Best way to day trade cryptocurrency
When it comes to cryptocurrencies, the spread needs to be considered only if you are trading through CFDs. Best way to day trade cryptocurrency Scalping Level: Beginners — Advanced Scalping is a trading strategy widely used, especially in forex trading. There was no guarantee that the price would go up, but he speculated that it would be based on his own opinion. Learning how these tools work is really important as it will allow you to identify when there is a good chance that a coin is going to rise or fall.
Apart from regulation, there are a few other features that you have to take into account if you decide to use a non-CFD platform. Different marketplaces offer different fee structures, coin pairings, trade amounts, etc. Here they are:.
For example, if you are bullish on a coin and you are interested to go long, you should always wait for the market to confirm with volume and some kind of breakout with a decent price movement in your direction.
When day trading crypto, your entry should always come at the moment when the market activity is increasing. From here, the position should not threaten to fall back down, if it does you should close the position immediately and wait for the next opportunity.
This is one of the entries for bitcoin and cryptocurrency day traders that have the highest probability of success. Whenever this setup is active in any coin you should get ready for a possible breakout and focus on the entry point.
It takes some experience to learn when the market has slowed down and is about to turn back around. The way you know that the market is cooling down and the uptrend is about to end is not always easy but here are some typical signs:.
This trade would have been very profitable and everyone who took this trade should have been stopped out when the market dropped below the trading range.
Keep in mind that it will not always look like this, so you need to practice how to read these market signals when day trading bitcoin or other cryptocurrencies.
Crypto day traders use several different strategies to exit the market and this should be used in conjunction with your current setups to make better judgement and realise when the trade is over.
Some people are very aggressive and some people are very passive and this is reflected in their way of trading. If you are a very intense person and you want action all the time, you need to find a way of applying this to the markets.
If you are a slow person that likes to think more than you act, you might need to look at a swing trading approach.
When you day trade bitcoin or any other cryptocurrency you need to be aware of a few things to stay ahead and avoid mistakes.
This is purely from my own experience as a bitcoin and cryptocurrency day trader for the past years. The bitcoin and cryptocurrency market is known for its volatility and this is one of the main reasons why day traders gather for profits.
I will let you know something that I discovered a while back that helped me become more consistent with my profits while day trading bitcoin and cryptocurrency.
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There are very few professionals and institutions trading and investing in the market at the moment. So, that leaves the rest of the action to the newbies, but why do they make the price so volatile?
First of all, they are driven by emotions which make them enter and exit the market purely based on how big the numbers are when they login to their Binance account.
What I mean by thick is that there are not enough orders or contracts above and below the market price to make for stable trading.
History has a habit of repeating itself, so if you can hone in on a pattern you may be able to predict future price movements, giving you the edge you need to turn an intraday profit.
For more details on identifying and using patterns, see here. This is one of the most important cryptocurrency tips.
By looking at the number of wallets vs the number of active wallets and the current trading volume, you can attempt to give a specific currency a current value.
The more accurate your predictions, the greater your chances for profit. If you anticipate a particular price shift, trading on margin will enable you to borrow money to increase your potential profit if your prediction materialises.
Exchanges have different margin requirements and offer varying rates, so doing your homework first is advisable.
Bitfinex and Huobi are two of the more popular margin platforms. It also comes with relatively fewer risks compared to altcoins.
You only need to day trade bitcoin when all conditions align in your favor. Therefore, avoid trading on weekends and limit trading only to days with the highest volume.
Depending on your trading account, you will have access to a number of cryptocurrencies — both in the form of fiat-to-crypto and crypto-to-crypto. Interestingly, there are more than two-hundred crypto exchanges globally available to people as options for trading. Best way to day trade cryptocurrency They inevitably leave tracks of their activity in the market and we can read that activity through the MFI indicator.The safest altcoins to trade are those that are the top by market cap. These are the ones that are less volatile and are most likely to serve as long-term stores of value.
A great example is Ethereum, Ripple, Bitcoin Cash, among others. These coins are less apt to disappear.
