Looking for an Automated Crypto Trading Strategy? You can use Pionex to trade cryptocurrencies with trading bots.
In the turbulent world of cryptocurrencies, if you want to win, you need steely courage, a winning game plan and an intuitive trading platform. You will discover the courage of steel and the intuitive trading platform through research, research and more research. Let's look at the X-factor of this bamboo, specifically the trading strategy you will use.
There are many trading strategies and different platforms, some of the most popular day trading strategies are distance trading, scalping and arbitrage. If you want to save time, with eToro you can copy the game of professional traders on the fly and learn as you go.
Trading in the area
In most cases, cryptocurrencies trade within a certain range for a long period of time. For example, Bitcoin traded from $8,601.40 to $10,210 in 30 days. This ±9.4% range appears to be volatile, as Bitcoin can change ±42% in a 24-hour period.
Cryptomarket caps are small enough to be handled by one large operator. In some cases, these large operators systematically manipulate the price of a coin up and down to make a profit. If you look at these examples, you too can benefit.
If you are in a trading range, you want to focus on overbought and oversold areas. Overbought means that the buyer has satisfied his needs and can sell the stock; overselling is the opposite. Map markers included in leading mapping software can help you locate these zones. Common indicators used for this are the Stochastic Oscillator and the Relative Strength Index (RSI).
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Pionex
The best
High volume investors
Pionex is a platform that allows you to use custom trading bots to automate your crypto investments. You can trade manually if you want, but there are 18 bots that can do it all.
Our selection of trading bots includes:
- Grid Trading Bot allows users to buy low and sell high within a specific price range.
- Leverage Grid Bot offers up to 5x leverage.
- Spot-Futures Arbitrage Bot helps retail investors earn passive income with low risk. The estimated return on this strategy is 15-50% APR.
- Martingale bot makes one DCA buy, sell with different profit.
- Redeem helps you save coins.
- Dollar Cost Averaging (DCA) bots perform regular repurchases to offset the effects of volatility.
In addition, Smart Trading Terminal allows traders to stop losses, take profits and continue trading.
With fees as low as 0.05% and low risk for both creators and buyers, you can enter the cryptocurrency market more easily than if you started buying yourself. You can also register for free.
Try the Pionex mobile app for the same experience as the website, chat directly with the staff or send an email with any questions. Remember, you only pay the producer and buyer fees. Plus, you can save the time you spend researching market data and invest in other things.
High Volume Investors require applicants to invest $300,000 or more in Bitcoin, Chainlink, etc. You can join the Market Maker program which requires a deposit of $300,000 in cryptocurrency. In addition, the Market maker program does not require any payment from the manufacturer.
IFC market
Account at least
Micro account: $1
Standard account: $1,000
IFC Markets offers a wide range of investment options that give you the diversity you need to build your portfolio. In particular, you can trade CFDs on the site in a variety of styles, including:
- More than 600 financial instruments
- Low frequency
- No hidden commission
- Immediate order fulfillment
You have the freedom to create your own financial tools and create a strategy that makes the most sense for you, your family or your business. Crypto CFDs have expanded to BTC and ETH, with more on the way. You can also take advantage of the 1:8 leverage and minimum volume requirements to build the right trading strategy for your portfolio. Unfortunately, the IFC market is not yet permitted in the US
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Scalpers use higher trading volumes to make a profit. Scalpers can exit a trade seconds after entering it, and many use automated bots to increase the frequency of trading cycles. Ideally, scalpers want to exit the trade before news or short-term volatility has a chance to change market sentiment for the coin.
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It is best to have a lot of money to use this short term cryptocurrency trading strategy. Although the ROI per trade is small, the large sums mean that the scalp returns a lot of money ($0.5% of $100,000 is $500, enough for a luxury car down payment). Frequent trading, sometimes 10-20 trades per minute, means these small profits add up.
Volatility in the Bitcoin game
The Chicago Mercantile Exchange (CME) offers Bitcoin futures options, opening up various volatility strategies for traders. The volatility of traditional cryptocurrency asset classes is 5 times higher. Volatility trading is completely non-directional, meaning you can make money whether Bitcoin goes up or down.
Long term it is a non-directional volatility strategy using Bitcoin options. To begin with, you buy call and put options at the same time for the same strike price and expiration date. Bitcoin straddles are profitable when Bitcoin falls more than your premium or moves away from the strike price. To exit a trade, you sell and call at the same time.
