Sunday, July 3, 2022

How To Pick Crypto For Day Trading

Sign Up For A Cryptocurrency Exchange

How to Choose Crypto Coin for Day Trading

Youll need to open an account with a crypto exchange unless you already own cryptocurrency. The best crypto brokerages on the market include Coinbase, eToro and Gemini. All three of these services have a straightforward user interface and a wide range of altcoins to pick from.

To open an account with a crypto brokerage, youll need to supply personal identifying information just like you would with a stock brokerage. When creating an account, youll need to submit your address, date of birth, Social Security number and email address, among other things known as Know Your Customer requirements.

Thoughts On Day Trading

Dont dismiss this system because its simple. I have made a career out of this type of thing.

Many traders choose to fill up their charts with all sorts of things. Trendlines, support resistance levels, fib levels, MACD, RSI, etc

When you’re day trading you need to be able to think quickly, and if you’re processing too much data or metrics it is going to confuse.

Day trading is hard enough because you can spend long hours at the pc, waiting for a setup to come along. This can lead to lapses in concentration.

After sitting for hours, worrying when a setup will come along, and questioning whether you are going to make money that day it’s easy to start placing trades you shouldnt.

Also, trading is the most emotional type of trading there is. Money can be made, and lost in record time, which can lead to overconfidence or fear of the market.

You need a clear head when day trading cryptos.

If you win money quickly, you can become greedy. If you lose money too quickly it can start you on a path of revenge trading.

Yep, day trading is hard but is also why we are compensated so highly for it.

Knowing Your Chart Patterns

Knowing and recognising a chart pattern accurately can be the difference between a successful and unsuccessful trade. The more patterns you can read, and the faster you can read them, will gradually increase your ability to make quick and accurate trading predictions. Don’t try day trading unless you can read the chart and understand all its conveying information. You can start by studying these 10 candlestick patterns.

Recommended Reading: Is Robinhood Good For Crypto

Ignore Common Suggestions Look At Volatility

Because of the requirements of volatility and liquidity, you will see people frequently recommending that you trade the most popular cryptos. Some say that Ethereum, Litecoin, and Bitcoin are among the best crypto for day trading. Other common suggestions include Zcash, Tron, EOS, Binance Coin, and Ripple.

Remember that while these will occasionally be the best cryptocurrency for day trading, that will often not be the case more often than it is. The fluctuating market means that whats ideal one day wont necessarily be the case on the next day.

Understand How Cryptocurrency Trading Works

Day Trading Crypto For Beginners : 7 Crypto Trading Rules ...

Getting a solid understanding of how cryptocurrency works is fundamental to enhancing your probability of success when trading it. Early investors had the last laugh as the value of crypto surged through the roof over the years. The grass may have been greener, but its important to consider current market conditions, along with possible impacting factors when making trading decisions as any cryptocurrency could always go either way.

Trading cryptocurrency means that youre speculating on the price movements of non-physical currencies. As a tastytrader, you can go long on cryptocurrency if you think that the price will go up. Youd make a profit if you predicted the price movement correctly. But if the price moves against your position, youd incur a loss.

Trading Crypto

Also Check: What Is The Meaning Of Crypto

Why Most Day Traders Fail

You’ve probably heard countless stories and opinions of how day trading does not work.

I’m here to tell you that it is 100% possible to become very successful at day trading.

The reason why so many fail is that getting good at day trading is going to take time, dedication, and a lot of hard work. Many people will see day trading as something they can master within 3 months and start making millions.

Realistically, day trading is a skill. You need to refine your skill over a long period of time. You wouldn’t expect a mechanic or carpenter to master his/her trade in 3 months, so why would you expect to master day trading in the same amount of time?