Smaller altcoins are profitable in the short-term, but the risks associated with them are much higher. Their prices can be artificially boosted through pump and dump.
Therefore, the risk of your funds going up in smoke is much higher compared to bitcoin. A little dash of due diligence is needed in determining which altcoins to day trade.
Different countries hold different tax views concerning cryptocurrencies. Alternatively, you may want to utilize the services of an accountant to make your work easier.
The following tax overview is U. How much tax you pay is conditional to how long you have owned your digital assets.
For a while there Coinbase Pro had free limit orders, then almost nothing did, and here insome exchanges do again but with a catch.
You can also save even more by holding BNB. Save on FTX. While they do have a very limited selection and only allow simple swaps, they are worth checking out due to zero-fee trading.
Trading fee Discounts : You can get discounts on trading fees as a promotional offer with specific promotional codes.
This is because they are safe companies that have been operating for a long time. Of course, prices still go up or down, but compared to cryptocurrencies, it would generally only be by a small amount.
On the other hand, the prices of cryptocurrencies are very volatile.
In some circumstances, even more. Anyone that bought the coin towards the start of the day would have made a lot of money, however, the people that bought it at its highest price would have lost the majority of their investment.
The E-Coin example is why it is important to understand that day trading Bitcoin and other cryptocurrencies will not always go to plan.
You have to be able to accept losses when they happen, as this is a part of trading. Even the most successful traders in the world make losses, as it is impossible to always make the correct prediction.
Chasing losses is the act in which a trader experiences a bad loss and they attempt to make it back by taking really high risks.
This is one of the main reasons why the majority of traders fail. You have to accept that you will always make losses at some point!
Before you even think about depositing funds into your new trading account, it is really important that you practice first.
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Although none of the major cryptocurrency exchanges offer a demo account, a good place to start would be Coins2Learn.
Coins2Learn offers a trading simulator that allows you to trade using fake money. The platform is really good for beginners and they even offer tips and how to become successful.
Paul Akinsande says:. April 22, at pm. James says:.
After reading this you should have a good understanding of the basics of how to find a coin, select a good exchange, use the best order types, enter, exit, and have the right mindset for the job. Best way to day trade cryptocurrency market today You can also apply the same trading techniques too, such as setting stop-losses or market limit-orders. Find best Vertcoin predictions of in this complete Vertcoin price prediction guide.May 11, at am. Sam says:. April 10, at am. April 15, at am. Noob says:. April 9, at am. March 22, at am. March 22, at pm.
Vic says:. March 19, at pm. March 23, at pm. Ukasha Khalid says:. March 11, at am. February 25, at pm. March 1, at pm.
Manage risk — there are a few basic risk management techniques that would help you minimize losses.
Make sure to have entry and exit rules — the market is moving fast, and you might be unprepared for sudden moves. To avoid this, you can use entry and exit rules that would prevent significant mistakes.
Thus, you should learn continually and seek to improve your trading skills. Follow the facts, not emotions — make sure your decision-making relies on facts rather than feelings.
How to Practice Day Trading? Pattern Day Trading vs. Day Trading Pattern day trading strategies are a type of trading method in which traders are looking for specific patterns through the price chart in the form of candlesticks patterns or bars.
Examples of reversal patterns CC: forexfactory Top Cryptocurrency Day Trading Strategies for Beginners Below is a list of day trading strategies that have been tested with time and are still relevant in Scalping Level: Beginners — Advanced Scalping is a trading strategy widely used, especially in forex trading.
Well, technically yes, but day trading is more than that — it is about the ability to generate consistent profits from the short-term price moves, which is not an easy job. The safest altcoins to trade are those that are the top by market cap. Best way to day trade cryptocurrency to trade for beginners Long term investment Unlike share markets or forex, there is no dividend or interest applicable in cryptocurrencies.Momentum Trading Level: Beginners Momentum trading is one of the most common and straightforward strategies, especially among beginners.
Reversal Trading Level: Intermediate — Advanced Reversal strategies are probably the riskiest ones from this list, so beginners should better look for better alternatives.
