Trading in cryptocurrency is not everyone’s cup of tea. You must have a good strategy to understand how to start trading.
What is intraday trading?
Intraday is another word for “within a day”. Intraday trading is a term in the trading world which means buying and selling cryptocurrencies in a day. People also call it day trading as all the orders are completed within a day. This kind of trading gives a decent benefit and even if you are at loss it’s in the limit.
Cryptocurrencies have sometimes high fluctuations within hours and are a prominent factor in various altcoins. This market is young and intraday trading is an experiment.
Factors you should keep in mind before Intraday trading.
Basically, blockchain is the foundation of all cryptocurrencies including altcoins. A dive in the technology and how it works gives a wide picture of its growth.
2. Learn the trend of currency you want to trade.
There are like 100 of cryptocurrencies like bitcoin, Ethereum, ripple, Litecoin, etc. Select your coin and do a detailed analysis. Learn the fluctuation and chart to have a clear picture of near future though no prediction could be right, however, a rough image is helpful.
Buy the coin in dips and keep the history of coin in your mind. Timely check the averages and trends of the coin on weekly and monthly charts to know if the coin is overvalued or not.
3. Risk factor
Cryptocurrency is a volatile market and the price is dependent on various factors predictions and speculations. The more this market is set for growth the more there is a risk. When you invest in the crypto market you put your money on risk. Learning risk factors of the coin you want to invest in could really help in avoiding risk on your investment.
4. Extent of loss you can afford.
Profit and loss go parallel in the crypto market. You cannot make a profit without loss in your hand. Always set a mark of your loss and sell your coin before going down. Add this security level to your coin by adding a limit to your loss and I would say profit too as coin reaches a level for few seconds at times.
You always must be active and keep monitoring the market before you trade. And as they say, “invest the amount you can afford to lose” is a key to a good investment. Investing 1/3rd of your savings could help you stand still in the storm as well. Cheers!!