Digital asset markets are relatively new so they tend to experience a lot of price volatility as the industry solidifies. But the volatility in assets like Bitcoin, Ethereum, and hundreds of other altcoins provides a dynamic environment for the day trader.
Day trading is a type of speculation that involves buying and selling stocks or digital assets within one-day timeframes. The goal of day trading is to earn tiny profits on each trade during the short term and hopefully the gains will compound over the long term.
Over time, day traders have developed many strategies to make their day trades more effective and profitable. Let’s cover some of the most popular strategies.
Scalping is when traders make small but frequent trades that last from only seconds to minutes. With repetitive short term trades, day traders may benefit from small price movements in the markets while leveraging both the top and bottom markets. With scalping, time is of the essence, meaning you must be able to react quickly and use a low latency platform with minimal transmission delays.
High-Frequency Trading allows day traders to use algorithms and trading bots to execute frequent short-term trades. It’s like scalping, but infused with automations that make it possible to execute trades at higher speeds. High Frequency Trading allows traders to potentially capitalize on minute price movements as well as price differences between exchanges.
Discover Quadency’s Trading Bots for all your Day Trading Needs
Range trading involves setting up a range between an asset’s Support and Resistance levels. Traders use this strategy to mitigate their downside during sideways moving markets. The main point of the range strategy is to buy once the asset price reaches the support level, and sell when the price hits the resistance line.
Traders can easily set up a range trading strategy with Quadency’s Grid Trader, which enables you to place multiple buy and sell limit orders on grid lines positioned around the asset’s current price.
Technical Analysis is a system of using indicators and chart patterns to try and predict the future price movement of an asset. TA ranges from computerized momentum-tracking programs like Relative Strength Index (RSI), to manually reading charts to find patterns such as head and shoulders. Either way, day traders use TA to look for indicators that help them predict the market’s future behavior.
Before you begin with daytrading, be sure to utilize an all-in-one platform like Quadency that provides high speed trading capabilities across multiple exchanges. That way, you’ll enjoy the most competitive trading fees and access to a rich well of digital assets. Once you have a trading terminal account, move to the next steps:
Day trading is a type of speculation that involves buying and selling stocks or digital assets within one-day timeframes. The goal of day trading is to earn tiny profits on each trade during the short term and hopefully the gains will compound over the long term.
Over time, day traders have developed many strategies to make their day trades more effective and profitable. Let’s cover some of the most popular strategies.
Scalping is when traders make small but frequent trades that last from only seconds to minutes. With repetitive short term trades, day traders may benefit from small price movements in the markets while leveraging both the top and bottom markets. With scalping, time is of the essence, meaning you must be able to react quickly and use a low latency platform with minimal transmission delays.
High-Frequency Trading allows day traders to use algorithms and trading bots to execute frequent short-term trades. It’s like scalping, but infused with automations that make it possible to execute trades at higher speeds. High Frequency Trading allows traders to potentially capitalize on minute price movements as well as price differences between exchanges.
Discover Quadency’s Trading Bots for all your Day Trading Needs
Range trading involves setting up a range between an asset’s Support and Resistance levels. Traders use this strategy to mitigate their downside during sideways moving markets. The main point of the range strategy is to buy once the asset price reaches the support level, and sell when the price hits the resistance line.
Traders can easily set up a range trading strategy with Quadency’s Grid Trader, which enables you to place multiple buy and sell limit orders on grid lines positioned around the asset’s current price.
Technical Analysis is a system of using indicators and chart patterns to try and predict the future price movement of an asset. TA ranges from computerized momentum-tracking programs like Relative Strength Index (RSI), to manually reading charts to find patterns such as head and shoulders. Either way, day traders use TA to look for indicators that help them predict the market’s future behavior.
Before you begin with daytrading, be sure to utilize an all-in-one platform like Quadency that provides high speed trading capabilities across multiple exchanges. That way, you’ll enjoy the most competitive trading fees and access to a rich well of digital assets. Once you have a trading terminal account, move to the next steps:
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Quadency is a cryptocurrency portfolio management platform that aggregates digital asset exchanges into one easy-to-use interface for traders and investors of all skill levels. Users access simplified automated bot strategies and a 360 portfolio view with a free account.
Disclaimer: The content of this article is for general market education and commentary and is not intended to serve as financial, investment, or any other type of advice.
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