Trend Continuation Patterns Level: Beginners — Advanced An interesting way to follow the trend is to look for candlestick patterns that confirm the trend is about to continue.
Trend Reversal Patterns Level: Beginners — Advanced Besides the trend continuation patterns, there are candlestick patterns that usually anticipate a trend reversal.
Range Trading Level: Intermediate — Advanced Range trading is a strategy in which traders determine overbought and oversold levels, which coincide with resistance and support areas, and buy at the oversold area and sell at the overbought zone.
How to Decide What to Day Trade? So, to make sure a trade is profitable, here are the essentials to augment the opportunities: Look into the liquidity of trade — to do so, a trader needs to analyze the bid and ask of the exchange, look into the spread, and, ultimately, identify the possibility of slippage.
What to Consider Before Day Trading Cryptocurrency First of all, day trading cryptocurrency is all about capitalizing on the extreme volatility of digital assets.
Candlestick patterns Doji Candlestick Above all of the candlestick patterns a crypto day trader can use, a Doji reversal pattern is most applicable.
Trend Analysis Trendlines and Triangles The triangles and trendlines help traders catch a glimpse of the future price movement and the existing trend.
Prediction Evaluation If you want to know how a strategy works, you can test on historical prices. Here is a guide on how you can benefit from a day trading cryptocurrency strategy: Register for an account on Bybit or your preferred cryptocurrency exchange, including one that provides access to the spot market.
Think about a cryptocurrency or token that you know best. Bitcoin and Ethereum might be a good start. Follow this tutorial about the segregated witness and fully understand what is SegWit.
I know I have given you lots and lots of information, but I think it is really important for you to understand all of the risks involved.
If you have read my guide from start to finish, you should now know whether day trading is right for you, as well as how to trade Bitcoin, and how to trade cryptocurrency in general.
As you have probably noticed, there are a lot of steps to consider before you begin your trading career. In reality, it will take a really long time before you are able to trade successfully as if you do things correctly, you will need to build things up slowly.
Even though losses are never a good thing, when you do experience them in your early days of trading, it will help you learn not to make the same mistake again!
So what do you think about day trading cryptocurrency? Is it something you are going to consider, or do you prefer the sound of long-term trading instead?
Just make sure that you never invest more than you can afford to lose and that you never chase your losses. Now that you know how to day trade, and how to make money with cryptocurrency, let me know your thoughts in the comments section below.
We do not publish biased feedback or spam. So if you want to share your experience, opinion or give advice - the scene is yours!
Picking out the best crypto exchange for yourself, you should always focus on maintaining a balance between the essential features that all top crypto exchanges should have, and those that are important to you, personally.
That said, many users believe that Coinbase is one of the simpler exchanges on the current market. The exchange platform i.
The pandemic took away several opportunities in many financial markets, but the crypto market paved a way of improvement here.
Investors started earning amazing profits in a short time. The early gains are creating their life during Christmas and new year festivities even better.
An instrument that has enormous fluctuations can get traded using a contract for difference. CFDs allow an investor to trade a larger position by owning fewer funds in deposits.
For example, with lesser capitals, you can trade one bitcoin. Here you need to have an initial margin as small deposits.
You get a chance to earn in the risky market. Additionally, cryptocurrencies get traded for twenty-four hours and seven days a week.
In the volatile market like crypto, investors should use hedge physical portfolios. Day trading is a way where a trader does not need to take deliveries of the assets.
You exit the position as the session for cryptocurrency ends in the day.
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Many traders and investors take up the route to quickly earn money. However, it is a double-edged sword that needs to be handled carefully.
You first need to find out what kind of features you are looking for and which site best matches your interests.
Regardless of your trading style, you need to choose a regulated website and one that offers competitive fees and accessible customer support.
In case you need more help, we have listed the best trading platforms of at the end of the guide. To initiate the trading process, the first step is to open an account at your respective site.
Generally, you will have to provide your personal information, including your full name, address, nationality, and contact details.
