Welp MagazineIf you’re looking to make a few hundred or even a few thousand dollars on crypto quickly, you might be thinking about starting day trading. Most new traders make a mistake in this area, and that mistake is selecting too small of a number. Find out the average amount of trade capital you should start out with from some of the best experts on this topic. Day trading is like any other business in which you invest your money. You need to set up a capital with which to trade, and that sum of money will vary depending on either how much you want to trade or how much capital you are willing to risk.
The amount of money you should have to start out with is simply the cost of capital. That is, how much money you will have to accumulate before your first trade is executed. This spread between the amount of money that you will have to put in and the amount of money you will be able to get out after that trade execution tells us how much we need to start with. The world of cryptocurrency is booming, and if you want to get in on the action but don’t know where or how to start then bit-profit.io might just have what it takes!
Limit orders
You will want to check out the crypto exchange that you will be using, and they all have a limit order feature. Limit orders let you set a price at which you are willing to trade and get filled when the market reaches that price. This is usually a better deal than market order execution because it allows you to lock in your gains, as well as minimize your risk. You do not have to wait for your order to be executed, as it will be filled at the best available price when it is.
Market orders
Market order execution takes your sell order and sends it to the market as soon as it is available. This is a lot like waiting in line at the post office counter, which is why most experienced crypto traders try to avoid this type of execution. However, there are some instances in which market order executions work very effectively. An example would be when you are buying low or selling high, and there is minimal liquidity in those areas. If you are just getting started, you shouldn’t worry too much about market orders.
Take-profit orders
Take-profit orders are placed when your position is getting to be a bit too long. This means that you might want to finish up the position before it gets filled by your opponent, and when you place the order, it comes in right before the market starts taking back your position. Taking profits like this is a really good way of increasing gains but can also lead to big losses if that move doesn’t work out or if you are wrong on the timing of it.
Practice trades
Practice trading is simply another way of saying when you are just starting out, and you should trade with smaller and more frequent amounts. If you do not take practice trades into account when you are choosing your capital to start, then it can lead to bigger losses due to uncertainty and overall inexperience. There are only a few things that you need to be concerned with when it comes to this topic, and they are all related to each other and help you decide on the amount of money that you need. Each and every crypto trade consists of something called “risk capital.” This capital is the money that you will use to make each trade, meaning that if the price goes in the wrong direction, then your risk capital will be affected.
eToro
A crypto day trader can use a crypto CFD trading platform such as eToro to day trade cryptocurrencies. This platform is designed to allow users to speculate on a variety of different cryptocurrencies as well as other instruments like currencies, commodities, and indexes. The platform even has a social feed that incorporates information from Twitter and StockTwits that can be used to help you make more informed trades.
Today, many traders prefer to use eToro and a crypto CFD trading platform to day trade cryptocurrencies. This platform is designed to allow users to speculate on a variety of different cryptocurrencies as well as other instruments like currencies, commodities, and indexes. The platform even has a social feed that incorporates information from Twitter and StockTwits that can be used to help you make more informed trades.
Conclusion
Other popular crypto exchange platforms for day trading include Poloniex, Bitfinex, Bittrex, and the Cryptopia exchange. However, there are many factors to consider when choosing a crypto day trading platform. If you analyze the pros and cons of these exchanges, then you can eliminate a few of them to find an exchange that best matches your needs. On the other end of the spectrum are ICOs because they offer different kinds of investment opportunities than traditional stocks or funds that have been around for decades.
