Day Trading Cryptocurrency: Crypto Trading Strategies 101

AvaTrade offers a great range of crypto CFDs – all of which come with tight spreads. Among the trading robot’s bots, the DCA bot stands out as an option meant for traders who want to execute purchase orders in fixed periods. The bot will not use the current market price to execute its buy orders but will use it to execute its buy orders.

• If you’re a long-term investor and care more about user-interface and unique features, then Coinbase or Voyager may be for you.
• Currently, membership costs $297 per month, or $1,297 per month, with the Textbook Trading, Swing Trading, and Tandem Trading course included.
• An 18-hour starter course costs $997, a five-course Warrior Plus $2,497, and five-course Warrior Pro $3,997.
• You can get a 25% of discount on fees if you choose to pay them with the BNB token, and you can also decrease your fees further if you generate a lot of trading volume.
• You then have crypto-to-crypto pairs, which will consist of two digital currencies.
• Unfortunately, we don’t have a single answer to those questions, but this article will explain what you need to know before you start day trading crypto.

As such, to succeed in range trading, you must learn how to analyze a candlestick chart and identify the support and resistance levels. As the name implies, range traders identify cryptocurrency price ranges within the market structures and plan trades based upon those ranges. The idea is to buy crypto when the price touches the support and sell when it gets close to resistance.

Bitcoin (BTC)

The best crypto day trading platforms of 2023 can be found in the list below. One aspect of Bybit that’s worth highlighting is the exchange’s copy trading feature, which allows users to automatically copy the moves made by more experienced traders. Bybit also features a demo trading mode, which you can use to test your day trading strategies risk-free.

• This means that if the price of Ethereum went down to $630, the system would automatically sell your investment.
• There’s a 3-day free trial (which includes a $7.95 sign-up fee), and then the courses are priced at $86.61 monthly.
• Another great thing about Solana is that it’s both popular and future-proof in part thanks to its smart contracts technology.
• If funding your account with bank wire, there is no minimum deposit thresholds.
• Day trading, on the other hand, is not a get-rich-quick scheme but a clever strategy to generate income and create wealth over time.

Apart from this, it is the most liquid crypto, meaning there are always buyers and sellers available. Bitcoin has exceptionally huge trading volume and high volatility, and, overall, artificial intelligence one can consider it a solid choice for day trading. When it comes to choosing cryptocurrencies and crypto pairs for day trading, there are a few things you need to look for.

Start day trading with eToro

On top of that, you’ll need to pay to have your bot updated as the market changes. If you want to avoid losing your profits to computer crashes and unexpected market events then you will still need to monitor your bot to an extent. If you want to own the actual cryptocurrency, rather than speculate on the – price, you need to store it in a crypto wallet. You can trade the likes of Bitcoin, Ethereum, LTC, and Bitcoin Cash against the US dollar. You can also trade Bitcoin against the euro, pound sterling, and Australian dollar. When it comes to fees at Forex.com, this depends on your chosen account type.

• With eToro, you can transact in physical cryptocurrency, as well as derivatives such as CFDs (Contracts for Difference).
• If you’re looking to day trade crypto from the comfort of your home – you’ll need to ensure that you choose a trusted platform.
• Bitcoin mining is energy-intensive so finding an abundant resource that is cheap is key for crypto miners.
• In this section, we’ll cover how to place stop losses and profit targets and provide some tips on minimising risk.
• All in all, signals can be a great way to trade the crypto markets in a semi-passive manner – as all you need to do is place the suggested orders at your chosen platform.

The flip side of unprecedented price surges of several hundred percent is sudden drops. The very high volatility of crypto prices is a double-edged sword, and you need to keep this in mind. A good strategy will determine whether that loss is ruinous or merely unfortunate.

Crypto Day Trading Strategies to Use

Day trading crypto can be worth it if you are using the right platform and have the right education. As with any form of trading or investing, there is risk involved and a fair amount of winning and losing. Furthermore, you can access the eToro Money Crypto Wallet which allows you to buy, sell, store, receive and transfer over 120+ cryptocurrencies. The wallet also gives you your own unlosable private key and on-chain address. You can also use the eToro staking service to earn more while you HODL.

Breakouts can occur on any timeframe from the 1-minute to the daily and be used in combination with any trading style. However, as demonstrated on the Waves (WAVES) chart below, stop losses should generally be placed slightly above what you perceive to be the fullest extension of the move. It involves shorting tops and buying bottoms – without getting caught offside. Once the rejection of the range boundary has been confirmed, you can sit tight and wait for the trade to play out. Day trading is a high-risk and complex trading approach that shouldn’t be attempted by beginners.

Fees

EToro has integrated essential functions such as one-click trading, TipRanks research, and a professional-grade technical analysis tool. Bybit stands out as a platform for experienced day traders seeking opportunities beyond basic buy/sell orders. It’s one of the leading derivatives exchanges designed for those who want to trade with leverage using futures contracts. But in order to succeed, day traders especially require a reliable platform to interpret charts and analyze market trends. Since day trading demands considerable time and effort, a platform that streamlines certain processes can be invaluable. Here’s what to know and where to utilize day trading strategies in 2023.

