Day traders invest anywhere from minutes to hours based on complex strategies, but at the end of their day they are out of the market and foregoing potential gains to avoid losses.
At first glance, day trading is pretty simple: you buy and sell cryptocurrencies many times over the course of a day, trying to make a profit with the (usually) small price fluctuations from minute to minute and hour to hour. It’s essentially the opposite of Hodling.
The reality is that day trading is very complex because so many things affect price & mdash; too many to include them all. So you need strategies that rely on specific indicators, technical analysis, research sources, risk management strategies, and profit and loss tolerance. Hence, having access to good information and speed is critical. You also need to consider fees when making a high volume of trading.
Day trading is stressful, but also associated with a cut-off. Day traders generally place a defined & ldquo; Day & rdquo; on the 24-hour crypto market and close their positions by that time. Although it comes with high risks, wild night swings are not one of them. While that means missing out on big wins, it also means avoiding big losses.