Binance has the very best volume out of all cryptocurrency exchanges, additionally, they also offer extremely low trading fees at 0.05%-0.1%. The high volume and liquidity at Binance means you’ll be able to be in and out of trades within seconds which is crucial as a crypto trade

Can I Make $100 A Day Trading Cryptocurrency

A $100 a day from trading cryptocurrency is achievable, but there are many factors to consider. Firstly, you cannot make $100 a day if your trading capital is a few hundred dollars. Trading is difficult with any financial instrument, but trading cryptos will test your skills and mental fortitude.

Focus on becoming a better trader and take small trades to build your confidence in day trading cryptos.

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Education & Additional Tools

Its also worth looking out for any additional tools or educational resources offered by the broker, which are invaluable if youre new to crypto investing or scalping. This might include a crypto training course, videos or webinars, a Bitcoin scalping blog, or even a community forum.

For example, Binance has an excellent crypto academy, whilst BitMEX offers a trading community via social media platforms and scalping forums, including Telegram and Reddit. If you prefer non-digital resources, there is also an abundance of crypto and scalping books that you can order online.

How To Start Trading In Cryptocurrency

$100 a Day Crypto Trading Strategy for Beginners (Crypto Scalping Strategy)

Stock markets are regulated by a regulatory body in many countries of the world. However, this is not the case with cryptocurrencies. Most cryptocurrencies in the market are loosely regulated or have no regulations at all. Hence, it is easier for newcomers to enter the market and start trading. It becomes easier for a trader to start investing in the stock market for intraday traders. The first thing you need to do before starting to trading in Bitcoin is doing a fundamental and technical analysis of the market. Fundamental analysis refers to evaluating and getting familiar with the cryptocurrency and the market itself.

On the other hand, technical analysis refers to evaluating the asset and the market using mathematical and statistical factors. These factors include historical prices of the cryptocurrency, recent trends in the market, and patterns in the price movement. Creating an account on a cryptocurrency exchange is the next thing to do before starting Bitcoin trading.

There are many cryptocurrency exchanges in the market where you can create your account and start trading. Some of the best cryptocurrency exchanges are Binance, Coinbase, Cex.io, Kraken, etc. After we are done with our fundamental and technical analysis and created an account at a Bitcoin exchange, we can start with cryptocurrency trading.

Also Check: Which Crypto Should I Buy

Best Crypto Exchanges For Day Trading Compared

Some of the criteria that we look for when reviewing the best day trading crypto platforms include low fees and commissions, lots of supported markets, and access to investment tools and features.

And of course, we only consider day trading crypto providers that offer a safe and secure environment. Taking this into account, the best day trading crypto platforms for 2022 are discussed in the sections below.

Tip#9 Diversify Diversify And Diversify

Investments are unpredictable even those that seem to offer infinite positive returns can come crumbling down under certain economic condition. Cryptocurrencies are even more unpredictable.

As much as you can reap profits in thousands in a day or less, the opposite is also true. You can lose everything you invest in digital assets in a flash of a second. So, the best way to get past such uncertainties is through diversification.

Like I mentioned earlier, the value of all other coins is affected by the value of Bitcoin against the USD. When BTC loses value against the dollar, all other coins lose value and vice versa. From that, you can clearly see that diversifying your portfolio among various coins may not be enough to cushion you against bullish markets.

Do you remember when Bitcoin was at its all-time high in late 2017/early 2018? Everyone knew the way to go was to buy as many digital currencies as possible to gain more value over the dollar.

But having a volatile base asset like Bitcoin comes with its challenges as you may have noticed in the second half of 2018. Bitcoin made a lot of people rich in the shortest time than in the history of any known investment. The truth is, billionaires were made and what most people never seem to understand is that a lot of people also lost money.

And in the midst of all this, the currency managed to grow its market cap by over thirty times more in the past year alone.

Read Also: How To Earn Bitcoin Online

What Are Crypto Trading Pairs

Crypto trading slightly differs from trading in stocks or commodities. Buying and selling shares in the stock market involves money transactions, whereas buying and selling in cryptos involves two different forms, i.e., crypto-to-fiat or crypto-to-crypto.

