Can You Buy and Sell Crypto Same Day?
Welcome to the latest issue of CapitalRollup Digest! Today’s digest is for June 28th and it should take you about 5:00 minutes. We’ll get right to it.
- What does the Market Look like today? (Top 5/10 popular Cryptocurrencies)
Can You Buy and Sell Crypto Same Day?
Bitcoin experienced its highest market price of about $20,000 back in 2017 and since then, a lot more people have invested in Bitcoin and other altcoins because of the growth potential they have going forward.
The most common question asked by the public is this: Can cryptocurrency be bought and sold on the same day?
You probably know that traders buy crypto assets to eventually sell them for a higher price, but have you ever wondered if it is possible to buy and sell within a short period, such as a single day? While many people prefer to use the buy and hold strategy for their cryptocurrencies, it is also possible to buy and sell them on the same day, and it is not just for Bitcoin! You can also buy and sell all of the altcoins that are available for trading on the same day.
Let’s look at the buy-and-hold strategy.
This strategy involves buying a cryptocurrency and holding it for a few months or years. This is an easy way to earn money from cryptocurrencies because you will simply wait for the coin’s value to grow as you hold it.
The value of the coin will grow to a point where it is much higher than the price you purchased it at, and you can then sell it for a profit. This strategy works great for people who do not have time to monitor daily charts for their crypto assets.
Contrary to this, there is the strategy of buying and selling coins within a single day, called day trading. With this type of strategy, all trades must take place within the said 24 hours, which results in traders being under pressure to complete trades at a profit
What Is Day Trading?
It is a form of active trading, in which traders have to watch the market throughout the day to buy and sell cryptocurrencies on the same day. Day trading involves using technical analysis to buy and sell cryptocurrencies on the same day.
Day traders earn a profit by taking advantage of the volatility of cryptocurrency markets. This volatility causes the market prices to fluctuate up and down, creating upward and downward trends that may change every hour. Once traders identify trends, they can then use the proven strategy to “Buy low and sell high”.
Day trading is riskier than long-term investments because price slippages or large drops will result in a loss. Since the market is volatile, day traders can earn a profit, but they can also lose a lot of money on the other hand
Traders must have the necessary knowledge and skills to perfect the art of day trading. Many hours of practice and paper trading are required before making actual trades. Despite the difficulty, it can be profitable.
Factors to Consider When Trading on the Same Day
Due to the 24-hour nature of the cryptocurrency market, day trading occurs throughout the entire 24-hour period. Traders should study chart movements, price action, trends, patterns, and coin volumes to make informed decisions about when to buy and sell a coin.
Price Action
The price action refers to the specific prices that the coin is valued at during the different hours of the day, particularly the range in which the price moves during the day.
Note that, It may not be the best idea to invest in an extremely volatile coin during the day because the unpredictability of its movement increases the risk of each trade.
Traders usually keep track of price action with technical indicators, like Bollinger bands.
Trends
It is common for coin market trends to form within a single day, usually measured within a few hours. In general, traders will look to buy when a coin is on an upward trend and sell when the coin has reached a value higher than the price at which they bought it. The key to analyzing trends is to be disciplined enough to know when to sell, as most traders make the mistake of waiting too long before they sell.
Upward trends in the cryptocurrency market are very enticing. However, if you wait too long, the trend might slip, causing the price to fall and your profits to disappear.
Coin Volume
The coin volume refers to the number of coins that have been traded over some time. This volume confirms trends in the market. The price movement or price action of a coin with a high volume or a lot of price movement is said to be more reliable.
Alternatively, if the coin volume is low, it could mean that that the coin is not traded frequently, and any price movement that the coin is experiencing will not be as reliable. The volume will enable day traders to identify when to buy or sell a particular coin during the day.
Now, we have seen that it’s possible to sell cryptocurrency on the same day. Day trading is one of the most common strategies in the crypto market. Although it is more complicated than buying and holding, day trading can be highly rewarding if you apply the right strategies and carefully monitor every movement of the price, volume, and trends.
•Trivia 🤔
Who is the real Satoshi Nakamoto?
A. Elon Musk
B. Vitalik Buterin
C. Prince Harry
D. Nobody knows.
Find the answer in the next issue of CapitalRollup Digest. 😉
Crypto Word Of the Day!
💡 Hedge
A hedge is an investment or trade designed to reduce your existing exposure to risk. The process of reducing risk via investments is called ‘hedging’.
The term used in a sentence:
— As the name suggests, the fund tries to hedge risks to investors’ capital against market volatility.
•Community Update 📢
We will be organizing a Twitter Space session soon with 5 industry leaders where we will discuss the crypto markets and everything on web3. You can look forward to it😎
•What We Are Reading Today 📰
What is Crypto Day Trading? Beginners Guide. Read more
Top 10 Crypto Trading Strategies To Earn Profit From Bitcoin & More. Read more
Learn and invest in Crypto with friends 💰
Earn unique rewards when you invite your friends to start investing profitably with CapitalRollup.
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Also, Read
- Best Bitcoin Margin Trading | Lolli Review | Bityard Margin Trading
- Create and sell your first NFT | Crypto Trading Bot
- How to buy Shiba (SHIB) Coin on CoinDCX?
- CBET Review | KuCoin vs Coinbase | Bybit vs Coinbase
- Fold App Review | LocalBitcoins review | Bybit vs Binance
- Crypto Margin Trading Exchanges | Earn Bitcoin | Mudrex Invest
