Pros and Cons of Day trading Cryptocurrency

By | November 27, 2021

Online trading is great way for serious investors to make money, but inexperienced traders often wind up with big losses. A good set of instructions can minimize the risks and save years of expensive trial and error learning.

Is Day Trading Profitable?

Day trading had its heyday during the bull markets. All the amateurs have since dropped out, but day trading is still being practiced by professionals. There are always opportunities in the current market, but skilled investors can still find them if they know what to look for.

Trading Cryptocurrency

Crypto is one of the the world’s largest financial exchange market. It has a daily turnover of currency of billions of dollars.

Unlike many other securities, cryptocurrency does not trade like stocks or Forex, crypto is traded 24/7 all over the world, prices fluctuate based on supply and demand.

What’s the blockchain? (Blockchain wars)

As a matter of fact, it’s advisable to take cryptocurrency training even before opening a trading account.

It is vital to know the market mechanics, leveraging, rollovers and the analysis of the market. Due to this fact, potential traders would do well to either enroll in a training courses or even purchase some books regarding cryptocurrency trading.

There are pros and cons to enrolling into a course. For beginners a course is a rapid method of learning the basics of trading. Not much time is spent on history of the market or arcane economic theories. Often, online or phone support from a skilled trader is available to answer any questions. Also, the information is condensed and practical, often with graphs and charts.

The disadvantage is the price, as courses are more expensive than a paperback from the bookstore.

The point is, if you are serious about trading Bitcoin, Ethereum and other altcoins you need to spend time in your education before spending your money and losing it on a bad trade, if at the moment you cannot afford a day trading course, Youtube can be a great friend, there are dozens of channels that will help you learn.

Advantages of day trading Cryptocurrencies 

The pros of trading Bitcoin is the speed on which your money compounds, however if you enter a losing trade you can lose money real fast.

The other strategy is to buy and hold, if you do not want to spend hours reading charts and doing technical analysis then holding your Bitcoin or Dogecoin in the long term might be a good strategy.

Just like anything, you have to learn, spend time in your education and practice, cryptocurrencies  are not a scam and there is a lot of money to be made, you just need to practice and invest your time and money learning it.

Day Trading Brokers

How do you get started? Well if you spend the time learning and you believe it is time for you to invest or day trade then Coinbase, Robinhood or Webull will be your 3 best options, there are others out there however I have personally used these 3 with great success.