Post
Topic
Board Trading Discussion
Re: Is day trading on Coinbase profitable?
by
Lorenzo
on 08/05/2015, 12:52:12 UTC
Basically you're asking if it's possible to profit from a sideways market, and it is.

However, other than a few exceptions such as Bitfinex, most Bitcoin exchanges don't offer leverage or the ability to short. Bitcoin is also in a long term bear market, so it's quite possible that you could buy coins at $225 and not have the price increase above that for a long time. It's probably not a big deal if you're a hodler but for a day trader, that's obviously not ideal.

I've been watching the BTC price for what seems like forever.  Coinbase charges 1% in fees.  I figure if I can (for example) buy at $225 and sell at $228, then I've made over 1%.  It doesn't sound very hard.  I will have my coins instantly if I register my credit card on Coinbase, right?

EDIT: Plus then I get to spend more time reading the hilarity scrolling up the BTC-e trollbox.

As far as I know, the exchanges now are full of trading bots.
And that is not so good for trading in my opinion.
They tend to mess with the price, and that is why there hasn't been any price improvement for a while.

unclear what you're saying? bots lead to higher volatility? or lower?
I would say neither is really true.  Bots have little net effect on price action or long term rates.

Bots do tend to increase volatility in some situations. For example, when there is a breakout in a long term sideways market, the cumulative effect of bots responding to the breakout can have a cascade effect which amplifies the price increase/decrease and pushes the price lower/higher than it would have been otherwise.