Cryptocurrency Trading: Easy Strategies for Beginners

Day trading strategies cryptocurrency

Day trading strategies cryptocurrency

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Mind also that a trading bot can help to automate your trading in general. However, it is fair to say that nobody would ever share a piece of software that could potentially bring millions of dollars.

Cryptocurrency Day Trading - Tips, Strategy and Broker

This strategy is simple and effective if used correctly. However, you must ensure you’re aware of upcoming news and earnings announcements. Just a few seconds on each trade will make all the difference to your end of day profits.

Day Trading Strategies in Cryptocurrency – Changelly

For example, if you bought Ethereum at a price of $755, you could set yourself a stop loss of 65%. This means that if the price of Ethereum went down to $685, the system would automatically sell your investment. This protects from you a sudden decline in price, or if you were not at your computer to do it yourself.

This is particularly important if you’re using margin. Requirements for which are usually high for day traders. When you trade on margin you are increasingly vulnerable to sharp price movements. Yes, this means the potential for greater profit, but it also means the possibility of significant losses. Fortunately, you can employ stop-losses.

Developing HFT bots requires an understanding of advanced market concepts alongside an acute knowledge of mathematics and computer science. As such, it&rsquo s more suitable for advanced traders.

To make your job easier, we recommend only trying to scalp on a larger cryptocurrency exchange or on popular trading platforms while sticking to coins in the top 85 by market cap — such as Litecoin (LTC), Bitcoin Cash (BCH), and Ethereum (ETH) — since these tend to have the most variance.

However, it is important to remember that the above two trades are examples of a successful prediction. On another day, the prices could have easily gone the other way, which would have meant that both Peter and John lost money.

Use the asset’s recent performance to establish a reasonable price target. Using chart patterns will make this process even more accurate. You can calculate the average recent price swings to create a target. If the average price swing has been 8 points over the last several price swings, this would be a sensible target. Once you’ve reached that goal you can exit the trade and enjoy the profit.

Day trading is an acquired skill. Therefore, you need to train and hone your trading skills through education and training. It’s crucial that you use trustworthy sources of information and invest in a mentor with a proven track record of success.

START TRADING IN CRYPTOCURRENCY

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