However, in order to start trading, the site has to first verify your details. You will be required to provide a valid government-issued identity along with a proof of address.
Some sites accept rental bank statements or utility bills as proof of address.
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Once your identity is verified, you will gain full access to the platform and its features. Every cryptocurrency platform requires you to have trading capital deposited into your account.
This ensures that the broker is able to carry out your orders in a matter of seconds. You can add money using one of the payment methods we discussed earlier.
Depending on your trading account, you will have access to a number of cryptocurrencies — both in the form of fiat-to-crypto and crypto-to-crypto.
If you have done some technical research, you can start trading right away. All you need is to choose which pair you want to trade and place a buy or sell order.
The amount you trade will be taken from your deposit account, and any profits or losses will also be reflected automatically.
If you are buying the coins through direct ownership, you will have the option to withdraw the purchased cryptocurrency.
You are to withdraw your coins to your personal crypto-wallet. Here are the steps to follow. You are bound to make a lot of mistakes along the way but if you can keep your losses at a minimum and keep improving, you have a good chance of becoming a sucessfull cryptocurrency day trader.
I will cover all the steps you need to know to actually start to make some profits on your own. This cryptocurrency day trading guide will give you a very good basic knowledge of how real traders actually make money in the crypto markets.
One of the key aspects of becoming a successful day trader is controlling your risk, which is best done with a protective stop loss.
The other side of the coin is of course the potential of profit. Your goal should always be to maximize your gains by using a strict trading plan and follow your pre-set rules of entry and exit.
All these techniques will be explained below and depending on your personality some of them will resonate with you better.
The more you practice the easier it will be to find new setups and strategies to win in the markets. Take your time and read through this guide with an open mindset.
Below follows a step-by-step tutorial on how to day trade cryptocurrencies. This tutorial is for all traders of all levels and I recommend that you go through the guide step by step if you are a beginner trader.
If you have some experience you can skip some parts and jump to the section you want to learn more about. If you click each item in this list it will take you straight to that part of this article so if you want to skip some parts simply click the text and it will take you to your chosen section.
If you are an intermediate trader already you can skip some parts that you are already familiar with.
Before we go into the meat of this topic I would like to point out some pros and cons with day trading in general. You might add to this list something good or bad that you might experience while starting to day trade bitcoin and cryptocurrencies.
Or, if you are an experienced day trader already you might have experienced something outside of this list. Below follows the complete guide on how to day trade cryptocurrencies for both beginners and experienced traders.
Take your time and read each segment carefully. This guide is meant to be a practical guide and you will be able to apply all of these tips in your own day trading for cryptocurrencies.
After reading this you should have a good understanding of the basics of how to find a coin, select a good exchange, use the best order types, enter, exit, and have the right mindset for the job.
Depending on your skill level and your own style the amount of trades varies from trader to trader. Generally speaking, a day trader opens between one to several thousands positions in one single session.
02.2022 Not all cryptocurrency and bitcoin trading platforms will accept all payment providers so make sure yours has at least card payments as an option. The operational concept is very similar to stock or forex trading, where you speculate on the price of a financial instrument and hope to profit off it. Best way to day trade cryptocurrency Here we provide some tips for day trading crypto, including information on strategy, software and trading bots — as well as specific things new traders need to know, such as taxes or rules in certain markets.The positions are based on pre-set criterias based on a strict plan that was developed over time. Different day traders have different approaches to the markets and how they operate.
Some prefer to trade in the morning when the volatility increases and the volume spikes. Others prefer to trade during the calm mid-day period when most of the traders are taking a break from the screens.
What keeps all day traders together is the fight for profits and this comes from strict planning and perfect execution.
The bigger the size is the more you stand to make. New traders are recommended to start off with a smaller account when learning.
Experienced crypto day traders stand to make tens of thousands of dollars in a single day when putting on the right trades.
On the other side of profit is losses and this is the other side of the coin that all day traders will learn sooner or later.
To wrap up, cryptocurrency and bitcoin day trading is the act of entering and exiting the market on a daily basis with the goal of making a profit from small and large market moves.
