Flurl

  • Home
  • About
  • Traveling
  • Lifestyle
  • Technology
  • Successful
  • Spots
  • Healthy
  • Decor
  • Blog
  • Business
  • Contact Me

4 Costly Mistakes When Day Trading Cryptocurrency

Business

15 Oct

Moving from day trading stocks and securities to cryptocurrencies can be tempting for several reasons. Namely, the market is open 24/7, so you can make trades at any time in the day. While this flexibility can be a boon to day traders, it can also be their downfall. If you’re considering day trading cryptocurrency, be sure to watch out for these common pitfalls.

Don’t Let Your Emotions Win When Trading

Traders have two acronyms to explain emotional trading. Those acronyms are FOMO and FUD. FOMO means ‘fear of missing out,’ and it is often when traders can make the costliest mistakes, especially in cryptocurrency. FUD stands for ‘fear, uncertainty, and doubt’ which often drives traders to sell when the markets look bad. Since the world of cryptocurrency never shuts off, there is always news coming in that can affect the price one way or the other. Following forums and the news cycle without a proper trading strategy will invariably lead to you day trading with your emotions as the primary driver. You should be careful to have a rigid plan with indicators that you stick to with a solid exit plan to avoid emotional trading as much as possible.

Wallets are Not Optimized for Trading

There are numerous precautions you should take to keep your digital assets safe, such as storing them in an offline wallet. However, this is not conducive to the speed at which day trading occurs. You should keep your reserve cryptocurrency in cold storage (offline) wallet, but any currency that you plan on day trading should be kept on your preferred exchange. You should make sure you trust this exchange for your day-to-day trading activity. Right now, two of the most popular exchanges in the United States are Kraken and Coinbase.

Don’t Enter a Position You Can’t Exit Quickly

Because the price of cryptocurrency can vary in a wide margin, it’s important not to enter at a position you won’t be able to exit quickly. There are a few rules of thumb to follow for this one. Namely, you should avoid trading cryptocurrency when there is less liquidity on your exchange. Nights, weekends, and holidays are all days in which less trading will occur, so try to avoid entering positions during this time.

Understand How to Use an Order Book When Trading

Watching a line graph and buying the dips might work for day trading stocks and securities, but that’s a sure-fire way to lose money in the cryptocurrency world. People list fractions of cryptocurrency at the top and bottom of the books, so placing a large order might see it get filled at a drastically different price. Break your order down into smaller pieces to get the best price when buying and selling. You might even consider using a trading algorithm and bot that can help you place small fractional orders at the top of the book for your chosen price, so you get the price you want to be executed over hundreds of trades as the price fluctuates up and down.

Tweet
Pin
Share
0 Shares

Leave a Comment

« Tips To Buy A Perfect Ring For Her
Adorable Flower Girl Dresses and Accessories for Autumn and Winter Weddings »

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

About US

Hey I’m Samantha, but everyone calls me Sam. I have a love for loud, heavy music and writing. I am one of those responsible bad asses that everyone thinks is scary, but when you get to know me you realize I’m super nice! Read More…

View My Blog Posts

Archives

  • January 2021 (11)
  • December 2020 (11)
  • November 2020 (7)
  • October 2020 (10)
  • September 2020 (14)
  • August 2020 (30)
  • July 2020 (15)
  • June 2020 (24)
  • May 2020 (15)
  • April 2020 (24)
  • March 2020 (30)
  • February 2020 (35)
  • January 2020 (20)
  • December 2019 (31)
  • November 2019 (21)
  • October 2019 (22)
  • September 2019 (23)
  • August 2019 (33)
  • July 2019 (57)
  • June 2019 (31)
  • May 2019 (33)
  • April 2019 (23)
  • March 2019 (26)
  • February 2019 (25)
  • January 2019 (25)
  • December 2018 (18)
  • November 2018 (20)
  • October 2018 (26)
  • September 2018 (21)
  • August 2018 (13)
  • July 2018 (27)
  • June 2018 (29)
  • May 2018 (25)
  • April 2018 (38)
  • March 2018 (59)
  • February 2018 (59)
  • January 2018 (45)
  • December 2017 (10)
  • November 2017 (18)

Popular Posts

NEWSLETTER

Recent Posts

  • Why Use An E Cigarette Over a Traditional Tobacco Cigarette?
  • Content Marketing or PPC: Which Is Best for Your Brand?
  • 3 Tips For Decorating A Home For Someone With Mobility Issues
  • How to Select the Right Fintech Provider for Opting a Personal Loan?
  • 3 of the Most Beautiful Places to Cycle in Quebec
Flurl

About US

Hey I’m Samantha, but everyone calls me Sam. I have a love for loud, heavy music and writing. I am one of those responsible bad asses that everyone thinks is scary, but when you get to know me you realize I’m super nice! Read More…

View My Blog Posts

Recent Posts

  • Why Use An E Cigarette Over a Traditional Tobacco Cigarette?
  • Content Marketing or PPC: Which Is Best for Your Brand?
  • 3 Tips For Decorating A Home For Someone With Mobility Issues
  • How to Select the Right Fintech Provider for Opting a Personal Loan?

Let’s Connect

  • Email
  • Facebook
  • Google+
  • Instagram

Copyright © 2021 · Refined theme by Restored 316