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What is Crypto Day Trading? Beginners Guide – Economic Times

Day trading crypto is one of the most lucrative and easiest ways to make money from the crypto market. Many traders today are learning how to move in and out of the market within a day, and they’ve taken advantage of the volatility in coin prices to profit massively.

This guide explains the basics of crypto day trading and how it works.

The Basics of Day Trading Crypto

Crypto day trading is a strategy that involves entering and exiting a position in the market within the same reading day. It is also called “intraday trading,”reflecting the fact that trades tend to get opened and closed within a single day.

The entire goal of day trading crypto is to profit off small moves in the market. Day trading in the crypto market is especially profitable since cryptocurrencies can be volatile. For reference, it’s a rarity for a traditional stock or even a commodity to see a 10% jump in value within a single day. In crypto, jumps like these happen very often.

Like other forms of trading cryptocurrencies, day trading goes beyond mere guess work.

You need to have a proper crypto day trading strategy and an understanding of fundamental and technical analysis. Most day traders rely on technical analyses for building the right trade ideas. They use price action, volumes, chart patterns, and other indicators to identify entry and exit opportunities for making their investment decisions.

They also watch out for fundamental news and other updates related to the developers that could impact the digital asset’s prices, especially in the short-term.

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Cryptoassets are a highly volatile unregulated investment product.

Why Day Trade Crypto?

The primary reason to day-trade crypto is to make profits. Cryptocurrency prices are more volatile than any other asset class, and this presents an opportunity for traders who have knowledge of the market.

As long as you have a solid crypto day trading strategy and can analyze trends, the crypto market could be lucrative for you.

Day trading crypto is also great because it offers short-term opportunities. Rather than buying, holding or taking long positions, you can day trade and profit from the market in such a short period.

Crypto Day Trading Strategies

As expanded earlier, day trading crypto assets like Bitcoin would only be a success if you have the right crypto day trading strategy. Below, we’ve outlined three strategies that can help you increase your profits from day trading in the market:

Scalping is a crypto day trading strategy where traders look to capitalize on increased trading volume. They can exit trades within minutes after they enter, taking small gains along the way. Some scalpers also use trading bots to automate their trading activities, so it’s more convenient for them.

Ideally, a scalper looks to take small profits. They “scalp” the market for small opportunities. Scalpers need a massive amount of capital to earn returns because the gains from this strategy are usually very small.

Arbitrage is one of the most popular strategies in the market. It involves buying a coin on one platform and selling it on another, taking advantage of the price disparity across the two platforms.

For instance, the price of Bitcoin on Binance could be $45,000, while the asset trades on Coinbase at $45,500. If you buy 2 BTC on Binance and sell it on Coinbase within minutes, you could make a $1,000 revenue less the fees.

Like scalping, arbitrage tends to bring small gains. So, the larger your order size, the more profits you can make.

Best Crypto Day Trading Platform

If you’re looking for the best crypto exchange for day trading, we will recommend using eToro.

Built in 2007, this broker has become popular for its versatility and flexibility. It also offers one of the best crypto apps on the market. eToro is also fully regulated by several top-tier financial institutions.

With a well laid out interface and a low minimum balance of $10 for most countries, eToro allows beginners to easily get into the market. The platform is also popular for its low trading fee of just 1%. This way you can gain exposure to the crypto market cheaply, and securely as eToro also provides access to the best crypto wallet.

Another reason why eToro is the best crypto exchange UK for day trading is that it offers a Copy Trader feature which allows beginners make money with ease. With this feature, you can find top traders on eToro and copy their day trading moves directly. So, when they make money, you do as well.

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Cryptoassets are a highly volatile unregulated investment product.

What are the Best Cryptos to Day Trade?

Now, it’s time to look into the best crypto for day trading. There are many options, but these are the top choices:

What-is-Crypto-Day-Trading-Beginners-Guide

Lucky Block’s LBLOCK token is our best crypto to day trade. This asset is very valuable, and it is backed by a strong project.

LBLOCK was launched in January 2022 by Lucy Block – a blockchain game. The platform uses blockchain technology to promote transparency and fairness in online gaming, offering high speeds and openness to anyone in the world. Lucky Block is looking to disrupt the global gaming space, and it is in a good position to do just that.

With LBLOCK, Lucky Block users can access all games available on the platform. The token acts as a ticket, offering access to all titles on Lucky Block. The asset was eventually launched at a listing price of $0.00020, before rising to an all-time high of $0.0096 less than a month after.

With a current price of $0.0039, LBLOCK is still over 10 times as valuable as it was when it launched. Its price is also up by 4% in the past 224 hours – imagine you had taken a day trading position there!

The asset is available on PanakeSwap right now, and investors should definitely keep an eye out for it.

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Cryptocurrency markets are highly volatile and your investments are at risk.

  • Dogecoin (DOGE)
What-is-Crypto-Day-Trading-Beginners-Guide-1

Dogecoin comes in second as the best crypto to day trade. The asset is the industry’s top meme coin, and it is known for massive price swings that offer great opportunities for day traders.

DOGE is also great for day traders because it rides more on fundamental news than technicals. So, for investors who might not know much about technical analysis just yet, the asset offers a great way to trade and make money. Remember to only risk a very small proportion of your capital on Dogecoin because of its volatility. You can obtain Dogecoin or be exposed to price movements via Derivative Trading.

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Cryptoassets are a highly volatile unregulated investment product.

  • Bitcoin (BTC)
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Bitcoin is also a great choice among traders looking for the best crypto for day trading. Already the largest cryptocurrency by a mile, Bitcoin is beneficial because it is so liquid. Trading volumes on Bitcoin are very high, and they vary across exchanges.

So, if you’re a scalper or an arbitrage trader, there are many opportunities for day trading when you buy Bitcoin.

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Cryptoassets are a highly volatile unregulated investment product.

Conclusion

Day trading crypto is a very lucrative endeavor that can deliver some impressive gains – especially for short-term traders. As long as you have a proper crypto day trading strategy, you should have no problem.

If you’re looking for the best crypto to day trade, we recommend LBLOCK. The asset presents the potential for massive gains as its price is still pretty volatile. You can buy LBLOCK on PancakeSwap and follow the lottery token’s price movements for daily trading opportunities.

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Cryptocurrency markets are highly volatile and your investments are at risk.

Disclaimer:

The above content is non-editorial, and BCCL hereby disclaims any and all warranties, expressed or implied, relating to it, and does not guarantee, vouch for or necessarily endorse any of the content. Crypto/NFTs are unregulated, highly risky, and there may be no regulatory recourse for any loss from such transactions. Games of skill and chance involve an element of monetary risk and may be considered addictive. Readers to exercise caution/due diligence, and comply with all applicable laws, including but not limited to taxation laws. Above content does not constitute investment advice nor promotes, suggests or presents Crypto/NFTs to solve financial difficulties/achieve financial security/act as an alternative to employment/income opportunity.

Disclaimer: Content Produced by CryptoPR

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