The crypto market has never been the most secure place in the world. For some – it’s a negative. For others – a place full of opportunities. Some people prefer to HODL their coins no matter what happens, while others are more keen on experimenting with it and trying different things at different times. 

In this article, we will go over the most exciting way, in our view, of crypto trading strategies – day trading. Cryptocurrency has this way of surprising investors: sometimes, it goes up or down. If you can use it to your benefit, you can get a lot in trading volume.

Here, we will go over the best crypto day trading strategies, show you how to trade crypto the most efficiently possible, and, hopefully, make you rich. So, if you’re ready, let’s get on with it!

Getting a Crypto Gift Card Step-by-Step

• Create or log in to your RoyalCDKeys account; 

• Buy a Crypto Voucher for the coin of your choosing;

• Next, go to Cryptovoucher.io;

• Click “Redeem”;

• Enter the code you have just purchased;

• The number of coins you are gifted will be transferred to your cryptocurrency wallet or the gift recipient.

You only need to remember to redeem this gift card after 180 days. And now, let’s make your crypto day trading profitable!

Day trade crypto is an exciting strategy for approaching cryptocurrency trading. Advanced traders usually think that the best crypto-to-day plan is the one that suits your needs. Nevertheless, the central concept, whether based on the stock market or the crypto one, is essentially the same. You buy and sell stock within the same trading day with proper risk management strategies. 

The goal is to capitalize on the changes in the crypto exchanges during that time and get high liquidity. As one of the first Bitcoin trading strategies, it was an interesting one. It did not fear the volatility of the markets, but rather, it used it to the trader's advantage. Day trading Bitcoin was highly successful among crypto traders in the first few months of this practice. 

However, as low trading fees started rising and market demand became more aggressive, those fluctuations changed the game forever. Now, day trading cryptocurrencies is an investment strategy for a diversified portfolio of digital assets. So, if you want to start trading with this method, you need to have a high trading volume of crypto investments and exit trades quickly. Experienced traders have the fundamental analysis of this method, so if you want to become a day trader, you must acquire much market knowledge.

Let’s review the strategies to trade cryptocurrency on the trading platform with proper risk management techniques.

Day trading is not a unitary strategy, as there are plenty of mechanics that you can utilize to optimize your day trading on cryptocurrency exchange. Getting the best out of crypto prices is critical to optimizing your financial instruments and capitalizing on price differences.

So, if you want to use those short-term price fluctuations to your benefit and don’t want to count on a significant price drop in the long run, check out what we have prepared for you. 

Trend Trading

First, let’s see what you can learn from trend trading. Here, you can optimize your approach and quickly adapt your trading style by watching the market closely. A successful day trader can identify upward or downward trends and see where they should buy and sell. The most important factors with this approach are the technical indicators. Use moving averages to see if there is a potential swing trading coming your way, check cryptocurrency exchanges for some great deals all over the place, and study the RSI (Relative Strength Index) to get all the money you can get.

Breakout Trading

In this tactic, you need to watch out for price breakouts. You trade on momentum and enter the position when the price breaks, hoping it will go that way. Create a stop-loss order to limit potential loss if the wave will not sustain itself and hope for the best! Of course, it’s not the easiest of strategies, as you will often get situations where the breakout will not be as spectacular as you would have thought, or it can plummet almost immediately. So, be sure to watch out for that.

Scalping

Scalping is an exciting trading method where you work on low-profit margins. Here, you sell a lot during the day to maximize your profit. Accumulating profit from multiple transactions can get you a lot of money in the process, as you will benefit from the volume, not the sudden drops and ups. You will also need to implement stop-loss orders with this strategy if something goes too far up or down. Small-price movements are something you need to look out for.

News-Based Trading

Another exciting concept for crypto day traders is news-based trading, where you look at, for example, Bitcoin’s price movements based on the news about this particular coin. You need to quickly adapt to what’s being said about the coin and try to foresee whether or not this will impact the crypto exchange positively or negatively. It’s an essential aspect of becoming a successful trader.

Range Trading

Another exciting day trading strategy is range trading. In this strategy, you bet on the fluctuations of the price ranges. You are essentially – buying low, selling high. So, you need to sell it at the bottom of the field when it gets to the top. Price oscillations are where you should invest your time. But – it demands a lot of patience to master this strategy. Opportunities are here; you just need to reach out to them. And – you also need to know a lot about that particular crypto strategy. So, if you want to develop this kind of quality trading, master the information world first.

High-Frequency Trading (HFT)

Next, we have high-frequency trading. This is where it gets clinical, as it uses algorithms that allow you to make decisions in a matter of seconds based on the information from the market. That way, using a significant volume of orders, these algorithms can capitalize on each second when the exchange changes even slightly. 

It uses bots that purchase the crypto in our name and sell it the next second. Here, you want to get as much liquidity as possible quickly. Trading bots is a great thing, but it can be a bit problematic for beginners. So, if you want to use this method, you should also invest in some knowledge.

