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How to do Safe Day Trading Crypto

In order to daytrade, a trader can also use several different methods for day trading crypto. For example, some traders may perform Fundamental Analysis to get a comprehensive picture of the assets they are dealing with. However, some traders stick to Technical Analysis, analyzing historical data and patterns to calculate how an asset will perform in the future.

Crypto Day Trading Strategy and How it Works

Here are strategies and ways of working that you can use, to become a reliable day trader.

Scalping - day trading crypto

This trading strategy will focus on small price changes of an asset in the market. As a result, scalping requires traders to sell stocks as quickly as possible. It is impossible to use a scalping trading strategy if you do not have the right information of the market. Since scalping relies heavily on total volume, traders may have to trade on margin to maximize profits.

Trading Range

This strategy requires the trader to determine the price range within the market structure. Trading will only occur within that price range and the trader must continue the process until the asset price is outside the range that was created. In this strategy, traders must be able to understand well about candlestick charts and momentum indicators, to be able to get the best results from long-distance trading

High-Frequency day trading crypto

High-frequency trading, or better known as HFT is a trading strategy that uses algorithms. Traders belonging to HFT will develop algorithms and trading bots to monitor the market and buy/sell assets. Since transactions occur in milliseconds, HFT proposes increased profit opportunities. But for the sake of increasingly, building trading bots and algorithms requires coding knowledge and market expertise.

Determine Schedule

It is very important to be able to determine the right momentum in the crypto asset trading process. The first thing you can do is adjust a schedule that you can use to focus on trading in one day. Despite the idea of ​​trading all day, the flexibility to trade all night can backfire when it affects your health.

You need to determine the right time to identify trading opportunities by managing your risk. As a trader, having concrete discipline will pay off if you are successful in day trading by getting the profit you expect.

Starting from Small Capital

Doing this trade is not as easy as you might think. There is a risk that awaits, if you use the wrong strategy in day trading. Therefore, start with a small amount and gradually increase your capital. There are some brokers that allow you to start with a minimum of $100.

If you later use this strategy, you need to make sure not to use margin or leverage in order to balance and increase your trading power. Leverage is one of the risky tools that is projected as an opportunity.

Difference between Day Trading Crypto and Other Investment Instruments

Based on the explanation from the book Cryptocurrency Investing for Dummies by Kiana Danial, there are several points that underlie the differences between day trading and other investment instruments for day trading crypto.

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