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In this article, we will take a deep dive into the cryptocurrency day trading strategy and everything connected to it.

We’ll answer all of the important questions. What is day trading and what other crypto trading strategies are there? How can you get better as a crypto day trader and are there any courses to attend for beginners? We’ll also compare some crypto trading platforms regarding your day trading strategy.

Find all of the answers and more right here. Learn the basics of this risky undertaking in CryptoCoinTrade’s handy how to guide…

What different Crypto trading strategies are there?

There are several different crypto trading strategies you can try to master. We suggest to learn the basics of all of the different trading strategies, but this will definitely be a long process if you want to master them all. You have a better chance to become a more profitable trader if you focus on just some of them, the ones you consider most suited for you. Here’s a quick list:

  • Day trading
  • Arbitrage trading
  • Swing Trading
  • HODL
  • Trend trading
  • Scalping
  • Hedging

This article only covers crypto day trading, but you can read more about these strategies in our article oncrypto trading strategies.

What is cryptocurrency day trading?

Cryptocurrency day trading is an extremely short-term trading strategy.

It means that you hold the asset for seconds, minutes or hours. The term “day trading” comes from the fact that you complete the buy and sell orders within a day. The characteristics of a day trading strategy are that it mostly relies on technical analysis and traders are usually satisfied with a small profit on each trade.

A day trader may also be known as a high-frequency trader.

How can I be a better crypto day trader?

Day trading is a lot about making quick decisions based on various, mostly technical indicators. You also need to know how to handle technical tools, especially stop loss, since it will make it a lot easier for you not to suffer heavy losses when there are fast movements in the market.

Of course, to be a successful trader you need to master risk management.

A common mistake a beginner trader often makes is that they can’t take a loss. They don’t want to sell a loss so they keep the cryptocurrency or other asset and maybe even put more money into it to lower their average purchase price.

Another mistake traders make is that they don’t handle risk appropriate to their trading account.

To be a better crypto trader you need to handle risk, know how to use trading tools, minimize mistakes and maximize profits. We did write a step-by-step article on how to minimize trading mistakes.

Are there any good courses for cryptocurrency trading for beginners?

Yes, there are good courses. In our article about premium crypto trading courses, we go through the best crypto trading online educations.

However, remember that you will never be a good trader solely because of the courses you undertook. You need to go out there, start trading and, just like in sports, practice.

Is there any good software for Bitcoin and Altcoin day trading?

Most day traders use some kind of software, but the kind depends on the trader.

Some use software for algorithm trading, others for signals. There are also those who utilize advanced charting tools. There are more than a few programs useful for Bitcoin (BTC) and Altcoin trading.

Algorithm trading: platforms like Haasonline and Cryptotrader can be called trading bots. What they do is decide entry and exit points in accordance with their particular algorithm, calculated mathematically.

Advanced charting tools: Tradingview is the most used charting tool nowadays. It provides traders with most indicators, oscillators, and other calculations necessary for professional traders to make an educated decision, and even compare their strategy with other users’.

However, there are noteworthy alternatives, like Coinalyze, which offers an in-depth statistical view of the top cryptocurrencies.

Crypto Signals: Trading signals can be found even on social media channels if a trader knows who to follow. On the other hand, there are apps and websites which are developed to gather and distribute signals to users but mostly have to be paid for, such as Crypto Leaks.

There are also apps like Blockfolio, which send signals in accordance with the user’s portfolio free of charge.

Which is the best day trading platform for cryptocurrency?

For day trading you should look for low fees, advanced chart tools, and good trading features, and among your best options are Binance, Bitfinex.

Conclusion

In this article, we went deep into cryptocurrency day trading. However, every trader has their own preferences, so you should take this as a guide to form your own decision around day trading and whether to do it for yourself.

This kind of trading strategy, especially in the highly volatile and unpredictable cryptocurrency market, is a risky business. You should therefore learn as much as you can before feeling confident to base your existence on it.

Trade responsibly, and always look to educate yourself before plowing in lots of money.

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