Published on: October 14, 2022
Author: Laura Brocca
|Table of Content
|How to day trade cryptocurrency
|Crypto day trading strategies
|What experts say about day trading crypto
|Crypto day trading FAQs
|How much can you make day trading crypto?
|Can I day trade cryptocurrencies with $200?
The cryptocurrency market is still in its early stages, as far as markets go anyway. Other stocks, such as gold, stocks and currency trading, have been around for much longer. With a new market comes a new opportunity. If you'd have been one of the few people who bought and held Bitcoin from its inception, you would be looking at profits in the billions of dollars.
Now the market has broken into the mainstream and is regularly discussed by Elon Musk and on Bloomberg. Potentially, it may have lost some of the mystique and aura that attracted people to it in the first place.
The idea of buying, selling, holding and transferring a digital asset without a bank overseeing the transaction was refreshing. Especially so soon after the 2008 financial crash. Whilst initially, hardcore enthusiasts spotted the potential of Bitcoin, statistically speaking, it is the best investment of the 21st Century in any asset class.
Day trading is one of the riskier types of trading due to the constant need to check chart analysis and data. It helps if you have a mobile trading app where you can set buy and sell orders, such as the amana trading and investing app. However, generally speaking, you want to be able to keep a closer eye on the market if you want to become a successful day trader.
The advantage of cryptocurrency day trading is that you can take advantage of the extreme volatility in the market. This, of course, can work against you, and you can also lose money quickly. Any effective trading strategy must orbit around effective research and implementing management tools such as buy and sell limits and reading tutorials about the markets you're looking to trade in.
A variety of strategies fall under the umbrella of day trading. This includes:
Day trading is risky, and you must ensure a keen interest in the market and a solid understanding of how it operates to give yourself the best opportunity to make a profit.
However, if executed correctly, it can result in substantial profits, given the level of risk involved. If you're a beginner trader, it is probably best to read up on other types of trading before getting involved in day trading.
Day trading can involve sticking to your guns when the markets become extremely volatile. A key thing to remember if you're starting in the investment world is that getting pulled into the emotional side of trading can easily cloud your judgment.
If you use a mobile trading app, which is highly rated, like amana, you can set automatic buy and sell orders. These will help you, but the main crux of day trading is to get in and out and identify the opportunities by closely following the markets to make the right judgment based on short-term movements.
Depending on how much capital you start with, you could be surprised by how much profit there is to be made from day trading. However, as we have touched on already in this article, with great reward comes great risk.
There are some traders who make a few hundred or a few thousand dollars a day by timing the dips that occur in the cryptocurrency market and having the ability to enter the market at the correct point. They will have major capital, though, and will be fully aware of the market behavior and the risks involved.
You can, yes, and this amount would have bought you a couple of hundred Bitcoin around the turn of the last decade. Unfortunately, it won't net you the same amount now. Still, if you entered the market at an opportune moment, you could potentially turn over a sizeable profit if you traded effectively and efficiently for the next few months.
Although it is advantageous to have more capital for specific types of trading such as day trading due to the nature of it. Rome wasn't built in a day, and it is better to aim for smaller, steadier profits than to try and hit one big home run and lose all of your hard-earned money in one venture. Here are some more tips for trading crypto.