Crypto Trading Strategy For Winning Trades: With Live Proof

Published Nov 03, 21
4 min read

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Final thoughts - Day trading crypto, As a relatively new market, cryptocurrencies are still in uncharted territory. The entire industry is still figuring out how to handle government regulation, leverage trading, and security, among other things. This means that day trading crypto brings with it great uncertainty, but also great opportunity for traders who know where to look.

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Crypto day trading strategies provide the same structure and guidance that have been used over the years across financial markets. Given the volatile nature of so many of today's digital assets, day trading has quickly become a popular way to take advantage of price swings on an intraday basis. Before we get into the top strategies that any novice trader can try, let's first define Day Trading.

The goal is to earn a small profit (between 0. 5% to 5%) on each trade and then compound those gains over time. Day traders heavily rely on the market's volatility to earn their profits. There are numerous day trading strategies that can involve different tools: media, technical indicators or bots.

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Scalping requires you to make small, but frequent trades that typically last anywhere from a few seconds to a few minutes. Repeating the process, traders can take advantage of small price changes in markets. At the same time, you can implement this strategy to leverage both the top and bottom markets.

High-frequency trading will give you the edge you need to catch shorter price movements. Range Trading Range trading is a great crypto day trading strategy that has the potential for profit while mitigating the downside when markets move sideways. Range trading basicaly works by setting a range between support and resistance levels.

For example, Elon Musk tweets about Dogecoin. You could set up notifications for the moment that type of tweet goes live, with the potential of getting ahead of the game. The quicker you can receive and act on new information, the higher your potential to make trade decisions ahead of everyone else.

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Finally, sentiment-based trading will help you stay informed and trade using trends. --Disclaimer: contents of this article are for general market education and commentary and are not intended to serve as financial, investment, or any other type of advice.

The term “day trader” comes from the stock market, where trades generally only happen during regular business hours on weekdays. One notable difference when day-trading cryptocurrency is that crypto markets stay open 24 hours a day, 7 days a week. For would-be day traders, it helps to know some day-trading basics along with a few things to know before investing in crypto in this manner.

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This is also sometimes called “intraday trading.” Day traders attempt to use intraday trading strategies to profit from the price moves of a particular asset or financial instrument. Things to Know About Crypto Day Trading There are two market conditions that must be present for day trading to be profitable: • Traders need to be able to enter or exit trades quickly without moving prices too much.

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With slippage, the position must be sold in increments, with each order having a lower price than the previous one, leading to smaller gains overall by the time the whole position has been sold. • A lack of volatility means prices aren’t moving, and there’s no chance of buying low and selling high.

Bitcoin mining could also play a role in markets at times. If miners are selling most of their coins as they mine them, this could increase downward pressure on prices for a time. Anyone learning how to day trade Bitcoin could benefit from learning how the technology itself works, too.

The gains have largely outpaced that of other asset classes. So when considering how to invest in Bitcoin, one strategy might be to just buy and hold. This can be especially true during crypto bull markets, when corrections tend to be short-lived. However, it’s also important for investors to remember that Bitcoin and other cryptocurrencies are highly speculative investments.

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For investors specifically interested in day trading, there are numerous strategies to try. Technical analysis might be among the most popular strategies, as entire communities of traders have sprung up around this school of thought. One thing’s for sure: having a rule-based trading strategy of some kind is a must for short-term traders.

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1. Technical Analysis Technical analysis (TA) involves using mathematical indicators and chart patterns to try and predict which way prices will move next. Some technical indicators are simply generated with a computer program like Trading, View (RSI, for example), while others must be identified by humans looking at charts (the cup-and-handle pattern, for example).