Your Guide to Intraday Trading Bitcoin and Other Cryptocurrencie
This article aims to help day traders navigate the cryptocurrency market in a controlled and confident way.We will study a series of fundamental, technical and psychological trading skills, which will help you master short-term trading skills in one of the most watched and unstable markets.
Before we start our trading journey, it is important to understand the intraday trading of cryptocurrencies, whether it is Bitcoin, Ethereum, Litecoin, Ripple or any other liquid digital currency, it is not suitable for everyone.However, the technology and experience in this guide can be used in other asset classes, whether it is currency pairs, commodities or indices.
Why do I want to do day trading of Bitcoin and other cryptocurrencies-what is my driving force?
This is a simple question, but any day trader should take some time to answer this question honestly.The cryptocurrency market is still in its early stages, but in the past few years, it has gathered more columns and news reports than any other asset class.These reports range from “doom and gloom“ and “predictions of bubble bursting“ to ”instant millionaires“, ”jet lifestyle“ and ”colorful Lamborghinis."Please ignore these reports.
When traders enter this turbulent market, they must know their main goals, whether it is short-term trading, long-term investment, part-time traders, full-time traders, or traders who just want to use cryptocurrencies to adapt to volatility before turning to other asset classes.
In order to adapt to the market and maintain confidence, you need to learn and practice, and stick to it.As Gary Player, one of the greatest golfers in the world, once said, “The harder I practice, the luckier I am.“This is an indisputable fact, because practice breeds confidence, not only to show you that you are doing the right thing, but also to help you consolidate your trading level in your daily trading activities. It is also important that practice also shows you what you did wrong. What you did wrong.
New traders should open a demo account before investing any funds in the market, and apply different technical trading skills while strictly analyzing the fundamental market and executing transactions.
When learning to trade, remember how you achieved your trading goals, record successful and failed transactions, why you want to enter the transaction, why you want to set specific goals and stop losses, why you want to risk a certain amount of funds, and how you feel after the transaction is over.Similarly, be honest, because these experiences will help you in the future, explaining how and why transactions go wrong.Do not take shortcuts in your transaction analysis.
When you prepare to enter the market, you must have a good, positive mood and welcome future challenges.If you are tired, in a bad mood, in a hurry or feeling uncomfortable, don't trade, turn off the computer, and find your place again.The cryptocurrency market is a dream market for day traders, and there is enough volatility every day for you to follow your dreams.Don't force yourself to trade. If you are sick, tired, or angry, don't trade. If your self-discipline falters, you may encounter failure.
The cryptocurrency market is very unstable, which may be an advantage
One of the main attractions of intraday trading Bitcoin (BTC), Ethereum (ETH), Ripple (XRP) or any other liquid currency is volatility-rapid price fluctuations and large-scale fluctuations are called “high volatility.“This volatility is one of the main reasons to attract short-term/day traders, because it gives them the opportunity to quickly enter and exit the market and earn income.
We mentioned liquidity before, which is a must for day trading and has a significant impact not only on the cryptocurrency you trade, but also on your trading platform.The market capitalization of the four largest cryptocurrencies-Bitcoin, Ethereum, Ripple and Bitcoin Cash-all exceed US220 billion, which provides sufficient liquidity.Pay close attention to the cryptocurrency and trading platform of your choice to ensure sufficient liquidity.
You also need to check the total number of specific cryptocurrencies in circulation, and whether more of these cryptocurrencies can be mined, or whether the original partner/owner of that particular cryptocurrency has a large amount of holdings.
Self-discipline is the key to successful trading
As we mentioned earlier, it is extremely important to know why you want to trade cryptocurrencies and what you want to get from them.Stick to your goals and don't be forced to trade under the influence of the market.
When entering a trade, determine your entry price, your stop loss level and your target price.Do not enter the transaction without a stop loss.It's even better if your supplier can provide you with a guaranteed stop loss-usually only a small amount of insurance is paid, and you should consider this carefully.Market fluctuations will force the price to pass directly through the stop loss position-slippage, which may make you subject to your trading platform when you finally close the position.
If your trading platform provides margin trading, it will increase volatility. Unless you are absolutely sure that you can use it correctly, don't use it.Traders should also evaluate their risks very carefully before using contracts for difference (CFD).A market with sufficient volatility will continue to provide you with opportunities for profit.
One of the main reasons why traders lose money is to lose discipline, continue trading that has already lost money, or “double” their bets on positions that are unfavorable to them.
In view of this, please be sure to maintain self-discipline.
Enjoy the trading journey of your choice
In all walks of life, it is essential to enjoy the profession of your choice, and day trading or any other market is no exception.A full-time day trader will need to spend several hours a day studying the market, reviewing past transactions, observing potential new trading settings, and constantly researching and updating a wide range of fundamental and technical trading skills.This job should be treated wholeheartedly and with respect like other occupations.