When are ready to start trading you need to find a cryptocurrency and bitcoin exchange for day traders. I have listed the top 10 exchanges that I personally have used and I would recommend that beginners try.
We highly recommend that you trade on a regulated exchange for safety reasons, or on a very famous platform with a long track record of being safe.
Out of all our reviewed cryptocurrency exchanges, we have gathered a list of the best day trading exchange platforms that really have what it takes regarding speed, safety, usability, technology, and day trading tools for cryptocurrencies.
They are all very easy to use and have several payment methods to serve a large audience. Take your time and browse the reviews to see which exchange fits you best.
Some of these exchanges are regulated and some are not, however, all of these platforms have a great track record of being safe.
Without this knowledge, you stand to make a lot of mistakes and perhaps lose a lot of money along the way. I recommend that you read through all of these topics as they are the very basics of bitcoin and cryptocurrency day trading you need to know before you even open an account.
All of these red and green lines are called candlesticks because they kind of look like a candle.
As a day trader making a high volume of trades, just a marginal difference in rates can seriously cut into profits. Way to day cryptocurrency best trade You will use moving averages when you need to smooth out the price activity to get a better picture of the current trend in the market. January 8, at am.You will only be able to see what has happened in the past since they only record the past action of a market.
You can choose what time frame you want to use for each candlestick and that makes it very adaptable depending on what kind of trader you are.
Here you can clearly see how the bitcoin market moves up and down creating long and short candles that tell you where the price has been.
This takes some time to learn but when you learn how to do it you will be able to make money trading cryptocurrencies.
What you see in the middle is the body, the smaller parts on the top and at the bottom are the wicks or the shadows.
There are hundreds of popular ways to analyze your coin and build profitable setups using these technical tools. You can also start day trading cryptocurrencies and bitcoin with either of these or use some of them together.
However, the more indicators you use the more difficult it is so I would recommend starting out with only one.
02.2022 Is it something you are going to consider, or do you prefer the sound of long-term trading instead? Experts, who once negated the approach are accepting it with open arms. Best way to day trade cryptocurrency What you can see here is a couple of setups during the day that would have resulted in quick profits for the day trader who enjoys entering and exit the market very rapidly.The volume indicators will tell you the number of contracts that have been traded over a period of time.
Each candlestick will have a representation of volume underneath that tells you how many bitcoins for example was traded during that time period.
This is very important information for you as a day trader because now you know where people are holding a lot of contracts for the day.
If the market starts declining you know that these traders are in trouble and will have to sell out quickly to not lose more money.
Volume is also good for day trading bitcoin and cryptocurrency if there is nothing going on with this price. Then you can double-check with the volume indicator and make the call to not open any positions for a while.
You will use moving averages when you need to smooth out the price activity to get a better picture of the current trend in the market.
Besides the trend continuation patterns, there are candlestick patterns that usually anticipate a trend reversal. Therefore, almost everyone in the market has an opinion of how the value or price of a digital asset will move. Best way to day trade cryptocurrency pdf free download What kind of pattern are we looking for? Of course, prices still go up or down, but compared to cryptocurrencies, it would generally only be by a small amount.The best way to use moving averages when analyzing bitcoin and cryptocurrencies for day traders is to start out by using only one.
This means that it will calculate the price over 14 candlesticks and divide it to create this line. Also, you can use other settings of the moving average combined with different time periods that match your own style of trading.
There are two distinct areas in the price where the RSI would have been a very profitable tool to use. To the left, the market clearly made some kind of a bottom with the RSI moving out of the oversold area and continue up.
This was a great opportunity to short bitcoin using the RSI indicator and make a handsome profit. Day trading bitcoin and cryptocurrencies have proven very profitable some days while using this indicator as you soon will see.
What you can see here is a couple of setups during the day that would have resulted in quick profits for the day trader who enjoys entering and exit the market very rapidly.
As you can see here, the Bollinger Band is a very interesting technical tool that will signal when the market has gone too far too fast.