• The key to day trading Cosmos is to watch the market closely and take advantage of every opportunity.
• However, due to the fast trade execution and high risk, scalping is generally more suitable for skillful traders.
• If you’re holding a long trade, position your stop below the support zone, accounting for wicks and potential price spikes to the downside.
• From there, you can use one of the below day trading strategies to start day trading crypto.
• If you’re a day trader, you’ll want to use an exchange with low or zero trading fees.

The only way to engage in High-frequency trading is using a piece of software known as a trading bot. The bot monitors the market and, based on the given trading logic, executes trades continuously for as long as it is connected to the exchange. By instituting specific trading logic, High-frequency trading can be combined with many other strategies. A good strategy can be the difference between one or two lucky streaks and consistent long-term returns. You can apply different trading strategies in different situations, depending on the nature of the market and your competencies. It is up to you to understand the market and decide when it is appropriate to apply a given strategy.

Stop losses

A stop-loss is when you enter a price that you want to automatically exit your trade. Crypto day trading refers to buying and selling cryptocurrencies within a single day or trading session in an attempt to generate a profit from short-term price fluctuations. A lack of liquidity can be disastrous to the entire crypto market, causing slippage and increasing the risk of a flash crash.

• The exchange will act as a digital wallet for your cryptocurrencies, so don’t dive in without considering the factors below first.
• Range trading, like the majority of other trading strategies, can work beyond the crypto space and is flexible for other markets.
• The same market condition that scares away buy-and-hold investors is the chaos that makes opportunities for day traders to make profit.

Day traders employ intraday crypto trading strategies to take advantage of the luxuries of the crypto-verse, and they will likely close their positions before the day ends. However, winning takes more than just learning trading discipline and effectively employing a reliable cryptocurrency day trading strategy. Recent market and industry developments are less of a factor in – strategies than in long-term investment. That’s because day traders make a profit off price fluctuations, not necessarily bullish or bearish trends. Day trading is an approach to trading that involves making frequent trades and holding positions for a short period of time in an attempt to profit from quick fluctuations in price. Very often, day traders use technical analysis to inform their trading decisions.

Best Crypto Exchanges for Day Trading Reviewed

You can open an account for free, start trading and enter the crypto market right away. There are several cryptocurrency exchanges and brokerages to choose from, and some may be a better fit for you than others. If you’re a day trader, you’ll want to use an exchange with low or zero trading fees.

Never forget that the cryptocurrency markets are really volatile, so there is always a chance you could lose your entire investment. If you are looking to day trade full time, then it is well worth choosing an exchange that has lots of difference pairings listed. Once you have figured out how the markets work and you feel you are ready to start trading with real money, you now need to set yourself some targets.

eToro – Overall Best Day Trading Crypto Platform

Understanding and accounting for volatility is a day trader’s best friend. The volatility of a market refers to the unpredictability of crypto price movements. Factors that affect the volatility of markets include the news cycle, economic data, and research reports. In the crypto markets, the same factors have a dramatic impact (or none at all) on certain crypto assets.

Asset liquidity is a measure of how easily an asset can be converted into cash without affecting its price. The price of a crypto asset can change when the trader executes the trade and the exchange fulfills the order. The difference between those prices is slippage, and in the crypto markets, a few minutes can mean the difference between a big profit or a big loss. Exchange liquidity, asset liquidity, and fees are at the top of a trader’s list when choosing the right platform for them to buy and sell crypto.

Binance Review 2023: Is It the Right Crypto Exchange for You?

Whichever day trading strategy and cryptocurrency to day trade you decide to go for, make sure that you have a solid plan in place before you start trading. OKX is another good option for crypto day traders, and it can serve as an alternative to Binance because these two exchanges are quite similar in what they offer. Just like Binance, OKX lists a wide variety of cryptocurrencies, with more than 330 different coins available at the moment. Also known as the buy straddle, straddle, or option straddle, this day trading strategy involves investors buying both a put and call order. A call-and-put order involves the same crypto asset, striking price, and expiration date.

• However, its fee structure might not be the most cost-effective for frequent trading.
• In this cryptocurrency trading guide, we will look at what day trading cryptocurrency is.
• A trading bot is an automated software tool investors use to buy and sell financial instruments at a preconfigured time or when predefined conditions are met to maximize profits.
• To get started, you need to open an account in a suitable bitcoin trading exchange that meets your day trading needs.
• Secondly, automated software allows you to trade across multiple currencies and assets at a time.

The best crypto trading platform for day trading largely depends on individual preferences and needs. While platforms such as BingX, StormGain, and OKX all have notable offerings, the ideal platform will depend on one’s specific trading goals and geographical location. For U.S. investors, access to OKX is limited, although they can use OKCoin, OKX’s sister exchange.