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There are several best strategies for day trading crypto. Over the last decade, cryptocurrency has become a growing market with increased liquidity and trading profit opportunities. There are over 1,000 cryptocurrencies, also known as digital assets that are secured by consensus algorithms with transactions stored on a digital ledger. The opportunities are wide-spread depending on the leverage, capital and strategy implemented. As a day trader, you can trade cryptos such as Bitcoin, alt coins or stablecoins within a few hours. Here are the top strategies to follow when day trading cryptocurrency.
10% Rise Strategy
A popular solution to follow when day trading crypto is the 10% rise strategy. Start by investing $1,000 on any cryptocurrency exchange company. Then, track a 10% rise on one pair, such as ADX/USDT, which could result in $100 a day. Of course, repeat this solution everyday to make $700 by the end of the week. Or, invest in a 4 day work week to earn $400 each week. For example, several pairs, such as YGG/USTD or AXS/USDT, could rise at least 10% a day. Therefore, with your $1,000 investment, you only need to pick a preferred pair. Next, you need to buy it and then wait for it to rise at least 10% before selling it. More so, you can set a stop limit price on trading platforms that will automatically sell for you. Put the price you wish to exit at and your chosen platform will sell the pair for you. Certainly, use the 10% rise strategy when day trading crypto.
Scalping
Next, consider a scalping strategy with crypto day trading. Utilize scalping to try and profit from minimized price movers over short time periods. When aiming to use tiny price movements to your advantage, you can use leverage to amplify your gains. Leverage, for example, can be margins or futures contracts. However, you can also amplify potential losses. Therefore, you need to use risk management solutions while implementing this strategy. Follow a scalping strategy by integrating other solutions such as volume heatmaps or order book analysis. Or, you can implement a variety of technical indicators which will determine entry and exit points for your trades. As scalping is fast-paced and high-risk, it is best suited for more experienced traders. Of course, consider using scalping strategies when day trading crypto.
Range Trading
Another top Nasdaq Exchange strategy to use when day trading cryptocurrency is range trading. Generally, a cryptocurrency may trade for a long period within a certain range. For example, Bitcoin can realize a plus/minus 42% change in around 24 hours. Moreover, since crypto caps are small enough, they can be manipulated and transformed by a specific big mover. As a result, these big movers will systematically manipulate coin prices either positively or negatively to profit from a certain range. If you consider range trading, focus on overbought and oversold zones. In fact, chart indicators, provided by any stock chart program, will help you locate these zones. Definitely use range trading as a top strategy when day trading crypto.
High-Frequency Trading
Additionally, you can use high-frequency trading solutions when day trading crypto. High-frequency trading executes trades in less than a second through algorithms and bots. In fact, it is also referred to as an automated scaling platform. High-frequency trading solutions allow you to fulfill over a million orders by scanning a variety of exchanges and markets. As a result, you receive fractions of a second, arbitrage possibilities to complete trades before the open market. For example, the bots can complete very frequent and minute trades for profit quicker than humans do manually. Moreover, high-frequency trading strategies can take a long time to perfect. Thankfully, there are online sources and applications that provide easy to configure bots that enhance high-frequency trading. Certainly, implement high-frequency trading solutions while day trading crypto.
News And Sentiment Analysis
Finally, when day trading cryptocurrency, integrate news and sentiment analysis strategies. News and sentiment analysis techniques use data based on human performance and reaction predictions. Implement this solution to predict whether demand for your crypto will increase or decrease through data analysis. Analyze chosen sources, such as industry or mainstream news outlets, to enhance your understanding of the social consensus on your preferred currency. As a result, you can forecast how people will react towards your trade and choice of cryptocurrency. Of course, you can also use social sentiment analysis to research how each coin is marketed and perceived. Definitely apply news and sentiment analysis as a strategy when day trading crypto.
There are various top strategies for day trading crypto. First, follow the 10% rise solution to make about $100 a day by buying and selling pairs that have reached 10%. Next, use range trading to follow coins overbought and oversold zone to profit from a range. Of course, you can use scalping strategies to amplify your gains from small price movers with leverage such as margins or futures contracts. More so, there are high-frequency trading strategies where you can execute trades automatically in a fraction of a second. Finally, perform news and sentiment analysis to predict whether your preferred crypto is in high or low demand based on human reactions and performance. These are the best strategies for day trading crypto.