{"id":5473,"date":"2020-09-18T19:53:50","date_gmt":"2020-09-18T16:53:50","guid":{"rendered":"https:\/\/godex.io\/blog\/?p=5473"},"modified":"2022-12-23T00:43:07","modified_gmt":"2022-12-22T22:43:07","slug":"crypto-day-trading-tutorial","status":"publish","type":"post","link":"https:\/\/godex.io\/blog\/crypto-day-trading-tutorial","title":{"rendered":"Crypto Day Trading Tutorial"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_25_1 counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><label for=\"item\" aria-label=\"Table of Content\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/label><input type=\"checkbox\" id=\"item\"><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/godex.io\/blog\/crypto-day-trading-tutorial\/#is_it_possible_to_day_trade_bitcoin\" title=\"Is It Possible to Day Trade Bitcoin?\">Is It Possible to Day Trade Bitcoin?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/godex.io\/blog\/crypto-day-trading-tutorial\/#how_to_day_trade_cryptocurrency\" title=\"How to Day Trade Cryptocurrency\">How to Day Trade Cryptocurrency<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/godex.io\/blog\/crypto-day-trading-tutorial\/#which_crypto_coins_are_good_for_day_trading\" title=\"Which Crypto Coins Are Good for Day Trading?\">Which Crypto Coins Are Good for Day Trading?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/godex.io\/blog\/crypto-day-trading-tutorial\/#what_percent_of_day_traders_are_successful\" title=\"What Percent of Day Traders Are Successful?\">What Percent of Day Traders Are Successful?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/godex.io\/blog\/crypto-day-trading-tutorial\/#conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">Day Trading<\/span><span style=\"font-weight: 400;\"> is a popular tactic in the cryptocurrency world, and it is a technique many newbies love to try. Trades should be carried out with caution and not be seen as a way to get rich quickly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A cryptocurrency is a secure virtual currency that exists only in the digital space. It is protected by <\/span><span style=\"font-weight: 400;\">blockchain<\/span><span style=\"font-weight: 400;\"> technology, which makes it very difficult, if not impossible, to duplicate and reuse. It is used worldwide to <\/span><span style=\"font-weight: 400;\">transfer<\/span><span style=\"font-weight: 400;\"> funds easily from one party to another without the need for a third-party to facilitate the <\/span><span style=\"font-weight: 400;\">transaction<\/span><span style=\"font-weight: 400;\">. While with <\/span><span style=\"font-weight: 400;\">fiat<\/span><span style=\"font-weight: 400;\"> money a third party is always needed, with cryptocurrency you can initiate transactions directly. Moreover, <\/span><span style=\"font-weight: 400;\">crypto<\/span><span style=\"font-weight: 400;\"> coins are already available in many forms. For example, you can buy Bitcoin or purchase some <\/span><span style=\"font-weight: 400;\">altcoin<\/span><span style=\"font-weight: 400;\"> like Ripple, Litecoin, Ethereum, Bitcoin Cash, etc. Such coins can be exchanged on platforms like <\/span><a target=\"_blank\" rel=\u201dnofollow,noopener\u201d href=\"https:\/\/godex.io\"><span style=\"font-weight: 400;\">Godex<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nowadays, Bitcoin is one of the first things to cross anyone\u2019s mind when they hear about cryptocurrency because it is the <\/span><span style=\"font-weight: 400;\">crypto<\/span><span style=\"font-weight: 400;\"> with the largest market cap. It is stored in eWallets known as \u201cBitcoin Wallets\u201d and can be mined by processing some complicated mathematical algorithms.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"is_it_possible_to_day_trade_bitcoin\"><\/span><b>Is It Possible to Day <\/b><b>Trade<\/b><b> Bitcoin?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Day Trading<\/span><span style=\"font-weight: 400;\"> of Bitcoin is the process of buying and selling amounts of it in one trading day. It is made possible by implementing short-term trading techniques to make a quick profit by taking advantage of little fluctuations in cryptocurrency prices. Simply put, yes, <\/span><a target=\"_blank\" rel=\u201dnofollow,noopener\u201d href=\"https:\/\/www.investopedia.com\/articles\/trading\/05\/011705.asp\"><span style=\"font-weight: 400;\">it is possible to engage in <\/span><span style=\"font-weight: 400;\">day trading<\/span><\/a><span style=\"font-weight: 400;\"> if you are ready to learn how to do it right. Bitcoin day trading can be a successful strategy for an experienced <\/span><span style=\"font-weight: 400;\">trader<\/span><span style=\"font-weight: 400;\">, but newbies might find it challenging. It involves paying rapt attention to slight changes in the exchange rates of a cryptocurrency. However, a lot of people aspire to become traders because they see <\/span><span style=\"font-weight: 400;\">day trading<\/span><span style=\"font-weight: 400;\"> as a get-rich-quick strategy. Consequently, they start <\/span><span style=\"font-weight: 400;\">day trading<\/span><span style=\"font-weight: 400;\"> without adequate knowledge of how the process works. Nonetheless, many traders are content with taking these risks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Most financial experts tend to shy away from <\/span><span style=\"font-weight: 400;\">day trading<\/span><span style=\"font-weight: 400;\"> because they feel the risk involved outweighs any potential profit. Nevertheless, traders that are successful in this practice take the other stance and insist that, if done correctly, <\/span><span style=\"font-weight: 400;\">day trading<\/span><span style=\"font-weight: 400;\"> is a lucrative business. Although both sides have plausible reasons to believe their claims, day trading generates profit, albeit at a lower success rate. This is due to the complicated nature of it, the amount of attention needed, and fraudsters are continually luring people with offers to help them maximize profit. On the other hand, experts have noted that a long-term strategy might give the best results. Therefore, you should know that note that while many traders have success stories, day trading is not for everyone. That being said, you could be a successful day <\/span><span style=\"font-weight: 400;\">trader<\/span><span style=\"font-weight: 400;\"> as long as you combine skill, right timing, and luck.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"how_to_day_trade_cryptocurrency\"><\/span><b>How to Day Trade Cryptocurrency<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Firstly, you need a comprehensive knowledge of the cryptocurrency market to excel in day trading. <\/span><span style=\"font-weight: 400;\">Trade<\/span><span style=\"font-weight: 400;\"> ideas can be generated with Technical <\/span><span style=\"font-weight: 400;\">Analysis<\/span><span style=\"font-weight: 400;\">. The entry and exit points for each trade are often identified using volume and trends of the chart. In addition, risk management should be involved in all trades. People in <\/span><span style=\"font-weight: 400;\">day trading<\/span><span style=\"font-weight: 400;\"> often do not bother with fundamental analysis, because essential events play out over a long time. A lot of day traders, however, pay attention to cryptocurrency news and use received information to develop a winning strategy. This is done by exploiting a sudden hike in cryptocurrency trades, which results from an announcement made on the news.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Profits in day trading are made from the volatile nature of the market, which implies that volume and liquidity are essential to <\/span><span style=\"font-weight: 400;\">day trading<\/span><span style=\"font-weight: 400;\">.\u00a0 Also, a significant slippage in a single <\/span><span style=\"font-weight: 400;\">trade<\/span><span style=\"font-weight: 400;\"> could ruin a lot for a <\/span><span style=\"font-weight: 400;\">day<\/span><span style=\"font-weight: 400;\"> trader. Hence, they prefer highly liquid market pairs.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Range trading<\/b><span style=\"font-weight: 400;\"> requires traders to pay attention to the candlesticks in order to identify support and resistance levels. All trading movements are based on the analysis of what areas are oversold and what are overbought.\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>High-frequency trading<\/b><span style=\"font-weight: 400;\"> is a method build on math algorithms. It is performed with the use of trading bots and other automated tools. This type of trading seems convenient from afar, but it is more challenging to execute. Furthermore, the algorithm requires intense monitoring and regular adjustments and tests to cope with the changes that always happen in the market.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Scalping <\/b><span style=\"font-weight: 400;\">is another method used in day trading. It is all about making a profit of rapid changes in cryptocurrency prices. Leverages usually boost results here, but risk management strategies are used too. Additionally, margin requirements should be taken into attention. This technique is high-risky, and traders have to react quickly while using it.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"which_crypto_coins_are_good_for_day_trading\"><\/span><b>Which Crypto Coins Are Good for Day Trading?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Picking a suitable cryptocurrency for day trading is just as important as any part of the trading process. This is because if an asset with low liquidity is chosen, the resulting profit would not be worth the time you <\/span><span style=\"font-weight: 400;\">invest<\/span><span style=\"font-weight: 400;\"> in the trade. For the best day trading results, let\u2019s take a look at the best cryptocurrency options.