How to Day Trade Cryptocurrency? The Comprehensive Guide

crypto trading

Cryptocurrency Trading is a very successful industry and a great way to the owning mindset who want to invest their money and earn profits, but not without risk. 

Given the high volatile existence of the cryptocurrency market, making a living by cryptocurrency trade is incredibly simple. There are many kinds of trading currently, but day trading remains the most popular one. If conducted properly, day trading is highly profitable. 

In this article, we will provide you with the complete guide on Cryptocurrency Day trading and its overall aspects. Let us look into detail in this article now.

What is Day Trading?

Day trading is a form of trading that includes the acquisition and sale of security during a single day of trading. It is a short-term method used by traders to gain tiny gains from minute, intraday market swings in assets or digital currencies. This happens in every market position, however in the stock, forex, and cryptocurrency markets it is more prevalent.   

Day trading is the practise of speculating on financial products and assets over the course of a single day. In the span of a few hours or less, day traders will frequently purchase and sell any variety of financial instruments and benefit from speculating on short-term market fluctuations. In the short term, day traders remain up-to- date with what drives the markets and will put hundreds of orders to win in the long run in a single day.

Day traders never keep any positions overnight; on the same day, they enter and leave trading positions. Instead, they acquire and retain digital assets for a brief time, anywhere from a few minutes to a few hours, until they sell them off. 

How to Day Trade Cryptocurrency?

1) Choose Your Marketplace

Choosing a marketplace is the first step in your day-trading path. Different markets provide diverse fees systems, coin pairings, trading amounts, etc. This is particularly important since little revenue will easily vanish into fees on huge trading volumes. Therefore, paying attention to fee rates is imperative. If a suitable marketplace is found, go ahead and locate two or three more markets and register accounts for each one. Doing it gives you choice in terms of rates, liquidity and availability of cryptocurrencies.  

2) Develop a Strategy

Then, you need to build a good strategy for trading. There is a lot of study and self-discipline involved in this step. For starters, you need to make sure that you do not gamble more than you are able to lose. This can be a difficult act to practise, but using a cautious approach means that on aggressive bets you don’t lose all your cash. 

3) Stop Loss Limits

The stop-loss limit or, as widely called, the exit strategy is another important element in cryptocurrency trading. For example, if you buy a specific cryptocurrency at $200, you can set a $180 stop loss to ensure that you retain at least a significant chunk of that investment in case rates take a sharp turn. 

4) Limit Sell Orders 

Another major concept of cryptocurrency trading is the limit sell order. The limit sale order immediately closes a trade once the digital asset reaches a particular high price, unlike the stop-loss order.  

5) Crypto Trading Bot

A huge number of trading bots and trading algorithms are currently flooding the crypto-currency trading market. Some are publicly accessible on open-source websites, while others are offered at a charge. Features such as bot performance monitoring, social trading, construction of portfolios and monitoring make it a comprehensive choice for any trader involved in automated day trading with cryptocurrencies. 

Crypto Day Trading Strategies

1) Scalping  

Scalping is a standout day trading technique that is well-recognized in the forex industry but often widely used in the trading market for cryptocurrencies. It is carried out in an effort to make a modest profit from each trade by conducting hundreds of trades every day. Scalping is a fast, paced approach that often appears to be risky.

2) Force

This is a popular approach that focuses on keeping up on reports of news and understanding market movements. Digital asset prices are guaranteed to shift around every day, hence it is an incentive to take advantage of this approach. You ought to ensure that you are aware of future news and statements and you will have seconds before they influence the values of digital assets.

3) Inversion 

Inversion is a widely used technique used across the globe. It is commonly referred to as pattern trading, switch trading, or pull back inclining. It also requires the ability to predict and accurately discern the consistency of pull-backs.  


Day trading has the capability for being a lucrative medium that delivers significant profits. However, it is not free, and it’s not for everyone.

One of the best ways to know which cryptocurrency to day trade is to perform the analysis. You acquire awareness and experience about when and how to begin by researching the market and assessing which coins do well.

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