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How To Day Trade Cryptocurrency and Make Money

by Udemezue John 2 months ago in social media / tech
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How To Day Trade Cryptocurrency and Make Money

How To Day Trade Cryptocurrency and Make Money
Photo by Art Rachen on Unsplash

Everyone gets into the cryptocurrency field to make money, but not all end up doing that.

So many people either give up along the way or lose money because they do not understand how to make money with cryptocurrency.

The majority even fall into scams being spread across the entire internet, promising them to double what they invested in.

1. Understand What You are Getting Into.

To be a successful trader, you need to have the proper analytical and technical skills. You also need to analyse market charts on the performance of the listed assets to make correct predictions about price increases and decreases.

The first thing you need to remember is to understand what you are getting into.

Trading cryptocurrency has a lot of risks that need to be borne with all levels; you should understand that going forward, there will be a loss, and there will also be gains.

2. Buy a handful of Cryptocurrencies.

The next step is to get equipped with tons of cryptocurrency assets because that is what will be used in trading.

Just Before You Buy Bitcoin, privacy and security should be considered first.

You should know that anyone who gains the private key to a public address on the Bitcoin blockchain can authorise transactions and access your assets, so you should be security-oriented.

The first step in buying bitcoin consists of choosing a crypto trading service or, better still, holding a wallet like Metamask; you can also make use of a hardware wallet to be on the safe side.

Signing up for a cryptocurrency exchange will enable you to buy, sell, and hold cryptocurrency. However, it is generally best practice to use a business that allows its users to withdraw crypto to their online wallet for safekeeping.

3. Choose a Cryptocurrency exchange platform.

A cryptocurrency exchange is an online platform created for buyers and sellers who trade cryptocurrencies. Most cryptocurrency exchange platforms have in-built day trade options.

The first step a day trader has to take is deciding what platform to use. US-based traders can use only domestically regulated crypto-trading media, which is a significant factor to consider when researching the right platform.

For example, Binance has a different version in the US called Binance US, while the rest of the world can stick to the regular Binance.

Various other crypto exchanges all over the globe facilitate crypto activities. You can check out this comprehensive guide on this blog to help you decide on the best cryptocurrency exchanges to get started with.

There are hundreds of crypto exchanges globally; you should be careful to use them as a newbie.

When figuring out where to conduct crypto trading, the first choice is not always the best; even after picking the first one, you should learn about other cryptocurrency exchange platforms.

Here are the essential things to consider when shopping around for the right trading platform:

1. Years active.

The longer an exchange has been in business can indicate credibility.

2. Supported cryptos.

You should know what cryptocurrencies are available to trade ahead of time. Not all exchanges support various types of coins.

Platforms like Coinbase and Luno support few altcoins, while Binance and FTX support multiple altcoins.

3. Fees.

Transaction fees are what exchanges charge when buyers or sellers execute a trade. For example, all cryptocurrency exchanges charge users a transaction fee to monetise their business.

The transaction fee structure can vary depending on the exchange’s strategy. Therefore, you should do enough research to understand what charges you pay.

4. Deposit methods.

Like Forex brokerage, users need to finance their exchange account with Fiat cash. Many exchanges allow for bank transfers and wires, but fewer qualify for credit card funding, PayPal transfers, and most even allow P2P payments on the platform.

In Nigeria, where crypto has been banned, you can use a P2P platform without having your Nigerian bank account banned.

5. User reviews.

You should do a Google search for reviews about the cryptocurrency exchange you determine to work with.

6. Liquidity.

The liquidity of a cryptocurrency exchange means the speed and the ease of business converting one asset into another without affecting its price.

4. Master Various Trading Strategies.

Successful day traders rely on diverse resources and tools to become successful, such as stock screening or trading simulator software, to e able to predict short-term price movements of crypto assets.

Trying to profit from price differences and movements within a short time window can be a high risk for someone without experience.

No matter the market, a day trader should have a thorough understanding of crypto and trading principles.

The principle everyone should follow is that you should invest what you are capable of losing and not the other way round. So don’t start too big, so you don’t lose money; as times advances, you can begin expanding your portfolio.

There are many techniques expert day traders use to make gains on short-term fluctuations in the crypto markets, and it’s left for any day trade to learn and understand how it works.

For Newbies traders, certain websites allow users to track and copy the most successful traders on the platform; you should also follow up with crypto trading groups on social media.

5. Subscribe to Day Trading Bots.

Crypto trading bots are third-party scripts that allow you to trade ( Buy and Sell) cryptocurrencies at the right time.

Crypto day traders use them to reduce the risk involved in trading. In addition, these applications enable you to manage all crypto exchange accounts in one place.

These software programmes are designed to interact with bitcoin exchanges to analyse trading data and then use this information to place buy or sell orders on behalf of the user.

Bots may come with trading strategies ready to be installed, but the user can also customise the bot according to their preferences.

You should know that not all bots are good enough for you. Also, see that it does not guarantee you much profit, you will lose and at the same time win, but damage control is guaranteed.

6. Subscribe to Cryptocurrency information blogs and Youtube channels.

YouTube can help us turn from amateurs to pros in almost anything we desire, from cooking, coding, and adventures and not also restricted to cryptocurrencies.

Youtube has become a go-to place for consuming videos online in our digital world today.

The ability of any random person to post videos online for another education or entertainment has changed our world forever.

Anyone can turn to YouTube and learn almost anything; there are dozens of YouTube channels created to enlighten people on cryptocurrency education that can help anyone a novice master cryptocurrency in just a short period.

7. Learn, Unlearn and Keep Re-learning.

One factor that keeps you flourishing in the world of cryptocurrencies is the level of information you have access to; trust me, you don’t want to bank the little knowledge you know on this volatile and decentralised system.

Learning can take place through formal education or informal training. Formal education involves attending classes and studying books, while informal training occurs when someone teaches us something by example.

You should be able to position yourself to access new information through whatever possible means you have, be it the internet or your social network.

Unlearning means letting go of old habits and ways of thinking. This happens naturally over time as we mature and gain experience.

It would be best to forgo what you already know to learn new things about cryptocurrency.

Ethereum is doing well as of now. However, as many people missed a chance to invest in it, so is another coin that would experience growth just the identical Ethereum grew into what it is today; the difference is information.

And finally, we need to relearn as much as possible because Learning allows us to expand our horizons and think outside the box. By expanding our minds, we open ourselves up to possibilities and opportunities.

While developing skills and abilities that help us achieve success, as long as we keep growing, we will continue to move forward towards achieving our goals.

8. Use Coinmarket Cap.

CoinMarketCap is a comprehensive cryptocurrency information website, accessible on both desktop and mobile, with a wealth of Defi information, valuable tools and free crypto rewards called Diamonds.

Users can track more than 17,000 cryptocurrencies, set up watchlists, track portfolios, etc.

CoinMarketCap is an excellent data source for beginner and experienced crypto traders; even without paying for the premium API service, you can analyse data from more than 17K cryptocurrencies online.

With an outstanding level of customizability, it is easy to see why CoinMarketCap is such a popular site.

I shared a link to a comprehensive article that addresses this question below, be sure to check it out.

Thank you, and have a wonderful day

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---. “How To Day Trade Cryptocurrency and Make Money.” Tchelete, 21 Apr. 2022, How To Day Trade Cryptocurrency and Make Money.

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About the author

Udemezue John

Digital Nomad currently blogging about marketing and internet of tings on https://tchelete.com

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