A Beginners Guide to Day Trading Cryptocurrency

As a day trader, there is an opportunity to make a very good living, provided you have a well thought out strategy. The idea of working your own hours, being your own boss and getting filthy rich in the ever-booming cryptocurrency market is very attractive… To view what crypto assets eToro supports – click on the ‘Trade Markets’ button, followed by ‘Crypto’.

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• Although they may be less aesthetically pleasing, accumulation phases and ranges can provide a way to profit and allow you easy entry into the market.
• When asked on how a day trader should decide which coin to trade, Greenberg emphasized careful deliberation.
• A sound understanding of market patterns and a robust day trading strategy are necessary to make the practice profitable.

The beginner-friendly Kraken App allows users to buy, sell, and convert crypto easily, while Kraken Pro provides a professional trading experience with advanced features. Users can deposit fiat or buy crypto directly with fiat using various methods, including credit/debit cards and bank transfers. Whilst there are many options like BTC Robot that offer free 60 day trials, you will usually be charged a monthly subscription fee that will eat into your profit. They can also be expensive to set up if you have to pay someone to programme your bot.

Setting clear profit targets and stop-loss levels

Volume is likely relatively low as traders wait for trend confirmation before entering with size. You will likely be trading higher than usual leverage, and it’s a good idea to get in and out as soon as practicable. Placing a stop loss for a fade trade is difficult, as there is no clear position like a range high or a key support level. If the market does reach the other side of the range, you can close the position or let it run into a potential breakout, depending on your strategy.

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• Two more executives at Binance.US, the American arm of the leading crypto exchange Binance, are leaving the firm.
• Unlike the traditional financial markets, the crypto market has turned heads because it offers one of the most lucrative environments for day traders.
• You will likely be trading higher than usual leverage, and it’s a good idea to get in and out as soon as practicable.
• However, as demonstrated on the Waves (WAVES) chart below, stop losses should generally be placed slightly above what you perceive to be the fullest extension of the move.

There is great sensitivity to breaking news, regulatory changes, technological developments, and macroeconomic developments regarding cryptocurrencies. Investors and traders can make better decisions, reduce risks, and seize opportunities by staying up-to-date with this information. This is relevant when checking the best crypto presales on the market. To succeed as a trader you need to have strict rules that you adhere to with a strong focus on risk management.

Bitcoin (BTC)

These courses include Bear Bull Traders, Bullish Bears, Fast Lane Traders, Humbled Trader, and Investors Underground. Other courses are available apart from the ones on our list; however, these were chosen based on resources, community, and expert instruction. The right crypto day trading course for you will depend on your needs. If you prefer a course with a strong community or mentorship, then Investors Underground or Humbled Trader will be a good choice. Investors are encouraged to master the psychology of trading by developing proven strategies from the best all-around traders. A community program is available so that traders can stay connected with others on the same journey as well as receive one-on-one mentorship.

• Worries about a slowdown in the world’s second-largest economy have rattled markets in recent months, but data over the weekend suggested the picture is improving in China.
• Best for its active community, Investors Underground offers a multi-range of interpersonal collaboration.
• Traders can trade a variety of pairs on the spot market with margins of up to 10x.
• TA provides traders with a science to find opportunities to trade and earn profits.
• Please appreciate that there may be other options available to you than the products, providers or services covered by our service.

These are just a few of the reasons why day trading crypto currency has become so popular. The next section will explore the first steps to take in getting started with day trading, including choosing the right crypto currency to trade and setting up a trading account. Crucially, crypto day trading is a short-term strategy that will see you hold onto a position for a few hours. On the other hand, if you were to hold onto a cryptocurrency position for days or weeks – this would be a swing trading strategy. First and foremost, when day trading, it’s essential to have a structured approach and a rule-based strategy.

Which course is best for cryptocurrency?

Secondly, they are the perfect place to correct mistakes and develop your craft. You’ll usually be trading with simulated money, so mistakes won’t cost you your hard earned capital. Once you’ve trialled your strategy and ironed out any creases, then start executing trades with real money. Coinbase is widely regarded as one of the most trusted exchanges, but trading cryptocurrency on Bittrex is also a sensible choice. Always check reviews to make sure the cryptocurrency exchange is secure.

• The crypto trading bots used are designed to help investors maximize profits and lower risks and losses.
• It’s a costly mistake to enter crypto day trading without adequate research on the market and your targeted investments.
• If you are interested in learning how to day trade cryptocurrency, be sure to equip yourself with enough information before diving into the market.
• As with any form of trading, it’s essential to only invest what you can afford to lose.

With these precautions, you too can become a successful crypto day trader. There is a robust platform where you can share information and learn from other traders, meaning that you can get to know other day traders and even bounce ideas off them. There’s a learning section for those who want to read up on the subject, and pricing is clearly noted on the site. You can open an account for free, start trading and enter the crypto market right away. There are several cryptocurrency exchanges and brokerages to choose from, and some may be a better fit for you than others. If you’re a day trader, you’ll want to use an exchange with low or zero trading fees.

What is day trading?

