Day Trading Crypto: A How-To Guide

Day Trading Crypto - A How-To Guide

Successful traders use a number of tools to help them in their trading success, such as simulator software or stock screening. These programs are designed with the goal for day trader’s capitalize on short-term price movements by scanning stocks’ prices quickly and accurately before making trades based on these findings. Below is a how-to guide on how to ease into becoming a day trader.


So What is the First Step?

When deciding which crypto trading platform to use, traders should consider the liquidity of their exchange and what fees are associated with it. It’s also important that they find an option where profits can be maximized during times when prices fluctuate wildly, like today’s cryptocurrency markets tend to do so often. Here are a few factors to keep in mind when making the decision:


Supported Crypto

Cryptocurrencies are becoming more popular and it’s important for traders to be aware of the different options available. Some exchanges may have a better selection, others might not offer as many coins or trading pairs in order to cater towards those looking specifically for altcoins rather than traditional cryptocurrencies like Bitcoin (BTC).



Exchanges serve an important function for the community: allowing buyers and sellers to connect without having all their personal information leaked in a hacking attack. Some of these businesses might even incentivize larger trades by charging no fee, like BlockFi, on certain amounts, which can really help out traders who want access but don’t have enough cash flow right now–or deserve more than one.


Read the Reviews

As always, reading how other people have experienced a trading platform allows you to see what may or may not work for your wallet and spending abilities. Reading the feedback on usability and ease of an app, or website helps give a clearer insight on what you want to invest in. 


What to Invest In?

The most important thing as a beginner trader or investor is having strategies based around reaction times; otherwise known as being able to quickly analyze data then act upon that information. When using beginner trading platforms like Bitcoin Evolution, it’s important to know what you want to put your money into. What drives the price of a coin? Volatility. Understanding and accounting for volatility is a day trader’s best friend, as it refers to how unpredictable crypto movements can be in comparison with other markets or asset classes – like stocks for example (which typically have fewer fluctuations). Factors that affect this are news cycles; economic data such as GDP numbers & unemployment rates; and research reports from companies who want you to buy their product. So whether you want to invest in the art world, NFT’s for example, or something simpler like Forex on a platform like EToro, it’s crucial to understand where you can make the most profits. 

Some Strategies of Trading

Crypto traders are always looking for the next big thing; the one strategy that will make them tons of money without much effort or risk. Here we list some popular day trading techniques with effective approaches from both professional investors as well beginners just getting started in crypto markets today.


Momentum Trading

You can increase your chances of making a decent profit by trying the momentum trading strategy. All you need to do is find the few stocks that fit into your criteria and then buy them before anyone else knows what’s happening. The rarest of all trends, this type has been called “the holy grail” by many investors because it takes such an expert eye or skillset to identify these gems in advance. It can go smoothly if implemented properly. 


Range Trading

Day traders who use range trading techniques will find that they can capitalize on sideways markets by pinpointing stable high and low prices, represented as resistance or support levels. When the price moves into one of these areas for any extended period it’s called ‘range-trading’. The idea behind this strategy is to identify when an asset has become oversold (lower than expected) before buying them at lower costs. 


Crypto day traders can use online screeners to identify the right crypto asset, so they don’t have to spend a whole lot of time on their hands. Range trading is perfect for those who like being able to make quick decisions with little downside risk – think about it compared to roulette, but in stocks.


Technical Analysis

Technical analysis is a study in which traders look at historical price and volume data points to identify statistical trends. Technical analysts can use their strategies in any market, but they must have access, or trading history, for each instrument that will be analyzed. Otherwise, it would just not make sense because there’s no correlation between crypto prices now with what was happening before (or vice versa).


Technical analysts use the Money Flow Index (MFI) to see whether or not a cryptocurrency is trending. When looking at Bitcoin, technical traders may utilize MFI alongside their favorite oscillator–the Relative Strength Indicator (RSI).


In Conclusion

Crypto day trading is a high-risk strategy involving the frequent purchase and sale of cryptos in order to earn profits over short periods of time. Anyone who’s interested should know where they plan on trading, have a detailed strategy for their trades (including time allocated), and stick closely with entry points and exit opportunities. Crypto traders need not just be aware that it can’t always go up – even when things seem promising at first glance. To succeed long term you’ll want two key elements: knowledge about markets AND discipline which includes setting aside enough hours per week dedicated solely towards taking positions.