Which Timeframe Is Best For Trading Bitcoin And Other Cryptocurrency For The Strongest Entries, Lowest Stress & Highest Profit Potential?
Trading Bitcoin and other Cryptocurrency can be an extremely profitable activity… if done right. So, that begs the question… Which timeframe is best for trading Bitcoin?
You might be surprised to learn the best timeframe for trading Bitcoin also produces the best trading environment with low stress and high profit potential.
The Daily timeframe is best for trading Bitcoin and other Cryptocurrency. The Daily time frame produces strong entry signals, can be traded once a day in only 1 minute and produces high profit potential trading opportunities without missed or mismanaged trades.
As you’ll soon see, there is no need to sit in front of the computer for long hours a day doing battle with the Bitcoin and Cryptocurrency markets to produce extraordinary profits.
But first, let’s make sure we are all on the same page…
What I Mean By “Bitcoin Trading”
The term “Bitcoin Trading” means different things for different people. But when I use the term, it is very specific.
Here is a snippet from one of my other blog posts:
Cryptocurrency trading is when you speculate on the price movement of one currency compared to another. Since we are “trading” cryptocurrency, you have to have 2 currencies to trade between. This could be a crypto vs fiat currency pair like BTCUSD (Bitcoin vs US dollar) or a crypto vs crypto currency pair like ETHBTC (Ethereum vs Bitcoin).
An important aspect of currency trading is you are not obligated to buy the underlying asset. This is because the trading activities occur at a Forex broker. Therefore, I can trade the BTCUSD currency pair without ever having to purchase, store and hold any Bitcoin at all.
So, when I am talking about Bitcoin and Cryptocurrency trading in this post… I am talking about trading Bitcoin or other pairs that include a crypto at a Forex broker.
The Daily Timeframe Is Best For Trading Bitcoin And Other Cryptocurrency
Just like there are many ways to think of trading Bitcoin, there are many different types of trading styles… scalping, day trading, swing trading, etc. And my belief for the best timeframe for trading Bitcoin and other Cryptocurrency is the same as my belief for trading ANY currency pair.
The Daily time frame is the best time frame… period.
Let’s go over some of the biggest reasons I dedicate my trading strictly to the Daily time frame… regardless of whether I am trading regular currency pairs or Cryptocurrency like Bitcoin.
The Daily Time Frame Produces The Best Trading Environment For Bitcoin And Other Cryptocurrency
I am a technical trader. That means I base my trading decisions on what I see on the charts… period. I don’t follow the news, world events or try to figure out what someone’s comments might do to the market I am trading.
The Daily time frame provides very strong market movement and entry signals. Lower time frames are not as reliable because of random market movement. And higher time frames (while very reliable) simply don’t provide for enough trading opportunities to keep trading interesting.
As a technical trader, I use strategies made up of different indicators and rules. This makes it very easy to look at the charts and quickly know if there is anything to do. This simplistic approach reduces stress and confusion at the time of making trading decisions.
But trading Bitcoin on the Daily time frame also reduces the amount of time I need to spend trading….
Trading Bitcoin On The Daily Time Frame Can Be Done Once A Day In Only 1 Minute
The trading time on the Daily time frame is very specific. I make my trading decisions at the end of one candle and the open of the next candle. This happens at “end of day” which is usually 5 PM New York time at most Forex brokers.
Obviously, restricting trading to this time period means I only have to look at the chart once a day. No actions are taken at any other time during the day or night. Therefore, trading Bitcoin on the Daily time frame only takes about 1 minute a day.
But there is also an added benefit…
As I stated previously, I am a technical trader and use strategies made up of different indicators and rules. By trading on the Daily time frame, I can CORRECTLY backtest different strategies to figure out the best way to trade Bitcoin.
Trading Bitcoin once a day on the Daily time frame means there are not going to be missed trades or mismanaged trades. When the rules say “act”, we act. This means the results we get by backtesting a strategy are the exact results we would have gotten if we were trading live.
Backtesting on the lower time frames does not produce reliable results. Since you are not able to trade every trading opportunity because you simply cannot trade 24 hours a day… you cannot get accurate backtesting results on lower time frames.
So, not only does trading Bitcoin on the Daily time frame make it simple to trade the strategy perfectly, but backtesting can help find the best trading strategies for Bitcoin and other Cryptocurrencies.
Simple Bitcoin Trading On The Daily Time Frame Can Be Extremely Profitable
A lot of people are led to believe that trading on the lower time frames is more profitable. I mean… more trading opportunities means more profits, right?
Well, not necessarily.
The lower time frames produce weaker entries due to random market movement. There are more trading opportunities, but a lot of them are going to be losers. So, you end up having to trade MORE to try to make up for all the lousy trades.
This means you need to spend more time trading and deal with the emotions of placing losing trades more frequently.
Trading Bitcoin on the Daily time frame allows you to trade less and still get great results. As a matter of fact, it is possible to outperform other investment opportunities and accumulate wealth faster.
Let’s look at trading Bitcoin and Ethereum on the Daily time frame compared to the S&P 500 (the benchmark for most investors):
More profitable? You bet.
But what about trading the BTCUSD and ETHUSD compared to business powerhouses?
Are you starting to see why I say the Daily timeframe is the best for trading Bitcoin and other Cryptocurrency?
In as little as 1 minute a day, you can trade a strong trading strategy perfectly without missed or mismanaged trades. And since the setups are stronger and the profit potential is extraordinary… trading Bitcoin on the Daily timeframe can be an excellent use of your time and money.
Check out: Put Money To Work
Final Thoughts On Which Timeframe Is Best For Trading Bitcoin
One of my biggest prerequisites for trading of any kind is that my earnings must exceed my efforts. By taking advantage of the strengths of trading Bitcoin on the Daily time frame, I make it easy to achieve this goal.
By only spending 1 minute a day, I can trade a 100% rules based trading strategy with low stress and high confidence and tap into an excellent market with extraordinary profit potential.
My experience has shown me that the Daily timeframe is best for trading Bitcoin and other Cryptocurrency.
To Your Wealth,