As mentioned in the previous post, I am in the process of getting things set up, so I am ready to give it a go with day trading cryptocurrencies. I plan to keep things simple.
tools of the trade
From Fiat to Crypto: Coinbase
I will need some btc. For this, I am going to use coinbase. They are, without a doubt one of the most trusted and recognized places to buy bitcoins (and other cryptocurrencies). There may be cheaper options out there, but as my business here will be down to a minimum, the fees aren’t much of a concern (at this point, at least).
Broker/exchange account (margin account): ByBit
With btc in my possession, I need a place to leverage them. My initial thought was to go with Bitmex, but I not a fan of the trading platform. In my opinion, it isn’t user-friendly and intuitive. I have decided to go with the new kid in town – bybit. I prefer their platform over bitmex, and while is a better selection of cryptocurrencies to trade on bitmex, I have decided this isn’t a dealbreaker for me – for now.
ByBit allows leverage of up to 100X (which is far more than I plan on using, anyway), and a selection of the following cryptocurrencies; BTC, ETH, EOS, and XRP. My plan, for now, is to start trading on BTC, and probably use around 5X leverage. More details on this, and on ByBit in a future post.
Charting / Trading Platform: TradingView
Throughout the years, I have spent a lot of time using metaquotes MT4 and a wide range of other trading and charting platforms. In my opinion, nothing comes close to TradingView. All platforms have their own unique UI’s and features, but TradingView is a solid platform on all fronts. It has everything I need and more. I plan to go with a pro account to get volume profile (more on this later).
Price: $12.95 / month
I plan to get some bitcoins via Coinbase as mentioned above. I plan to start with 0.3 BTC, which currently equates to around $2,600. I could go higher or lower, but I think this is a decent place to start. If my starting balance is too low, it will be challenging to stay motivated. If my starting balance is too high, my trading may be affected by risk aversion. This will be different from person to person. I think that 0.3 BTC is a sweet spot for me.
That’s it. This is the foundation so there will be an initial expense of just around $2,640 USD (and the main part of that going to my account balance with bybit). The $12.95 for the pro account on Tradingview will be a recurring monthly cost (unless I decide to cancel the pro membership at some point).
I have been thinking about signing up for a membership service with ReadySetCrypto as I love the content they produce (lots of videos on youtube – link). As a premium member of their service, I will get access to a course on the very topic of growing a small account, so this might be exactly what I am looking for. I will let you know if this is something I decide to go for.
There might be other tools and services I decide to try, at some point in the future. If and when this happens, I will make sure to keep you all in the loop.
For now, the setup listed here is what I will be moving forward with. In the next post, I will cover some details on how I plan to go about the actual trading. This is something that has not been fully determined yet, and probably never will be. I imagine that the trading style and strategy will continue to change and develop over time. I do, however, have a couple of basic ideas down that I want to share. More on this, next time.