Day trading stocks might intimidate some people, but day trading cryptocurrency is another story. Still, it’s easy to see how the appeal of trading crypto coins could be overwhelming to a new trader the volatility of the market is so high that on any given day a coin can be worth hundreds or thousands of dollars more than the day before. So, if you’re thinking of dipping your toes into day trading, it’s best to get started by learning some strategies before you invest real money.
1. Choose a platform to trade
Day trading also referred to as “day trading futures and options”, is a type of investment strategy in which you buy and sell financial instruments within the same day. Once you’ve opened an account with a broker who will place your trade for you, the next step is to decide whether to trade a traditional stock, or cryptocurrency crypto like Bitcoin (BTC).
2. Choose your investments
If the idea of day trading cryptos appeals, here are some strategic ways to approach day trading in this volatile market. First, choose an investment strategy.
1.Choose your investments
The first thing you’ll need to consider before you can start day trading cryptos is which investment strategy you will adopt, and this will depend on which type of cryptos you choose. –
There are three main categories or types of cryptos: Bitcoin, Ethereum, and Ripple. Bitcoin is the original cryptocurrency, and it’s the most valuable of the three, having gained the most value since its inception. Ethereum has overtaken Bitcoin and is the second largest crypto behind Bitcoin. Ethereum has an impressive array of developers, and its platform runs a lot of the most popular blockchain applications. Ripple is a type of crypto which does a lot differently than Bitcoin and Ethereum. Ripple is developed by the Ripple company, a Silicon Valley-based company founded in 2012. Ripple focuses on bringing banking
3. Choose a trading strategy
Day trading crypto is a high-risk, high-reward strategy that involves making trades within a 24-hour window, trying to turn a profit on small, quick price fluctuations. Day trading isn’t for the faint of heart, but if you want to see the best returns in the shortest amount of time, it’s your best bet. Crypto day trading is most popular with younger investors, but anyone can do it. All you need is a bit of preparation and the right strategy.
4. Technical analysis
Hold to Purpose. When contemplating trading crypto coins, it’s important to consider why you’re investing in the space. How are the coins you’re using likely to perform? Who are the people behind the coins? What is their track record? Is it a good idea for you to do so? Help yourself succeed by thinking through the answers to these questions.
- Follow Money Behind the Coins. As an investor, you need to be interested in the money behind the coins you’re investing in. What does the development team working on each coin look like? Who are they? Are they experienced? Look beyond names, though. Instead, consider things like experience, education, and accomplishments.
- Find a Hobby or Passion. Before you invest in crypto, find a hobby or passion that resonates with you. Crypto and its technology are relatively new, and the process of buying and selling crypto coins can be confusing. Having a hobby or passion makes it easier to understand the markets. For example, if you’re passionate about cars, you might want to.
Pros and cons of day trading cryptocurrency
Day trading cryptocurrency is one of the hottest trends in the crypto-world right now. You can clearly see why after all, how much money can be made in a day? And, more importantly, how much can you lose in one day? While day trading is not for the faint-hearted, it is a tempting proposition to anyone who is looking to make quick money. But before you take a plunge into the world of cryptocurrency day trading, there are a few things you should know.