How to Day Trade in Cryptocurrency

How to Day Trade in Cryptocurrency

Crypto has gain a lot of eyes especially from recent years. We all know that cryptocurrency , having an extreme volatile graph, so much of value , it is still the most searched terms when it comes to the financial topics. We all know what cryptocurrency is , and we are very well aware of the fact that there are majorly 2 most famous cryptocurency. Bitcoin & Ethereum. But not everyone of us know that cryptocurrency is highly volatile. In this article you will know about how you can trade in Cryptocurrency. 

Before moving further, you should know about crypto day trading. Crypto Day Trading is trading in short term , short term is on the same day which includes sales and purchase of the cryptocurrency is known as Crypto Day Trading. It involves elements of high risk and in very volatile. To be consistently successful, crypto day trading, unlike traditional day trading, demands a deeper understanding of crypto and blockchain technologies.

Day trading is a form of financial strategy that involves making many stock deals in a single day. Day traders are more concerned with short-term profit possibilities than long-term profitability is for traditional buy-and-hold investors.The initial decision isn’t always the greatest when it comes to determining where to conduct crypto trading. For inexperienced crypto day traders, the possibilities and distinctions between the various crypto exchanges can be confusing.

So, here are the steps to day trade in Crypto –

  1. You have to choose the right platform

In order to trade you have to choose the right platform to trade for the cryptocurrencies. You have to make some research about the apps or the websites that could suite the best to you. Liquidity, assets and fees are the top checkpoints you have to make while choosing a right platform.

For how much years the platform is working from, you have to know what are the cryptocurrencies that are available to trade in that platform, what are the transaction fees these platforms charges. Do they charge per transaction fee ? What are the reciews and the feedbacks for that platforms ?

  • Doing the research

Before investing in any of the cryptocurrencies you need to do the research about that particuar cryptocurrency. What is the past of that cryptocurrency, who is the owner of that particular cryptocurrency, is the owner renowned person? What type of business thay own, what is the proce of that crypto, compare the charts of that crypto to its perivours year charts etc etc.

  • Technical analysis (TA) is the process of predicting future price movements using mathematical indicators and chart patterns. Some technical indicators, such as the RSI, can be generated using software such as TradingView, while others must be discovered through chart research (the cup-and-handle pattern, for example).
  • Range trading is based on the idea that prices tend to move in a certain range. Candlestick charts, as well as support and resistance levels, are used in this method.

When the price is at support level, it is advisable for you to purchase and when the price hits resistance level, it is advisable for you to sell. They might also go short when prices hit resistance and then conclude the trade when prices hit support.

  • Bot trading, often known as high-frequency trading (HFT), is the practise of doing a large number of deals in a short period of time using algorithms and trading bots. This method needs an in-depth knowledge of advanced trading tactics and programming.

While bitcoin trading bots do the actual trading, high-frequency traders don’t just sit back and let a computer programme do it all. Trading bots demand the creation of a specific strategy, a programme to implement that plan, and ongoing monitoring, backtesting, and algorithm upgrades to keep up with changing market conditions.

 Because it demands quick decision-making and execution, day trading may be challenging and demanding. Day trading is risky and requires a deep grasp of the market. Long periods of looking at screens will, of course, be required.

It is very popular form of stratergy in a crypto and stock market.   However, the thing you must keep in your mind is that the crypto market in highly volatile and highly risky.

 Intraday trading strategies are used by day traders to profit from market volatility, and they typically only hold positions for one day.

Day traders analyse trade conditions using technical analysis, chart patterns, and technical indicators. Some important andthe most popular trading tactics are Range Trading, High Frequency Trading and Scalping.

It is advisable for you to trade at your own risk. We are not responsible for any of the losses or gains as this article is to provide the information to you.  This article is for the purpose of spreading information to all of it’s users. If you are having any questions or doubts you can comment below.