Simple Cryptocurrency Day Trading Strategy – Crypto Tutorial

Cryptocurrency day trading can be intimidating for many beginners. However, with the right strategy, it can be an effective way to make profitable trades. In this tutorial, we’ll walk through an easy cryptocurrency day trading strategy that anyone can follow, regardless of their experience level. Whether you’re looking to make a quick profit or want to supplement your income, this strategy can help you achieve your financial goals.

– Simple steps to increase your chances of success in day trading
– How to identify profitable cryptocurrency trading opportunities
– Tips for managing risk and maximizing profits while day trading

I’ve had a lot of requests to make a video going over a simple day trading strategy for cryptocurrency so here it is actually trading cryptocurrency is just like trading anything else there are a few basics that you need to know and some simple strategies that you can follow to give yourself the

Best chance of success hey guys james here and in this video i’m going to show you a simple technique and strategy that you can use when trading cryptocurrency i traded on the london stock exchange for five years i was a fully qualified trader and investment advisor

That time has been and gone though and i’m not your financial advisor so please take this educational content for what it is which is not financial advice in this video i’ll show you what cryptocurrency exchange to use what you need to know before trading how to time and

Enter a trade and how to set up your trade to limit downside and also take profit levels the timestamps for this video are listed in the description box for you alongside some other helpful videos and resources so be sure to use those if you need them first thing we need to

Do is choose an exchange to go ahead and trade our cryptocurrency now if you’re day trading you want an exchange with the absolute lowest fees possible and there’s really only one winner here now kraken is a really good exchange and it has really great professional trading software and charting the other

Options we have are coinbase pro this isn’t going to work for us the charting tools aren’t good enough and also it charges you a half a percent fee so we can rule out coinbase so really for me it’s an option between kraken and binance my choice personally is binance because

Of the very low trading fees and the good charting software as well and it is the number one cryptocurrency trading exchange so i’m going to go and use binance if you don’t have an account with binance yet i’ll put the link in the description box below

You can click on that to go through to this page and sign up for an account next up we have to choose a currency pair that we’re going to trade and you really don’t need to trade many currency pairs if you’re day trading what is the best to trade for a

Day trading strategy is it bitcoin is it ethereum dogecoin polka dot well really when you’re day trading and trading like this it’s an absolute must that you find a very liquid and high value trading pair if you choose a low cap coin like dogecoin or in a liquid currency pair it can be

Swung by a single trade maybe someone wants to buy some or sell out of a losing position that one trade can influence the price beyond what is normally expected a great example of this is dogecoin with elon musk sending out one tweet and the price of the cryptocurrency can double in value

That is something that you cannot predict and certainly technical analysis will never ever predict but i’m going to choose bitcoin against us dollar tether i’m actually going to come into the professional trading suite right here click on advanced and i’m going to choose bitcoin against usdt

Usdt is a stable coin meaning that it’s a cryptocurrency that actually derives its value from a fiat currency in this case the us dollar let’s come to identifying the trend though and first we need to identify the overall trend of the market so far in this cryptocurrency we can go to the one

Week chart right here and well yeah it’s pretty obvious what the trend is for bitcoin not just over the last month or so but you can come to a website like coingecko and actually see the trend overall so we can come down and see over the last

Seven days it’s in an uptrend look at the other cryptocurrencies they’re all in green so there is an uptrend happening in cryptocurrency right now then we can come down just to a longer time frame so we can see 24 hours it’s up and it’s green all the way here this

Is clearly an uptrend overall you can even see a 30-day chart and see this is clearly in an uptrend so we will not be selling this cryptocurrency or trying to sell this is obviously an uptrend so that is what we’re going to do we’re going to try and buy

On periods of weakness or when sellers come in in order to get some slightly cheaper cryptocurrency and benefit from the larger uptrend now that we’ve identified the trend we are going to trade the 15-minute chart and you can see that right here so i’m going to click on this now

Now this is the 15-minute chart each candlestick represents 15 minutes in time so during this 15 minutes the price opened here and at the end of the 15 minutes this was the closing price because this was an upward move the candlestick is colored in bold in green these are

Obviously down moves you can see the opening price here and then a down move that’s the closing price because it was a down move during that 15 minutes it’s in red now i’m going to move on to the timing of the trade and this is just very general from my years

