Best Crypto Day Trading Strategies

Even with the right broker, software, capital and strategy, there are a number of general tips that can help increase your profit margin and minimise losses. Coinbase is widely regarded as one of the most trusted exchanges, but trading cryptocurrency on Bittrex is also a sensible choice. Always check reviews to make sure the cryptocurrency exchange is secure. If your account is hacked and your digital currency transferred out, they’ll be gone forever. So whilst secure and complex credentials are half the battle, the other half will be fought by the trading software.

Day trading coins are about low market caps and high daily trading volumes. In this case, the cryptocurrencies to look for aren’t those that have been out for a long time and have built massive markets to project themselves toward a reputable far future. $WSM is a meme coin that has recently launched its presale and has raised over $250,000 within two days. Being a meme coin, market sentiment plays a huge role, and $WSM has no shortage of positive reviews, which makes it one of the best crypto assets to invest in. Day trading is all about observing the market’s volatile state non-stop and acting upon its movements to generate a profit.

For example, in real-world stock exchanges, people trade all kinds of things. Arbitrage in crypto is when traders buy a cryptocurrency on one exchange and make a profit by selling it immediately on another exchange at a higher price. When choosing what to invest in, consider asset liquidity, volatility, and trading volume. 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. To day trade crypto on Robinhood you need to adhere to the US Pattern Day Trading rule which means your stocks and cash position needs to be a minimum of $25,000. For eToro, these rules don’t apply and you can open an account with a minimum of just $200.

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Remember, Trading or speculating using margin increases the size of potential losses, as well as the potential profit. History has a habit of repeating itself, so if you can hone in on a pattern you may be able to predict future price movements, giving you the edge you need to turn an intraday profit. Let’s say on your cryptocurrency chart at 250-minute candles, you see 25 candles where the price stays within a 100 point range. If the price contracted to a daily move of just 20 points, you’d be seriously interested and alert.

  • Each of our coin data pages has a graph that shows both the current and historic price information for the coin or token.
  • Day trading cryptocurrencies grants traders a chance to earn revenue speculating on their short-term movement.
  • Investors would send funds — usually in the form of Bitcoin — to the project and receive coin or tokens in return.

However, you will need to follow the US regulators’ Pattern Day Trading Rules. By journaling your trades in a spreadsheet you can analyse them to find out what is working and what is not working. There are a ton of videos and resources including courses such as Investing 101, Trading 101, Crypto 101, and more.

Mean reversion trades happen with pace, especially on lower timeframes. If money starts flowing back in and the market shifts against you, it’s better to have locked in small profits than see a once profitable trade get stopped out for a loss. Short-term traders, also known as scalpers, generally operate on low timeframe charts such as the 1-minute or the 5-minute. It is not unusual for the price of a coin to rise or fall by more than 10%-50% in a single day. For example, in February 2018, a cryptocurrency called E-Coin increased in value by more than 4000% in just 24 hours, only to fall straight back down to where it started. Crypto is a new class of digital assets, and investors should always consider the possibility that their crypto investments are capable of evaporating.

Day traders favor scalping crypto because of its ease of automation for bots, low risk, and potential profitability. Programming trading bots can take the anxiety and stress out of trading. Since the positions are smaller with scalping, traders can evaluate the gains or losses at the end of a day instead of long-term investing.

From leverage options to copy trading and customer support, these day trading platforms offer varied services that cater to different trading styles. For U.S. investors, access to OKX is limited, although they can use OKCoin, OKX’s sister exchange. This platform offers a simpler range of services, including buying and selling cryptocurrencies, trading, staking, and access to DeFi projects and initial coin offerings (ICOs). StormGain’s trading platform offers a customizable, user-friendly dashboard that displays fluctuating assets. Its all-in-one apps for iOS and Android are recommended for access, but it also supports all major internet browsers.

Remember, you can run through the purchase or sale of cryptocurrencies on a broker demo account. The second thing you need to do is practice strategies in a simulated environment like TradingSim which allows you to track your progress and analyze your trading results. Over time, you’ll want to critique your stats for each strategy that you use and determine if you have the ability to trade with real money.

Once you’ve decided on a broker, got familiar with your platform and funded your account, it’s time to start trading. You’ll need to utilise an effective strategy in line with an efficient money management system to make a profit. If you want to trade other cryptocurrencies, it’s a good idea to use an exchange that offers in-house markets for multiple coins (like Coinbase). That way you can easily buy and sell the coins of your choice without having to jump through hoops or sign up for another cryptocurrency exchange.

Most scalpers tend to trade on margin or futures contracts to intensify their profits using leverage. Thus, for this strategy to work, it’s crucial to have a massive bankroll. Leveraged trading is highly risky, and you need to apply risk management principles to win effectively.

How to pick the best crypto exchange for yourself?

Once you’ve programmed your strategy, the bot will get to work, automatically executing trades when the pre-determined criteria are met. Which cryptocurrency platform you opt to do your trading on is one of the most important decisions you’ll make. The exchange will act as a digital wallet for your cryptocurrencies, so don’t dive in without considering the factors below first. You don’t have to be a millionaire to access the cryptocurrency market and make money with it. There are several ways in which you can start trading with little money. Cold wallets are the safest method to store your coin but are less accessible to perform day trades, while hot wallets such as Metamask are easier to access and less secure.

eToro – Overall Best Day Trading Crypto Platform

For example, you can access a CFD trading account, spread betting account, options account, an Islamic swap-free account, and many others. You can also access AvaSocial which is a mobile copy trading app so you can follow the trades of other profitable traders. With eToro, you can transact in physical cryptocurrency, as well as derivatives such as CFDs (Contracts for Difference). This enables you to trade profit from rising and falling markets using leverage which amplifies your gains and losses. Changelly is a secure instant crypto exchange that has 150+ cryptocurrencies available to be swapped and bought at market-best rates.