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How To Day Trade Cryptocurrency and Make Money

How To Day Trade Cryptocurrency and Make Money

How to Trade Cryptocurrency and make money
Bitcoin blockchain E-commerce concept on digital Screen

Introduction.

There are two routes to trading cryptocurrencies, and they involve predicting their prices using CFDs or buying the digital currencies in the hope they increase in value.

One is a faster route, while the other is long-term while the other is short-term. You can decide to buy a handful of cryptocurrency portfolios that you think will be profitable in the nearest future.

You can either decide to get into the short-term trading game, where you also buy a handful of cryptocurrencies and make money off the prediction of cryptocurrencies.

This article will explain how you can trade cryptocurrencies short-term and make money. Just in case you are new to cryptocurrencies, I wrote a comprehensive guide on how to help you get started as a beginner.

Do you have questions on”how to trade cryptocurrency, how to day trade crypto, how to trade cryptocurrency and make a profit, how to trade cryptocurrency for profit, how to make money trading crypto, how to pick crypto for day trading, how do you trade cryptocurrency, how to leverage trade on Binance, “? This article has been written to help you solve those problems.

What is Cryptocurrency Trading?

Cryptocurrency trading predicts cryptocurrency price movements via a CFD (Contract For Difference) trading account for profit or buying and selling the underlying coins via an exchange. This article will focus more on predicting cryptocurrency movements via a CFD (Contract For Difference).

Why Should You Day Trade Cryptocurrencies?

Cryptocurrency trading will not be new for those who have experience with how the Fiat forex market works.

When you trade cryptocurrencies, you are speculating on whether your chosen market will rise or fall in value, and if it all goes as predicted, you get rewarded in the staked coin.

There are various reasons people decide to trade cryptocurrencies, and I will make a complete list of them here.

1. Accounts are easier to Open and Activate.

Unlike trading Fiat currencies, you need to submit tons of credentials to a broking platform to get an active account; it also comes with many hiccups here and there.

Trading with cryptocurrencies makes it easier to set up because of fewer means of verification the broker needs.

Cryptocurrency trading platform like Binance makes it easy for anyone to trade cryptocurrencies with little or no verifications.

2. Volatility attached to Cryptocurrency.

Cryptocurrency is a rapidly-growing market. This is not breaking news. You should also know that crypto has made kings and paupers.

Cryptocurrency assets are way more volatile, making them more exciting than ever; However, the cryptocurrency market is relatively new and has experienced significant volatility due to vast amounts of short-term speculative interest.

The cryptocurrency market thrives on speculation. Investors bet that the prices would go up or down to make profits. Unfortunately, these speculative bets cause a sudden influx of money or a sudden outgo, leading to high volatility.

The volatility of cryptocurrencies is part of what makes this market so exciting.

So, if you decide to explore the cryptocurrency market, make sure that you have done your research and developed a risk management strategy.

3. Improved liquidity.

Liquidity measures how quickly and easily a cryptocurrency can be converted into cash without impacting the market price.

Have you ever traded Fiat currencies, and you wanted to make a withdrawal of your hard-earned cash? Of course, you know how difficult it can be; even before getting it to the bank from your broker, you also have to deal with transaction fees, which may likely impact your revenue.

Once you make a profit trading cryptocurrencies, you can liquidate your profit as much as you can; you even have the opportunity to withdraw all of your assets.

In cases like cryptocurrencies, you can easily convert your Bitcoin into a stable coin like BUSD and USDT, which can be converted into cash via an exchange. The good news is that you don’t have to pay extra money for transaction fees.

4. Cryptocurrency is open 24 hours and seven days a week.

The Fiat Forex market is restricted to a certain number of days termed “Working days”, unlike this. On the other hand, the cryptocurrency market is usually available to trade 24 hours a day, seven days a week, because there is no centralised market governance.

Cryptocurrency transactions occur directly between individuals on cryptocurrency exchanges worldwide, making it the most decentralised platform globally.

How To Day-Trade Cryptocurrencies and Make Money.

Everyone gets into the cryptocurrency field to make money, but not all end up doing that.

So many people either give up along the way or lose money because they do not understand how to make money with cryptocurrency.

The majority even fall into scams being spread across the entire internet, promising them to double what they invested in.

1. Understand What You are Getting Into.

To be a successful trader, you need to have the proper analytical and technical skills. You also need to analyse market charts on the performance of the listed assets to make correct predictions about price increases and decreases.

The first thing you need to remember is to understand what you are getting into.