This gives you a lot of opportunities to make quick trades several times a day and if you are good at it and you trade with some size you will be able to profit well from this indicator.
Many day traders like to trade bitcoin and cryptocurrencies with leverage while using the Bollinger bands. Finally, if you want to learn more about technical indicators for cryptocurrencies I recommend that you read this article.
When you first start out you will have to go through a couple of bitcoin and cryptocurrency day trading strategies to find one that suits you.
Different traders have different personalities and they should trade the equivalent of their personality, such as:. Of course, there are a lot more strategies to implement in your trading, and as you learn you will be able to create your own strategies.
A breakout happens when the price has stayed in the same area for a while and moves either up or down to the next price area.
It is at this moment you as a scalper or day trader needs to pay attention to what is going on and get ready to click the buy or sell button.
This can be a very fast-paced trading style but it is one of the more reliable setups you can ever trade.
Before we jump into an example I first want to highlight the pros and cons of this day trading strategy. This setup was spotted a few days ago and was a very profitable trade for all the breakout traders who took it.
The breakout often happens when a number of tops or bottoms are lined up and the explanation for this is very simple.
When the market instead pushes higher these sell orders get stopped out and turns into buy orders.
The good thing about this strategy when you find a real breakout is that your entry price will not be threatened by the market and you can usually ride the trade for the remainder of the day.
This day trading strategy is the opposite of the breakout and it happens much more often than the breakout. A fakeout happens when the market tries to break out from a certain price range but fails and gets pulled back into the range again.
Compared to the breakout strategy the fakeout strategy happens much more frequently but it lasts for a shorter period of time.
So, this one suits you best if you are an active bitcoin or altcoin scalper and like to trade in and out of the market very often.
As you can see this occurs much more frequently but the duration of the trade time is much shorter. If you enjoy active trading and have access to more capital or leverage trading you can make good money trading this setup.
This means that when most of the traders feel like buying the market, the market will keep increasing in price for some time.
And the opposite is true for the downside, if there is a consensus of declining prices, the market generally creates a negative trend.
The trend setup is a very common strategy used by many traders and it sort of feeds on itself because of its popularity.
The earlier you enter the better it is and sometimes you have to make a small prediction that the trend will last and enter the market on a hunch.
If you enter early and you see that the market is strong, or weak, you are able to add to this position further on to make it even more lucrative.
This trend lasted for more than a full day which made it very profitable for those who spotted it early. Cryptocurrencies are even more difficult to follow due to the high volatility that might shake out the majority of day traders.
For those of you who have only been trading for a while and get stopped out frequently on your day trades have probably been a victim of stop-hunting.
The way it works is simple when ever there is a trend line, bottom line, or a top trendline created there are usually a lot of stops clustered behind the levels.
This will cause the market to move rapidly and when the orders have been cleared, the price usually retracts in a matter of time.
If you truly master this strategy and learn how it really works you stand to make small fortunes with this high probability setup.
The entry comes after you realize this is only a stop-hunt and the market is falling back inside the range again.
Day trading cryptocurrency: find out how to day trade cryptocurrency and become n expert in no time. Day trading cryptocurrency made easy for you!
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If there's a disagreement of interest behind a referenced study, the reader must always be informed. Well before you do, I think you should read my guide first!
This will start by explaining exactly what day trading is, followed by the things you need to consider. By the end of reading my guide from start to finish, you will have all the information you need to decide if day trading cryptocurrency is right for you.
When people talk about trading, they are referring to buying and selling an asset with the aim of making a profit. For example, in real-world stock exchanges, people trade all kinds of things.
This can include stocks and shares like Apple, currencies like U. Dollars, and even metals such as Gold and Silver.
Whatever is being traded, the objective is the same. Buy an asset and then sell it for more than you paid for it!
This is exactly the same as trading cryptocurrency. There are different types of trading goals, which are normally split into short-term trading and long-term trading.
This is determined by how long you like to hold an asset before you sell it. Day trading is very short-term trading, and it can mean holding an asset for just a few seconds, to a couple of hours.
