to set a sell price. While I am sleep or away from the computer the price does hit my sell price but I forgot to set it before logging out. I will not do it again. Anyway, join me at CEX.io for some bitcoin day trading/cloud mining. :)

Week #4 On CEX.IO: Withdrawing For Now

I sold 0.37ghs for 0.02btc and withdraw it to bet on the NFL playoffs at BitBook. I won and made more bitcoins then I would letting it sit in cex and mine for me. Also, I sold the 2.20ghs, bought back, sold again, bought back again, then sold again. I turned 0.10btc worth of ghs into 0.104 bitcoins.

So I did a withdraw to take a break from mining and day trading. I am giving myself a weeks break. In that time I will be betting on sports. Maybe this break will get my mind back into day trading. Don't worry, I will keep you guys updated when I return to bitcoin day trading.

Total CEX.IO Holding

• Ghashs: 0.00024777
• Bitcoin: 0.00
• Namecoin: 0.00000005
• Litecoin: 0.00
• Ixcoin: 0.27373376
• Devcoin: 9.74599792

As I write this my cex account was updated with a small amount of bitcoins and namecoins so I bought some ghs with it. All in all, I only lost a total of 0.019btc from day trading/mining at cex.io. Maybe you're a better day trader than I. Give it a shot and when I return to day trading we can compare results.