Jump to content
AskTraders Trading Community
  • 0

Is it possible to carry out day trading with cryptocurrencies?


Mary S

Question

3 answers to this question

Recommended Posts

  • 0

Hi Mary,

Financial markets such as the Forex and CFD market employ day trading as one of their trading styles. The cryptocurrency market is also not left behind. You can conduct day trading in this market like any other financial market; however, you need to be vigilant and know the techniques you will employ to succeed.

Day trading is a short-term trading technique where an investor will buy an asset, hold it for a short time and sell it when its prices are favorable to make a profit. Primarily making a profit is usually the main objective of any market.

In cryptocurrencies, you buy crypto when you speculate that its price will fall, you make a purchase, and when the prices start to rise, you sell off your crypto. Though you will hold it for a short while, you intend to make a quick profit from that span.

You can also use the charts to predict the market prices of the cryptocurrency. You study the charts and guess how the market prices will move, and from there, you decide on either buying or selling your cryptocurrency.

Before you trade any crypto, however, you need to look for a good exchange. In day trading, you will sell your coin within 24 hours. You need to select a good cryptocurrency option that is highly liquid and suits the trading session you want to trade with.

If you choose to trade for the whole day, it would be best if you selected an exchange with different pairs. For example, Binance coin has many different trading pairs, and it trades in large amounts each day.

Understand all the risks that come with day trading and, most importantly, learn how to use this trading technique excellently.

Link to comment
Share on other sites

  • 0

Hi,

Day trading entails buying and selling economic assets during the day in search of profit opportunities. It goes beyond Forex and futures to include cryptocurrencies. But why should you choose crypto day trading over other established markets?
The first reason is volatility. Through the price swings expose you to losses, they’re also an opportunity to make a killing. Similarly, crypto markets require minimal capital, unlike stocks that demand hefty starting balances and commissions. Not mentioning the round-the-clock trading hours thanks to crypto’s decentralized structure.
Choosing the right coin is paramount for day trading. Apart from high prices, go for cryptocurrencies topping market cap and 24-hour volume lists. This goes together with selecting an exchange. While your location may limit the available options, pick an exchange with a huge altcoin selection, minimal fees, and no hacking history.
Again, only risk what you’re comfortable giving up regardless of how tempting a deal appears. Because news influences coin values, follow crypto sites to stay ahead of new developments. 
 

Link to comment
Share on other sites

  • 0

Hi Mary,

Yes, day trading cryptocurrencies is possible and as a matter of fact, it’s becoming more and more popular. This is mostly because high volatility and trading volumes in the crypto market suits day trading quite well. 

Day trading digital currencies is mostly about speculating on the price of the coin, instead of actually owning it. That’s why brokers that offer forex and CFDs are a great place to start for novice traders, as opposed to purchasing cryptocurrencies on a crypto exchange.

However, choosing a crypto platform to conduct day trading is a very important decision. Make sure you read the reviews before choosing a platform. Coinbase is probably the most trustworthy crypto exchange, followed by Bittrex, CEX.IO, Coinmama and more.  
 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. To reply to this question, sign in or create a new account.

Guest
Reply to this question

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...