Cryptocurrency Day Trading Strategy

Cryptocurrency day trading is a profitable practice, but it requires strategy and discipline. For beginners, a basic plan can help you navigate market volatility.

1. Planning

• Choose liquid and volatile assets, such as BTC or ETH.

• Use moderate leverage (max. 3x-5x).

• Risk a maximum of 1-2% of your total capital per trade.

2. Technical Analysis

• Support and Resistance: Identify areas where the price tends to reverse.

• Technical Indicators:

• EMA: Use 9- and 21-period averages to identify trends.

• RSI: Check for overbought/oversold (>70 or <span Volume: High volume movements are more reliable.

3. Execution and Management

• Long (Buy): Enter near support with reversal signals.

• Short (Sell): Enter near resistance with rejection signals. • Set Stop-Loss (max risk 1-2%) and Take-Profit (risk-reward ratio of 1:2 or more).

• Adjust stop to break-even when profitable.

4. Example

ETH/USDT pair:

• Entry (long): $1,490 | Stop-Loss: $1,475 | Take-Profit: $1,520.

• Risk-reward ratio of 1:2.

Following a structured plan and reviewing your results is essential to evolve and avoid common mistakes.