Speculating on the short-term fluctuation of cryptocurrencies affords crypto traders the opportunity to generate profits. Consequently, day trading is the most popular method in all financial markets, including forex, stock, commodity, and cryptocurrency markets. However, due to the crypto market’s strong volatility, traders could also incur substantial losses.
Unlike regular financial markets, the cryptocurrency market offers one of the most rewarding venues for day traders, which has attracted considerable attention. The extreme volatility and 24/7 availability of cryptocurrencies have created a strategic opportunity for day trading. In this crypto trading guide, we will discover how to day trade crypto and the best app to trade crypto. Let’s find out then.
What Is Crypto Day Trading?
It is essential to recognize that day trading was appropriated from the traditional financial markets, and it is crucial to notice that the same fundamentals apply to crypto day trading.
Day trading is a method of trading that involves gambling on the price of a cryptocurrency over the course of a single day. When day trading cryptocurrency, the general principle to follow is to open and close all positions inside the same trading day. If not specified otherwise, crypto day traders do not hold onto their positions over the night.
How To Day Trade Crypto?
To be a good crypto day trader, a trader must be well-versed in the crypto market. Typically, the objective is to buy cryptocurrency whose price is anticipated to climb within the following few hours and then sell it for a profit. Although this may appear simple to novices, trading cryptocurrencies is difficult and risky. Successful cryptocurrency day trading requires tremendous self-control, extensive knowledge, and dependable tactics.
To get started, you must open an account with a top crypto exchange that matches your requirements for crypto day trading. Notably, the cryptocurrency market is extremely fragmented, with exchanges operating in multiple jurisdictions throughout the globe. Consequently, you must choose a cryptocurrency trading platform that is supported in your country.
In addition, there are a number of other considerations you must make in order to find the best crypto exchange for day trading. Authenticity and security, supported funding methods, the number of supported cryptocurrencies, fees and commissions, and the user experience are among these considerations. Before picking a crypto exchange, it is essential to weigh all of these factors to ensure a seamless trading experience.
After selecting a trustworthy cryptocurrency exchange or the best app to trade crypto, the following step is to deposit initial investment funds and commence day trading. To be successful in crypto day trading, it would be optimal to have a dependable trading technique.
What Is The Best App To Trade Crypto?
Did you know that it is possible to purchase, sell, and exchange digital currencies while traveling? You only need the best app to trade crypto. In this section, we examine the top cryptocurrency trading apps to consider in 2022, along with detailed reviews.
Coinbase may be one of the best cryptocurrency apps for beginners. As soon as you download the app to your device, you will immediately see how intuitive the interface is. Therefore, if you have never bought or sold cryptocurrency before, the Coinbase app may be for you.
However, the primary concern with this crypto trading app designed for beginners is that you will have to pay significant fees in exchange for ease. For instance, Coinbase’s regular crypto trading charges are 1.49% per trade, excluding the spread. If you buy cryptocurrency via the Coinbase app using a debit or credit card, you’ll pay a hefty 3.99%.
If you are an aggressive crypto trader looking for the best app to trade crypto with a multitude of low-cost marketplaces, you may want to explore Binance. This popular crypto trading app supports a daily volume totaling tens of billions of dollars. There are incredibly tight spreads across hundreds of crypto pairs, and commissions are under 0.10% per trade. Recently Binance has waived the commission fees for trading in some coin pairs including BUSD (Binance stablecoins) and BTC.
Options and fees for funding your account differ based on your country of residence. Debit/credit card deposits for U.S. customers, for example, cost only 0.5%. Users from different regions of the world may pay up to 4% more for the same transaction. The Binance app is available for free download on both iOS and Android smartphones. It is also available for people wishing to buy crypto in the United Kingdom.
Bybit is a trading platform where you can trade cryptocurrencies in Spot and Derivatives. It has recently expanded the service scope to NFT marketplace and earning high yields through crypto staking. Bybit is normally used by advanced traders to trade crypto with leverage or margin. It is not advisable for beginner traders to trade with leverage.
Ultimately, cryptocurrency day trading may be incredibly successful. Day traders use intraday crypto trading tactics to take advantage of the crypto-verse’s luxury and they will probably close their positions before the conclusion of the trading day. However, succeeding requires more than mastering trading discipline and using a dependable crypto day trading plan properly. Given the increasing number of fraudsters and phony platforms in the cryptocurrency industry, selecting the best crypto exchange is of equal importance.