Day Trading Cryptocurrency: Crypto Trading Strategies 101

Crypto day trading can be profitable if you are using the right platform with the best fees and strategies. Whether you’re a complete beginner or experienced trader, the copy trading section of the eToro platform is sure to be a game-changer. To make sure you don’t miss out on this trend, use a top-quality broker and trading platform such as eToro. Not only can you trade cryptos 24/7, but 100% commission free you can also access the eToro Crypto Money Wallet completely free.

• Taking all of the above into account – below you will find reviews of the 10 best crypto day trading platforms in the market right now.
• One of YouHodler’s most significant features is its Multi HODL tool, a function not available on any other cryptocurrency trading platform.
• In addition, the lower and upper bands create two standard deviations away from the moving average, which provide traders with insight into support and resistance levels.
• EToro also stands out as the best crypto day trading platform because it offers passive investment tools in its user interface.

YouHodler offers additional benefits to the average crypto trader, including no rollover fees and more flexibility. These features make it an attractive option for day traders looking to maximize their profits while minimizing their costs. One of YouHodler’s most significant features is its Multi HODL tool, a function not available on any other cryptocurrency trading platform. The Multi HODL feature allows traders to maintain 80% of their assets in YouHodler Savings Accounts, which are risk-free, and use the remaining 20% for trading experiments.

Utilise News

The candles will eventually retrace to the 50 – 100 EMA, indicating that the market is trading around fair value. Breakouts can occur on any timeframe from the 1-minute to the daily and be used in combination with any trading style. However, as demonstrated on the Waves (WAVES) chart below, stop losses should generally be placed slightly above what you perceive to be the fullest extension of the move. It involves shorting tops and buying bottoms – without getting caught offside. Once the rejection of the range boundary has been confirmed, you can sit tight and wait for the trade to play out. Day trading is a high-risk and complex trading approach that shouldn’t be attempted by beginners.

The inflation reading will inform the Federal Reserve’s next moves on inflation. Investors are increasingly betting that the central bank may be done increasing the headline interest rate. Traders are pricing in 57.6% odds the target rate holds steady through the end of the year, compared to 52.6% odds on Friday, according to the CME FedWatch Tool. The bounce is especially being led by ULSD diesel futures that jump 2.3% to $3.3750 a gallon, which would be the highest closing price since Jan. 24. Traders are bracing for Wednesday’s release of the consumer-price index for August. Stocks were higher in afternoon trading on a quiet day ahead of what is sure to be a busy week.

Day Trading Cryptocurrency: How to Get Started

If funding your account with bank wire, there is no minimum deposit thresholds. If you’re based in the US then there is every likelihood that you know about Robinhood. After all, the platform is now home to millions of Average Joe investors, is simple to use, and of course – is completely free of commission.

• With AvaTrade, you can also access the world’s most popular trading platform MetaTrader 4 for desktop, web, and mobile.
• Getting wicked out means your stop loss gets hit, only for the trade to then move in your favour.
• The most important element is to exit trades just seconds after opening them.
• Well-executed breakout trades can result in high percentage returns over a short period.
• A sound understanding of market patterns and a robust day trading strategy are necessary to make the practice profitable.

Crypto day traders can use this strategy to try to predict whether demand for a particular crypto asset will rise or fall based on particular information sources. It is best to have a large bankroll to take advantage of this extremely short-term day trading crypto strategy. Trading frequently — sometimes making trades per minute — also means those small gains add up. By the end of reading my guide from start to finish, you will have all the information you need to decide if day trading cryptocurrency is right for you. Note that if you’re looking for a platform to start day trading on, you can check out exchanges such as Binance, Coinbase, and KuCoin. Day trading cryptocurrency isn’t for everyone and there is a lot to consider before you get started.

Best Crypto for Day Trading in 2023

Once your trade is in profit, consider moving your stop loss to break even or trailing it with the market. Mean reversion trades happen with pace, especially on lower timeframes. If money starts flowing back in and the market shifts against you, it’s better to have locked in small profits than see a once profitable trade get stopped out for a loss. Scale into your position slowly as the market reaches the top or bottom of the range. Picking exact tops and bottoms is extremely difficult, and scaling in will help you get a good average entry price. If the range is compromised and volume starts to flow into the market, you should have a stop loss ready to execute or, if time allows, position yourself for a breakout trade.

• If the price contracted to a daily move of just 20 points, you’d be seriously interested and alert.
• KuCoin is a cryptocurrency exchange that’s best known for its extensive range of listed cryptocurrencies.
• Most day traders rely on technical analyses for building the right trade ideas.
• You can obtain Dogecoin or be exposed to price movements via Derivative Trading.

It takes massive discipline, knowledge, and dependable cryptocurrency day trading strategies to succeed. It provides a robust trading platform with advanced charting features, high liquidity, and a vast selection of cryptocurrencies to trade. The sophisticated interface caters to both beginner and experienced traders, offering features like spot trading, futures, and options. It’s also globally accessible with low fees, making it a popular choice for day traders. Range trading targets non-trending or sideways markets by identifying stable high and low prices often displayed on charts as support and resistance levels.

Range trading

You may also be interested in reading our guide on the Best Cryptocurrencies Investments for 2019. Put your seatbelt on because next, we’re going to reveal how professional traders are day trading cryptocurrencies. – Before day trading Bitcoin or any other altcoins, it’s prudent to wait until we have a high reading of volatility. From there, you can use one of the below day trading strategies to start day trading crypto.

