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Whenever anyone is talking about trading cryptocurrency, then the first thing that knocks on the door of mind is earning profits. Now, everyone needs to know that there are mainly two types of trading goals present short-term and long-term. It is determined by the time how traders like to hold an asset before they actually sell it. Let’s talk about the primary aspect of the article, i.e., day trade cryptocurrency. Day trading refers to holding an asset after buying for only a few seconds to a few hours. The major idea behind the same is that making a small or quick profit.
Every trader who wants to make quick profits every day should prefer day trading. On the other side, if they hold the asset for a long, then it’s long-term trading. Mainly, there are two methods present in today’s trade, i.e., chart analysis and speculation. To use both these methods, traders need to acquire all significant information about cryptocurrency and stay updated with the latest news, updates, or bitcoin price. Individuals can also use kafila.org to know all the latest news and information regarding day trade cryptocurrency.
All those thinking about dealing with the day trading of cryptocurrency must know that it can be lucrative. The major reason behind the same is that the particular market has high volatility. The significant price swings allow individuals to get great chances of making good and quick profits. To make precise entries in crypto day trading, good liquidity and right timing also matter a lot. To learn more about day trade crypto, individuals must prefer some good sources online.
Day trading crypto strategy
Individuals need to learn how to day trade bitcoin. There are plenty of rules and strategies present that individuals must learn before starting the day trade. Below are some steps that help every trader make good profits by perfectly performing the day trade of bitcoin.
- Buy coins with high volatility and liquidity –the key tip for people to earn good profit in the day trading is picking up coins with high liquidity and high volatility. Among all other cryptocurrencies, you have to focus on bitcoin as it has good volatility and liquidity. On the other side, users can easily earn good profits by day trading the small cryptocurrencies. But the major problem is that there is always a higher risk present.
- Apply money flow index indicator on the minute chart – in the particular day trading strategy, and only a single technical indicator called Money Flow Index. With this particular tool’s help, users can easily track the smart money activity and easily measure when institutions are buying or selling bitcoin or other cryptocurrencies. The only thing is that one has to learn properly how to make perfect use of the IMF chart.
- Wait for the money flow index to reach 1000 –you need to wait for the right time when MFI reaches the 100 level. The same thing indicates that the big sharks are entering the markets. When they buy cryptocurrencies or mainly bitcoin, then these activities are easily tracked. You can use them by making use of the MFI indicator.
Likewise, there are plenty of other steps present that traders should follow to get top-notch results, like buy if MFI reaches 100 and hide the protective loss or take profit at the end of the day.
Key things to know before day trade bitcoin
After making a mindset of getting good or quick profits, individuals need to know crucial things first. So, by considering the same thing in mind, cited-below are the useful things that individuals must learn and then follow to get top-notch results.
- Volatility – the term volatility means that the price of an asset moves ups and downs so quickly. It means that when dealing with an asset for trading purposes, then it can be either great success for traders or, on the other side, a great loss. In bitcoin, the prices are very volatile, so the traders must wait for the right time and make proper technical analysis to get top-notch results.
- Practice makes perfect–before entering into the real market, you must be clear that you should do some practice first. The major advantage you get from the same is that you get enough experience that helps a lot in the day trade crypto. There are so many platforms present there you can easily practice or try for free. It’s the best way for beginners to practice a lot on a freeway and get some good results or learn tips and strategies.
- Goals – after knowing everything that the entire market works or finally think that you are ready to make a perfect start, you have to know your targets. It’s essential and lucrative for all those people who are going to begin a full-time job.
- Ponder an alternative – after learning everything included in the day trade crypto or how to become a successful trader, it’s important to prefer another option. People who don’t feel that they can easily perform day trade could prefer the long-term investment to make the entire process safe.
All these are the major things that eery beginners must keep in mind before finally taking the first step towards day trade cryptocurrency. Apart from the above-cited things, newbies must set stops for losses and take profit at the right level.
They only have to use the perfect tools by which they can easily make technical analysis and make the right predictions of the price to gain quick profits. When it comes to starting a day trade of bitcoin, you have to choose a reputed exchange and then easily perform trade for 24 hours accordingly.
Thank you for reading!