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In the fraught world of crypto where market prices are unpredictable and shaky, you will need to be strong-willed, obtain a winning game plan and work with an intuitive crypto trading platform if you want to win. Building the right character of a successful crypto trader comes with lots of research, practices, and more research. Crypto day trading has been a common practice in the crypto community for many investors.
Why Day Trade Crypto?
By day trading crypto, you will be able to buy and sell digital currencies throughout the day.
Crypto day trading is the practice of buying and selling digital currencies like Bitcoin, in a short time frame typically a day; the goal is to earn a tiny profit on each trade and then compound these gains over time.
Best Crypto Exchange for Day Trading
To day trade crypto, you will need to register with a top-rated crypto trading platform. Here are the best crypto exchanges for day trading in the market currently:
- eToro – overall best crypto day trading exchange for 2022
- Crypto.com – one of the best crypto exchange for day trading
- Binance – good day trading crypto exchange but with low commissions
Crypto Day Trading Strategies
Trading is not gambling, so you need to employ an effective strategy to guide your transactions in Trading for lucky streaks and consistent long-term returns. Here are a few crypto day trading strategies you could use:
Range Trading is one of the most known strategies in crypto day trading. Range trading is simply based on assumptions. This prediction will cause the trader to either sell or buy the crypto. For instance, if bitcoin is at $39000 and a trader predicts it may rise, the trader may decide to stake his coins or buy more, and if the trader predicts a price downfall, the trader may suggest selling off the coin at the moment in case it dips.
Scalping is a strategy where crypto traders make a small profit from a large number of trades which eventually result in larger profits. In scalping, larger amounts of liquidity(currency) are traded to take advantage of small price changes over a short.
Arbitrage occurs when traders buy crypto from a market and sells it to another market at a higher price. A practical good example is that of ‘kimchi premium’. Bitcoin, the best crypto for day trading, was traded in South Korea at a 40% higher rate than in US. Traders bought bitcoins from US and then sold to South Korea exchange market at a higher price.
Generally, being a successful Crypto Day Trader can be difficult. Many Traders have spoken out on their regrets but at some point, they learned and are now thriving. As earlier said, it requires research, practice, and more research…