As a Day Trader, Here Are Two Things You Can Do in A Crypto Bull Market to Make Some Money
It looks like the crypto bull market is already here with cryptocurrencies posting their best price runs in one year.
BTC albeit momentarily surged past the $9,000 mark in the last 24 hours of trading. So, beyond the exciting price surge, what can you do to rake in some profits?
1. Trade the Pips
When the market is in a bull run, many traders, investors and ‘tourists’ are active in the market. This means that many people are likely to take positions that they do not have an in-depth understanding to defend.
As this is the case, volatility will be measured within a certain wavelength, and in this case, you can expect wild swings. As a trader, what you can do is to use your stop-limit to its full potential.
Take positions several times a day to reap some gains. For example, trading for BTC might begin at $7,900, you need o set your stop-limit and experiment with $7,980.
Wait till this position clears and enter the market again. Set a new limit at $8,250 and watch it clear.
Do this repeatedly during trading cycles and you can handsomely add some gains to your crypto balancers.
For clarity, my preferred trading pair is TC/USDT or BTC/USDC. Either way, when your position clears, your day’s balance will be insulated by the stablecoins buffer.
2. Work the Altcoins
This is perhaps more technical to explore than the first. You cannot just take a market position here for the fun of it.
You need to be sure which altcoin is rising during your day trade. You can see this on the gainers list in your exchange’s trading board.
The rule is not to assume that any token or coin gaining right now will continue to do for so long. It is safer to make entry and take a position within the first few hours or half a day.
Since crypto can be extremely volatile, it is better to use a cautious approach.
Set out by using your stop-limit to set 20 to 30 percent gains. Most altcoins that rouse the charts put in an average of 30 percent within 24 hours or less.
So, if you paired for example, XRP/BTC, just target a 20 percent surge and set your stop-limit at that level. Once it clears, your balances will revert back to BTC.
For safety reasons, I always advise my protégé and clients to always clear their positions into stablecoins at the end of the day. While you sleep, a lot can happen that might be unpleasant.
Remember that crypto trading is volatile and past performance is not a guarantee of future returns.