In the volatile world of cryptocurrencies, you need strong nerves, a winning game plan and an intuitive trading platform if you want to win. With research, research and more research, you will have nerves of steel and an intuitive trading platform. Let's look at the X factor in this gumbo, which is the best cryptocurrency day trading strategies you can use.
There are many trading strategies and platforms for day trading some popular crypto strategies include range trading, scalping and arbitrage. If you want to save time, eToro allows you to mimic the moves of professional traders instantly and learn as you go.
Quick View: Online Cryptocurrency Trading Platforms
- Best for mobile users: Plus500
- Best for high interest bets: Flynt Finance
- Best for businesses looking to profit from cryptocurrencies: ICONOMI
- Best for leveraged trading with multiple instruments: IFC Markets
- Best Cryptocurrency for Beginners: Endotech
The best online cryptocurrency trading platforms
There are many cryptocurrency exchanges and brokers that you can choose from, and some may be a better fit than others. If you are a day trader, you should use exchanges with low or no trading fees. If you are a long-term investor and appreciate the user interface and unique features, Coinbase or Voyager may be right for you.
1. Best for Mobile Users: Plus500
When you work with Plus500, you get access to a European derivatives broker that focuses on CFDs. Since CFDs are similar to binary options, you need a little regulation that Plus500 offers.
Although CFDs are not offered in the US, they are popular all over the world, which is where the Plus500 game comes in. Plus500 has no commissions and earns only from the spreads you pay the platform.
However, keep in mind that Plus500 may not be suitable for beginners. If you know what you are doing, you can easily get started with Plus500, but there is not much information for inexperienced investors.
If you're looking for a powerful mobile app, an unlimited demo account, and the ability to significantly diversify your investment portfolio, look no further than Plus500.
- There is no commission
- Ideal for advanced traders
- Powerful mobile app
- Not suitable for beginners
- Not available in the United States
2. Best for high interest rates: Flynt Financing
Flynt Finance is an innovative new high-risk, high-reward staking platform with three unique high-reward pools, each with its own automated trading strategy. Flynt prides itself on its security and its partnership with industry leading custodians BitGo and FireBlocks to protect user funds. It uses the latest multi-signature wallet infrastructure and multi-layered cold wallets.
His highest return strategy, with an average APR of 20 to 80%, involves selling out-of-the-money (ie high strike prices) short-term call contracts to earn interest on Bitcoin. For those unfamiliar with options trading, selling a covered call contract means that buyers pay Flynt Pool for the option to buy a specified number of bitcoins on the expiration date. If the Bitcoin price is below the strike price on the expiration date, Flint will bear the full cost of the purchase contract.
A higher risk occurs when Bitcoin exceeds the strike price before the expiration date, meaning Flint Pool must sell its Bitcoin contract to the buyer at the strike price (now lower than the current Bitcoin price). Fortunately, this is not often the case because the options used by the pool are very short term and out of the money.
Flynt also offers an Ethereum covered call strategy that works similarly to its Bitcoin strategy, with a few modifications and generally lower leverage. Low leverage makes it less risky and still offers an impressive interest rate of 10-25%. If you're looking to further reduce your risk while achieving higher returns, Flynt's Ultimate Pool may be for you. USDC GMX:GLP Pool GMX uses a decentralized exchange liquidity pool, called GLP. Highly leveraged traders (up to 50x) trade against GLP and earn huge fees from investors when their positions are liquidated. The pool's directional risk is hedged by holding futures contracts, which significantly reduces risk.
- Possibility to invest in swimming pools
- Sold at Rs
- Multiple passive shipping options
- Crypto-assets can collapse at any time
3. The best for companies that want to use cryptocurrency: ICONOMI
Completely safe through the ICONOMI website
The best:
Companies that want to use cryptocurrency
ICONOMI is a unique crypto site that allows you to enter the cryptocurrency market at your own pace. For example, when you visit the site, you will be asked a simple question: do you want to trade cryptocurrencies and automate your portfolio, or do you want to copy a professional strategy?
You can explore all the features of the site or see tips that may be useful to you. From there, all you have to do is fund your account and start working on your portfolio. This means that you can implement your day trading strategy immediately or you can develop this strategy over time.
