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Into Crypto Trading? Master These Helpful Trading Strategies

If you have any idea about stock market then you know that stock exchanges are available for day trading during the business hours and you cannot trade on weekends and holidays on these exchanges. But crypto trading is different and crypto exchanges are available 24×7 more details, where you can trade with digital currencies, tokens and assets anytime from anywhere as per your convenience.

Points To Know About Day Trading-

If you are new to crypto trading, you need to master some trading strategies that you can follow which are as follows:

Day trading or intraday trading is a common method of crypto trading where you can buy and sell your digital currencies on the same day. According to the experts, day trading is risky for crypto ecosystem and you should consider it as an asset or commodity. If you hold your digital currencies for a longer period of time then you can gain more profits from your investment.

However, before you go for day trading, you need to know about liquidity and volatility of such currencies and exchanges. You need to choose the right entry and exit time while you trade with crypto. Liquidity rate is decided by the exchange where you can liquidate a certain number of coins or tokens at a time and you cannot liquidate a large number of digital currencies in a day. So, if you choose an exchange where liquidation rate is high then you cannot sell your coins on a daily basis and you need to trade within a certain amount.

Every crypto investor should note that the crypto investment market is highly volatile and you can find the changes in prices of such digital currencies several times in a day. So, as a day trader, you have to buy such coins at low price and sell your coins at high price to earn some amounts. It can be difficult for crypto trading because you miners can sell their coins suddenly and it will decrease the price of such digital assets. So, you have to choose the right time to sell your coins and you must calculate the commission or brokerage charged by your exchange because such charges will be deducted from your pay out.

Strategies for Crypto Day Trading- Points To Note

  • When it comes to crypto trading, it is advised that you buy the cryptocurrencies at lower price and sell them at higher price.For that, you will need to have proper research skills to be able to predict the price of such coins or currencies. In this case, you can use a trading exchange like Bitcoin Era where you can find technical analysis including chart and mathematical calculation. You can use such data to predict the price of a crypto. Apart from that, you must keep your eyes on RSI. It means relative strength index, where you can find a cart of prediction. For example, if the RSI is zero then the price of bitcoin will be increased and if it is 100 then you will face a downward in the market.
  • You need to keep your eyes on the crypto marketrate fluctuation. News and social media platforms are the best places where you can find such information about crypto. For example, Turkey announced that their government will ban the crypto trading in their country and it came to know in 2021. After releasing this news on media, a huge downfall has seen in the crypto market. So, if you find such news then it is the right time to sell off your coins.
  • Traders also follow the scalping strategy for their crypto trading and it is related to small price moves. For example, you can buy such digital coins or assets for a small period of time and sell your coins at a higher price to gain some profits. But it involves a huge risk because you have to calculate the profit margin wisely.

Final Words

If you are an experienced crypto trader then you can go for the high frequency trading, where you can use trading bots to trade a large number of crypto currencies. It is ideal for those investors who are dealing with different types of crypto coins and tokens. Happy and secure investing!

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