Crypto-to-fiat means trading of crypto in exchange for native fiat currency. For example, BTC/USD. It means you can buy Bitcoin in exchange for USD.

However, crypto-to-crypto means trading of crypto in exchange for another crypto. For example, LTC/BTC. It means if you already own Bitcoin , you can exchange BTC with Litecoin for an equivalent value.

Best Decentralized Exchange: Bisq

How to Make Money As A Crypto Day Trader
  • No. Currencies Available for Trade: 45
  • Transaction Fees: 0.05% to 0.70%
  • Wallet Included: Yes

We picked Bisq because it is a decentralized, open-source exchange with no Know Your Customer requirements.

  • More than 15 different payment options

  • Mobile app for both Android and iOS

  • Transaction speed can be slow

  • Trading volumes can be low

  • Not designed for active trading

Bisq is a downloadable software and peer-to-peer decentralized Bitcoin and cryptocurrency exchange, so it has no central point of failure and cannot be taken down, much like Bitcoin itself. Bisq is non-custodial, meaning no one other than the user touches or controls the users funds.

It differs from centralized exchanges, like Coinbase, as Coinbase controls the users funds in a custodial account to which the user does not have the private keys. In that scenario, Coinbase holds the right to freeze your account if it deems your account activity suspicious, whether or not the activity is actually illegal in your location.

Bisq is instantly accessible to anyone with a computer or smartphone as there is no registration process or KYC rule. This makes it ideal for those looking for privacy, dissidents living within an oppressive regime, or anyone with no government-issued identification.

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What Is Crypto Trading

The act of speculating on cryptocurrency price movements via a contract for difference trading account, or buying and selling the underlying coins via an exchange is known as cryptocurrency or crypto trading. CFD trading is a type of derivative that allows you to bet on Bitcoin price changes without possessing the underlying currencies.

For example, you can go long if you believe the value of a cryptocurrency will rise, or short if you believe the value will fall. Both are leveraged instruments, which means that you only need a little deposit, known as margin trading crypto, to have total exposure to the underlying market. However, because your profit or loss is still determined based on the total size of your investment, leveraging trading crypto magnifies both earnings and losses.

Furthermore, cryptocurrency options are used by investors to reduce risk or increase market exposure. Crypto options trading refers to the derivative financial instrument that derives its value from the price of another asset in this case, the underlying cryptocurrency.

Before even thinking about venturing into crypto trading, it is important that one has a comprehensive understanding of the assets and technologies involved. Bitcoin is the soil from which thousands of other cryptocurrencies have grown.

Related: Read Cointelegraphs What is Bitcoin? guide.

Three Strategies For Day Trading Cryptos

It’s essential to have a few backtested strategies for day trading cryptos.

There are multiple strategies for day trading cryptos. We think the best strategies are the easiest to implement and those that work with specific market conditions. That way, it’s easy to spot a signal, make a few checks and execute your trade.

The crypto day trading strategies below work independently or combined for further confirmation before taking a trade.

Practice with all three crypto day trading strategies and see which one suits you best.

Also Check: How To Learn Blockchain Programming

Final Word On Scalping Cryptos

Whether youre using a 1-minute or 5-minute scalping crypto strategy, the quality of your broker should be a key consideration before you start trading. This will determine not only the reliability of the platform you are using but also the fees you pay and the resources you have access to.

If youre a beginner, be mindful of the risks involved with scalping cryptos and make use of any demos or tutorials available. Above all else, make sure you have a sound understanding of your charting indicators, signals and trading bots.

