How to Trade Cryptocurrency and Make Profit?
What is crypto day trading?
In cryptocurrency day trading, investors tend to trade high volumes to execute a more significant number of trades with smaller profits on each transaction. This will allow them to reduce risks and better produce slightly positive returns over time.
No risk, no gain; you must hear the word; while we are talking about Day trading cryptocurrencies, the word must be followed by a point to point. If you want to involve in cryptocurrency day trading, you must have the capability to manage risks; otherwise, you will be a loser here. It happens because all of the crypto coin's prices are not stable, and the price movements are volatile. Therefore, to be a crypto trader, you must have the ability to control your emotions strongly and must be a skilled guy to gain.
Therefore, cryptocurrency day trading is an attractive option for retail investors who are willing to take the risk. They can potentially generate higher returns in shorter time frames with reduced risks.
Cryptocurrency day trading
The first step for a crypto day trader is to choose a crypto broker who is most reliable and trustable in the market; they can also open an exchanging account with crypto exchanges. When selecting your crypto broker or exchanges, you should look at the spreads and trading factors, flexible withdrawal/deposit methods.
You have to choose your trading strategy from an expert analyzer or create your own. You can use the two most popular cryptocurrencies, Bitcoin and Ethereum, or you can use other lesser-known currencies if one of them is moving in the news.
When you are trading a cryptocurrency, you should always pay attention to the higher time frames, what is happening there. If you want to learn the best rule, you should look for long trades only. You can find out long trades by looking at their 1 to 3 months price charts; if it is higher, it will be long, and if lower, you can call it short trade. But you do not need to trade if the price of the coin is in a dangerous region.
You can make a chart of Bitcoin and Ethereum. Look for lines that show both support and resistance. If the price is going down, but it changes direction as soon as it hits a line, that might be a good time to buy or sell cryptocurrency.
Make sure that you are patient. When trading, the best trades usually run into more money as the day goes on.