Simply put, a big move up or down is in your favor.
Arbitration court decision
Arbitrage involves buying a cryptocurrency in 1 market and selling it in another market at a higher price. The difference between the buying and selling price of an asset is called the spread. As a largely unregulated market, cryptocurrencies allow anyone to create an exchange. This can lead to large differences in spreads due to differences in asset liquidity and trading volumes.
In the cryptocurrency market, traders usually keep a portfolio on the exchange where they trade. To start an arbitrage opportunity, open an account on an exchange that you believe will show very different prices for the same asset.
At one point, Bitcoin was sold for 40% more in South Korea than in the US. Traders make a profit by buying bitcoins on American exchanges and immediately selling them on South Korean exchanges. Although the difference is not as large as usual, lower barriers to entry in new exchanges lead to new arbitrage opportunities more often than in traditional asset markets.
Traders should also consider trading costs when attempting arbitrage. Trading exchange fees can wipe out profits from trading spreads.
Looking for more trading strategies? Go to Coin Market Manager.
The best online trading platform for cryptocurrencies
There are several cryptocurrency exchanges and brokers to choose from, and some may suit you better than others. If you are a day trader, you will want to use an exchange with low or no trading fees. Some good exchanges for day trading are Voyager, Crypto.com, and eToro. If you are a long-term investor and care more about unique user interfaces and features, Coinbase or Voyager may be for you.
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The best
Low deposit requirements
Account at least
Micro account: $1
Standard account: $1,000
Advice from an expert
We have forex and crypto trader Ezekiel Chew, who makes 6 figures trading and trains bank traders behind the scenes, share with us crypto trading strategies and what it takes to be successful in crypto trading.
Ezekiel believes there are three key aspects to successful cryptocurrency trading:
1. First, you need to learn how to read graphs. One of the best ways to find out is through price action. technique used by professional traders. When you learn how to read charts, you will know why the market is moving up, down or sideways, and then you will understand what strategy to apply in that direction.
2. Trade with a proven trading strategy or combination of strategies. Proven strategies are those that have been well tested and proven to work consistently. Only in this way will you have the confidence to remain calm.
3. Have a strong trading system. This is due not only to the technical aspects, but also to the business behind the trade; properly structured trades that follow a common trading plan that is proven to work. Unlike most new traders, trading is not only about strategy, but the system itself contributes greatly to being a successful trader.
Most importantly, Ezekiel has a famous trading mantra: "Win big, lose small."
"It's about getting an edge in the trading game and knowing the mathematical probabilities behind each trade." By winning big and losing small, one win can cover 3 or more losses. If you apply this methodology in the long run, you will become a winning trader.
To learn more about Ezekiel's probability trading method, you can check out one of his main programs .
The best
Crypto + Forex course
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Trading crypto doesn't have to be cryptocurrency
Regardless of the strategy you choose, you must be willing to accept losses in a volatile market like cryptocurrency. Prepare your exit plan before entering any trade. Don't follow hot tips; Only invest in coins you truly believe in, even for a single day. Hot tip mobs often have selfish motives and don't tip to make you money.
Also remember that the market offers endless opportunities. So if you play it safe and lose one, don't bite your head off and drive the deer off the farm again. Trading is more of an emotional journey than anything else. you have to think clearly and stick to your chosen strategy through the ups and downs.
Frequently asked questions
Questions and Answers
C:
Which cryptocurrency is best for day trading?
a
Day traders look for volatility. Volatility is common in microcoins, or coins that have a small market cap compared to other cryptocurrencies. Currently, any coin with a market cap below $1 billion is considered a small cap. Small cap coins with good trading volume are SiaCoin (SIA), Basic Attention Token (BAT) and Fusion (FSN).
C:
How Much Can You Earn Day Trading Cryptocurrencies?
a
Highly volatile microcoins can rise in value within a day, generating exponential returns for lucky investors. High volatility means this coin can move quickly in the wrong direction. As the potential rewards increase, so do the risks.
C:
Are there any restrictions on trading cryptocurrencies?
a
There is no daily trading limit for cryptocurrencies.
C:
Can I Trade Cryptocurrency for $200 a Day?
a
You can open a cryptocurrency exchange account with $200 and start day trading.
C:
What is the best cryptocurrency day trading strategy?
a
Unfortunately, there is no single answer, but some of the best strategies use scalping, automated trading bots, and manual technical analysis. Each of these can be very beneficial if done correctly.