Cryptocurrencies have been a popular way of investing money lately. Are you a beginner investor and still want to make a quick and effective profit? The perfect way to earn money is day trading. However, in order to present effective operating strategies and explain which cryptocurrency will be the best for day trading, you need to find out what this way of investing is. In the further part of the article, you will learn how to operate to make a profit, and how our currency exchange office will be able to help you make your first day trading attempts.
Day trading - what is it?
At the very beginning, it is worth understanding what trading itself is. In the marketplace, this term means buying and selling of shares you own and ultimately profit from it. Taking into account the above explanation, day trading is nothing more than making profits in one day or, in other words, during one cycle of the stock exchange. Often, however, these activities take place much faster. It is important to realize that investing can bring both large profits and large losses, so it is worthwhile to be careful when trading. The basis of the action is to observe the differences in prices throughout the day. This trading strategy takes advantage of changes taking place in specific financial instruments.
Day tranding is used in various financial markets. The most popular are Forex, but also the Polish Stock Exchange in Warsaw. The use of cryptocurrencies is also becoming more and more popular.
Day trading - strategies
In order to be effective, the investor should have at least minimal experience and understanding of the cryptocurrency market. The most important factor, however, is skillful risk management. Day trading strategies can be very diverse, some perform technical analysis (AT) of stock prices, candlestick patterns or technical indicators. Smooth trading is essential for a trader to maintain a high position. Simply put, the whole mechanism consists in buying a cryptocurrency, having it on your account for a few minutes to several hours, and then reselling it with a specific profit. The ability to bet on drops in cryptocurrency prices may be of key importance here.
Scalping is one of the popular day trading strategies. It involves accumulating small price changes over a short period of time. They may be, for example, gaps in liquidity. Scalpers use the analysis of various technical indicators in their activities to define exit and entry points for specific circumstances.
Another method is range trading. It involves analyzing Japanese candlestick charts and evaluating support and resistance levels - traders balance between the two extremes by buying the support level and selling the resistance level. If prices often hit support and resistance levels, there is a greater chance that it will end.
High frequency trading is all about developing algorithms and bots that move quickly from one position to another. A few milliseconds of advantage over other investors can allow you to stay ahead of the competition. Building HFT bots requires an understanding of the market and knowledge of math and computer science. This is one of the more complicated day trading strategies.
The best cryptocurrency for day trading
The leader among cryptocurrencies is continuously Bitcoin - it is a smooth proposition, with 24 ‒ hour access. So you can invest in it constantly. Bitcoin continues to experience declines and high increases, therefore it is a good tool that will allow you to make a profit in day trading.
The use of Ethereum and Litecoin, which have seen significant increases and decreases over the last year, will also be effective. If you are looking for less popular currencies, it is worth taking an interest in Ripple and Qantum. All of the above are characterized by an increase in value. It is worth observing the rates of the most popular currencies and based on their previous changes, predict what may happen in the next hours. Risk is an inherent part of day trading. Knowledge of the market and growing experience help in making effective decisions.
Day trading - how to start?
How to start day trading activities? You don't need to have special skills or a lot of experience. However, it is worth getting more interested in the topic in order to make informed and well-thought-out decisions. All you need is a computer and permanent access to the Internet. The first but most important step is to choose the right broker. Impily gives you access to an exchange office of various cryptocurrencies, you can sell and buy them at any time. Our company guarantees safe trading of funds, a wide selection of currencies, and a variety of investment tools. You can also use a variety of guides to help you better understand the process.
Day trading - earnings
Taking an interest in day trading and investing in the stock market may turn out to be beneficial, but it is worth realizing that it is often a stressful and demanding activity. It requires constant control of the stock exchange and spending a huge amount of time in front of the computer monitor. One-time action may bring a minimum profit, only long-term investments will become profitable. Therefore, it is worth considering whether this form of cryptocurrency operation is the best for us.
Experienced and successful traders even quit their regular full-time job and devote themselves to investing. You can also choose this path, you are not limited by anything but your options and willingness. The earnings can turn out to be very rewarding. Our exchange office will be a friendly and safe place for you to undertake day trading activities. If in doubt, contact us and we will answer your questions.
Attention! The above article neither in whole nor in part constitutes a "recommendation" within the meaning of the provisions of the Act of July 29, 2005 on trading in financial instruments or the Regulation of the European Parliament and of the Council (EU) No. 596/2014 of April 16, 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6 / EC of the European Parliament and of the Council and Commission Directives 2003/124 / EC, 2003/125 / EC and 2004/72 / EC and Commission Delegated Regulations (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65 / EU of the European Parliament and of the Council as regards organizational requirements and operating conditions for investment firms and defined terms for the purposes of this directive. The content contained on the website does not meet the requirements for recommendations within the meaning of the above-mentioned act, incl. do not contain a specific valuation of any financial instrument, do not rely on any valuation method, and do not identify investment risk.