Get Into Cryptocurrency Trading Today

Would you like to learn how to day trade cryptocurrency and make approximately $500 dollars per day? Often, we hear about how day trading stocks can generate plenty of money, but what about day trading crypto?

Day trading cryptocurrencies is a sure way to earn extra money. By understanding precisely what cryptocurrency is and how you can get started, you can begin trading crypto with 500 dollars. 

At the end of this insightful piece, you will have a deeper understanding of cryptocurrency and how it works. You will also understand some major terms and basic functions as used in the cryptocurrency market. 

Is it possible to day trade crypto with 500 dollars?

Generally, day trading refers to acquiring and trading with various financial instruments, like cryptocurrencies, stocks, or other commodities, within the same trading day. 

With the proper preparation and using the right trading strategies, day trading is quite lucrative, allowing you to make substantial profits.

Cryptocurrencies are virtual currencies, based on blockchain operating systems, which are traded either on social trading platforms or peer-to-peer. Some well-known cryptocurrencies include Bitcoin, Dash, Monero, Enos, and many others. 

Crypto day trading is a highly volatile market, meaning it provides good ups and downs to make a good profit. For instance, you can find a low-priced opportunity, even as low as 500 dollars, to buy in crypto and sell it at a higher price. Initially, this may amount to a small profit, but it will bring a considerable amount of profit to investors after several trades. 

Therefore, day trading is a skill that requires plenty of practice and patience. Beginners should keep in mind that they will not win every time, but the overall goal is to win more. Because of this, most experts recommend beginners start practicing day trading with a demo account to acquire the necessary skills and confidence before proceeding to trade with a real account.

Is day trading cryptocurrencies right for you?

By day trading crypto with 500 dollars, you can quickly turn it into a six-figure retirement plan by getting yourself a slice of the $550+ billion global crypto pie. 

Since day trading involves speculation of the price of currencies and buying and selling them within the course of the same trading day, this is, by far, the fastest means of making profits from cryptocurrencies. As a result, many traders can actively make a profit depending on their consistency, skills, and patience. Without further ado, let us discuss a few steps to day trading cryptocurrency.

1.    Educate yourself about blockchain

To make sensible investments and turn them in your favor, you must learn about blockchain technology as it is responsible for causing the growth of your cryptocurrency investments. Discover what blockchain is and how it works, as this will give you an advantage over most investors in the crypto market. In turn, you will also have the capacity to identify promising investments and profitable trades easily.

2.    Choose the type of currencies to trade

With as many as 1200+coins available on the market, and counting, it can be somewhat confusing as to which coin is best to trade. As a general rule, the safest currencies to trade are the most popular ones, like Ripple, Bitcoin, Bitcoin Cash, or Ethereum, because they are most likely to serve as a long-term store of value and are the least volatile.

However, take your time when picking a quality coin to prevent your funds from going up in smoke. You may opt for smaller altcoins as a legitimate and innovative project for you as they are also impressively profitable. Simultaneously, their associated risk is higher as their values can plummet just as fast as they rose.

3.    Sign up for an exchange

Currently, Ethereum, Bitcoin, and Tether are used for trading against all currencies. Therefore, if you do not own any of these, you must purchase some on an exchange. You can use this list for exchanges to convert US dollars to ETH or BTC.

Given that you will be day trading, you will leave your token on the exchange as storing them in your wallet may lead to missing out on rapid investments. You should also take your time when choosing a trustworthy and reliable exchange as there are millions of investments stolen during hacks. 

4.    Learn the basics of day trading
Cryptocurrencies are a whole new world that few are conversant with. Therefore, before beginning day trading crypto, you should ensure you know the basics. For instance, there are two methods that you can day trade crypto. You may purchase crypto on exchange and wait for its price to go up as the trading day progresses, after which you sell it. You can also speculate on the CFD's (contracts-for-difference) of the crypto of your choice using short and long orders on your FX broker's platform. 

Each means has its set of benefits, shortfalls, and nuances, so you need to take adequate time to account for all these factors.

Another crucial aspect of day trading that you should know is that all cryptocurrencies trade in currency pairs, just like Forex. As a result, when you view a cryptocurrency, you are comparing its value in correlation with another crypto, like BTC or ETH. As their price changes, you can leverage these fluctuations to your advantage, through crafty trading skills, to earn more BTC or ETH.

Investors should learn how to effectively manage day trading risks by using the Limit, Stop, and Order functions. For instance, a market order functions when you immediately buy or sell your coin at market price, and the rate is rapidly increasing or decreasing, and you want out. 

A limit order allows you to set a specific price you want to buy or sell your coin at, given that your sell limit is higher than your market price and your buy limit is lower.

Alternatively, a stop order is most suitable when using smaller altcoins for short-term profits. In this case, if your chosen pair price drops, the stop order ensures that your coin is sold at the lowest loss tolerable, reducing the risk of unnecessary losses while guaranteeing your profit from the successful price movement.

5.    Pay attention to crypto news

When it comes to trading cryptocurrencies, it is crucial to stay up-to-date with the cryptocurrency market. Since it is a very volatile market, price movements are highly influenced by news. Such include newly announced partnership or development, or the sudden emergence of laws, legitimacy, technical issues, or security breaches.

Unlike the FX market that has a specific news calendar, investors have to discover a way to source the latest crypto news. Fortunately, some people have made it their job to source for crypto-market moving events and record them on various social media platforms. However, you also have to be wary of unregulated and speculative crypto news on such platforms to prevent following falsehoods and making crypto trading news based on them.

Conclusion

Now that you have understood and taken into account the basics of day trading crypto, it is time for you to get a piece of the pie. With a wealth of information available from various credible sources and countless day trading strategies, you can easily take your first steps to become a successful cryptocurrency day trader by day trading crypto with 500 dollars. Just remember to do your research and learn all you can about the cryptocurrency market, trade within your means, and always stay updated.

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