Empowering Journey Into Day Trading Crypto A Beginner’s Guide To 10X Success

Have you ever thought of navigating the exciting world of cryptocurrency? But you’ve never been there? Well, not to mention, there are as many ways to trade in this market as stars in the sky, but, let’s not forget about the day trading crypto. Day trading Crypto is the latest ‘sensation’ that receives an overwhelming amount of attention. But what exactly is day trading crypto and how can you get started?

First, let’s be clear about the definition of Day Trading Crypto and then dive into the world of day trading cryptocurrency, what is it like and how it works?

Day Trading Crypto is defined as buying and selling of digital assets (cryptocurrency) within a single trading day.

What is Day Trading Crypto?

The term ‘day trader’ was first used in the traditional financial markets when retail traders started to trade stocks and other assets such as cryptocurrencies daily, during the business hours of the week. Day traders buy and sell financial instruments within the same trading day and make small incremental profits from the markets daily. Crypto day trading has become popular among day traders due to the liquidity and volatility that exists in the crypto market. The goal of day trading crypto is to conclude the trading session with assets of higher value than they were at the beginning of the trading session.

How Does It Work?

For successful day trading, day traders will have a solid understanding of cryptocurrency market. Crypto day traders rely heavily on technical analysis to trading strategies. This involves use of volume, price action, chart patterns and technical indicators to plot possible entry and exit locations for cryptocurrency day traders.

To start with day trading crypto, first and foremost is to decide your approach to day trading cryptocurrencies. You can trade crypto using a cryptocurrency exchange or using contracts for difference (CFDs). For a cryptocurrency exchange approach, if you are a beginner, you will need to have a cryptocurrency wallet to store the cryptocurrencies you trade with, throughout the day.

Choosing a Best Crypto Exchange for Day Trading

By simply choosing the right platform, it is possible to make crypto day trading easier. However, without having any clue about the features of a best crypto exchange platform, it can be hard for you to decide where to start from.

So, what makes an exchange the best crypto exchange for day trading?

As a beginner in the realm of the cryptocurrency trading, you will find multiple options available online for you to pick from. Yet, not all platforms are ideally suited for day trading.

To choose the best platform that works best for you. Consider factors like low trading fees, variety of trading pairs, high-security standards, high liquidity and fast-order execution.

1. Binance: it is one of the most popular platforms among the best crypto exchange for day trading. Its user-friendly interface, minimal fees, low latency, and high liquidity make it an excellent option for day traders. It also offers advanced trading tools like stop-loss order (They cause the platform to sell your assets as soon as they hit a predetermined price), which are highly helpful for day traders.

2. Coinbase: This platform was specifically designed keeping security in mind offering features like offline cold storage wallets (meaning they are not easily accessible to hackers or internet frauds) and advanced security protocols such as 2FA, email verification and insurance protection. In addition to this, it also offers advanced charting and trading tools, a feature called “Advanced trade”. This makes Coinbase a reliable choice for day traders.

3. Bybit: Bybit offers low trading fees and high liquidity, which makes trade execution efficient at minimal cost. It also offers perpetual futures contracts, a feature which can be leveraged by experienced traders.

4. Kraken: this platform is suited to both beginners and experienced traders because of its advanced order types. This platform offers affordability, fast trade execution, high liquidity with minimal slippage (slippage is the discrepancy between the price at which a trade is executed and its expected trading price), user-friendly platform and advanced charting and indicators.

5. KuCoin: offers access to multiple markets, direct token conversion and a user-friendly interface. It is a great option for day traders looking for efficiency and flexibility because of its strong security features, reasonable costs, and sophisticated trading tools including stop-loss orders and candlestick charts.

6. Bitstamp: this platform offers competitive fees, diverse trading pairs and regulatory compliance, making it ideal for day traders. It offers responsive client assistance, collaborates with significant financial institutions for increased liquidity, and facilitates trades in a variety of fiat currencies and cryptocurrencies.

7. Huobi: it is a prominent cryptocurrency exchange for day trading as it offers over 700 cryptocurrencies, cheap trading costs, robust security (including cold storage for 98% of assets), and round-the-clock customer service.

8. Bitfinex: This has been a top option for cryptocurrency day traders due to its low costs, high liquidity, and leverage of up to 10x, which makes it perfect for fast market entry and exit. It is appropriate for both short-term and longer-term trading methods because it supports fiat deposits, albeit at a greater cost, and has strong customer service and cutting-edge trading tools.

