In simple words, when a trade happens internationally in the time of day, it is called day trading. In this way, banks and various business companies make a lot of money. The business runs by the three aspects- liquids, stock, and crypto.
It is, in fact, a whole different universe of trade. It can help you to go super-rich in one day or totally bankrupt in another day. So, to stay on the market, you need to train yourself, work strategically with a clever and experienced brain.
As it is both risky and profitable, we brought you a guide on how to day trade crypto. Come, let’s talk about it.
How to Day Trade Crypto: Basic to Advanced
So before starting your day trade, you must have to introduce yourself to some basic phrases. Besides, you have to know about other important factors like strategies to trade and what software you can use. In the following part, we have given you a brief guideline to start your trading. Let’s start.
Basic Phrases You Need to Know
It is a digital currency that is designed to work as a common medium to exchange money internationally without the supervision of the government. A public network directs it. So, anything that is done under the table, you can do it utilizing cryptocurrency.
For example, bitcoin, token, altcoin, etc. There are around three thousand cryptocurrencies. From them, these three categories are prominent.
The word came from the phrase ‘Foreign exchange.’ It is also shortly called FX. So, internationally if you want to trade, this process comes in handy. For example, a business trade happened between England and the United States. So, the currency will be euro and dollars. Forex trading ensures business among different currencies.
The base currency is the first currency in the business trade. For example, euro/dollar: Euro can be the base currency.
According to the previous situation, if the euro is the base currency dollar will be the quote currency. So, the quote currency is the second currency in business.
Beginner’s Rules Before Trading
Day trading is an important aspect of Forex trading. Before coming to the main competition, you must know the basic ins and outs of the strategy and business plans. So, let’s dive in.
Rule 1: Training
According to the crypto trade expert, it is, in fact, a dangerous business to be a part of. If you can risk and have the guts to go over the everyday tensions of the ups and downs of the market, you are welcome to this world.
For not so long time, it has become very popular across the globe. Its popularity is that people without any prior technical or professional training can join the market. All they need a little fund to risk.
So, try to hold your emotion while investing. Do not make it an unhealthy obsession; otherwise, you will face bankruptcy very soon.
Rule 2: Appoint a managing team
If you are serious about the business, appoint a managing team who will decide, advise, suggest your action and next move. While signing a contract, they will handle it, including not putting your name on the papers. So, try to stay out of the public eye over your name and work with the trustable collaborators.
Rule 3: Plan B, C & D
Always have multiple options on your table. Do not just stick to plan A because anytime your plan may get flopped. So, have options on your hand because you do not know what is coming on your way.
Rule 4: Overconfidence
You may get abundant profit on the first few moves that we call ‘beginner’s luck.’ But don’t get too overconfident and get on the sea of competition without precaution. Be confident enough to risk it but not too confident to go bankrupt.
Rule 5: The objectives
In every business, we have the same objectives- earning lots of money by giving our time, fund, and talent. We have the same rule here. Utilize your talent adventurously, follow the experienced tycoons on the market, and gain knowledge and experience about this universe.
5 Simplest Strategies to Day Trade Crypto
Coins with high volatility and liquidity
The number one action you need to take is choosing the coins with high volatility and high liquidity. Nowadays, in the market, Bitcoins are the most liquid coins of all. So, follow the top cryptocurrencies. But always be warned because this hike and prices can crash at any time.
Money flow index
To have a controlled view of the market, we have a simple indicator called ‘money flow indicator.’ What are the top tycoons are buying and selling, you will see there? As its ups and downs are pretty fast, you need to have a note on everything.
Follow the indicator
MFI shows the top 100 businesses on the market. Everyone tries to hide their works and evidence, but it is impossible to hide everything. So, keep a close look at it. Technical indicators are not always dependable. So, choose an appropriate indicator to follow on.
Buy if MFI= 100 and candlestick
Take the 3rd reading of the MFI. It is not necessary to take the 3rd reading every day. If your schedule doesn’t allow you, you can take the next 100 reading of the indicator.
This brings us to the next step, follow the candlestick. When the candle is bullish, you need to take its reading, having very small wicks.
Last but not least
At the end of the day, hide the Stop Loss. When you see a shift in the market’s mood, it is the best option to get out of the trade as soon as possible.
When your trade gets triggered, take the profits in the first hour. If you delay, your profit and success can get lower any moment from then.
Best Apps And Software in 2020
- Coinbase commerce
- Circle pay
- Payment wallet
- Ledger vault
- Coinbase custody
- Fidelity digital assets
- Block.io wallet
If you have read how to day trade crypto and other things, go find a way to get into the business. Of course, it has risks; then again, what business doesn’t!
Thank you for reading!