The Best Guide for New Cryptocurrency Day Traders
People who engage in cryptocurrency day trading should learn to navigate the crypto market with control and confidence. Fortunately, there are many resources to help them master short-term trading in this volatile marketplace. Before starting to trade, it’s important to understand that cryptocurrency trading is not for everyone. If you are considering jumping onto the Bitcoin trading wagon, us this guide to get started:
Practice and Learn
Practicing and learning will help you become comfortable and confident with the market and you must do this continuously throughout your journey. Practice shows you what you are doing right and what you are doing wrong. Make sure to use any valuable source of information you can find at any stages of your trading journey. Click here to access valuable details.
Many new traders open a demo account before committing any money to the market and applying various technical trading strategies. This is in addition to doing a rigorous market analysis and execution set-ups. As you learn lessons, record both winning and losing trades to remember how you go there. Also, remember your reasons for putting that amount of money at risk and why you entered the trade in the first place. Being honest with such experiences will help you in the future by providing you with a real-life example of why and how trades go right or wrong.
Be Aware of the Volatility of the Crypto Market
Whether you are day trading Bitcoin or other liquid coins, volatility is one of its main draws for short-term/day traders because it provides them with the chance to get in and out of the market. When day trading, liquidity is a must-have and must a main influence on the cryptocurrency you are trading and the marketplace you are trading. Also, make sure to check the total number of your chosen digital coin in circulation and whether or not printing of that coin continues.
Be Careful when Picking the Marketplace and Provider
When it comes to crypto trading, both the capitalization of the coin and the exchange/marketplace you are trading in are equally important. Keep in mind that many exchanges have stopped trading when the market is extremely volatile or when the exchange service has been compromised because of hacking. Many exchanges that have been shut down left their clients losing some or all of their money. Because of this, you must pick the marketplace carefully and prioritize liquidity and dependability. Additionally, trading is about being able to go both long and short in any of your chosen digital coins. If you cannot short a coin, your chances of making money regularly are seriously reduced.
Do Not Lose Discipline
Once you enter a trade, do not allow the market to bully you into trading if you don’t want to. Identify your entry price, stop loss level, and target price. Never enter a trade without a stop-loss. When the market is volatile, prices can be forced straight through a stop-loss that can leave you at the mercy of the provider to have an eventual fill. Do not chase losing trades or lose discipline. Otherwise, you are allowing the market to control you and take your money.