The new traders here that we are talking about are the ones who just started playing the game. Crypto Trading is very popular among new traders because they can withdraw their funds after investing and seeing the results immediately. It has numerous advantages, such as assisting new traders in learning how to trade in cryptocurrency.
To better understand this, consider what day trading is like in practice.
What is Crypto Day Trading?
Day Trading is the very easiest way to make money out of the crypto market. Not only does this maximize profit, but it also teaches new traders how to enter and exit the market.
Crypto Day Trading is a strategy in which both entry and exit can happen in the same position in a day. This is also called as Intra-Day Trading. It is unusual for a traditional stock or even a commodity to see a 10% price increase in a single day. This type of surge is common in crypto trading.
As we get sound profits in this Crypto Trading, similarly we also get risks in this. You must be heard that saying "The higher the profits, the higher the risks".
Why Crypto Day Trading?
We've noticed that it yields massive profit, so that's our main motive for day trading. Crypto is more volatile than any other asset class, which gives chances for new traders who wish to learn more about the market.
The crypto market could be profitable for you if you have a sound Crypto Day Trading plan and can analyse trends.
Day trading cryptocurrency is also beneficial because it provides short-term chances. You can earn from the market in such a short amount of time by day trading rather than purchasing, holding, or taking long holdings.
3 Steps To Start Crypto Day Trading
Crypto is a very exciting industry because there is no brokerage required. Yes, there is a lot of risk in this, but so many crypto exchanges are coming into the market that volatility is also increasing with them.
A new trader knows many things, and many things are yet to be known. So invest according to your convenience and as much as you know. Just have confidence in yourself and learn how to manage risk, and then you can start Crypto Trading today.
Choose A Platform To Trade
Let's start with the Crypto trading platform! To start playing cryptocurrency game, you need to decide what platform to use.
Earlier I also did not choose the right platform, so I have also made many mistakes here, but I have seen tremendous options in different platforms. I have mentioned some points, consider them to choose the right platform.
Years Active
The longer a bitcoin exchange has been in the industry, the more stable and credible it is.
Supported Cryptos
Knowing ahead of time which cryptocurrencies are accessible for trading might be a useful tool when deciding which platform to utilise.
Fees
When a buyer or seller initiates a trade, exchanges pay transaction fees. To monetize their business, all digital currencies charge users transaction fees. The transaction fee structure may take different forms depending on the exchange strategy.
Deposit Methods
Users must fund their exchange accounts with capital, just like brokerages. Many exchanges accept bank and wire transactions, but very few accept credit card funding, PayPal transfers, or even gift card transfers. In Crypto Trading payment methods like Bank Transfer, Credit / Debit Card/ Cryptocurrencies etc.
User Reviews
Reading user feedback is one of the most effective techniques to determine which exchange to use.
Liquidity
The liquidity of exchange liquidity refers to the speed and ease with which one asset can be converted into another without impacting its price.
Best cryptocurrency exchanges have high liquidity, which means they can purchase or sell assets very instantly and with a small difference between the bid and ask price.
Choose Your Investments
Now that you have finalized the platform, let's come to the investments. Market volatility can be bad for new traders. The new day traders require volatility and liquidity to actively participate in the crypto market.
There’s a saying “Invest only what you can afford to lose”. Crypto Day Trading has a massive amount of profits, yet it’s too risky.
When thinking about investing now, don't forget the asset's liquidity, volatility and trading volume.
Asset liquidity is a measure of how readily an asset may be turned into cash without hurting its value. When a trade is executed and an order is filled by the exchange, the price of a crypto asset may fluctuate.
The unpredictability of cryptos' price swings is known as market volatility. News cycles, economic data and research reports are all facets that affect market volatility.
The total amount of cryptos traded in a fixed time is called trading volume. Crypto-day traders should closely monitor the asset's trading volume to see if it can be sold quickly and at a higher price than it was bought for.
Choose A Trading Strategy
The trading strategy is what will confuse new traders. For successful trading, new traders will have to gain maximum knowledge and do a lot of research. Here we have mentioned some new trading strategies to help them.
Crypto Arbitrage
Crypto arbitrage is when crypto is bought from one exchange and immediately sold on another exchange. Arbitrage opportunities may exist between cryptocurrency pairs.
When the price of a crypto pair consisting of lesser-known altcoins and bitcoin differs from one exchange to the next, intermediaries might profit from the price differential.
While arbitrage is a complex financial technique that is typically automated by price-monitoring software, it helps to maintain the price of digital assets steady across exchanges.
Bot Trading
This trading bot is a tool that investors often use to buy or sell cryptos based on pre-configured times and predefined conditions to increase profits. Crypto Trading bots can help you spot price changes, exchange costs, and short-term profit chances on deals.
Long Straddle
This long straddle has many names like buy straddle, option straddle, or just straddle. A long-straddle strategy entails purchasing both a put and a call order.
The call and put orders in a long straddle are placed on the same cryptocurrency, strike price, and expiration date.
The trader who implements this strategy is betting on the price of a crypto asset changing.
Range Trading
Range trading is an active investment method in which the trader defines a price range in which he or she buys and sells over a short period.
Day traders that use range trading tactics find a time in which to purchase a crypto asset at a low price and sell it at a higher price to make a profit.
Crypto-day traders prefer range trading because it has well-defined entry and exit positions, which reduces losses.
The range trader avoids losses from poor news cycles or market circumstances by generating smaller profits over shorter periods.
Scalping
This trading strategy is recognized as having the fastest turnaround. Scalpers take advantage of a large amount of liquidity to seize on small price movements.
This technique is great for new traders, which concerns opening a position, gaining a few pips, and then closing the position shortly after.
Technical Analysis
Technical analysis is the evaluation of financial data such as historical price and volume data points to find statistical trends in the markets.
They may use their approach on any market or securities with past trading data. In the crypto world, TA may be used as a guideline to assess how previous performance predicts future profits or losses.
Final Words
Crypto Day Trading is a high-risk approach that involves the frequent purchase and sale of cryptocurrencies to make a quick profit. Anyone interested in learning crypto trading should know the above-mentioned basics.
But if there is someone who does not even know the basics of trading or is a complete beginner then one should go ahead to learn Crypto Trading. You have plenty of opportunities to learn crypto trading. There are many other things to learn like through Crypto Games To Earn Money.
I would like to suggest you a cryptocurrency game, Trade the Games. It is the best crypto game app in India that brings trading and gaming together. It's an application that offers endless opportunities to learn digital virtual trading by taking away all the risks and offering rewards.
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