Have you bought into the craze that is day trading? There’s a lot of money to be made there. But it hasn’t always been easy for me. I’ve made a ton of mistakes along the way, but then I learned how to day trade crypto successfully.
Day trading crypto can seem like a daunting task for new traders if they are looking for real-time market data and a wide range of tools. I want to share my tips on how you can make money in the crypto market and we’ll run through the various ways that day traders use to view the market, including screenshots of popular exchanges, as well as other useful tips and tricks for maximizing your profit/minimizing your risk as a crypto trader.
What is Day Trading Crypto?
The act of buying and selling a capital asset on the same day, or numerous times throughout the day, is known as day trading. Profiting from price changes may be a rewarding game if done right. But, it can be a risky game for newcomers or anyone who does not follow a well-thought-out plan.
Day trading is a type of trading that involves taking and selling positions on the very same trading day. Day traders strive to earn from price swings in a financial instrument by using the day trading strategies.
Here are my 2 reasons why day trading crypto is one of the best ways to earn an income:
How to get started with Day Trading Crypto
If you’re interested in making a living as a crypto trader, or just want to have a bit of fun day trading, I have good news for you. It’s not impossible! However, you need more than just ambition and some capital. Here are 4 tips to help you become a successful trader.
1. Get a solid knowledge about Day Trading
I really think you need at least 3 months of solid daily effort to really get the hang of trading. Once you learn the strategies that are pretty easy, then it’s about learning how to recognize those patterns in a split second, making those decisions, and getting in & out of trades. And all that takes a lot of practice and that is why using a simulator is a must (which I’ll explain further below).
In addition, having a solid understanding of trading crypto terminologies puts you in a better position to trade, because you’ll know exactly what to do next if the strategy you’re using isn’t working as planned. Hence, a solid understanding of crypto lets you put a spin on your own strategy, you can be versatile to any market changes that can happen and you can trade more confidently.
2. Start Small and Use a Simulator till you Gain Confidence
Do you want to start day trading crypto but aren’t sure how to get started? Fortunately, there’s no need to struggle just yet with the help of Phemex and Bybit simulated trading platforms.
I’ve been a large trader for the past 6 years and have tried a lot of simulators. Some simulators are excellent for beginners, but others are far too difficult to operate and can be daunting. But, as I’ll show you, these exchanges have made it incredibly simple to open a paper trading account and learn as you go. It looks just like any other exchange, but it doesn’t actually take your actual money. This allows you to test your strategies without putting yourself in danger. The simulator employs fictitious money with actual pricing to allow you to see how much you can profit or lose on each deal.
If you’re new to trading and want to learn the ropes, the simplest way to get started is to download simulated trading software. To learn more about simulated trading check out the following posts:
Phemex and Bybit both have their own set of features that will guide you, and it is up to you to pick which one is ideal for you. Just make sure to choose a simulator with features that are almost equivalent to those found in real-world trading. Because switching platforms will be challenging when you’re beginning from scratch and refining your entry and exit strategies. Learn how to use simulated trading tools and practice for at least 3 to 4 months before beginning to trade in real and live markets.
3. Learn How to Minimize Your Risk
When you are day trading crypto, you have to stay calm and composed. The main part of a successful trade is minimizing the risk of losing money.
First and foremost, we do not want you to be on the verge of being liquidated. Liquidated means that whatever you put into the deal is gone, which effectively means that if you trade this method, you’re willing to lose 100% of the money you put into it.
As a day trader, your income and livelihood are dependent on having enough money to trade. You are not a day trader if you do not have any capital to trade with. As a day trader, your primary responsibility is risk management and money preservation. Because that is the only way you can get there.
In this blog post, I’ll walk you through my day trading risk management strategy, which is a pretty straightforward list of things I’ve learned so far regarding cryptocurrency trading.
4. Set a Schedule
Day trading demands your availability. That is why it is referred to as day trading. In fact, you’ll have to skip most of your day. If you only have a short amount of time, don’t bother. A trader must follow the markets and look for opportunities, which can occur at any time during trading hours. The ability to move rapidly is essential.
Many investor and trade orders start to execute as soon as the markets open in the morning, contributing to price volatility. A skilled player may be able to spot trends and make informed decisions in order to profit. However, for newcomers, it may be preferable to simply read the market for the first 15 to 20 minutes before making any moves.
One of the good reasons for day trading is that the market is open 24/7. Unlike the stock market, which dictates when you can trade and not even just between nine and four, the market trades differently at different times of the day. So literally if you want to trade the open, you can literally only trade at the open. If you want slower-paced trading like trend trading, a good time is between three and four. Crypto is not like that.
Although the volume is going to be lower at certain times of the day and it’s going to be pretty low and tough to trade on the holidays. But other than that, you can still trade depending on your schedule whenever you want. Whenever you have time is when you can trade.
Day Trading Strategies
There are a few day trading strategies that are frequently practiced by experienced day traders:
- Scalping: Scalping is when you sell your stock as soon as it becomes profitable. This is a simple method to get your feet wet with day trading because the timing isn’t too complicated. Scalping is also known as benefiting from the “spread” because traders are profiting off the difference between the sellers asking price and the buyer’s offer.
- Momentum trading: It is based on news and information that is currently trending. Day traders use news events to forecast the rising and falling markets. This needs a significant amount of research, but it is still a solid alternative for beginner traders.
- Breakout: A breakout strategy refers to a significant change in the price of a stock after it has been reasonably stable for a long time. For example, if a company has been trading in the $50-$51 range for three weeks and then suddenly dips or rises dramatically, it might be a good moment to trade. A day trader should find that volatility appealing.
Day Trading Platforms I Fully Recommend
It’s important to find an online platform or exchange with comprehensive trading tools in addition to comprehending rules and selecting a strategy. Because day trading necessitates a lot of quick judgments, you don’t want to be slowed down by poor techniques, a bad internet connection, or any other technical issue.
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So, here are my top 3 exchanges where you can day trade crypto:
These platforms might differ, and there are other possibilities with positive reviews and a good reputation. When choosing an online trading platform, it’s also important to read other traders’ reviews and find a reputable platform that meets your criteria when trading.
The crypto-world moves quickly and so does the exchange you’re going to trade on. Having said that, as a day trader, it doesn’t matter if you’re looking at a long-term hold or trying to make money from your investment in one day. It is important that you choose the right exchange for you and implement a risk management strategy that pertains to your trading activity.
Ultimately, day trading crypto may be highly profitable. Day traders should use the right crypto trading strategies to take advantage of the luxuries of the crypto world, and they will likely close their positions before the day ends.
Let Me Help You Start Your Day Trading Journey
If you’re wondering why I choose to coach people in crypto, it’s because while getting money is great, it doesn’t offer you a sense of purpose. I recognized during medical school that being a doctor was not for me. My deep internal desire to serve people, on the other hand, did not simply vanish. Helping others gives my life meaning, and I’d love to assist you in living the life of your dreams!
My favorite aspect of coaching is long-term mentorship. This could be what you’re searching for or it could not, but it’s definitely my favorite part. That said, I’d like to help you in any way I can in getting started the correct way. My goal is to instill in you the belief that you can succeed.
If you’re fully ready to start earning income through day trading, click that button below!