A few weeks ago, Tastyworks introduced crypto trading on their platform, and I started day trading it. Trading on Tastyworks has been a significant improvement compared to traditional crypto exchanges like Coinbase or Kraken. I find Tastyworks to be superior in two aspects: fill prices and trade fees.
When it comes to fill prices, Tastyworks excels. They utilize Zero Hash as their digital settlement service and coin custody, resulting in excellent fill prices. For example, if Bitcoin is trading at $45,000, placing a buy order on Coinbase would fetch a fill around $45,050 due to Coinbase’s .5% bid and ask arbitrage fees. In contrast, on Tastyworks, I receive a fill around $44,998. These fill prices make a huge difference, especially when making numerous smaller day trades.
Now, let’s talk about trade fees. Coinbase charges a hefty 4% base fee for cryptocurrency transactions, while Tastyworks charges a flat 1% fee with a maximum of $10 for both the buy and sell. This means that the most I would pay for a round-trip cryptocurrency trade on Tastyworks is $20. By switching to Tastyworks, I have significantly reduced my trade fees and can move in and out of trades without incurring substantial costs.
Moving on to my workflow, I begin by opening my Tastyworks platform, which I access through the web platform on all my computers. I also open Tradingview, my preferred charting software. I use a combination of 1-minute and 5-minute charts in the candlestick format with all candlestick indicators turned on. This allows me to identify Bullish Engulfing and Bearish Engulfing candles easily, helping me make buy and sell decisions. When I see a Bullish Engulfing, I buy .3 bitcoins, and when I see a Bearish Engulfing, I sell .3 bitcoins and close the trade. My target for each trade is around $210, with a net gain of $190. However, the actual profit may vary depending on the price movement of the coin on that particular day.
Placing a Bitcoin trade on Tastyworks is straightforward. It’s similar to buying stocks, and I use the web platform for convenience. I enter the quantity as a decimal if I want to buy a fractional share of Bitcoin. After reviewing the order, I click “Send Order,” and the trade executes. I then check the activity tab to see the fill price and track it against that exact price.
Additionally, I have started using the Relative Strength Index (RSI) indicator on Tradingview as an additional tool to gauge the direction of Bitcoin. RSI is more effective on longer time-frame charts, particularly the 15-minute chart, and helps me make more informed trading decisions.
A few things to note: not every day is ideal for trading, so it’s essential to take breaks and wait for better opportunities. Patience is crucial, and following a set of trading rules is vital. It’s also important to develop your own trading strategy that suits your style and constantly adjust it if necessary. Risk management is crucial, so it’s best to trade small and trade often. Lastly, trading should be enjoyable and energizing when managed appropriately.
In conclusion, day trading Bitcoin has become more accessible with platforms like Tastyworks. With their superior fill prices and lower trade fees, it has become a rewarding experience. However, it requires patience, following trading rules, and managing risk effectively to achieve success.