Cryptocurrencies and the rise of Bitcoin have brought attention to day trading. Much like traditional commodities, cryptocurrencies can be bought when the price is low, then sold when it’s high. The reality is that there are many ways you can approach this new type of trading, with some requiring less capital than others. Whether your goal is to generate enough income to replace your job, fund travel plans or even pay off bills, this article will outline the best methods of doing so a day trading crypto in Germany.
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What are Cryptocurrencies?
Cryptocurrencies are secure digital currencies that are created through encryption techniques called mining. After being mined, each cryptocurrency must be stored in a digital wallet where it can also be exchanged for other forms of currency or products/services.
Tips for day trading crypto in Germany
Day trading cryptocurrency in Germany has become popular because it is more than a trend and more than just for the elite or socialites. Here are some tips for day trading crypto.
Study the market before doing anything else
Firstly, do your research. You should know precisely what currencies are profitable right now and why they’re profitable. If you don’t do this prior research, then there’s no way you will make any money; you’ll lose all of your assets.
Start with a little bit of crypto.
Don’t invest everything in crypto day trading right away, or else you could lose it all and not have anything left. If you start off investing only $100, if you lose that $100, then it’s not the end of the world. However, if you find that this is something you enjoy and want to do it full time, then keep saving up one day, maybe even becoming a billionaire.
Set goals for yourself
Set goals for yourself, such as finishing out the week positive even though there was a dip in prices. This will help motivate you to do better each day. If you don’t set goals for yourself, then there’s no way you can be successful. Without goals, how would you know what to accomplish?
Day trade on Tuesday and Wednesday
If the dip in prices happens every week on Thursday or Friday, it will make sense to day trade on Tuesdays and Wednesdays because the dip occurs. The reason why people lose money day trading is simply that they enter too late, so if you wait until these dips happen, then you’ve lost profit. You should try to get into the market just before things take a turn for the worst.
How to get started day trading crypto in Germany
When you want to start day trading in Germany, it can be challenging to know where to begin. Here are some steps you need to take to day trade crypto.
- Purchase a hardware wallet such as Keep Key or Trezor
- Choose an exchange and purchase BTC and ETH there.
- Transfer BTC and ETH from the exchange into your hardware wallet
- Send BTC and ETH from your hardware wallet into GDAX (no fees)
- Set limit orders on GDAX that execute automatically when the price hits or comes close to your desired buy order trigger price – this is where day trading begins.
Risks of day trading crypto in Germany
The German government fears that cryptocurrency is being used for money laundering and tax evasion. As a result, the federal ministry of finance recently issued guidance on how to treat cryptocurrency for tax purposes.
According to the guidance, when trading or mining cryptocurrencies such as Bitcoin (BTC), profits will be treated either as capital gains or business income – depending on whether the transactions are seen as part of a profit-making enterprise.
Cryptocurrency regulation is still very new and constantly changing, and the legal environment, in particular, varies significantly from country to country. Beginner traders interested in buying crypto in Germany should always use a reputable online broker from Saxo Bank before starting their investment journey.
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