How To Participate In Day Trading With Cryptocurrencies For Beginners As a trader, you can choose from several different ways to trade. Some are good for making money quickly, while others are better for long-term investments. But if you want to make small investments and see results quickly, you should try day trading. Day trading is not a new idea in and of itself. It has been around for a long time in the financial markets. More importantly, day trading lets you deal with a wide range of assets, such as stocks, forex, and cryptocurrencies, but not just those. But crypto day trading is not as easy as it seems. Before you start trading cryptocurrency as a hobby or a job, you should consider a few things. Here, Liquid provides a simple guide to day trading for crypto enthusiasts. A brief look at day trading Day trading is not hard to understand. There is no need to explain the name. It's a type of trading that takes place only during the day. That is, you'd have to buy the assets and sell them (for a profit) on the same day. Day trading is also called intraday trading because it is done during the same day. Day trading differs from long-term trading in that the trader needs to pay attention to small changes in value. You can't keep the asset overnight, and I hope it will be worth more in the morning. In the same way, day trading will only be possible on business days. On the other hand, intraday trading needs the same market knowledge as other types of trading. With practice, you can improve at it. Considerations traders make during day trading. Day traders think about many different things, depending on the market and the asset they are trading. Liquid funds An asset's liquidity is its ability to be sold or turned into cash. Day trading means how easy it is to sell the stock and make money from it. The stock is very liquid if it's easy to sell. If it isn't, that means the stock isn't very liquid. Volatility An asset's volatility is defined as the frequency and magnitude of price changes. When the value of an asset changes a lot, it is said to be very volatile. On the other hand, it won't be considered volatile if it keeps its value for a long time. Aside from these two things, different traders use different strategies. For example, some traders might use Fundamental Analysis to get a full picture of the asset they're dealing with. But some traders stick to Technical Analysis, which involves looking at past data and patterns to predict how an asset will do in the future. Common day trading techniques Scalping This way of trading will pay attention to small changes in the price of an asset on the market. So, the trader must sell the stocks to the scalp as soon as possible. You can't use the scalping trading strategy if you don't know how to get live market information. Scalping depends greatly on the total volume, so traders may need to trade on margin to make more money. Range Trading For this active investment, the trader must set a price range in the market structure. The trade will only happen within this range, and the trader must keep going until the asset is no longer in this range. To get the most out-of-range trading, the trader needs to know how to read candlestick charts and momentum indicators. Heavy Trading High-frequency trading, or HFT, is a trading strategy that uses computer programs called "algorithms." HFT traders will make algorithms and trading bots to watch the market and buy/sell assets. Since the transactions happen in milliseconds, HFT gives you a better chance of making money. Still, making trading bots and algorithms requires knowledge of coding and the market. Why and how do people trade cryptocurrencies every day? We said that liquidity and volatility are the most important things about intraday trading. From the beginning, these things have been defining features of cryptocurrencies. There are so many changes in the value of cryptocurrencies that the value of a crypto token can change a lot, even in just 24 hours. Even though these trends aren't as easy to predict as traditional trading trends, a smart intraday trader can make a lot of money by paying attention to how the price changes. Regarding liquidity, there are many ways to turn cryptocurrency assets into cash. Now, if you want to know how to trade cryptocurrencies daily, you can do a few simple things. The easiest way is to choose a trustworthy crypto trading platform that lets you buy different crypto assets and sell them for cash when it's most convenient. The other good thing about this is that you can pay for these tasks differently. Some trading platforms also let you trade on margin, which means you can buy crypto assets by taking out a loan to increase your profits. Can I live by trading cryptocurrency every day? Anyone can make a living by trading cryptocurrencies every day. But because crypto assets are more volatile than other assets, you must spend more time watching the market. In contrast to traditional stocks, the price of a crypto asset can change in minutes or even seconds. For example, if a country bans using Bitcoin (BTC), its value could drop quickly. In the same way, small changes in the market can have big effects on the value of your assets. You can do cryptocurrency day trading as a full-time job if you are ready to deal with its volatility and instability. Check it out