Trading in the industry you know i never really like to trade at the start or the end of the day it’s a little bit different in the stock market versus cryptocurrencies because cryptos don’t really have an official open and close but certainly during times of low trading volume

That is when prices can move more unexpectedly when there’s low volume also prices can almost stagnate and that isn’t good either because again they won’t be moving in a way that we try and predict with technical analysis you can actually see volume in the chart down here

And it is also a really big thing that professional traders use way more than amateurs they look at trading volumes it’s super important trading volume gives you a confirmation of the move you can see this move right here in green it’s a really good move but it’s also backed by

Incredible volume and that means there are many many buyers coming in and pushing this price up and you can actually see these down moves here they come on low trading volume the up move here is on slightly higher trading volume than this telling me that the ball run is

Still intact so that’s just some general overviews of timing and volumes that you may want to use now what i’m going to do is actually use some different technical analysis on the chart firstly i’m going to get rid of this 10 day moving average i don’t need this

So we can come and just click x on there now we have two moving averages here we have a 25 and a 90 day moving average i’m just going to change these around a little bit so i’m going to click on format right here and i’m going to change

Uh the inputs i don’t want a 25 day i want a 50 day moving average and then the style i’m just going to make this line a little bit thicker so that we can actually see it that’s good for me i’m going to press ok that’s the 50 day moving average then

The 99 day i’m actually good with 99 day as well and just for the start we’re going to make that bigger as well so that we can actually see it now we can see the 50 in the 99 day moving averages again this confirms that the price of

Bitcoin is in a very very bullish move they’ve crossed through both of these levels and you can see it’s really just charting all new territory right here and this can sometimes be actually quite difficult when things break out or move in a very volatile way

It can be a lot harder to use technical analysis because it really is discovering new territory into the chart next up though i want to use bollinger bands so i come up to this technical indicator here and i’m going to search for bollinger bands i’m going to put these on

I’m going to change the way that the bollinger bands look so i’m going to make the upper probably in a green color as well if we can do that click on that and that makes more sense so bollinger bands essentially can give a trader a very quick

Overview of a trend in terms of support and resistance in the chart now you take the simple moving average in the middle which is this red line right here it’s the 20 day moving average you can see that we also have the 50 and 99 day here as another reference to trade against

Bollinger bands though try to give a signal of overboard or oversold charts so if you have a chart and it’s heading towards the lower or upper bands you might find support or resistance there and it might bounce off those levels use bollinger to set up an entry level for

This trade we already know that the price of bitcoin is in an uptrend so what we’ll have to wait and do is wait for a small sell-off traders are obviously buying into bitcoin you can see that the volume is here the price movement is up we’ll therefore

Wait till the price as it’s doing now comes off towards either the 20-day moving average or if it’s in a little downtrend we can wait till it comes towards the bottom bollinger band and then we would expect that because of the uptrend it may bounce off those levels and give us

A lower entry price and then we can put our exit price in somewhere near the top band next we need to look for an actual entry signal and we can look at what’s happened in the chart before to kind of teach you how to do this so

We can see that the price is coming down here in a small sell-off and it’s coming towards this bottom bollinger band this would be an entry signal right here this is called an engulfing chart pattern you can see a small sell-off and then what’s happened here is that

The price during this 15-minute period has come all the way down to here but it met with buyers and it met with buying pressure and the price came all the way back up and was forced all the way up and engulfed this downtrend it actually finished up

For this period that’s a bullish sign and that could be an entry point if you were to enter at this level the price would have come up to this middle bollinger band and if you really do want to trade quickly you might sell at this price and you actually would have made

This move other traders though will wait for the price to actually move up more cross the 20-day moving average or even go up and touch the upper bollinger bands so they could have looked at the chart previously and said this was a level to get out at and

What you would have done is entered the trade here waited here it wouldn’t have hit any stop losses that you would have had and it would have moved up here and you would probably have traded out somewhere along here during this move that would have been a profitable trade but entry signals are

Notoriously tough and definitely something that doesn’t just happen every single time well which is why we use a stop loss to mitigate any potential losses with the chart breaking down hopefully that does explain to you some entry points though and of course we can’t trade in real

Time because we are going to have to wait a certain amount of time for the trade to actually work out so i did do this exact same strategy yesterday and we can see how it played out you can see that the market is the same we’ve got bitcoin us dollar here and i’m

