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Day Trading cryptocurrency

Day Trading is nothing more than the process of buying or selling an asset — be it a security, stock, precious metal, or cryptocurrency. The entire name of the game can be summed up as buy low, sell high. The “day” aspect of day trading is its short-term nature. This is in direct contrast to the popular HODL meme, or “hold on for dear life,” in which you decide to buy a given cryptocurrency and then keep it safe for potential long-term, long-range, and long-odds growth.

The object of day trading is to get into the market, take a position, keep a close eye on that position, and then exit at a profit. We’re talking time spans here as short as a few minutes, in the arbitrage arena, up to the day’s trading close. Automated trading, which we’ll touch on later, can have an ever faster turnover. Some bots, or automated computer programs that do your trading for you, can produce a flurry of trades in just a few seconds.

It should also be noted that some so-called day traders maintain some positions for weeks or even months, depending on certain security goals. For our purposes, this is still “day” trading.

That sounds simple enough. After all, isn’t it the goal of almost every kind of financial activity to turn a profit?

Is Day Trading for You?

Despite the meteoric rise of some cryptocurrencies and the relative ease of the day trading process, day trading is not a get-rich-quick scheme. In fact, it’s very likely that you’ll lose money for quite some time until you get the hang of it.

Even the best day traders rely on making small amounts of money over a relatively large number of trades. In many ways, day trading resembles gambling, albeit with slightly better odds.

Given all that, the first thing you should do id to decide that whether day trading is right a right strategy for you. Are you financially able to absorb some of the risks, should a portion of your trades go sour or the market changes in an unexpected way? Are you disciplined enough to cut your losses and get out of a bad position, rather than fall prey to the sunk-cost fallacy? Are you willing to really look at the facts and pass on a supposed opportunity, even if your internal bias is telling you to go all-in?

Advantages of day trading

Placing trade after trade throughout the day, actively monitoring each market movement and earning fast money are interesting aspects of Day trade. You can enter and exit an operation in a matter of 5 to 15 minutes. When successful, seeing that you earned hundreds of dollars in minutes can provide an adrenaline rush like no other.

Day trading can also provide you with better leverage than holding overnight positions. At the time of writing this article, Day trading actions can provide you with a leverage of 4: 1 as long as it meets certain criteria.

Day trade also gives you another type of leverage, which is because you are trading so often, you can use the same capital in your account to make many exchanges in a short period of time.

Smart Crypto Bot

Smart Crypto Bot software is compatible with several trading platforms to be able to exchange anywhere at the best possible time. We offer four different deals at smart crypto bot shop including 7 days free trial. Subscribe to our Bronze, Silver or Gold starter packages where you can trade up to your desired number of coins as low as €24.00 per month.

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