Each trading style and investment tool has its own advantages and challenges. Although there are many similarities But the daily trading operations in cryptocurrencies are absolutely different from the daily trading operations of Forex or other instruments.
This is because cryptocurrencies are not the same as exchange rates. So in many ways, especially the fundamental aspects are definitely different. For example, Crypto assets are relatively unaffected by changes in interest rates compared to exchange rates.
Therefore, traders need to understand a number of things before finally deciding to apply certain trading styles to certain assets. Here are some tips and ways to trade crypto daily for profit.
1. Choosing the best exchange
The first method is to choose best crypto exchange. In addition to legality Choosing the best crypto exchange is important for day traders because:
- Day traders need real-time data.A day trader is a person who buys and sells assets on the same day in hopes of making a profit in the short term. This trading style is somewhat riskier than swing or position trading. This is because traders have to monitor asset price movements for a long time in order to minimize losses. The problem is that there are many crypto exchange applications that tend to lag to provide non-real-time information.
- Daily crypto traders need fast execution.. Cryptocurrencies are highly volatile instruments. The price of crypto assets can go up or down thousands of percent in a day. Therefore, short-term traders on this instrument need a trading application with the best execution speed to make profits and cuts. loss
- Crypto traders want the most up-to-date business economic news.In contrast to forex, which continues to be influenced by macroeconomic policies in the medium term. price movements of crypto coins (except Multiple stable coins) as if influenced only by short-term business and economic news. As a result, traders of these cryptocurrencies demand the most up-to-date economic news.
- Daily crypto traders want the best screening features.. Currently there are about 10,000 crypto coins and tokens circulating in the market Of course, it wouldn’t work if traders had to check the data of each coin one day at a time. Therefore, it is important for crypto exchanges to provide crypto trading applications with the best screening features.
2. Choose the Best Cryptocurrency
Again, day trading is a very short-term profitable way of playing crypto. which means:
- Traders need to choose a crypto asset with a sufficient level of price volatility.The volatility level of one crypto coin or token is different from another crypto coin or token. The higher the profit and loss the trader will receive. However, traders need to be careful to avoid buying. cryptocurrencies Fry like a Squid game coin.
- Adequate technical indicators are also needed.One way to avoid buying fried crypto is to install a variety of technical indicators. In addition to sufficient volatility during screening
- Be sure to read the cryptographic white paper.. encrypted white paper It’s like a stock prospectus. Although not much influenced by fundamental aspects. But traders need to read this document to ensure that the best crypto assets are legit.
3. Do not risk more than 1% of the stock.
One rule that applies to money management in the world of trading is that traders should never risk more than 1% of their capital. This means if you have 1000$ in your trading account. You will not open positions worth more than 10$.
The goal is to maintain the amount of funds held by the trader. so that he does not have to accept the collateral call or even igniting his desire in the real world to just play crypto. It is said that a good day trading is a daily trading that sacrifices only 1% of crypto assets but can earn multiple profits.
4. Choosing the Right Time to Buy Crypto
There are basically no specific hours or days to trade crypto, unlike stocks that are only available on the stock exchange or forex, depending on the opening hours of the world’s forex markets. However, there are several things to consider as they relate to trading times. Some of these are:
- volatility levelWeekends are well known for being quiet when the financial markets are in place. Therefore, daily crypto traders are not advised to open positions on Saturdays and Sundays as they tend to have low volatility.
- Entry and exit strategy. Day traders should be able to determine when is the right time to buy crypto, when is the right time to cut losses and take profits (out). The goal is for traders to make decisions as soon as the time comes.
- Trading scheduleYou can say that a job as a day trader for crypto, forex or other assets is a full time job because traders need to observe price movements from time to time. However, this does not mean that day traders should get rid of it. his real life Day traders must be able to divide their time in trading, resting and doing other activities.
5. Emotional control
The trading schedule at point 4.c above also involves controlling your emotions when trading. Day traders must be able to make accurate and quick trading decisions. Therefore, they need a stable “state of mind”.
to create a stable state of mind day trader both beginners and experienced Still need to have enough rest hours. and good stress management Good emotional control will allow traders to avoid making illogical and dangerous decisions.
6. Start Little
Daily crypto trading is a high-risk trading type. It is a combination of short-term trading style and high-risk financial instruments. to reduce this risk Traders must have good money management. mind control and technical analysis skills
Therefore, it is recommended that you start trading gradually using this method with this tool, for example by investing in crypto first and then entering the world of paper trading. and followed by position or swing trading. If you feel that your skills and experience are sufficient. You can enter crypto day trading.
Finally, daily crypto trading will not work without the discipline of the trading strategy you have planned in your trading plan. Discipline in a trading plan is essential to controlling a trader’s emotions. by selecting the digital currency The best exchanges and trading times
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