What are some legitimate day trading strategies in the cryptocurrency market?

3 answers

• Dec 18, 2021 · 3 years ago
  One legitimate day trading strategy in the cryptocurrency market is called trend following. This strategy involves analyzing the price movements of a particular cryptocurrency over a period of time and identifying the trend. Traders then enter a trade in the direction of the trend, aiming to profit from the continuation of the trend. This strategy can be effective in capturing larger price movements and generating profits. However, it is important to note that trend following requires careful analysis and risk management to avoid false signals and potential losses.
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• Dec 18, 2021 · 3 years ago
  Another legitimate day trading strategy in the cryptocurrency market is called breakout trading. This strategy involves identifying key levels of support and resistance on a cryptocurrency chart. When the price breaks above a resistance level or below a support level, traders enter a trade in the direction of the breakout, expecting the price to continue moving in that direction. Breakout trading can be effective in capturing significant price movements and generating profits. However, it is important to wait for confirmation of the breakout and set appropriate stop-loss levels to manage risk.
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• Dec 18, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recommends using a combination of technical analysis and fundamental analysis for day trading in the cryptocurrency market. Technical analysis involves studying price charts and using indicators to identify patterns and trends. Fundamental analysis involves analyzing the underlying factors that can impact the value of a cryptocurrency, such as news events and market sentiment. By combining these two approaches, traders can make more informed trading decisions and increase their chances of success in the cryptocurrency market.
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