What is day trading crypto?

Day trading crypto is a high-risk venture made possible by the distinct volatility and liquidity in the cryptocurrency markets. While day trading comes from the traditional markets, crypto day trading requires a deeper knowledge of crypto and blockchain technology in order to find consistent success.

Why is cryptocurrency a volatile investment?

Cryptocurrency is an incredibly volatile investment. In one day, Bitcoin’s value dropped 30%. But, why? This question brings up something that we often forget with cryptocurrency: it isn’t intrinsically valuable. There isn’t gold or diamonds or anything backing up crypto’s value.

Which cryptocurrency is best for day trading?

Bitcoin, the largest and most well-known cryptocurrency, has the biggest market cap in the industry. Apart from this, it is the most liquid crypto, meaning there are always buyers and sellers available. Bitcoin has exceptionally huge trading volume and high volatility, and, overall, one can consider it a solid choice for day trading.

Why is volatility important in day trading?

Volatility means that the asset’s price is constantly changing, and there are a lot of profit opportunities. Although this is often seen as a downside, it is a benefit in day trading, as, without it, there is scarcely any way to make reliable profits.