You can also earn money by sharing your day trading strategies with other users, which can lead to building a name in the community. Referral bonuses and even professional accounts are available if your business is trading related or if you are a financial planner, consultant, etc. And you use day trading strategies to build your clients' portfolios.
There is a powerful platform to share information and learn from other traders, meaning you can meet other traders and exchange ideas with them. There is an education section for those who want to learn about the subject, and the prices are clearly displayed on the website. You can open an account for free and start trading and enter the cryptocurrency market immediately.
- This platform helps companies and individual investors to enter the cryptocurrency market.
- The platform is also suitable for financial advisors and planners who need to make cryptocurrency investments for their clients.
- Advanced traders may not want to copy trade or need all this extra advice
4. Best for leveraged trading with multiple instruments: IFC Markets
Order securely through the IFC Markets website
The best:
Ideal for leveraged trading with many instruments
Providing the diversification you need to build your investment portfolio, IFC Markets offers a variety of investment options. In particular, the site allows you to trade CFDs in a variety of methods, including:
- More than 600 financial instruments
- Small spread
- There is no secret committee
- Immediate execution of orders
You have the freedom to develop your financial tools and create a strategy that works for you, your family or your business. Cryptocurrency CFDs for BTC and ETH will be launched with more to come. You can also take advantage of the 1:8 leverage and minimum trade size requirements when creating a trading strategy that fits your investment portfolio. Unfortunately, IFC Markets is not yet accepted in the United States
- More than 600 financial instruments available
- There are no hidden fees or commissions
- Complete the application quickly
- Not available in the United States
5. Best Cryptocurrency for Beginners: EndoTech
Completely safe through the EndoTech website
The best:
Novice Crypto Trader
Surprisingly, one of the best cryptocurrency day trading strategies is also one of the easiest to implement. EndoTech is a leading automated trading platform that has been improving its trading algorithms since its launch in 2012. EndoTech is not an exchange. Instead, it connects to your exchange account and uses it for trading. Some may find it a little scary, but EndoTech never gets permission to withdraw or transfer funds from your exchange account, so there is no need to worry.
EndoTech is one of the most automated cryptocurrency trading platforms and wants to know how its strategies have worked in the past. You can see 25 tips on the website. Day trading in cryptocurrencies can be very difficult and Endotech does it. It takes the emotion out of trading and instead uses powerful artificial intelligence to perform data-driven technical analysis.
- Refined algorithms
- It allows you to connect to your favorite exchanges
- 25 strategies available
Negotiate the deadline
In many cases, cryptocurrency trades within a certain range over a long period of time. For example, Bitcoin is trading between $8,601.40 and $10,210 for 30 days. This range of ±9.4% seems volatile considering that Bitcoin can achieve a change of ±42% in a 24-hour period.
The market capitalization of cryptocurrencies is small enough that it can be manipulated by a large player. In some cases, these major players systematically manipulate the currency price up or down to take advantage of the range. If you notice these patterns, you can benefit.
When trading within a range, you should focus on overbought and oversold areas. Overbought means that buyers have filled their order and may be selling the stock; Oversold means an uptrend. The chart indicators built into any reputable charting software will help you find these areas. Popular indicators for this include the stochastic indicator and the Relative Strength Index (RSI).
Head
Speculators take advantage of increased trading volume to make a profit. Scalpers can exit a trade within seconds of entering it, and many use automated robots to increase the frequency of trading cycles. Ideally, speculators want to exit the trade before news or short-term volatility has a chance to change market sentiment toward the currency.
To benefit from this short-term cryptocurrency day trading strategy, it is best to have a large balance. Although the ROI per trade is very small, making large amounts leads to a large scalp return (0.5% of $100,000 is $500, which is enough for a luxury car). If you trade frequently - sometimes 10 to 20 trades per minute - it means those small profits add up.
Play Bitcoin Volatility
The Chicago Mercantile Exchange (CME) offers options on Bitcoin futures, offering traders a variety of volatility strategies. Cryptocurrencies are five times more volatile than traditional asset classes. Ideally, volatility trading is non-directional, meaning there is a chance to make money whether Bitcoin goes up or down.
