This article will discuss how to day trade crypto for a living at all time. Day trading on crypto-assets involves the strategy of entering and exiting a crypto trading position within a day. It is one of the best trading strategies to make little profits and reduce the level of losses on trades.
How to Day Trade Crypto for a Living During Market Crash
Cryptocurrency is usually volatile, with the prices not always stable, and sometimes the market crashes with various factors contributing to this.
Volatility tends to attract traders who intend to make profits, but it’s a frightening period for newer investors looking to start their trading journey.
A day trader or investor must calmly assess the situation in the market after the crash. They would need to consider if this crash is an opportunity and if yes, they can buy into the dip and sell once there’s a price movement.
Also, if these traders decide that the risk is too much, they can decide to close their trading positions, take their losses and stay out of the market. Alternatively, another way to trade during these crashes may be to focus on other financial assets.
How Much Money to Start Day Trading Crypto?
For a trader or investor to begin day trading on cryptocurrency, they must have some funds as capital. Normally these funds for trading are determined by the specific exchange that a trader intends to use for their crypto-related transactions.
Most exchanges require a trader to have a minimum of $5 to $10 to conduct various trades. However, these amounts could differ as other exchanges offer traders access to day trading with lesser trading capital.
Ensure to research the platform you intend to use, determine their minimum trade balance, and sign up to start day trading on crypto.
How to Pick Crypto for Day Trading
Day trading involves the same process of buying and selling various assets but basically on the same day. It is a different way of making fast profits daily, with various tools required to determine when to take advantage of these short-term price movements in the market. Below are the steps on how to pick crypto for day trading.
Select The Right Trading Platform
The first step to starting day trading on crypto is to determine and sign up with a specific trading platform. Trading platforms are numerous, having their respective features, so you need to know which one is best for you.
Pick The Right Investments
After getting a reliable trading platform, the next thing is to pick a crypto asset for investment. Ensure to check for various details on these assets as it is only through volatility and price fluctuation in the market that one can profit from day trading.
Getting A Trading Strategy
Do not enter into the day trading of crypto without having an ideal strategy to use in trading. It is important to know when to enter or exit a specific position in a crypto market as a trader.
Most Profitable Crypto Trading Strategies for Day Trading
There are many trading strategies that investors and traders can adopt for their daily trading activity, which include momentum, fading, daily pivots, and scalping.
The most profitable crypto trading strategy for day trading is “Scalping,” which involves immediate sales after profiting from a specific trading position. This strategy is rated as one of the most popular and profiting trading strategies.
10 Best Cryptos for Day Trading
Day trading normally requires an investor or trader to have a good crypto asset in which they would employ their preferred trading strategy to make profits.
You would need a volatile asset with price fluctuation to earn profits. Below is a list of the ten best cryptos that investors and traders can consider for day trading.
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Binance Cash (BNB)
- Ripple (XRP)
- Stellar (XLM)
- Solana (SOL)
- Shiba Inu (SHIB)
- Polkadot (DOT)
- Cardano (ADA)
List of 5 Exchanges for Crypto Day Trading
Crypto day traders and investors require a reliable, fast, and trusted platform to conduct their respective day trading activities. Below is a list of five exchanges that traders and investors can use for their crypto day trading.
Day trading crypto is a good trading strategy that can help one generate profit if they stay watchful and consistent in trading.
Ensure to have a good platform and pick the best crypto asset to trade. We hope this article will provide useful information on day trading and how to profit from its usage in your trading activities.
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