The idea is that you sell your asset before the end of the day, hoping to make a small, but quick profit.
However, it is important to remember that the above two trades are examples of a successful prediction. On another day, the prices could have easily gone the other way, which would have meant that both Peter and John lost money.
The main idea is that when day trading, you look for opportunities to make a quick profit. If you are planning on holding on to a cryptocurrency for longer, this is called long-term trading.
It literally just means to hold a coin or token for a long time and resist selling it. There are lots of different methods that people use today trade, but the main two are based on either speculation or chart analysis.
Speculation is when a trader believes a price will go up or down because of a certain event. In the above example of Peter, he purchased Ripple because he saw a positive news story.
There was no guarantee that the price would go up, but he speculated that it would be based on his own opinion.
The other day trading cryptocurrency strategy often used is chart analysis.
This is where traders study the price movement of a particular cryptocurrency and try to guess which way it will go, based on historical price movements.
When analyzing charts, you can look at how a price moves every few seconds, minutes or even hours. In the above section, I briefly discussed what day trading cryptocurrency actually is and some of the crypto trading strategies people use.
This section is going to talk about the mental side of trading, which is probably the most important thing to consider.
Firstly, there are one major difference between day trading cryptocurrency and day trading real-world assets.
The reason for this is volatility. Volatility is when the price of an asset moves up or down really quickly, meaning it can either be a great success for the trader or alternatively a great failure.
For example, if you were day trading stocks on the NYSE New York Stock Exchangeit is very unlikely that the prices would change that much in a 24 hour period.
This is because they are safe companies that have been operating for a long time. Of course, prices still go up or down, but compared to cryptocurrencies, it would generally only be by a small amount.
On the other hand, the prices of cryptocurrencies are very volatile. In some circumstances, even more. Anyone that bought the coin towards the start of the day would have made a lot of money, however, the people that bought it at its highest price would have lost the majority of their investment.
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The E-Coin example is why it is important to understand that day trading Bitcoin and other cryptocurrencies will not always go to plan.
You have to be able to accept losses when they happen, as this is a part of trading. Even the most successful traders in the world make losses, as it is impossible to always make the correct prediction.
Chasing losses is the act in which a trader experiences a bad loss and they attempt to make it back by taking really high risks.
This is one of the main reasons why the majority of traders fail. You have to accept that you will always make losses at some point!
Before you even think about depositing funds into your new trading account, it is really important that you practice first.
Although none of the major cryptocurrency exchanges offer a demo account, a good place to start would be Coins2Learn.
Coins2Learn offers a trading simulator that allows you to trade using fake money. The platform is really good for beginners and they even offer tips and how to become successful.
You can access their website by clicking this link! Once you have a better understanding of how the markets work, the next step is to do the real thing.
This is why it is important to start off with really low amounts. In fact, the amounts must not be any larger than you can afford to lose.
At this stage of your day trading cryptocurrency career, you will be learning about the highs and lows of the markets and most importantly, improving your skills and knowledge.
Once you have figured out how the markets work and you feel you are ready to start trading with real money, you now need to set yourself some targets.
This is really important as if you are planning to do this as your part-time or full-time job, you need to have expectations as to how much you hope to make.
These traders will have a very large "bankroll", meaning that they can still make good money even if the percentage gains are small.
Although this sounds like a small amount, in the long run, this will protect you from going broke. Another important aspect to day trading cryptocurrency is that you set yourself a stop loss.
A stop-loss is when you enter a price that you want to automatically exit your trade. This protects from you a sudden decline in price, or if you were not at your computer to do it yourself.
If you feel that you will not have the mental desire, time or patience to become a day trader, you could always consider long-term investing instead.
Long-term trading is far less stressful, as once you buy a coin you can leave it to grow over a longer period of time.
This could have been achieved without you needing to sit at your computer all day to check for any price movements.
You can also apply the same trading techniques too, such as setting stop-losses or market limit-orders. However, if you are certain that you want to become a cryptocurrency day trader, then the next part of my guide is going to show you how to get started!