It is a long-term directional volatility strategy using Bitcoin options. For starters, you can buy a call option and a put option at the same time with the same strike price and expiration date. A Bitcoin spread is profitable when Bitcoin moves above or exceeds the strike price by more than your premium. To exit the trade, sell the call and put at the same time.
Simply put, a significant rise or fall is in your favor in Bitcoin trading.
control
Arbitrage involves buying cryptocurrencies in one market and selling them at a higher price in another market. The difference between the buying and selling price of an asset is called the spread. Since cryptocurrencies are generally an unregulated market, anyone can start 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 maintain a portfolio of the exchanges they trade. To take advantage of an arbitrage opportunity, open accounts on exchanges that you believe have very different prices for the same asset.
At one point, Bitcoin trading was 40% higher in South Korea than in the United States. It was called "Kimchi Bounty" and has appeared several times. Bitcoin trading strategies involve buying bitcoins on US exchanges and selling them instantly on South Korean exchanges. Although the difference is generally not large, lower barriers to entry to new exchanges open up more new arbitrage opportunities compared to traditional asset markets.
Traders should also consider trading fees when attempting arbitrage. Stock market trading fees can wipe out profits from trading ranges.
Professional advice
Our top Forex crypto trader, Ezekiel Chiu, who trades six figures and coaches bank traders behind the scenes, talks to us about crypto day trading strategies and exactly what it takes to succeed in crypto. For the business to succeed.
Ezekiel believes there are three key aspects to successful cryptocurrency day trading:
1. You must first learn to read tables. One of the best ways to learn this is to track price action; A strategy used by most 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 use in that direction.
2. Trade using a proven trading strategy or combination of strategies. A proven strategy is one that is widely tested and consistently proven to work. This is the only way to stay confident in yourself.
3. Have a strong trading system. What is determined not only by the technical aspects, but also by the business carried out by the company; A well organized transaction, consistent with a comprehensive business plan and proven effective. Contrary to what most new traders believe, trading is not just a strategy, the system itself helps a lot in becoming a successful trader.
After all, Ezekiel has a famous business motto: "Win big, lose small" that he and his students adhere to.
"It's about getting an edge in the trading game and knowing the mathematical probabilities behind each trade." With big wins and small losses, one win can cover three or more losses. If you use this method in the long run, you will become a successful trader. To learn more about how to trade cryptocurrencies using Ezekiel's method based on mathematical probability, you can check out his unique original software.
Safely through the Asia Forex Mentor website
The best:
Cryptocurrency and exchange rates
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Cryptocurrency trading doesn't have to be mysterious
Regardless of the strategy you choose, you must be prepared to accept losses in a volatile market like cryptocurrencies. Prepare your exit plan before entering the trade. Don't follow too much good advice; Only invest in coins you truly believe in, even if it's just for a day. Hot Tips' audience is often selfishly motivated and does not provide tips that will help you make money. Also remember that the market offers endless options and the best cryptocurrency for day trading can change from day to day. So if you play it safe and miss one, don't rush in and chase after the deer that has already fled the farm. Trading is ultimately an emotional journey – you need to keep a clear head and stick to your chosen strategy through thick and thin.
Completely safe through the Plus500 website
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The best:
Low deposit required
Securely through the Gemini Crypto website
Order securely through the IFC Markets website
The best:
Ideal for leveraged trading with many instruments
Common questions
a
Day traders focus on volatility. Volatility is more common in microcoins or coins with a small market cap than in other cryptocurrencies. Today, any coin with a market capitalization of less than $1 billion is considered a microcap. Small coins with good trading volume are SiaCoin (SIA), Basic Attention Token (BAT) and Fusion (FSN).
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With high volatility, the price of penny coins can double in a single day, giving lucky investors huge returns. High volatility means that these currencies can go in the wrong direction just as quickly. As the potential gains increase, so do the risks.
a
There are no limits on cryptocurrency day trading.
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You can open an account on a cryptocurrency exchange with $200 and start day trading.
a
Unfortunately, there is no single answer, but some of the best strategies include using scalping, automated trading robots, and manual technical analysis. Each of these activities, if done well, can be very profitable.