Trading cryptocurrency has a lot of risks that need to be borne with all levels; you should understand that going forward, there will be a loss, and there will also be gains.

2. Buy a handful of Cryptocurrencies.

The next step is to get equipped with tons of cryptocurrency assets because that is what will be used in trading.

Just Before You Buy Bitcoin, privacy and security should be considered first.

You should know that anyone who gains the private key to a public address on the Bitcoin blockchain can authorise transactions and access your assets, so you should be security-oriented.

The first step in buying bitcoin consists of choosing a crypto trading service or, better still, holding a wallet like Metamask; you can also make use of a hardware wallet to be on the safe side.

Signing up for a cryptocurrency exchange will enable you to buy, sell, and hold cryptocurrency. However, it is generally best practice to use a business that allows its users to withdraw crypto to their online wallet for safekeeping.

3. Choose a Cryptocurrency exchange platform.

A cryptocurrency exchange is an online platform created for buyers and sellers who trade cryptocurrencies. Most cryptocurrency exchange platforms have in-built day trade options.

The first step a day trader has to take is deciding what platform to use. US-based traders can use only domestically regulated crypto-trading media, which is a significant factor to consider when researching the right platform.

For example, Binance has a different version in the US called Binance US, while the rest of the world can stick to the regular Binance.

Various other crypto exchanges all over the globe facilitate crypto activities. You can check out this comprehensive guide on this blog to help you decide on the best cryptocurrency exchanges to get started with.

There are hundreds of crypto exchanges globally; you should be careful to use them as a newbie.

When figuring out where to conduct crypto trading, the first choice is not always the best; even after picking the first one, you should learn about other cryptocurrency exchange platforms.

Here are the essential things to consider when shopping around for the right trading platform:

1. Years active.

The longer an exchange has been in business can indicate credibility.

2. Supported cryptos.

You should know what cryptocurrencies are available to trade ahead of time. Not all exchanges support various types of coins.

Platforms like Coinbase and Luno support few altcoins, while Binance and FTX support multiple altcoins.

3. Fees.

Transaction fees are what exchanges charge when buyers or sellers execute a trade. For example, all cryptocurrency exchanges charge users a transaction fee to monetise their business.

The transaction fee structure can vary depending on the exchange’s strategy. Therefore, you should do enough research to understand what charges you pay.

4. Deposit methods.

Like Forex brokerage, users need to finance their exchange account with Fiat cash. Many exchanges allow for bank transfers and wires, but fewer qualify for credit card funding, PayPal transfers, and most even allow P2P payments on the platform.

In Nigeria, where crypto has been banned, you can use a P2P platform without having your Nigerian bank account banned.

5. User reviews.

You should do a Google search for reviews about the cryptocurrency exchange you determine to work with.

6. Liquidity.

The liquidity of a cryptocurrency exchange means the speed and the ease of business converting one asset into another without affecting its price.

4. Master Various Trading Strategies.

Successful day traders rely on diverse resources and tools to become successful, such as stock screening or trading simulator software, to e able to predict short-term price movements of crypto assets.

Trying to profit from price differences and movements within a short time window can be a high risk for someone without experience.

No matter the market, a day trader should have a thorough understanding of crypto and trading principles. 

The principle everyone should follow is that you should invest what you are capable of losing and not the other way round. So don’t start too big, so you don’t lose money; as times advances, you can begin expanding your portfolio.

There are many techniques expert day traders use to make gains on short-term fluctuations in the crypto markets, and it’s left for any day trade to learn and understand how it works.

For Newbies traders, certain websites allow users to track and copy the most successful traders on the platform; you should also follow up with crypto trading groups on social media. 

You should follow the link to learn about day crypto trading strategies. Best suited for you.

5. Subscribe to Day Trading Bots.

Crypto trading bots are third-party scripts that allow you to trade ( Buy and Sell) cryptocurrencies at the right time.

Crypto day traders use them to reduce the risk involved in trading. In addition, these applications enable you to manage all crypto exchange accounts in one place.  

These software programmes are designed to interact with bitcoin exchanges to analyse trading data and then use this information to place buy or sell orders on behalf of the user.

Bots may come with trading strategies ready to be installed, but the user can also customise the bot according to their preferences. 

You should know that not all bots are good enough for you. Also, see that it does not guarantee you much profit, you will lose and at the same time win, but damage control is guaranteed.

There are millions of day-trading crypto bots being hosted globally; I will list a few trusted ones.

1. Pionex.

How To Day Trade Cryptocurrency and Make Money

Pionex is a cryptocurrency exchange founded in 2019 focusing on automated trading, with more than 16 free built-in trading bots. 