How Do I Pick The Best Crypto Trading Bot

Top 3 BEST Crypto Day Trading Strategies for Beginners (How to Day Trade Crypto)

There are no single bot that will work perfectly at all time. Some bot is specialized in certain market condition, while some others did their own part in other market condition. The thing you need to consider for choosing the trading bot is how reliable and secure the platform you use. Since you will be trading with real money, it is important to put your money in a trustworthy place. After that, you can choose which type of bot will fits your trading strategy. This is the minimum thing you need to check and consider before choosing the best crypto trading bot for your trades

  • SecuritySince you will be using real money to trades through crypto trading bot, you need to make sure the platform you will use is legitimate and secure. Check the company background and check for any license they receive. Some exchanges and platforms is considered legitimate since they have license such as Money Service Business license by U.S. Financial Crimes Enforcement Network. Make sure you do your own background checking before heavily invested.
  • Back-up fundThere have been multiple of force majeur happens inside the crypto, including super high volatility, fund hacking, or network failed. Make sure your exchanges and platform provide some insurance fund to cover the big event like these, eventough this is very rare to happen, but it is better safe than sorry.
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    Best For Beginners: Cash App

    • No. Currencies Available for Trade: 1
    • Transaction Fees: Varies

    We like Cash App because it is very easy to use and gives you flexible options to withdraw to other cryptocurrency wallets.

    • Peer-to-peer money transfer like Venmo or Zelle

    • Ability to withdraw Bitcoin

    • Only supports Bitcoin and no other cryptocurrencies

    • Charge when sending money via credit card

    • Daily and weekly withdrawal limits apply

    Cash App is a peer-to-peer money transfer system much like Venmo. This service allows users to split food, pay rent to a roommate, or even shop online at a retailer that supports Cash App. Cash App can essentially act as a bank account, and users can have their own Cash App debit cards.

    Cash App also allows its users to invest in stocks, exchange traded funds , and Bitcoin. The mobile-first interface that this exchange uses is very easy to figure out and use, making it ideal for a first-time investor.

    While its main feature is money transfers, it also has a basic cryptocurrency investment feature. Cash App allows users to withdraw cryptocurrency investments to their own wallets, which is the main reason we chose Squares Cash App over Robinhood as the best option for beginners looking to buy Bitcoin.

    The ability to withdraw cryptocurrency from an exchange is extremely important in the cryptocurrency community. With Robinhood, you can invest and trade cryptocurrency, but you cannot withdraw and spend it how you wish.

    What Is Intraday Trading

    Intraday trading, also called day trading, is one of the trading strategies used in both the stock and crypto market. It means buying and selling stocks/cryptocurrency on the same day. The purpose behind intraday trading is to reap benefits by price movements during the same trading day, i.e. before the market closes. However, the investor does not get ownership of the stocks in intraday trading. A person can do intraday trading through online trading platforms.

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    Look At The History Chart

    This is the first most significant thing in your research.

    Its what you should never miss seeing if you are coming to crypto trading.

    Many websites record coin data to see charts, but the popular ones are CoinMarketCap and Coin Gecko.

    Yet you should try to explore the charts at the best possible positions, even on multiple exchanges.

    Because maybe, the sites you are looking at might not have listed the coin earlier, when fishy things happened.

    Well, here is how to see the chart for the primary analysis.

    If you see any quick growth of any coin, never pick that coin for either long-term or short-term investments.

    There could only be one reason for taking that coin, but discussing that reason might take much time, and you really dont need to learn that here.

    So, if you find a coin thats so hot that its going up and up, if you could take profit from a cryptocurrency for a while, thats awesome otherwise, just leave it.

    Here is the biggest example I can ever give you anyone.

    Here is the price graph of Dogecoin.

    If you dont already know, you should let me tell you a couple of things about Dogecoin that might help you better understand my point.

    Elon Musk owns a huge portion of Dogecoin. You may say he is the largest holder of Dogecoin. He plans to use it for projects. And he is working on it.

    Hey, isnt that so much bullish?

    Then can you see why Dogecoin went down even after a huge growth?

    Many will say, Elon Musk said, its a hustle.

    Nope, thats not the reason.

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