Monday, October 3, 2022

How To Day Trade Cryptocurrency

Ig Best Crypto Day Trading Platform For Tools And Analysis

Simple Method To Make $100 a Day Trading Cryptocurrency

IG is a UK-based brokerage site that offers CFDs, forex, traditional shares and funds, managed portfolios, and cryptocurrency trading. You will have access a good selection of crypto-asset CFDs – all of which are traded against the US dollar.

This includes Ethereum, EOS, NEO, Litecoin, Bitcoin and Stellar. There are no commissions to pay when day trading crypto at IG, as everything is built into the spread. This is typically very competitive, with BTC/USD and ETH/USD averages a spread of 36 pips and 1.2 pips respectively.

The IG platform is favoured by technical traders that like to perform in-depth research and analysis. You can also trade via the popular third-party platform MT4. We also like IG as it offers a crypto index that consists of 10 large-cap digital currencies. This allows you to trade the wider cryptocurrency markets as opposed to focusing on one coin.

Pros:

Your capital is at risk.

Which Cryptocurrency Is Best To Invest Now

Litecoin has an 84 million coin limit and a 12.5 LTC block reward, which is more than other cryptos. Miners will find that mining Litecoin is faster than mining any other cryptocurrency because the average time to mine a Litecoin is under two minutes. Because of its increasing popularity, Litecoin is the best of all the altcoins. At WazirX, the current price of Litecoin is 12,410.22.

Day Trading And Scalping

A crypto day trading strategy allows the trader to take full advantage of cryptocurrency assets price volatility. As mentioned earlier, virtual assets are currently extremely volatile, which works to the advantage of a day trader.

The day trading strategy is a game of numbers strategy. A day trader will make multiple trades within a day, buying low and selling high within little gains that compound to large sums by the end of the day. Typically, sometimes it gets hard to perform this manually. To succeed in thisstrategy, you will need to consider automating your trades using trading applications or crypto trading bots like Coinrule.

Important: It is not recommended that you begin your trading journey as a day trader. This is because this strategys fast-paced nature will require that you make fast decisions, and there is little room for research between trades.

Scalping is a part of day trading but typically involves concise trading periods. Think minutes.

When either day trading or scalping, many trades will result in both wins and losses. The idea is to make sure that the win/loss ratio is in your favor. Score more wins to consider your strategy a success.

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Day Trading Cryptocurrency How To Make $500/day With Consistency

by TradingStrategyGuides | Last updated Jul 9, 2021 | Advanced Training, Cryptocurrency Strategies, Indicator Strategies, Indicators |

Would you like to learn day trading cryptocurrency and make a consistent $500 per day? We often hear about all the money you can make by day trading stocks. But what about crypto day trading? In todays lesson, youll learn how to day trade cryptocurrency using our favorite crypto analysis tools.

Our team at Trading Strategy Guides is lucky to have over 50 years of combined day trading experience. Were going to share with you what it takes to day trade for a living, and hopefully, by the end of this trading guide, youll know if you have what it takes to succeed in this business.

First and foremost, when day trading, its essential to have a structured approach and a rule-based strategy. The same as swing trading or positional trading you are not going to trade every day, and youre not going to make money every day. So, you need a day trading cryptocurrency strategy to protect your balance.

The high volatility nature of Bitcoin and other cryptocurrencies has made the crypto market like a roller-coaster. This is the perfect environment for day trading because during the day youll have enough up and down swings to make a decent profit.

Moving forward, were going to teach you what you need to learn how to day trade cryptocurrency and were going to share some out-of-the-box rule-based day trading strategies.

The Python Code Editor

Day Trading

Our Python Code Editor is a flexible and rich tool that allows developers to make use of their coding knowledge to create intricate and advanced strategies securely and fast. The Editor itself comes with a debugger and a range of libraries which includes Pandas, NumPy, Tulip and more. We also recently updated the trading engine too and it not features a list of powerful and helpful updates.

You can get started coding your own bot even quicker with our handy bot template!

Currently, users are able to deploy their bots on a number of the most popular platforms including Binance, Coinbase Pro, Kraken and Bitpanda. Start your day trading journey with Trality now.

Also Check: Should You Invest In Bitcoin

Strategy : Bankroll Management

The first strategy to incorporated when learning how to day trade crypto is with respect to bankroll management. In its most basic form, this refers to the process of protecting your investment capital at all costs.

  • The most tried and tested way of achieving this is to set some clear restrictions on the amount of capital that you can risk on a single trade.
  • For example, you might decide that no more than 2% of your balance should be risked per position.
  • This means that with a balance of $10,000 your maximum trade size stands at $200.
  • Then, if in a few months time you have increased your balance to $20,000, your maximum trade size stands at $400.

