Here if we look at Day Trading Crypto Currencies, it provides such opportunities for the user to earn revenue by speculating on the short-term movement. As a result, the day trading strategy is widely used across all financial markets, including the commodities, forex, stock, and crypto markets. Traders may face heavy losses due to the volatility in the market. Furthermore, unlike traditional financial markets, the crypto market has become more attractive, as it generates the most traction for day traders. And given their massive volatility and availability, this 24/7 instant dollar trading has emerged as a strategic opportunity to earn crypto. If you’re seeking a reliable trading platform that will enable you to increase your profits, go to https://thequantumai.app/.
Come, through this blog, learn on which day cryptocurrency trading is done, and also find out how to earn money from cryptocurrency.
Common Crypto Day Trading Strategies
Sentiment Analysis – It is directly concerned with the crypto traders and what they feel about a token. This work can be executed through social media such as Twitter and Reddit to find out the sentiment around a token. More other service providers such as coinmarketcap.com where the user’s thought option is available to share for the concerned token’s performance.
Click here – Is Trading Crypto Possible in the Short Term?
What is Day Trading Crypto?
However, the process will start with the basic definition of your trading techniques and choosing the right asset. Thus, after going through these processes, you will be able to create an ordinary, repeated trading procedure that can be applied in most situations.
How to choose crypto for day trading?
Here it can be a bit tricky when it comes to picking the “best” options for day trading as they vary from week to week, making any specific coin recommendation obsolete within a few days. Apart from this, based on some defined guidelines, you can choose your investments which can be in a better way. Here are two options that may prove to be good for you to understand.
High Liquidity – If there are tokens with high liquidity, then using these increases the chances of day traders making more profit. High liquidity means traders can execute their sell and buy orders faster. While it generally correlates with high volume, liquidity is seen as the more important metric for day trading.
High Volatility – As a day trader, you can make a decent profit if the asset price changes during the trading period. Such higher highs and lower lows help increase profit potential if a token has high volatility. This is also one of the reasons why most usually select tokens with high intra-day volumes to take benefits of day trader spreads.
Select the Right Trading Platform
In a single day, in day trading, it is possible to make more than a thousand trades. If you want to do this successfully, you need to have a platform with some important features. For example, whenever you choose a platform, note that its fees are low. Because whenever you place multiple trades at once, the transaction fee on each trade is likely to add up and may start cutting into your profits as well.
So when choosing a platform, make sure that the fee does not prevent your trades from being profitable. Second, the platform chosen should be fast as well as less slippery. Because, if multiple trades are to be executed within a minute or second, the exchange must be able to execute those trades quickly as well. And the low slippage also means that the price will be closer to the estimated selling price. However, you may come across some cases where the prices may move further in the time between your platform and the execution of the confirmation. As a result of which you may increase the chances of getting less profit than your expectation.