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Now that you know what day trading cryptocurrency requires, as well as what you need to consider, I am now going to show you how to get started!
The first step when looking at how to day trade cryptocurrency will require you to find a good exchange. A cryptocurrency exchange will allow you to buy and sell coins 24 hours per day.
It is important to think about what kind of cryptocurrencies you are looking to get involved with.
If you are looking to day trade full time, then it is well worth choosing an exchange that has lots of difference pairings listed.
Note: A pairing refers to the two coins that are being traded. It is also important to find an exchange that has lots of liquidity.
This will ensure that you can always be matched with a buyer or seller, otherwise, you might not be able to close your trade when the price is falling!
A good place to start would be Binance, as they have hundreds of trading pairs available and they also have one of the largest trading volumes in the market.
To find out more information on setting up an account at Binance, see my guide here! Once you have opened an account with an exchange, it is time to deposit some funds.
If the exchange that you want to use does not accept real-world money deposits, then you can first go to Coinbase to buy some Bitcoin or Ethereum and then transfer it across.
You also need to consider how much you are planning to deposit. Never forget that the cryptocurrency markets are really volatile, so there is always a chance you could lose your entire investment.
Start off with smaller amounts first. Once you are set up and you have deposited some funds, take some time to understand the different features on the trading screen.
Every exchange will have a chart, so it is a good idea to learn how to analyze pricing movements. You can visit their free guide here.
The green bars mean that the price has gone up, while the red bars mean that the price has gone down. Learning how these tools work is really important as it will allow you to identify when there is a good chance that a coin is going to rise or fall.
Comments:
Aisha says:
24.10.2021 19:51
....Oct 01, · How to Trade Cryptocurrency for Profit. In reality, trading Cryptocurrencies for profit is not as complicated as you may think. In this article, we’re taking a look at the best ways to trade cryptocurrencies so that you can learn how to day trade Bitcoin, Ethereum, and other coins in no time. Such competition is a mechanism to weed out bad solutions and is a component of current human's form of continuation. ...
Kaylani says:
23.10.2022 21:31
....May 13, · The “lucky” ones have made a serious amount of money doing this, and there are lots of people that are now trading cryptocurrency as a full-time job. Cryptocurrency day trading might be one of the best ways to make a fast profit. However, if you want to earn a lot, you have to close many positions during the day. Thanks for the input. ...
Amaya says:
27.07.2022 16:03
....Jul 29, · In summary, the cryptocurrency trading arena is worth billions of dollars each and every day. While most traders opt for BTC/USD, others prefer to trade crypto-cross-pairs. Either way, not only does the cryptocurrency trading scene operate one 24/7 basis, but liquidity levels are now super-high. I just finished a gorgeous anime and ironically had a talk about the very stuff the anime deals with lsat night. ...
Kamiyah says:
26.07.2021 16:06
....This isn’t the only way to trade cryptocurrency without paying fees, but it may be the simplest and most user-friendly option (especially in WA and NY where choices of exchanges are limited due to state regulations). To trade cryptocurrency without paying any fees: Sign up for Coinbase (click that link to get $5 in Bitcoin free when you sign up). Why in the world should our existence have any more "meaning" than the existence of, say, cockroaches? We are all part of the same eco-system. ...
Nora says:
17.10.2021 12:06
....Aug 01, · The first step when looking at how to day trade cryptocurrency will require you to find a good exchange. A cryptocurrency exchange will allow you to buy and sell coins 24 hours per day. It is important to think about what kind of cryptocurrencies you are looking to get involved with. ' I once heard it said that the purpose of 'consciousness,' is for the universe to wake up and admire itself. ...
Blake says:
03.03.2022 14:57
....Here is a quick plan to get you trading cryptocurrency quickly: Decide if you want to own the cryptocurrency, or simply have a hunch that it’s value will go up or down. If you want to own the currency, you need an exchange – Try BitMex – It is a simple, user friendly app If you want to speculate on the price, you need a broker. And it's your job to keep expanding that edge by creating and living and experiencing. ...
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