Getting Started with Day Trading Crypto

Starting with trading cryptocurrency involves following steps:

  • Start by choosing a reliable cryptocurrency exchange platform, that suits your needs.
  • Create an Account and complete the required verification steps to comply with regulatory requirements.
  • Deposit fund to your trading account with fiat currency or crypto currencies.
  • Perform in-depth investigations and evaluation in order to identify potential trade opportunities.
  • To maximize your outcomes, monitor your trades and adjust your strategies as necessary.

Now that you know how to get started with day trading crypto, let’s explore some strategies, that are essential for becoming a successful crypto day trader.

Strategies of day trading crypto

In cryptocurrency market, there’s no such things as quick gains. That being said, having a sound strategy can help in successful crypto day trading. Here are some common strategies used by crypto day traders.

Scalping

Scalping is used as bread and butter strategy by day crypto traders. This strategy involves targeting multiple small gains, that at the end of the day make up to significant profits.

The idea is to exploit minor price moves that occur in ultra-quick time frames. This method takes advantage of bid-ask spread, gaps in liquidity and other market inefficiencies. This requires you to hawk the markets, watching closely every little jump and drop, which makes it the most exciting way to day trade.

Range Trading

The range trading strategy is one of the most common crypto trading strategies. Range traders look for points to enter and exit a trade within a defined range bound market. This involves entering a trade at its support level and closes/exits the trade by selling at its resistance level.

Fundamental Analysis

This strategy leans heavily on human emotions and reactions rather than technical data. It requires day traders to monitor how people feel about a cryptocurrency in question based on new stories. It is up to you to interpret whether news releases about a particular cryptocurrency will influence the market’s sentiment in a positive or negative way.

Algorithmic Trading

This trading makes use of predetermined strategies based on mathematics and algorithms followed by automated systems. These systems identify trading signals, evaluate market data, and execute transactions with minimal human input.

Arbitrage

Some crypto traders use arbitrage as part of their day trading weapon. This involves exploiting price differences between different cryptocurrency exchanges or trading pairs. You buy a cryptocurrency on one exchange and immediately sell it as asset at higher price on another exchange. This difference between the buying and selling price is the profit from arbitrage. This works best when trading cryptocurrency across several exchanges with consistently different spreads, or the difference between the buy and sell prices.

Risk Management

Cryptocurrency markets are highly volatile and prices can change a lot in a day, sometimes by 5% to 10%. Therefore, learning how to use risk management tools like take-profit and stop-loss orders is crucial to lowering your exposure to risk and minimize losses.

Position-sizing and Stop-loss order

  • Set stop-loss orders to automatically sell a cryptocurrency if the price hits a specific level.
  • Use appropriate position sizing and avoid risking more than a small portion of your trading capital on any one trade. Create a trading strategy and follow it precisely.

In Conclusion

In the realm of cryptocurrency trading, where opportunities arise at any moment, day trading crypto presents both a challenge and an opportunity. However, using different strategies ranging from scalping to arbitrage, crypto traders can make well-informed decisions and knowledgeable trades to generate profitable gains.

Success in cryptocurrency trading is not just about choosing the best exchange platform, seizing the opportunity, applying the right strategies and trading tools, it is about continuous learning, staying informed amidst the high volatility, that a cryptocurrency market offers, implementing risk management tools to protect investments and maintaining discipline.

Ultimately, whether you are an experienced trader or just a beginner, by adhering to these approaches, you can navigate the dynamic world of cryptocurrency with confidence and resilience.

Tech With Jeffrey’s Latest Blogs

  1. Is crypto good for day trading?

    Yes, due to high volatility and liquidity.

  2. Which crypto is best for day trading?

    Bitcoin, Ethereum, and other high-volume cryptocurrencies like Binance Coin (BNB) and Ripple (XRP).

  3. Can you make $100 a day with crypto?

    Yes, but it requires skill, strategy, and capital.

  4. Do you need 25k to day trade crypto?

    No, there is no minimum capital requirement for trading crypto.

  5. Can I trade crypto 24 hours?

    Yes, crypto markets operate 24/7.

  6. Can you day trade with $1000?

    Yes, you can start day trading with $1000.

  7. How to earn 1k per day from trading?

    Requires advanced skills, significant capital, and a well-tested strategy.

  8. How to trade with 1 dollar?

    Use fractional trading on platforms that support small trades.

  9. How to make $1000 a day on Binance?

    Requires high capital, expert trading skills, and effective strategies.

  10. Can I start Binance with $1?

    Yes, Binance allows small initial investments.

  11. Can I earn daily on Binance?

    Yes, through various means like staking, savings, or daily trading.

  12. How to earn from crypto daily?

    Day trading, staking, yield farming, or participating in interest-earning programs.

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