Day trading is a way of speculating with a simple principle: the day trader opens and closes his positions on the same day. The day trader then opens several positions to guarantee profits throughout his day.
Day Trading or “intraday” trading is growing in popularity because it offers significant advantages. This is primarily a method for those who wish to gain quick profits without having to hold the asset for longer periods of time. Longer periods may include several weeks to years in the end.
This is a prevalent practice in the crypto markets. This is a quick-in, quick-out method used to make money. Many people take it up as a profession, and many take it up as a side hobby.
Day trading in crypto markets is significantly different compared to other markets such as stocks, for the simple reason that crypto markets are open for trading for 24 hours for all days of the year. Honestly, this market never sleeps!
So day trading is much faster in crypto markets and even requires a few different strategies compared to regular markets. In fact, sometimes crypto traders don’t even spend the whole day to achieve their target profits. The market is so fast and lucrative that sometimes it offers profits in under an hour.
However, you need to maintain the required diligence to enter the markets. Such fast trading opportunities come with a risk. You must understand that before making any financial decisions. With that said, let’s move further and explore what day trading is.
Here’s everything to know about day trading:
How to start
The primary requirement to become a day trader in the crypto market is to have Tether (USDTs). You need to convert fiat to crypto before it can be used. For those who don’t know, Tether is a stable coin that’s equivalent to fiat in the crypto world.
USDT is the common currency at most exchanges. Acquiring USDTs can be a bit of a hassle sometimes because not many banks offer this service to their clients. However, services like Coinsfera make it easy to acquire USDTs. All you need to do is submit cash and get your USDTs to begin trading.
There are other stable coins as well, like USDC, or BUSD (Native dollar coin on Binance), but USDT is the most prevalent and widely used. Once you acquire USDTs, you’re good to trade.
Learn and Research
Day trading offers lucrative opportunities to the ones who know what to do. It is important to use the right indicators to understand the market dynamics. Once you have substantial knowledge of Technical Analysis and Fundamental Analysis, you can be almost sure where the market will move.
In crypto markets, BTC in Dubai dominates the place significantly. So even if you wish to invest in altcoins, you should be mindful of BTC’s movement. Other than that, a deeper look at the indicators will leave you profitable.
Other than the indicators, crypto projects go up when the milestones are achieved. To follow your favorite projects, you need to keep an eye on their development. A good resource is coinmarketcal.com, where you can check out upcoming events for the majority of altcoins.
Based on a strong TA and FA you should make up your strategy to ensure you make profitable trades.
Markets will not always behave according to expectations. There will be times when TAs and Fas will indicate one thing, but the market will go in the other direction. This can go both ways. Either you’ll get unexpected profits, or your asset may lose value for the time, and you may see losses.
To ensure that you take safe trades, it is advised to never go all-in on a single trade. You should always diversify your trades. This will give you the opportunity to recover any losses you incur. Crypto markets move significantly fast, so losses are usually easy to recover.
Also, day traders often keep a significant portfolio in USDTs so they may DCA any bad trades to cover up for the losses.
All in all, it is wise to take risks, but day traders should always diversify to avoid any upset.
Observe Discipline and Have a Strategy
Day traders have to be patient. They can’t get excited about every red or green candle shown on the charts. They must be patient to wait for the right time to invest.
FOMO is one thing that harms many day traders. It is important to be disciplined and wait for the right time to take entry.
With the right discipline day, traders can easily achieve their profit targets and even make more if they know their stuff. Also, it is wise to take profits as day traders. Markets are volatile and unrealized profits can go down the drain.
Also Checkout: 6 Must Skills and Characteristics a Trader Needs to Learn
There are several strong projects in the crypto markets that offer profits via day trading. If you wish to purchase USDT in Dubai, then feel free to visit Coinsfera.
We offer the sale and purchase of cryptocurrencies in cash. If you traded XRP in Dubai, and wish to sell XRP against cash, then feel free to consult us. We are always available to help you with the sale and purchase of XRP, BTC, Cardano, and other strong crypto projects!