Learning is really important. Pay attention to me and give you more learning opportunities and suggestions for the products you trade.
Before we start our trading journey, it is important to understand the intraday trading of cryptocurrencies, whether it is Bitcoin, Ethereum, Litecoin, Ripple or any other liquid digital currency, it is not suitable for everyone.However, the technology and experience in this guide can be used in other asset classes, whether it is currency pairs, commodities or indices.
Why do I want to do day trading of Bitcoin and other cryptocurrencies-what is my driving force?
This is a simple question, but any day trader should take some time to answer this question honestly.The cryptocurrency market is still in its early stages, but in the past few years, it has gathered more columns and news reports than any other asset class.These reports range from “doom and gloom“ and “predictions of bubble bursting“ to ”instant millionaires“, ”jet lifestyle“ and ”colorful Lamborghinis."Please ignore these reports.
When traders enter this turbulent market, they must know their main goals, whether it is short-term trading, long-term investment, part-time traders, full-time traders, or traders who just want to use cryptocurrencies to adapt to volatility before turning to other asset classes.
In order to adapt to the market and maintain confidence, you need to learn and practice, and stick to it.As Gary Player, one of the greatest golfers in the world, once said, “The harder I practice, the luckier I am.“This is an indisputable fact, because practice breeds confidence, not only to show you that you are doing the right thing, but also to help you consolidate your trading level in your daily trading activities. It is also important that practice also shows you what you did wrong. What you did wrong.
New traders should open a demo account before investing any funds in the market, and apply different technical trading skills while strictly analyzing the fundamental market and executing transactions.
When learning to trade, remember how you achieved your trading goals, record successful and failed transactions, why you want to enter the transaction, why you want to set specific goals and stop losses, why you want to risk a certain amount of funds, and how you feel after the transaction is over.Similarly, be honest, because these experiences will help you in the future, explaining how and why transactions go wrong.Do not take shortcuts in your transaction analysis.
When you prepare to enter the market, you must have a good, positive mood and welcome future challenges.If you are tired, in a bad mood, in a hurry or feeling uncomfortable, don't trade, turn off the computer, and find your place again.The cryptocurrency market is a dream market for day traders, and there is enough volatility every day for you to follow your dreams.Don't force yourself to trade. If you are sick, tired, or angry, don't trade. If your self-discipline falters, you may encounter failure.
The cryptocurrency market is very unstable, which may be an advantage
One of the main attractions of intraday trading Bitcoin (BTC), Ethereum (ETH), Ripple (XRP) or any other liquid currency is volatility-rapid price fluctuations and large-scale fluctuations are called “high volatility.“This volatility is one of the main reasons to attract short-term/day traders, because it gives them the opportunity to quickly enter and exit the market and earn income.
We mentioned liquidity before, which is a must for day trading and has a significant impact not only on the cryptocurrency you trade, but also on your trading platform.The market capitalization of the four largest cryptocurrencies-Bitcoin, Ethereum, Ripple and Bitcoin Cash-all exceed US220 billion, which provides sufficient liquidity.Pay close attention to the cryptocurrency and trading platform of your choice to ensure sufficient liquidity.
You also need to check the total number of specific cryptocurrencies in circulation, and whether more of these cryptocurrencies can be mined, or whether the original partner/owner of that particular cryptocurrency has a large amount of holdings.
Self-discipline is the key to successful trading
As we mentioned earlier, it is extremely important to know why you want to trade cryptocurrencies and what you want to get from them.Stick to your goals and don't be forced to trade under the influence of the market.
When entering a trade, determine your entry price, your stop loss level and your target price.Do not enter the transaction without a stop loss.It's even better if your supplier can provide you with a guaranteed stop loss-usually only a small amount of insurance is paid, and you should consider this carefully.Market fluctuations will force the price to pass directly through the stop loss position-slippage, which may make you subject to your trading platform when you finally close the position.
If your trading platform provides margin trading, it will increase volatility. Unless you are absolutely sure that you can use it correctly, don't use it.Traders should also evaluate their risks very carefully before using contracts for difference (CFD).A market with sufficient volatility will continue to provide you with opportunities for profit.
One of the main reasons why traders lose money is to lose discipline, continue trading that has already lost money, or “double” their bets on positions that are unfavorable to them.
In view of this, please be sure to maintain self-discipline.
Enjoy the trading journey of your choice
In all walks of life, it is essential to enjoy the profession of your choice, and day trading or any other market is no exception.A full-time day trader will need to spend several hours a day studying the market, reviewing past transactions, observing potential new trading settings, and constantly researching and updating a wide range of fundamental and technical trading skills.This job should be treated wholeheartedly and with respect like other occupations.
Learning is really important. Pay attention to me and give you more learning opportunities and suggestions for the products you trade.
