The booming cryptocurrency market has attracted many investors, from the most to the least experienced. A simple and effective strategy to capture market sentiment in the short term is called day trading.
Over the past few years, online activities have become an integral part of our everyday lives. Just think of the world of entertainment, with various platforms, such as those dedicated to online betting, which has grown incredibly thanks to technological developments.
Another trend to keep an eye on is certainly that of digital currencies, which are increasingly the focus of attention. Many people have approached this particular field over the last few years, undoubtedly fascinated by the potential gains that can be achieved.
However, all of this is only possible if you have the right amount of expertise and you don’t forget that cryptocurrency trading is a real business that you need to dedicate time and energy to, otherwise it will never be profitable.
Let’s take a look at the most popular strategies in the world of digital currency trading.
The simplest strategy, day trading
How to be profitable on the crypto market with the day trading strategy
As all fans of digital currencies know, digital currencies have a peculiarity: their high volatility. This undoubtedly brings in price volatility that is much greater than that of many other assets on the market.
From the strategic point of view, this is an aspect that cannot be underestimated. In fact, it is useful to put in place the best possible risk management. Furthermore, keeping open positions, especially during the night, can be the winning move but at the same time entails many risks to one’s investments.
Day trading, therefore, is a strategy of investing in the volatility of cryptocurrencies in a very short and limited period of time, ranging from a few hours to a maximum of 24 hours.
This means that day traders simply identify the most important market trends and then trade according to the sentiment of the moment until they hit a resistance level or a certain price level that has been previously established.
From the point of view of the engagement in terms of time, day trading is indeed a very expensive strategy, partly due to the fact that it is necessary to put oneself into play with the maximum flexibility, having the right concentration in order to be able to always react in real time to the movements of the market, adjusting the “shot” in the shortest possible time.
One of the aspects that make the most difference in day trading is undoubtedly the use of smart risk management tools, such as guaranteed stop losses.
Why drawing tools are useful
Having to do with an asset that is characterized by a high level of volatility in the market even during the day, it is clear that it is necessary to have effective and specific tools to be able to keep under control the main tendencies. In this way, it is possible to anticipate market movements and to achieve good gains.
Thus, a suitable trading platform should be chosen that provides users with a wide range of indicators and design tools. These are used to make accurate and correct analyses of the movements that occur in the digital currency market.
You will be able to quickly identify the main trends, as well as get a clear idea of potential changes in sentiment at a moment’s notice. Indicators, such as RSI, MACD and Bollinger Bands, are used to keep you focused on the most important events in the crypto market every day.
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