The market is moving.
You hear success stories left and right from friends.
People start calling themselves experts and swears by their day trading cryptocurrency strategies.
That was the atmosphere during the 2017 cryptocurrency bull market.
At this moment of writing, cryptocurrency is in a bear market and its all doom and gloom.
The opportunities for daytrading cryptocurrencyare bountiful.
Can you image buying bitcoin at $3000 and selling it near $15,000?
Orshorting bitcoin from ,000 to ,000?
Easier said than done but the possibility is real.
What Is Day Trading Cryptocurrency All About?
Trading cryptocurrency opens a whole new avenue to the enterprising individual trading cryptocurrency.
Cryptocurrency markets are volatile, and this is both a boon and a bane.
The same forces driving prices up rapidly can just as easily push it down.
However, with skill and tactic, a person might be able to daytrade cryptocurrencysuccessfully.
In thisday tradingcryptocurrency ultimate guide, we will dive into the different aspects of cryptocurrency trading.
The information covered here is for discussion purposes.
With that out of the way, lets get started!
Exchange Setup
Without and exchange to trade on, it would be impossible to day trade cryptocurrency.
So, lets not go into the realm of day trading cryptocurrency strategies, profit and losses just yet.
The first exchange a day trading cryptocurrency enthusiast might encounter is likely to be a fiat to cryptocurrency exchange.
Now you might ask why the hassle.
Fiat To Crypto Process
Once a fiat to cryptocurrency exchange is set up.
Therefore, to expedite the process for getting started on cryptocurrency trading, double-check that identification documents are nearby.
This is to enhance the cybersecurity of the cryptocurrency trading account from malicious fraudsters and hackers.
Common ways people lose funds from their cryptocurrency trading accounts besides trading losses are theft through cybercriminals.
Phishing, keylogging and outright scams are the methodology of these malicious individuals.
Apart from the obvious reason of financial regulation.
This is by no means an exhaustive list.
When touching on the subject of security, cryptocurrency wallets are naturally brought up and for good reasons.
The next segment in this day trading cryptocurrency article will explore this subject deeper.
Cryptocurrency Wallets
In 2014 Mt.
Now in 2019, Bithumb got hit.
It seems that no cryptocurrency exchanges are safe from hackers.
Time and time again, these incidents have proved that exchanges are not a safe way to store cryptocurrencies.
While day trading cryptocurrency might involve opening and closing trades in a short time frame.
The funds might be placed on the exchange for opening orders for the next trades.
So, where do we draw the line between the convenience of storing on the exchange and security?
This is a tricky question as what is a large sum, might differ from person to person.
Types Of Wallets
Cryptocurrency walletscome in various forms.
First off there are hot and cold wallets.
Hot wallets are online, and hackers might be able to hack it with various tools and methods.
Cold wallets, on the other hand, are offline.
This means that the private keys required to access cryptocurrency tokens never leave the unit.
As such, cold wallets such as hardware wallets are considered the safer option.
Examples of hardware wallets are the ledger and Trezor.
Second, there are alternatives to store cryptocurrencies when day trading cryptocurrency.
These can come in the form of paper wallets, mobile wallets etc.
It is prudent that the individual day trading cryptocurrency is aware that there ARE pros and cons to each.
For example, paper wallets are offline, but you will be in trouble if you lose the paper.
In short, it is important to safeguard the funds for day trading cryptocurrency.
Charting Tools
This is probably the exciting part of this article!
The actual tools that people day trading cryptocurrency use.
What is the best cryptocurrency to buy, when do I buy and when do I sell.
These are recurring questions more predictable than clockwork.
We will first discuss the technical tool before going through fundamental analysis for cryptocurrency projects.
Analysing Trends
Successfully trading cryptocurrency involves being on the right side of the market.
The most common and widely used are the moving averages.
Moving averages are based on past prices and are considered trend following.
It is for this reason that it is lagging, as it is based on past data.
This tool is highly complex, and a variety of strategies can be formed around it.
Oscillators
Oscillators are common tools that people day trading cryptocurrency use to aid in trading cryptocurrency.
The common oscillators used are RSI, MACD and stochastic.
The field of oscillators is vast and complex.
Thus, it can be seen as a more advanced tool.
It would be devasting to the portfolio indeed.
If a token being considered for day trading has news about fraud, delisting, scandals etc.
then it is best to avoid them.
Secondly, look at the social media and the whitepaper of the token being considered for day trading cryptocurrency.
Without account management, day trading cryptocurrency can become messy and confusing.
With that, we conclude the day trading cryptocurrency ultimate guide for 2022.
This subject is very broad and branches into many topics.
If you would like to know more, explore robots.net for all the relevant information.