Long Straddle

Next, we have the long straddle. This strategy aims to profit from market volatility. The basic concept is pretty simple. You buy a put-and-call contract for the same crypto, strike price, and expiration date. It’s betting on all the options in the most optimal form possible. Here, you may be losing on one front but winning on the other. The winning position will outweigh the losses, so, in the end, you will gain money during this process. To do so, you must be pretty advanced in the crypto market, so watch it closely.

Market Sentiment Analysis

Another exciting day trading strategy is market sentiment analysis. Here, you can use your knowledge about the market sentiments that drive price changes. You need to understand what it means to trade a specific asset intensely. If you can understand the differences in supply and demand, you will quickly understand how it works to use it to your benefit. The key elements to look forward to are such basic things as the Fear & Greed Index, which we will discuss more in depth, and even social media or Google Trends. That way, you will always be in with the news.

Fear & Greed Index

This is one of the critical indexes when measuring market sentiment on a large scale. It shows you how the market feels and what you can expect regarding movement. With too much fear on the market, like in case of war or some tragic event, you will have a lot of opportunities when it comes to buying, while greed sometimes can point you towards selling. It’s interesting to study and use in your everyday trading.

Bitcoin Dominance Ratio

Another interesting metric is the Bitcoin Dominance Ratio. Here, you can check the market value of Bitcoin concerning the entire market cap of crypto. To have a successful day trading strategy, you need to use this metric, as it will show you whether there is some movement in the most popular cryptocurrency and whether you should buy it or sell it. It’s also a great representation of the health of the crypto market and the ability to see the growing coins in it.

Social Media

Another great thing for day trading crypto is finding data on social media accounts that are actively interested in the subject. If you set the alert for tweets or Reddit posts about the latest crypto news, you will always be on track with the selling or buying. 

It’s a great idea for buying or selling crypto and general money-related advice. It’s one of the critical elements that can help you become a better trader. Everything is on social media, so if you want to utilize market capitalization to your advantage, you should seek this information online.

Google Trends

The same thing goes for Google Trends. It’s one of the most critical places for everything crypto-related, as everyone uses Google for various purposes online – crypto included. So, if anything happens to the crypto world, Google will probably know first. That’s why so many traders are using it for their info-gathering part of day trading and social media. It can give you much insight into what’s happening in the market.

Long-Term Position Trading

Another strategy that’s worth checking out is long-term position trading. It’s day trading but for more extended benefits. Here’s how it all goes down. Suppose you want to day trade; you need to have a good understanding of the long trades that are happening on the market. So, you need to analyze the larger time frame. If your calculations are correct, and something is changing on chart patterns, you can abuse this information to your benefit and create long-term positions during your day trading. That way, you will not limit yourself to only selling and buying during the same day but also – to plan for the future!

Pullback Strategy

And finally, we have the pullback strategy. It’s an excellent method of day trading that uses pattern identification and trend analysis. You have uptrends and downtrends at your side; you analyze them carefully to see when exactly the pullback is. 

If there is any reversal of trends going on, you will get a notification or simply see it yourself. That means – it’s time to pull back. If you are careful, this is an excellent strategy on all fronts. But it’s not that rewarding to get your money’s worth, so it’s debatable if you should do just that.

So, now that we know the strategies and how to perform the best way possible, let’s go over some benefits of day trading crypto. Of course, those are just some examples, as there are plenty more to be discovered.

Quick Money

If done correctly, day trading can get you a lot of money during a short period. As the crypto markets are highly volatile, you can capitalize on those movements and get a lot of money back in profit. With so many trades, there’s a lot of potential for growth and significant results!

No Overnight Surprises

One of the most problematic situations when it comes to trading is that if something happens to your positions overnight, you will end up broke day in and day out. It’s a big problem; as if there’s some scandal, you will not know it before waking up and only see your coins plummeting. So, there is no issue if you sell everything during the day.

Quick Return

Additionally, you can bet on quick returns regarding day trading possibilities. You will get immediate cashback each day. You will be able to have greater liquidity than with any other strategy. Additionally, your liquidity can be invested further or withdrawn and utilized for any other reason. It’s a great way of keeping your assets safe and secure.

Lots of Learning

Day trading is also one of the best ways to educate yourself on how the market works, how to read market trends, and how to use this high volatility to your advantage. If you are actively engaged in trading, you will be better at knowing how the markets will behave and what you can do to optimize your positions. Quickly adapting to market conditions will make you a great trader, and short-term price movements will give you much insight into the market.

So, now that we know all about the benefits of day trading, let’s go over the dark side of the moon. Whether we like it or not, it’s not the safest of trading strategies, so let’s see what we can look out for in our daily trading.

High Risk

As you can presume, the volatility of the markets can be used to your advantage but also – to your detriment. Crypto markets are not the easiest to surf, and with so many rapid swings in pricing, you may be losing a lot of money quickly. The market volatility in this particular situation is on the extreme side.

