Normal rules don't apply in the world of cryptocurrencies. In the stock market, traders make predictions by looking at “fundamentals”, the reality behind a company's valuation. You can watch the news, call the CEO, sleep with the intern. You can't do that with bitcoin, or the shamefully deregulated “altcoin markets”, where useless captures of money with names like “morguecoin” are minted to infinity.
The controversial belief among many traders is that price movements in these markets rarely conceal a deeper reality, only revealing the frenetic movements of the traders themselves. There are many techniques that day traders use to make a profit on short-term fluctuations in the cryptocurrency markets. An intraday crypto trader must devise a winning strategy backed by research, with well-established plans for when to enter and exit their positions. Tally Greenberg, director of business development at Allnodes, believes that success as an intraday cryptocurrency trader requires more than reading the charts.
To give you a better idea of your possibilities as a professional day trader, consider that the North American Association of Securities Administrators lists trading seminars (the online trading universities that offer you to teach you how to succeed as a day trader) as one of the top 10 threats to investors, along with Ponzi Schemes and esoteric trading algorithms based on Fibonacci numbers. Lack of liquidity can be disastrous for the entire cryptocurrency market, causing a slippage and increasing the risk of a sudden drop. Even worse, through the same trading process, cryptocurrency traders often end up disrupting the same systems they are trying to observe. As with much of the cryptocurrency world, the elements of cryptocurrency trading that make it so attractive to speculators (wild volatility, theoretically unsound underlying principles) also make it attractive to the ethically challenged.
Exchange liquidity, asset liquidity and commissions are at the top of the list of traders when it comes to choosing the right platform for them to buy and sell cryptocurrencies. Each cryptocurrency puts a unique spin on decentralized finance and has its own mission or problem to solve. Many of the cryptocurrencies and cryptocurrency exchanges are very illiquid and do not have the liquidity to offer instant execution that you may encounter when trading Forex currencies. Intraday cryptocurrency trading can be a great way to grow your cryptocurrency portfolio and is a very lucrative alternative to the tenure mentality that is crippling the cryptocurrency community.
Traders talk particularly fondly about what they call “native cryptocurrency opportunities”, operations that would be impossible in major financial markets. On Reddit there are several cryptocurrency communities discussing Altcoin, ICO and blockchain projects. And if you're looking for more crypto-related investment opportunities, check out these top 5 new cryptocurrencies. Successful day traders rely on a number of resources and tools to succeed, such as stock selection or trading simulator software to capitalize on short-term price movements of stocks, bonds and other commodities and currencies.
The free Good Crypto app provides all the tools needed to analyze any cryptocurrency price chart and trade it. Brian belongs to a clandestine, largely anonymous collective of high-octane crypto traders seeking their fortune in underregulated and heavily manipulated crypto markets. The decision to participate should not be based solely on these two conditions, but on other factors specific to the cryptocurrency in question. .