Looking at the 15 minute price chart i’m also looking for entry levels i’m using the bollinger bands and the 50 and 99 day moving averages this part of the chart for me is a bullish signal right here it’s not incredibly good but because the price reversal was so

Strong this is why i chose it you could see a small sell-off here we actually had a small sell-off into here and then a big price move to the upside we had these sell-offs which really didn’t actually catch any steam and then we had some sideways trading here

There was a small sell-off here but we had a big reversal you can see the price during the 15 minutes went right down here and then it moved up strongly and i took this as an entry level price so what happened next is you can see some trade levels right here

This is the entry price i put a very tight stop loss on here because there were a couple of sell-offs and so that may have happened again so i just put a tight stop loss on the trade here and then my take profit this can be

Really anything you want but i just took some other highs for the trading period so you can see there’s a couple of resistant points around this chart so i put the take profit here as the price moves on you can see what happens again the price starts moving sideways there was some

Sideways trade during this 15 minutes period so i wasn’t quite sure if this one was going to work but you can see there are more buyers coming in pushing the price up and it keeps continuing on that upward move my take profit price is 52 109 so we’re

Actually quite near it right now but you can see it’s not quite there and as time goes on we’re a few dollars away from that take profit and then eventually it does actually go through and during the second period you can see it just trades above the actual take profit price

52 117 is the trading price my take profit was 52 109. you can see it does move and it really does trade around there quite a lot so even if you were trading a fair amount of volume you would have got that trade done so just to recap how to actually go and

Enter into these trades when you want to do it yourself the first thing you have to do is choose a liquid trading pair so bitcoin us dollar is the one that i went for the second is to identify the wider market trend overall is it an uptrend or a downtrend then

When you go into your trading strategy use the 15 minute chart anything under that i believe is just too narrow and it’s going to be moving around too much i like to use the 50 and 99 day moving averages as a reference point and then put bollinger bands over the

Top of the chart and use that to trade then number five you need to wait for an entry signal which can be many different things there are many different entry signals that people like to use so choose the one that you feel comfortable with i personally like to see reversals so it’s

Candlestick reversals so if there is a sell-off like this and the price actually moves down but then moves back up in the same period and finishes higher than it started i like that signal that is a reversal signal and i like that something that other people use is an

Engulfing pattern which this one almost was so that means there’s a sell-off and then in the next time period there’s a large move up to the upside that engulfs the previous down move and actually that happened over these two so this is a very bullish signal as well and that’s what happened

The entry level is also up to you but you can choose either when the price falls to this lower bollinger band if it’s in an uptrend of course or if it’s in a really big breakout you can actually find the middle 20-day moving average see if it comes and finds a little level

Of support here plus with the other indicators for the candlesticks and if they both match up then you might want to enter at that level too and i just want to talk about the pitfalls of day trading and some of the risks that you’re going to go through

If you actually want to go ahead and day trade day trading really is about mitigating losses more than trying to make money it is all about managing risk which is why you have to put stop losses on your trades and if you don’t know what stop-losses are and you want a more step-by-step

Tutorial check out the binary tutorial that i’ve linked in the description other pitfalls though of day trading are trading fees and you’re gonna have to pay those that’s why i choose binance because they have amongst the lowest that is going to eat into any potential profits profits also are very small when you’re

Trading like this you might be making half a percent or one percent at a time which in the big scheme of things you’re gonna have to make that a lot of times for it to work also absolutely no one can predict the future and technical analysis has its downsides

And i want to reiterate that i’m not your financial advisor and this is not financial advice in any way but just for educational purposes hopefully it can give you an idea of what some people may use when they are day trading make sure to check out the links to binance if you

Want a trading account and to the other helpful videos make sure to give this video a thumbs up if you found any value in it at all subscribe for way more helpful cryptocurrency content and i’ll see in the next one

This article provides a step-by-step guide to a cryptocurrency day trading strategy that can be easily followed by anyone. Firstly, it involves identifying the best potential trading pairs through market analysis. Secondly, traders should set their entry and exit points and manage their risk through stop-loss orders. Thirdly, they should be aware of the market’s volatility and adjust their strategy accordingly. Overall, this strategy can help minimize losses and maximize profits for cryptocurrency traders of all skill levels.

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