Crypto day trading is the practice of buying and selling cryptocurrency assets within the span of a single trading day, aiming to capitalize on the price fluctuations of these digital assets. Strategies for engaging in crypto day trading vary widely, ranging from news-based approaches to methods grounded in technical analysis.
To achieve success in crypto day trading, traders should possess at least an intermediate level of proficiency. It’s essential to select a strategy that aligns with your trading objectives, as not all strategies will yield favorable results. Additionally, robust risk management practices are crucial for the effective implementation of any trading strategy.
How to Start Crypto Trading?
Before diving into the world of cryptocurrency trading, there are several key points you need to understand. Here’s a comprehensive guide to help you get started:
- Understand the Market: Begin by researching how the cryptocurrency market operates. Familiarize yourself with new phrases and core terminologies, as these will be essential in navigating the landscape. The principles of supply and demand in the crypto space differ from traditional markets, and coins are created and distributed through various methods based on the blockchain type and the accessibility for both retail and commercial traders.
- Choosing a Platform:Select a trading platform that caters to your needs. Different platforms offer various features, including crypto derivatives like CFDs, options, and forex. Make sure the platform supports the products you’re interested in and is available in your country. If you choose an exchange with regional restrictions, you can use a VPN for crypto trading and unblock it. In fact, the tasks of a VPN for crypto trading are much more global, including information protection and traffic anonymization. Some providers, like VeePN, almost completely hide all information about you. There is a free trial period for review.
- Practice Trading: Utilize demo accounts offered by brokers like Plus500 and eToro to practice cryptocurrency CFD trading with virtual money. Note that CFD trading for cryptocurrencies is banned in the US and UK, so explore other platforms like Binance, which provides a demo account and robust charting and analytics tools.
- Account Verification: Verify your account with a broker that has affordable fees and supports the crypto products you want to trade. This usually involves providing proof of identification (e.g., passport, driver’s license) and proof of address (e.g., utility bill). In certain cases, you may also need to submit your social security number or a corresponding tax identifier.
- Secure Your Account: Protect your account with at least two-factor authentication, preferably using SMS and email verification. Most crypto brokers provide easy-to-follow guides to set up these security measures.
- Deposits and Withdrawals: When you’re ready to start trading with real money, make a deposit. Only invest what you can afford to lose, and be mindful of any fees applied by the broker or third-party payment providers on deposits and withdrawals.
- Legal Considerations: Understand the legalities of cryptocurrency trading in your country. This includes knowing your rights and obligations, such as whether you’re required to pay income tax on any profits gained from crypto trading.
What Crypto Will Explode in 2024?
While many experts attribute this bull market to Bitcoin’s four-year halving cycle, numerous other factors are also playing a significant role. These narratives are gaining substantial momentum in the current market. Let’s explore some of the leading crypto narratives for 2024:
Web3 Gaming:
In 2022, the global revenue from blockchain gaming exceeded $4.6 billion, paving the way for a surge of new projects in the following bull market. Many of these initiatives, such as Axie Infinity—which raised $7.5 million in funding—secured substantial investments. However, some projects fell short of delivering on their ambitious promises post-launch, resulting in disappointment among retail investors.
Real World Asset (RWA) Tokenization:
Tokenizing real-world assets like real estate, art, or commodities enables fractional ownership and easier access to these asset classes. This narrative delves into how blockchain technology can tokenize tangible assets such as property, art, and even commodities.
DePIN (Decentralized Physical Infrastructure Networks):
DePIN, short for Decentralized Physical Infrastructure Networks, refers to blockchain protocols that enable the decentralized management of physical hardware infrastructure. DePIN projects utilize blockchain technology to create tokenized ecosystems.
What is the Crypto Market Outlook for 2025?
Market analysts from Bernstein project that the cryptocurrency market could soar to an impressive $7.5 trillion by 2025. This forecast suggests that the market size will double within the next few years, offering substantial opportunities for cryptocurrencies such as Bitcoin, Ethereum, and Solana.
Currently valued at $2.4 trillion, the expected growth signifies a significant expansion, largely fueled by continuous capital investments in major cryptocurrencies. Analysts Gautam Chhugani and Mahika Sapra predict that the crypto market is on the cusp of exponential growth in the foreseeable future. True, the number of risks is large, and not everyone will survive in this market, although some of them can be protected from (see this here) or at least reduced. Working with risks is the main work in cryptocurrency, on which success depends.
Conclusion
The landscape for crypto narratives in 2024 is nothing short of intriguing. Established trends such as DeFi and web3 gaming are advancing, while emerging narratives like DePIN and the tokenization of real-world assets are expanding the horizons of blockchain technology.
Throughout this evolving space, one constant endures: the human factor. It is the narratives we craft, the challenges we aim to address, and the communities we nurture that infuse these trends with vitality. The ultimate challenge is discerning true innovation from transient hype.