StormGain’s mobile app gives you all the functionalities you need to exchange, store, and trade cryptocurrencies at your fingertips. The app, available for iOS, Android, and Huawei devices, includes trading signals, push notifications, charts, and technical analysis tools. StormGain’s trading platform offers a customizable, user-friendly dashboard that displays fluctuating assets. Its all-in-one apps for iOS and Android are recommended for access, but it also supports all major internet browsers. The platform offers advanced trading tools, including position and risk-management software, an institutional level of liquidity, and a 200x multiplier.

A crypto day trader using this strategy is betting on the change of a crypto asset’s price. The day trader earns regardless if the price rises or falls in the long straddle. Once you’re set up on a platform, it’s time to pick what you’re interested in investing in. The same market condition that scares away buy-and-hold investors is the chaos that makes opportunities for day traders to make profit. Volatility and liquidity are two elements the day trader needs to actively participate in the crypto market. With that being said, BTC/USD isn’t the only pair that is popular with crypto day traders.

How to pick the best crypto exchange for yourself?

For instance, there was a time when Bitcoin was selling at a price 40% higher in Korea than in the United States. Day traders simply made significant profits by purchasing BTC in the United States and selling in Korea. To get started, you need to open an account in a suitable bitcoin trading exchange that meets your day trading needs. Notably, the crypto market is incredibly fragmented, and exchanges operate under multiple jurisdictions scattered worldwide. Having that in mind, you need to select a crypto exchange platform that is supported in your country. In any case, let’s assume that to day trade cryptocurrencies, you need to start with a minimum of $500.

• By closing a portion of your position quickly, you will reduce the risk of an offside trade and can choose to hold for a longer period.
• Since day trading requires fast decision-making and quick execution, it can be highly stressful and very demanding.
• If you’re holding a long trade, position your stop below the support zone, accounting for wicks and potential price spikes to the downside.
• Day traders seek to profit from the market’s volatility within one trading session by exploiting small price movements.

Trading fees can be reduced even further based on the user’s trading volume and OKB token holdings. Overall, Bitfinex has one of the most impressive offerings in the crypto industry – for traders who require advanced features and customizability. However, less demanding traders likely won’t get as much value out of the exchange’s unique features.

Can you get rich day trading crypto?

In this context, day traders never leave positions open overnight since they aim to capitalize on intraday price movements. Traders should set time aside to familiarize themselves with the upcoming rules and regulations taxing profits earned from crypto. For day traders, the sale of any crypto held for less than a – year is taxed as marginal income. Make sure to include your crypto gains when reporting earnings online or with your accounting professional. Range trading capitalizes on sideways markets (or non-trending markets) by pinpointing stable high and low prices, represented on charts as resistance and support levels.

• However, it has one significant difference—it operates on human reactions and reactions instead of price trends.
• Cryptocurrency day trading requires minimizing potential losses and dealing with losing trades.
• Asset liquidity is a measure of how easily an asset can be converted into cash without affecting its price.
• Knowing and recognising a chart pattern accurately can be the difference between a successful and unsuccessful trade.

To maximize your earnings, extensively research the market and asset you’re trading very well and enroll in a day trading course that offers mentorship and a strong community. There are plenty of trading strategies out there and several platforms that some of the most popular day trading strategies are range trading, scalping, and arbitrage. If you want to save time, you can instantly copy professional traders plays with eToro, and learn as you go.

Binance

If the exchange that you want to use does not accept real-world money deposits, then you can first go to Binance to buy some Bitcoin or Ethereum and then transfer it across. So now that you know how it works, the next part of my “Day Trading Cryptocurrency” guide is going to look at what immediate edge trading platform you need to know before getting started. One of the standout features of OKX is its provision for engaging with DeFi projects via liquidity mining. Starting with educational resources, OKX provides an extensive range of learning materials that spans from beginner to professional levels.

• One of the unique aspects of cryptocurrency is that the markets are open 24/7.
• Without further ado, let’s get started with our list of the best crypto exchanges for day trading in 2023.
• In the above section, I briefly discussed what day trading cryptocurrency actually is and some of the crypto trading strategies people use.
• Much better to start out with whatever amount of cash you can afford to lose.

When trading crypto pairs with low trading volume, you might encounter sharper price swings but can also get stuck with digital assets you don’t need, being unable to sell them. Day trading is a set of techniques used to take advantage of short-term changes in the prices of a commodity. As the name implies, the goal of a day trader is to end any given trading day with their holdings having a higher value than they started with.

Crypto Guides

It is important to think about what kind of cryptocurrencies you are looking to get involved with. Another important aspect to day trading cryptocurrency is that you set yourself a stop loss. A stop-loss is when you enter a price that you want to automatically exit your trade. In fact, the amounts must not be any larger than you can afford to lose.

• Once you are set up and you have deposited some funds, take some time to understand the different features on the trading screen.
• Before you get started with any kind of crypto day trading, make sure you’ve carefully weighed up the pros and cons.
• However, you have to keep in mind that KuCoin divides the coins listed on its platform into 3 classes (A, B and C).
• On the other hand, if you were to hold onto a cryptocurrency position for days or weeks – this would be a swing trading strategy.
• Remember, Trading or speculating using margin increases the size of potential losses, as well as the potential profit.

Professional day traders—those who trade for a living rather than as a hobby—are typically well established in the field. Here are some of the prerequisites required to be a successful day trader. But there are day traders who make a successful living despite—or perhaps because of—the risks. Like anything worth doing, becoming successful at day trading in crypto is not easy.