It is an easy platform for traders that are just getting started with trading bots; the exchange is easy to use, with straightforward tutorials to explain how each bot is designed to work.

Pionex is cheap compared to existing bots which is most welcome to newcomers in day trading.

As a newbie, you don’t want to give out a few hundred dollars only to discover that the bot did not work as expected.

With Pionex, it is free to set up an account and access all 16 of their trading bots. 

Pionex also comes with low trading fees to maximise your profits.

Pionex also comes with detailed tutorials that explain everything you need to know. about the inbuilt bots, they come with 

Pionex allows you to reach the support team through their Live Chat feature whenever you have a complaint.

Pionex offers access to over 120+ different cryptocurrencies, including the most popular ones such as BTC, ETH, LTC, SOL, DOT, TRX, SHIB and DOGE. 

TRY IT NOW – Pionex.com

6. Subscribe to Cryptocurrency information blogs and Youtube channels.

YouTube can help us turn from amateurs to pros in almost anything we desire, from cooking, coding, and adventures and not also restricted to cryptocurrencies.

Youtube has become a go-to place for consuming videos online in our digital world today.

The ability of any random person to post videos online for another education or entertainment has changed our world forever.

Anyone can turn to YouTube and learn almost anything; there are dozens of YouTube channels created to enlighten people on cryptocurrency education that can help anyone a novice master cryptocurrency in just a short period.

7. Learn, Unlearn and Keep Re-learning.

One factor that keeps you flourishing in the world of cryptocurrencies is the level of information you have access to; trust me, you don’t want to bank the little knowledge you know on this volatile and decentralised system.

Learning can take place through formal education or informal training. Formal education involves attending classes and studying books, while informal training occurs when someone teaches us something by example.

You should be able to position yourself to access new information through whatever possible means you have, be it the internet or your social network.

Unlearning means letting go of old habits and ways of thinking. This happens naturally over time as we mature and gain experience.

It would be best to forgo what you already know to learn new things about cryptocurrency.

Ethereum is doing well as of now. However, as many people missed a chance to invest in it, so is another coin that would experience growth just the identical Ethereum grew into what it is today; the difference is information.

And finally, we need to relearn as much as possible because Learning allows us to expand our horizons and think outside the box. By expanding our minds, we open ourselves up to possibilities and opportunities.

While developing skills and abilities that help us achieve success, as long as we keep growing, we will continue to move forward towards achieving our goals.

8. Use Coinmarket Cap.

How To Day Trade Cryptocurrency and Make Money

CoinMarketCap is a comprehensive cryptocurrency information website, accessible on both desktop and mobile, with a wealth of Defi information, valuable tools and free crypto rewards called Diamonds.

Users can track more than 17,000 cryptocurrencies, set up watchlists, track portfolios, etc.

CoinMarketCap is an excellent data source for beginner and experienced crypto traders; even without paying for the premium API service, you can analyse data from more than 17K cryptocurrencies online.

With an outstanding level of customizability, it is easy to see why CoinMarketCap is such a popular site.

You should know that the Coinmarket cap is not a crypto wallet. Instead, it is a platform that allows you to purchase any cryptocurrency; of course, it redirects you to exchanges where you can buy cryptocurrencies.

TRY IT NOW – Coinmarketcap.com

Conclusion.

Cryptocurrency trading has taken the financial world by storm since late 2009. Digital currency is fast gaining popularity in low-income countries like India and Nigeria.

Recently, India was ranked second in terms of global cryptocurrency adoption, according to the 2021 Global Crypto Adoption Index.

While many supporters believe that digital currencies could become part of daily life, the cryptocurrency market is currently dominated by speculative trading.

Though Cryptocurrency sceptics, including Warren Buffett, Bill Gates, and JPMorgan CEO Jamie Dimon, have warned of a potential crypto bubble, it does not happen anytime soon.

I wrote a comprehensive guide on how to get you started with NFTs; click through the link below to get started.

What do you think?

Written by Udemezue John

Udemezue John is a web developer, digital marketing expert, and a Serial Entrepreneur.

He Started his digital marketing career at a Health and Wellness network marketing company where he learnt to create paid Facebook ads and Google ads.

He brings a unique, uncensored approach to his travelling experience and writing.

He is also a seasoned investor, a finance education expert currently exploring the stock market and Cryptocurrencies.

His work is published in major publications on Medium.com, and many others.

Life is to be enjoyed. You can connect with me on twitter Twitter.com/_udemezue

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