Though practically speaking, exchanges may be down periodically for maintenance and system upgrades. Below we will look at the rules for entering a purchase transaction using the cryptocurrency day trading strategy. In layman’s terms, a cryptocurrency exchange is a place where you meet and exchange cryptocurrencies with another person. The exchange platform (i.e. Binance) acts as a middleman – it connects you with that other person . When considering cryptocurrency exchange rankings, though, both of these types of businesses are usually just thrown under the umbrella term – exchange.

trade cryptocurrency and earn at any time of the day or night

I specialize in intraday trading of G20 currencies and to anticipate potential market moves I utilize a fusion of both fundamental and technical analysis. My most current interest lays in cryptocurrencies, especially in Ethereum and in decentralized applications. Volatility here refers to the degree to which the price of an asset will change within the course of the day.

​How To Find The Best Time Of Day To Buy Cryptocurrency?

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This is also applicable to day traders, who can observe coin trends in minute or hour intervals. Many Indian traders, however, have also started experimenting with new cryptocurrencies, including meme coins. "At OKEx, the BTC balance is at an all-time high as of November , second highest against CoinBase Pro," said Lennix Lai, director of financial markets at the cryptocurrency platform.

International Traders

It is the poster child for meme coins – assets that don’t specifically have a use case, but which are still popular nonetheless. Volume is important because trends are usually used as a basis to execute a trade.

  • The high volatility of the market also contributes to the high level of interest coming from seasoned traders and newbies alike.
  • Those looking to execute large buy and sell orders will need to identify times when there’s maximum liquidity and trading volume .
  • The high volatility of bitcoin and other altcoins has made the cryptocurrency market look like a roller coaster.
  • When people talk about trading, they are referring to buying and selling an asset with the aim of making a profit.

Huge trading volume and high volatility are some reasons for its popularity. Because of these reasons, market makers consider it suitable for day trading as well. Day trading is one of the most active trading strategies in the financial markets.

Step # 1: Pick up coins with high volatility and liquidity

But then, unexpectedly the price just keeps going up as the market continues to recognize Bitcoin’s value. By focusing on day trading, you missed out on greater potential profits.

What is Day Trading?

You must take advantage of this price discrepancy to maximize your profits in day trading. The market is extremely fragmented, with dozens of different exchanges. Day-range trading occurs in the spot and derivative markets, against fiat and stablecoins or other cryptocurrencies, and across various legal jurisdictions. dotbig forex Traders with the right tools and understanding can take advantage of this fragmentation and complexity. Regulation plays a key role in the security and safety of cryptocurrency trading. As previously discussed, security is one of the key concerns for traders concerned about their funds’ security.

According to a "realized volatility" chart from Genesis Volatility, there’s less volatility on weekends. Generally, traders seek volatility because it opens up opportunities for lucrative trades. “During the 2017 rally, the sunrise in Japan was a big deal for bitcoin prices,” Mati Greenspan, founder and CEO of investment advisory group Quantum Economics, said. “Now that Wall Street is more intimately involved, a lot of the action has shifted west. For example, someone looking to trade $100 worth of cryptocurrency may end up paying twice that amount in gas fees if he plans to execute the trade at a busy time. Unlike traditional markets, cryptocurrency markets remain open 24/7, even during public holidays. If you’re trading long-term, the time you buy cryptocurrency doesn’t really matter.

Day trading in crypto keeps young Indians busy at night

Conversely, a crypto market taker is looking for liquidity and quick trade execution. While market takers want the best price for a trade, they also place a premium on the immediacy of the trade itself. Other payment methods such as credit cards and PayPal are less common but also accepted at some exchanges. Some alternative funding options can carry high fees, so read the fine print. Of course, the best option for those already in the game is often to fund your account directly from your crypto wallet.

You have to be able to accept losses when they happen, as this is a part of trading. Even the most successful traders in the world make losses, as it is impossible to always make the correct prediction.

Cryptocurrency charts can be read like a day trader with any other asset. The technical analysis considers an asset’s price history and key indicators to predict its future course of prices. Many exchanges have advanced charting tools like trendlines and moving averages which are extremely helpful in conducting technical analysis. Because cryptocurrency is a relatively fragmented and underdeveloped asset class, there remain abundant arbitrage opportunities for crypto day traders to profit from. This specific day trading strategy uses one simple technical indicator, namely the Money Flow Index. We use this indicator to track the activity of the smart money and to gauge when the institutions are buying and selling cryptocurrencies. These 7 best crypto assets to day trade will serve as the base assets for any trader looking to start day trading in the cryptocurrency market.