• When people talk about trading, they are referring to buying and selling an asset with the aim of making a profit.
• You’ll need to utilise an effective strategy in line with an efficient money management system to make a profit.
• The idea is to buy crypto when the price touches the support and sell when it gets close to resistance.
• Typically, this means setting a stop-loss at a level where the breakout from the range is confirmed.
• StormGain’s trading platform offers a customizable, user-friendly dashboard that displays fluctuating assets.
• A moving average of price action over an extended period of time is used in the middle band of the BB to divide the trading range into three bands.

Remember that breakouts are rarely clean, as traders often make a last-ditch effort to push the market back and fade the initial move. If the range or level is compromised and volume continues to flow into the market, look to execute your breakout trade. Taking losses is an inevitable – part of trading, so make sure they are well calculated and accounted for as part of your trading plan. However, always use the appropriate risk management, especially when trading leverage – liquidation can happen extremely quickly when these setups don’t play out.

Crypto Guides

If you’re new to trading, it could be a good idea to create several accounts on different popular exchanges to try them out before you commit. Most platforms also have demo accounts that let you glimpse into day trading without having to make a deposit. EToro has integrated essential functions such as one-click trading, TipRanks research, and a professional-grade technical analysis tool. Bybit stands out as a platform for experienced day traders seeking opportunities beyond basic buy/sell orders. It’s one of the leading derivatives exchanges designed for those who want to trade with leverage using futures contracts.

• The same market condition that scares away buy-and-hold investors is the chaos that makes opportunities for day traders to make profit.
• Additionally, this website may earn affiliate fees from advertising and links.
• Texas is now fast becoming the next cryptocurrency capital of the world.
• For instance, it’s uncommon for blue chip stocks and other tradable commodities to see a 10% rise in value within a single day.
• It’s a costly mistake to enter crypto day trading without adequate research on the market and your targeted investments.

In this guide, you will learn what day trading crypto is, how it works, and the strategies to employ. You will also learn about typical pitfalls to avoid, as well as tips and practices that might assist you in achieving success while trading cryptocurrencies. Regardless of the strategy you choose, you must be willing to accept losses in a volatile market like cryptocurrency. Don’t follow the hot tips crowd; invest only in coins that you actually believe in — even for just the day. The hot tips crowd is often selfishly motivated and is not giving tips to make you money. Arbitrage involves buying cryptocurrency in 1 market and selling it in another market at a higher price.

#3 Trading beyond what you can afford to lose

For instance, there was a time when Bitcoin was selling at a price 40% higher in Korea than in the United States. Day traders simply made significant profits by purchasing BTC in the United States and selling in Korea. To get started, you need to open an account in a suitable bitcoin trading exchange that meets your day trading needs. Notably, the crypto market is incredibly fragmented, and exchanges operate under multiple jurisdictions scattered worldwide. Having that in mind, you need to select a crypto exchange platform that is supported in your country. IQ Option for example, deliver traditional crypto trading via Forex or CFDs – but also offer cryptocurrency multipliers.

• This will decrease your chances of slippage if the trade goes against you, as liquidity will likely be thin as many traders rush to exit the market.
• Not only is Bitcoin the world’s most well-known and biggest cryptocurrency, but it’s also the most traded (by trading volume and order book flow).
• Day trading crypto is also great because it offers short-term opportunities.

If you’re uncomfortable with charts as low as the 1-minute, consider moving to the 5 or 15-minute timeframes. Trade setups are frequent, especially on lower time frames, so you’ll never immediate edge be on the sidelines long when trading pullbacks. Identifying setups is relatively simple when using the 3 EMAs – which also help with stop-loss positioning and precision executions.

Crypto Day Trading Strategies to Use

The other day trading cryptocurrency strategy often used is chart analysis. This is where traders study the price movement of a particular cryptocurrency and try to guess which way it will go, based on historical price movements. When analyzing charts, you can look at how a price moves every few seconds, minutes or even hours. Breakout trading is a common strategy used by crypto day traders and scalpers to capitalize on market expansion and increased volatility.

• EndoTech is a leading automated crypto trading platform that has been fine-tuning its trading algorithms since it launched in 2012.
• Kane has also written for websites such as MoneyCheck, InsideBitcoins, Blockonomi, Learnbonds, Buysharesand the Malta Association of Compliance Officers.
• Deposits can be made directly from the platform using a credit or debit card, with a minimum deposit for crypto purchases set at $50.

The goal of day traders is to use intraday trading strategies to try and profit off of price changes in a financial instrument. It’s also important to remember that the large majority of day traders lose profits. There are a ton of opportunities to profit in crypto, and day trading is only one avenue to earn profits.

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Among the trading robot’s bots, the DCA bot stands out as an option meant for traders who want to execute purchase orders in fixed periods. The bot will not use the current market price to execute its buy orders but will use it to execute its buy orders. With adjustable intervals of 10 minutes, 1 hour, 1 week, or 1 month, it makes it a versatile choice for every user. However, the big downside of GMX is that the protocol can only be used to trade a very limited selection of cryptocurrencies.

• This enables you to trade profit from rising and falling markets using leverage which amplifies your gains and losses.
• The beginner-friendly Kraken App allows users to buy, sell, and convert crypto easily, while Kraken Pro provides a professional trading experience with advanced features.
• Some of the most common day trading strategies include scalping, range trading, and high-frequency trading.

Day traders employ intraday crypto trading strategies to take advantage of the luxuries of the crypto-verse, and they will likely close their positions before the day ends. However, winning takes more than just learning trading discipline and effectively employing a reliable cryptocurrency day trading strategy. Recent market and industry developments are less of a factor in crypto day trading strategies than in long-term investment. That’s because day traders make a profit off price fluctuations, not necessarily bullish or bearish trends. Day trading is an approach to trading that involves making frequent trades and holding positions for a short period of time in an attempt to profit from quick fluctuations in price.