How about day trading on crypto? What should your step in day trading?

Introduction: 

Day trading can be an extremely lucrative endeavor, but it’s also hard to do well consistently. Most people lose money when they day trade, and that’s because they’re taking the wrong approach to it.

This guide on day trading on crypto will walk you through how to take the correct first steps when entering this dynamic market. This will give you the best chance at success, and hopefully, by the end of this guide, you’ll understand more about cryptocurrency than your friends do!

Set Up Your Exchange Account

The first step is to set up an account on your cryptocurrency exchange of choice. Many exchanges will require you to verify your identity, which could be as simple as submitting a photo of your driver’s license or passport.

Some exchanges will allow you to remain anonymous (as is true with Coinbase), but it may limit what you can do with that account. The most popular exchanges will require some form of verification, so expect delays while you wait for approvals.

Add Funds

You’ll need to add funds to your account before you can start day trading. Fortunately, there are several different options for funding your account, including credit/debit cards, wire transfers, and e-wallets.

 To make things even easier, most of these sites allow you to exchange fiat currencies (dollars or euros) for a cryptocurrency (typically Bitcoin). The sites we recommend all offer up to $10,000 worth of free trades in a given month. The following are some of our favorite crypto exchanges and online brokers that will help you get started without paying a dime in fees.

Join a Telegram Group

You can start off your crypto-trading career by reading up on a few guides or joining a chat room. It’s essential to understand what kind of people you’re dealing with, and you never know where valuable information could come from—if someone's offering advice that seems too good to be true, it probably is. Don't jump into crypto trading until you've done your research!

At least not until it feels like second nature; there are plenty of in-depth resources out there if you're looking for them. You'll also want to familiarize yourself with major resources like CoinMarketCap and CoinGecko.

Pick an Undervalued Coin

The first step in day trading cryptocurrency is to pick an undervalued coin. Some coins will have special characteristics that make them extremely valuable, and you want to be sure you catch them while they’re still undervalued.

The best way to do that is by searching sites like CoinMarketCap or CryptocurrencyChart for currencies with low prices per coin, yet high circulating supply. For example, a currency with a value of 1/10th of a cent that has 20 million coins in circulation could see its price rise as high as $0.05 if it gains a strong user base.

Watch the News

The crypto market is heavily driven by hype and news. Make sure to always be aware of what’s going on in your industry and set up notifications to alert you when there’s some major breaking news so that you can react quickly.

If you have an iOS device, make sure to get Apple News; it aggregates all of these notifications in one place, letting you keep track of what’s happening without getting overwhelmed by alerts. You can also set up push notifications for specific events that might interest you so that whenever something happens in a particular coin, your phone will buzz, allowing you to take immediate action.

HOLD!

Despite its past, cryptocurrency isn’t dead. As it stands, it might be too early to call bitcoin a failed experiment, but one thing is certain: we can’t go back to 2013. In fact, if you decide that you want to day trade cryptocurrency using your phone or computer today, what will happen is that you’ll feel confused and frustrated for no reason at all.

You won’t have access to as much information as you would have had even two years ago, and things change fast when markets are volatile. Like anything else in life—especially trading—the best way forward is to keep learning and keep adapting.

Avoid Impulse Buying/Selling

If you’re day trading on cryptocurrency, it’s probably due to your personal interest in a specific project. If that’s true, you should have a firm grasp of its white paper and should be following it regularly.

While there are many ways to profit from cryptocurrency trading, speculation can also hurt your chances of long-term success. The more time you spend educating yourself about cryptocurrency before diving in headfirst, the better prepared you’ll be when making investment decisions in real time.

Trade Accumulation Periods - Only When Necessary

One of my personal favorites, and probably an important one to be aware of is what I call accumulation periods. The idea behind accumulation periods is simple.

Some people believe that it's best to buy into a coin early on in its life before everyone knows about it, for example, during its ICO (Initial Coin Offering) period. The logic is that if you can get cheap coins at the start then go for it. Others will wait for their favorite coin to the moon and only then will they invest or trade in that particular coin.

Do Not Look at Price Charts Until Accumulation Time Ends (unless you need to check what's happening with price movement to make an informed decision to buy or sell during the accumulation period)

Many day traders are eager to look at price charts as soon as they wake up, but there's a better way. Watching prices immediately after waking up doesn't allow you to see what happened overnight and could influence your decision-making later in the day (especially if it was a big move).

Instead, set an alarm for 12 hours or so before the closing of t, he market, and when it goes off (this will also depend on how active your exchange nge is), check prices once. You'll be able to see what happened with price movement throughout most of yesterday and decide whether there's anything that would impact your trade strategy today.

Remember, You Can Always JProfite Profits if you have them when Accumulation Time Ends. But, If Prices Keep Going Down, Then Buy Back In!

Most people don’t think about day trading crypto because of its tumultuous nature, but it has been around for years. In fact, in November 2013, GQ did a cover story called Bitcoin Millionaires. The popularity of cryptocurrencies and blockchain technology has led to vast opportunities that have never existed before. It could be said that now is a good time to get involved in day trading cryptocurrency because you can potentially make money from such volatile market conditions.

However, learning how to do it correctly takes time and effort. Remember, you can always just take profits if you have them when accumulation time ends (during rapid price increases). But if prices keep going down, then buy back in!

Conclusion

Without a doubt, day trading on crypto can be quite profitable; however. The best thing you can do is to educate yourself and take some time to practice before diving into actual day trading.

If you have any questions or would like more information about things like day trading on crypto, please feel free to contact us. We're here to help!