Bitcoin is the number 1 crypto and is the most liquid of all cryptos, with high volatility. So it fits the profile of a cryptocurrency asset that can be day traded comfortably. On the 1-hour chart below, we see that prices have trended downwards for the day, dropping nearly $200.

  • This article will dive deep into crypto trading, when it happens, and how to get in on it.
  • He explained that there’s a high volume of activity by algorithmic trading bots and market makers during weekends.
  • Cardano is a blockchain project that was started by Charles Hoskinson in 2015.
  • The crypto markets are likewise much looser with trading hours, in that the crypto markets never actually close.
  • And therefore, you can see Bitcoin’s trading history going back years and years.

You can easilybuy LBLOCK from a centralized crypto exchange like LBANK. However, we recommend you buy the digital asset on the DEX platform, PancakeSwap. Technical indicators are not always correct, so we have added a few more conditions to fine-tune our cryptocurrency day trading strategy.,9.1751658,17z/data=!3m1!4b1!4m5!3m4!1s0x4799db9accab4263:0xb70bef4a7ffc4502!8m2!3d48.7801721!4d9.1751658 Namely, during the current day, we need to skip the first two values of the 100 MFI indicator and study the reaction of the price to the cryptocurrency. For instance, during times when fewer traders are on the market, it can affect crypto exchange liquidity, and make values more volatile .

Day Trading Cryptocurrency: How to Get Started

We take our time to identify, research and create educative content that is useful to our readers. To maintain this standard and to continue creating awesome content, our partners might reward us with a commission for placements in our articles. However, these commissions don’t affect our processes for creating unbiased, honest and helpful content. It’s worth noting that this strategy can induce significant risks. Successful scalpers will need to apply proper risk management and position sizing rules to stay safe while they work towards maximizing their profits.

There are times and days that are generally more favorable to crypto traders to execute trades. The best times and days to trade crypto is generally “whenever works for you” but research shows that professional traders tend to be more active during weekdays. An MFI reading of 100 shows the presence of the big sharks stepping into,9.1751658,17z/data=!3m1!4b1!4m5!3m4!1s0x4799db9accab4263:0xb70bef4a7ffc4502!8m2!3d48.7801721!4d9.1751658 the markets. They inevitably leave tracks of their activity in the market and we can read that activity through the MFI indicator. Day trading the cryptocurrency market can be a very lucrative business because of the high volatility. Since the crypto market is a relatively new asset class, it has led to significant price swings.

Price movements for BTC and BCH are therefore highly correlated. The second reason has to do with the impending hard fork which is being supported by Binance exchange.

What time of day is crypto most traded?

As we were saying before, if you’re a buyer of cryptocurrency then you want the lowest price. Typically, after 12pm, cryptocurrency prices are significantly lower. So we need to identify the hour where the price of cryptocurrency is consistently low. If you know prices are typically 20% higher at 12AM, you also know that’s a great time to sell. If you know when you can expect prices are expected to rise and fall, you’ll maximise your profits. If you want an easy way to buy cryptocurrency without worrying about confusing charts, Coinbase is the place to be.

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

Volatility is an indicator that shows the dispersion of cryptocurrency values. The asset is volatile if its price changes strongly up and down during the day. For instance, gold and bonds are stable because their values don’t change very often, while cryptocurrency is the most volatile asset in the world. The aim is to sell an asset for a higher value than it was purchased for. The obvious place to hide your protective stop loss is below the low of the day. A break below it will signal a shift in the market sentiment, and it’s best to get out of the trade. Day trading smaller cryptocurrencies can also be a very lucrative business, but there are higher risks.

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The combination of experience, skill, and temperament required to be one of the few successful day traders is hard to acquire. Those that do end up as successful day traders often have years of failure and financial losses before they are skilled enough to make a consistent profit. While higher fees are the downside to day-trading crypto, the advantage is that cryptocurrencies have much more volatility. Instead of having to use leverage to multiply a 2 percent price increase into a 10 percent or 20 percent gain, cryptocurrencies naturally have these types of price swings every day.

How to trade cryptocurrency and make a profit every day?

We provide content for over 100,000+ active followers and over 2,500+ members. Our mission is to address the lack of good information for market traders and to simplify trading education Dotbig Bewertungen by giving readers a detailed plan with step-by-step rules to follow. Before day trading Bitcoin or any other altcoins, it’s prudent to wait until we have a high reading of volatility.

Some day traders are news-based and try to make a profit from the heightened volatility from a news announcement. Others are scalpers—traders who try to make small profits Dotbig Bewertungen from small price movements. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

A day trader could infer that XRP’s price would stumble following the suit’s announcement, leading them to short the asset immediately. Traders will need to be alert to notice open positions while being careful with their speculations. A trader also needs to know when to exit a market – not so easy, especially when the asset’s price could be rising.