O crescimento do investimento em criptomoedas é muito rápido, e é inegável que ainda há muitos investidores em criptomoedas que não entendem realmente o que é negociação ou investimento em criptomoedas em si. Não é incomum que os traders sintam medo de ficar de fora, ou seja, sigam a multidão, o que acaba em perdas.

There are many things we can do when entering the crypto world, not limited to investment, we can do scalping, swing trading, staking, daily trading, and much more.

In this article, we will focus on discussing what daily trading is, which is one of the things we can do in the crypto world to gain profits every day. Not just about luck, daily trading has strategies and several things that we need to pay attention to.

What is Day Trading?

Day trading is the activity of buying and selling crypto assets that is done on the same day repeatedly with the aim of profiting from the fluctuations in crypto prices every day.

Because it is not uncommon for the price of a crypto asset to rise or fall significantly in one day. And this momentum is what a crypto trader takes advantage of to do daily trading.

This daily trading activity is quite popular among crypto traders for several related reasons, such as:

  • Potential Profits That Are Tempting

    In a day you can earn a lot of profits if you are smart enough to read market movements, because you can buy and sell repeatedly which means you also earn repeatedly.

  • Flexible

    You can do this trading activity anytime, without being bound by time rules like working hours.

  • Adrenaline Rush

    This trading activity is often considered to provide an adrenaline rush due to the thrill felt when entering the market, making trading exciting.

Things to Consider Before Starting Day Trading

  • Choose the Trading Style That is Most Comfortable: Are you more comfortable trading on a crypto exchange or CFD? If you choose a crypto exchange, it means you need to have a crypto wallet to store the assets you own, with the risk of losing the crypto wallet if you are careless. However, if you choose CFD, you only need to speculate on prices without owning the traded crypto assets.

  • Risk Management: The price of crypto assets can rise and fall significantly, you must be good at risk management to avoid losses, such as utilizing stop loss and take profit features.

Day Trading Strategy

There are many trading strategies that you can use for your crypto day trading. Here are some strategies and guidelines that you can learn and then use in your daily trading activities.

  • Scalping

    #scalping is the most basic strategy for day trading which takes advantage of asset price movements in minutes or even seconds.

  • Range Trading

    This strategy is carried out by identifying the support area (lowest price) and resistance area (highest price) of a crypto asset.


How to Determine Support and Resistance Areas

Some ways to determine the area #supportandresistance are as follows:

  1. Observe Price Charts

    Find the points where the price often 'bounces' or 'hits'. Because these points can become support and resistance points.

  2. Trend Line

    Observe the price chart and draw a straight line at the highest points to find resistance, and a line at the lowest points to find support.

  3. Technical Indicators

    Utilize indicators such as moving averages or Fibonacci retracement to help find support and resistance areas.


Trading Strategy Using Support and Resistance Points

  1. Buy at Support Sell at Resistance, the most basic strategy for trading. Buy crypto assets in support areas and sell them in resistance areas.

  2. Breakout and Breakdown, if the market price successfully breaks through the resistance area meaning it continues to rise, it is called a breakout. And usually the price will continue to soar. Here you can take the opportunity to buy. Conversely, if the market price continues to fall below support, it is called a breakdown, usually the price will plunge and you can take this moment to sell immediately.


Risk Management for Trading Using Support and Resistance

To avoid large losses, always utilize stop loss. Place stop loss below support and above resistance. This serves as an 'emergency brake' when asset prices do not match predictions.

Fundamental Analysis

Monitor news and market sentiment towards cryptocurrencies or anything that can affect cryptocurrency prices. Such as news of wars, future projects, and so on.

Arbitrage

#Arbitrage is Buying crypto on one exchange at a low price and then selling it on another exchange at a high price. The price difference will then become your profit. For example, the price #BNB or $SOL on exchange A is $50, and on Binance it is $55. So we can buy that coin on exchange A and send it to Binance and sell it, then we can get a profit of $5 per coin (minus gas fee).

Crypto Day Trading Tips

Do not do day trading based on intuition or mood. It is better to pay attention to the following day trading tips:

  1. Choose Crypto with High Volatility: Look for crypto whose prices often experience fluctuations such as Bitcoin, Ethereum, or De-Fi tokens that are currently hyped.

  2. Utilize Technical Analysis: Learn how to read crypto price movement charts. You can also take advantage of indicators that can help you predict crypto prices more easily. To learn this, you can use online tutorials or even attend classes from professional traders.

  3. Use Proven Strategies: There are many crypto trading strategies, you can choose one that you think is most suitable and fits your trading style.

  4. Manage Capital Wisely: Never use money that you are not prepared to risk for trading. Only use cold money, and it is advisable not to go all in so that you can remain calm and trade more comfortably.

  5. Set Stop Loss: Always use stop loss when trading to avoid large losses. This is also very important to maintain trading psychology.

  6. Discipline: Create a trading plan and don’t be greedy. Take profits moderately and do it consistently.

  7. Patience: Never assume that crypto will make you rich quickly. Everything still requires a process and consistency.

Important to Note

There are several important things that you must pay attention to when deciding to dive into the world of crypto trading.

  1. Don't rush or FOMO: Keep learning the basics of trading, don't just FOMO or follow the crowd.

  2. Use Small Capital: It is advisable to use capital according to your financial ability. Don't let trading make you rich quickly but instead cause you to fall into poverty due to chaotic capital management.

  3. Don't Be Easily Deceived: In the trading world, including crypto, there are many scammers and hoax news circulating. It is better to remain cautious and vigilant and not be easily tempted by alluring offers of large profits.

In essence, Day Trading Crypto can indeed provide multiplied profits for its traders. However, it must still be done carefully and with full preparation and strategy. So how, are you interested in starting your day trading?

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