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li><b>Bitcoin<\/b><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">This is the most popular <\/span><span style=\"font-weight: 400;\">cryptocurrency<\/span><span style=\"font-weight: 400;\"> in the world at the moment. Information about this virtual <\/span><span style=\"font-weight: 400;\">currency<\/span><span style=\"font-weight: 400;\"> is always on the cryptocurrency news, as traders often deal with it. Hence, it can be traded anytime.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li><b>Tron<\/b><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Tron is a rapidly growing cryptocurrency that is becoming more and more reputable amongst day traders. Furthermore, it is relatively cheap and is ideal for newbies because they do not need to put a dent in their pockets to obtain them.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li><b>Binance Coin<\/b><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">This cryptocurrency has been developed by Binance, which is a well-recognized <\/span><span style=\"font-weight: 400;\">exchange<\/span><span style=\"font-weight: 400;\"> platform. Hence, the virtual currency is trusted by traders, and this results in high volumes of trade and stability in its value. Consequently, it is an excellent asset for day <\/span><span style=\"font-weight: 400;\">trading<\/span><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li><b>Tether<\/b><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">This coin is believed to be one of the best cryptocurrency options out there, mostly because its value is stable. Also, it is in <\/span><a target=\"_blank\" rel=\u201dnofollow,noopener\u201d href=\"https:\/\/coinmarketcap.com\/\"><span style=\"font-weight: 400;\">the top 5 of the virtual coins\u2019 list<\/span><\/a><span style=\"font-weight: 400;\">, which makes it a decent option for day trading.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"what_percent_of_day_traders_are_successful\"><\/span><b>What Percent of Day Traders Are Successful?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Unfortunately, <\/span><a target=\"_blank\" rel=\u201dnofollow,noopener\u201d href=\"https:\/\/www.forbes.com\/sites\/nealegodfrey\/2017\/07\/16\/day-trading-smart-or-stupid\/\"><span style=\"font-weight: 400;\">only 10% of day traders are successful<\/span><\/a><span style=\"font-weight: 400;\"> in the long run because a lot of people do not study the market carefully enough to manage risks well. Therefore, sometimes, the market does not go in their favor, and they end up losing their <\/span><span style=\"font-weight: 400;\">money<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"conclusion\"><\/span><b>Conclusion<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Depending on your trading strategy, luck, and the cryptocurrency you use, <\/span><span style=\"font-weight: 400;\">day trading<\/span><span style=\"font-weight: 400;\"> can be either profitable or a nightmare. However, if you take the time to study the market and understand how to enter and exit positions in the best way, chances to succeed would be high enough for you.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Table of Contents Is It Possible to Day Trade Bitcoin?How to Day Trade CryptocurrencyWhich Crypto Coins Are Good for Day Trading?What Percent of Day Traders Are Successful?Conclusion Day Trading is a popular tactic in the cryptocurrency world, and it is a technique many newbies love to try. Trades should be carried out with caution and [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":5474,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[132,134],"tags":[117,1079,114,1279,1823],"yst_prominent_words":[],"class_list":["post-5473","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-currencies","category-popular-posts","tag-crypto-exchange","tag-crypto-talks","tag-crypto-tips","tag-crypto-trading","tag-day-trading"],"lang":"en","translations":{"en":5473},"pll_sync_post":[],"_links":{"self":[{"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/posts\/5473","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/comments?post=5473"}],"version-history":[{"count":2,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/posts\/5473\/revisions"}],"predecessor-version":[{"id":6846,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/posts\/5473\/revisions\/6846"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/media\/5474"}],"wp:attachment":[{"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/media?parent=5473"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/categories?post=5473"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/tags?post=5473"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/yst_prominent_words?post=5473"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}