In taking this approach, the theory is that you will never burn through your trading balance. After all, if you go on a run of bad form and your balance continues to decrease, as will the maximum trade size that you can enter.

For example, if your balance went from $10,000 to $5,000, the maximum amount that you can risk per trade at 2%, is reduced from $200 down to $100.

How Much Money Do You Need To Day Trade Crypto

The answer to this question varies largely. However, when you are day trading cryptocurrencies, you might be required to have a higher initial deposit. The number of profits you generate will be very different when you start trading with $10, or $1000.

To make higher profits while day trading crypto, you will be required to start trading using a higher initial deposit.

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Is Ethereum Safe To Invest

The Bitcoin market is unquestionably more volatile than the stock market. This may not be the market for you if you are incredibly risk-averse. Ethereum, on the other hand, may be a terrific investment for you if you’re a diamond-handed investor who won’t lose sight of short-term losses. Ethereum is a relatively safe investment as it is also based on blockchain.

Similarities Between The Crypto And Stock Market

Easy Cryptocurrency Day Trading Strategy Anyone Can Follow – Crypto Tutorial
  • Stock trading and investing tools are more or less the same. This is especially true for technical traders using tools such as charts to analyze the market. You can use the same tools to perform TA ” rel=”nofollow”> Technical Analysis) for trades on either market.
  • Assets denominated using fiat currencies. The crypto market may be innovative and revolutionary with the assets designed to append the current financial system. However, the denominations in the marketplace are still valued compared to fiat currencies similar to the stock market.
  • Trading and investing strategies are similar. In the stock market, traders can choose to day trade, swing, or position trade. They can also opt to buy and hold their assets for the long term. Similarly, traders and investors in the crypto market can do the same things.
  • Similar market products. The stock market has been around for generations, leading to innovative products such as derivatives and techniques such as using leverage to inflate gains Those same products and techniques have been ported over to the new age cryptocurrency market. You can now trade Bitcoin futures, options, and leveraged tokens. You can use leverage on most of your trades on most leading cryptocurrency exchanges, such as Binance, Bitfinex, or BitMEX. The full list of digital asset exchanges with a leverage trading here.

Please note: DO NOT trade cryptocurrencies with leverage unless you are fully aware of what you are doing and what risks you face.

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Best Day Trading Crypto Platforms List

In order to day trade crypto today, you will need to open an account with a top-rated platform.

The five best crypto day trading platforms can be found in the list below.

  • eToro Overall Best Day Trading Platform for 2022
  • Crypto.com One of the Best Crypto Exchanges for Day Trading
  • Coinbase Top Crypto Day Trading Site for Beginners
  • Webull One of the Best Apps for Day Trading Crypto
  • Binance Day Trading Crypto Platform With Low Commissions

Be sure to read our reviews of the above-day trading crypto sites before proceeding.

Why Cryptos Are Great For Day Trading

I couldnt give a damn about blockchain applications, ICOs, or how cryptos are going to change humanity for the better. I dont even care if it ever surpasses $20K again.

To me, Bitcoin and the other main cryptocurrencies are good for a different reason.

Theyre easy to trade if you know what you’re doing that is.

Price moves are dramatic. Collapses are stunning. Consolidations are followed by massive increases in volatility. This is a language I can talk not how revolutionary blockchain is.

Have A Day Trading Crypto Strategy

None of my friends talks about crypto these days ironically it’s me doing all that!

But none of them had a system or methodology of any kind either.

It was Jesse Livermore who first observed different stocks and markets have different personalities. That was nearly a hundred years ago.

But his observations are just as accurate today as they were then.

The reason I love the crypto market so much is, short-term trading strategies that I typically use on a daily chart, work a charm intraday on Bitcoin and the others.

Also Check: Where To Buy Eos Crypto

What Is Day Trading

It is important to note that day trading has been borrowed from the traditional financial markets, and the same principles apply to bitcoin day trading. Day trading involves speculating the price of a crypto asset over a single day. For cryptocurrency day traders, the rule of thumb is to open and close all positions within the same day. Otherwise stated, day traders do not hold their positions overnight.

How Do I Make Money Day Trading Cryptocurrencies

Swing Trading Cryptocurrency

Day trading should not be looked at as a get-rich-quick scheme, and the same goes for cryptocurrencies. Instead, the trading strategy should be viewed as skills that are acquired through research, experience and understanding. Through the use of technical analysis, successful day traders identify patterns within the markets on which they base when to open and close positions. They will look at aspects like chart patterns, price action, technical indicators, volume, and of course, incorporate risk management in order to minimize any losses.

Slightly riskier however still an option, some crypto day traders prefer to trade the news, taking advantage of cryptocurrencies with high volume that have recently had fluctuations in price following a news announcement. If youre new to day trading we would definitely not advise this option, instead, opt for highly liquid market pairs.

