Crypto trading is a way to make a profit speculating on price differences. Digital assets are incredibly volatile; their prices change daily and perform giant leaps in the long term. Such price fluctuations open great earning opportunities and stimulate people to buy cryptocurrency and trade it.
However, it is not that easy to make a profit from trading. It requires deep knowledge of the market processes, assessment of external factors that can impact crypto prices, and carrying out technical analysis. Analyzing crypto charts is an essential part of crypto trading. Charts give a trader comprehensive information on how the asset’s price behaved during different market trends, which helps to find historical patterns that will help predict future price movements.
So the ability to buy and sell cryptocurrency is not what crypto trading is all about. Here are some strategies used by traders:
- Sculping
- Day trading
- Swing
- Buy and hold.
Day trading is the most common, so let’s discuss it.
How do I make Money in Day Trading?
Day trading is the most popular strategy across all crypto exchanges. It implies opening and closing trading positions within one day. During the day, a trader makes a profit from every little market movement, and since crypto prices change many times a day, it comes out to many tiny portions of income in 24 hours. Of course, this strategy requires quick reactions to every little market fluctuation, making this strategy risky. This type of making money on the crypto market is suitable for experienced users only.
Beginner traders can practice different trading strategies using a demo account on the WhiteBIT exchange. Demo trading allows studying how the crypto market works and finding weaknesses and gaps in your knowledge. It will help you gain confidence and handle the platform’s tools quickly for further efficient work with the real market and assets.