Stress

Day trading can destroy your psychological well-being, as it’s one of the most stressful strategies that you can utilize. It’s fast, it needs all the attention it can get, and you will have to think a lot when it comes to rapid decision-making. There will be lots and lots of price swings during your trading and a lot of FOMO to overcome, so be sure to include that element in your calculations.

Time Investment

It’s not the easiest of jobs as well, as it demands from you 100% attention, 100% of the time. Constantly analyzing various strategies, exploring methods to enhance your brand's growth, understanding market influences, and staying updated on the latest developments that can potentially alter everything is crucial. It can be terribly exhausting, so be sure to make sure that you are able to conquer those feelings.

Transaction Costs

Additionally, making dozens of transactions each day can accumulate quite a lot of costs when it comes to changing crypto. Those fast-moving markets can brutally destroy your investments, especially if you are trading on small margins, with fees for every single exchange, so make sure to include that aspect in your strategy as well.

Regulations

And finally, one of the most important downsides of day trading is that you will never know when your entire operation gets shut down. There are constantly new and more invasive regulatory bodies that aim to limit the traders’ ability to use the crypto markets with no oversight easily. And – using online platforms for storing your assets may not be the wisest of things. There have been numerous instances where individuals lost their coins, and unfortunately, there's often little recourse available. In deregulated markets, there's no oversight by authorities, so recovering lost funds can be extremely challenging.

So, now that we know the pros and cons of this idea, let’s go over some tips that you can use to become the very best trader! Of course, some of them can apply to you, and some won’t, but they are more-or-less general, so use them as you like.

Get Some Knowledge

One of the key elements of crypto day trading is getting some well-established knowledge about the whole thing. Without understanding the intricacies of the cryptocurrency market, how dynamic it is, what the latest trends are, and whatnot, you will not be able to use the frequent price fluctuations to your advantage. The best ones are definitely on Twitter or Reddit, but you can always check the mass media sites like Forbes or Coindesk.

Choose Your Strategy

Make sure to choose the strategy that aligns with your temperament and how much money you are willing to put into the crypto space. That way, you will be able to capitalize on it rather quickly. Make sure to do some quality risk management, as there are plenty of potential issues that can come your way. Set limits for your trading and have an exit strategy at hand as well.

Start Small

Don’t put everything into one basket! It’s unwise to invest all of your money into one thing while disregarding its potential downsides. Start with small positions, create a demo, and test your plan before putting everything into trading. Additionally, as you get better and better at foreseeing what could happen, you can make riskier moves and become more successful with your strategy.

Look For Updates

One of the most important elements of crypto day trading is looking for updates and information. With the right bubble, you will be more and more advanced in the process of foreseeing how the markets will behave and what you can do to use them to your advantage.

Understand the Risks

Make sure that you understand the risks associated with day trading and create stop-loss orders so that you will not lose all the money with one swing. Getting the right amount of money into the right amount of accounts is key to success, but on the other hand – you have to understand the potential risks associated with this concept.

Emotional Control

A fundamental aspect of day trading involves controlling your emotions. By doing so, you can avoid missing out on good opportunities while also preventing the constant chase for the next big thing. When something fluctuates, ensure it aligns with your strategy before making rapid changes.

Review and Revise

Additionally, make sure to review everything you are doing and see if it works out for you or not. You will have a lot of successes and failures, so try to make the best out of them. Who knows, maybe it will influence your trading in the long run, not only with this particular strategy!

Let’s first talk about where you can get your crypto in the safest and most private way possible. If you don’t want your crypto transactions constantly monitored by the government or other financial institutions, check out the Crypto Vouchers at RoyalCDKeys. With this fantastic approach, you can get your crypto quickly and with no issues!

In many countries, trading with crypto is frowned upon. Sometimes, it’s illegal; sometimes, it’s only not recommended. So, in many cases, you may not want to deal with this kind of pressure. 

To maximize your day trading strategy and minimize the influence of third parties – you should get Crypto Vouchers a chance. That way, your operations won’t be flagged as crypto-related. RoyalCDKeys is considered a key reseller, so it does not appear in any register as having to do anything in crypto.

So, if crypto-to-day trade is your way of operating, it’s a great way of acquiring crypto assets. The crypto day trading strategy can be profitable if you do it correctly, so remember to be careful about managing your finances. With that in mind, let’s explore acquiring crypto through Crypto Vouchers.

We hope that with our technical analysis, you will be able to navigate those market fluctuations easily! Of course, day trading is not an easy task, so you can expect a lot of potential losses in your trading journey. Nevertheless, it can also get you many benefits in the process. It’s really important to assess the risks carefully in that regard so that you will not end up in some problematic situation with no money and no perspectives.

Thanks for stopping by! We hope that you enjoyed this article. Feel free to browse through our library of texts if you’re looking for some educational materials. That’s it for today. Stay safe, and we will see you in the next one!