Arguably two of the most important aspects of day trading one needs to look at are the particular cryptocurrencys liquidity and volume. As youre looking to profit on the markets volatility, good liquidity will better allow you to make quick trades .

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Best Crypto Day Trading Platform 2021 List

The best crypto day trading platforms of 2021 can be found in the list below. Scroll down to read our comprehensive review of each platform.

  • eToro Overall Best Crypto Day Trading Platform 2021
  • Libertex Best Crypto Day Trading Platform for Tight Spreads
  • Pionex Best Crypto Day Trading Platform For Bitcoin Novice Investors
  • Binance Best Bitcoin Trading Platform for Day Traders
  • Coinbase Best Ethereum Trading Platform for Newbies
  • Capital.com Best Crypto Day Trading Platform for Beginners
  • Robinhood Best Crypto Day Trading Platform for Micro Investing
  • AvaTrade Best Crypto Day Trading Platform on MT4
  • Forex.com Best Day Trading Crypto App
  • IG Best Crypto Day Trading Platform for Tools and Analysis
  • Interactive Brokers Best Crypto Day Trading Platform for Bitcoin Futures
  • Crypto assets are highly volatile, unregulated investment products. No EU investor protection

    Buy And Trade Cryptocurrency On Liquid

    If you are interested in cryptocurrency investments, create a free account on Liquid and enjoy access to over 80 crypto coins and tokens via simple purchases with your VISA card. Additionally, Liquid offers high-performance API, deep liquidity, and low fees. Liquid offers some of the most unique trading experience in the industry with a wide variety of assets, all in one platform.

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    Day Trading Cryptocurrency: How To Get Started

    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. For example, if you believed that the price of Ethereum would increase against the price of Bitcoin, then you would need to find a BTC/ETH pairing!

    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. Most cryptocurrency exchanges do not allow you to deposit using a debit/credit card or bank account, however, some do.

    Treat Trading As A Business With Mitrade

    Simple Method To Make $100 A Day Trading Cryptocurrency As A Beginner | Binance Tutorial Guide

    Successful trading is a business, not a hobby. Like any business, you have profits and expenses. How you manage them both determines how far you go.

    Nowhere is this truer than when day trading forex or CFDs.

    Day trading cryptos offer fantastic rewards, regardless of whether it goes to $100K or never again goes about $20k.

    The volatility in this asset class is truly immense and it is a day traders dream.

    Have you ever known a business that required no customers, no selling, was location independent, no stock purchases and no marketing?

    Have you ever known a business that was location independent and didn’t require a special business premise? Or that didnt require a special license? Or one where you could make up your work hours?

    There is no business in the world like that, except one. Trading.

    Here at Mitrade we want to help you make your trading journey both as enjoyable and as profitable as it can be.

    Day trading cryptocurrencies CFDs is just one of several routes to do that.

    Happy Trading.

    Start Trading Today

    Mitrade is an ASIC-regulated broker. They provide reasonable leverage based on different trading instruments. Also, Mitrade provides you protection against negative balances, allowing you to control the trading risk and trade with peace of mind.

    Competitive Cost, 24-hour Trading

    Zero commissions, low overnight fees, and competitive and transparent spreads. All costs will show on your deals order.

    Low Deposit High Leverage, Trading Anytime Anywhere

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    How To Start Day Trading

    Starting to day trade is theoretically as simple as choosing an exchange to trade on, depositing funds, and choosing cryptocurrencies to trade.

    In reality, the act of choosing what to trade and when is incredibly complex. Remember that cryptocurrencys volatility allows for potential rewards, but it is also a risk. If you dont know what you are doing and make trades without proper research, you can easily lose everything that you invest.

    Because of this, one of the most important steps of day trading is learning how to make a trading strategy. You need to learn technical analysis and various trading strategies. You will have to constantly pay attention to the news and not just the news related to cryptocurrencies.

    There is also the added challenge that the crypto markets are open 24/7. No human can trade 24/7, so you need to use automated crypto trading accounts if you dont want to miss out on opportunities. In turn, bots require programming knowledge.

    What Is The Best Crypto For Day Trading

    One of the best things about day trading crypto is that there are no restrictions on which digital currencies you can target.

    After all, you are only looking to keep positions open for a matter of hours or minutes, so your overarching goal is to profit from short-term trends.

    With that said, some digital currencies are better for day trading than others especially those that benefit from high levels of liquidity.

    Moreover, crypto traders will often seek pairs that attract higher levels of volatility as this presents plenty of profit-making opportunities throughout the day.

    If youre still not sure which cryptocurrencies are the best to day trade for your investment objectives consider the five digital assets discussed below.

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