Day trading is a proven and effective strategy for digital trading money that relies on frequent daily trades to earn a profit. This trading technique takes advantage of short-term changes in the prices of this virtual currency. As the name suggests, a day trader's goal is to end any given trading day with their Bitcoin holdings having a higher value than they started with initially. If you are planning to trade Bitcoin, you may consider using a reputable trading platform like Bitcoin Code 

On the other hand, day trading this electronic currency is risky but highly rewarding. A practical day trading strategy increases the chances of incurring profits. However, no matter the market, a day trader should thoroughly understand this virtual currency and trading principles. You should invest an amount of this electronic currency that you can afford to lose. Below are three practical steps to guide you when starting day-trading this electronic money.

1. Select a Trading Platform

The first and most crucial step a day trader has to take is deciding what platform they will use. Multiple online exchanges can guide traders when investing in this electronic currency. However, this day trader should consider an exchange platform that offers both trade and asset liquidity, and the transaction fees are affordable and reasonable. Some crypto exchanges charge their users per transaction, which can be expensive. 

This virtual currency is notoriously volatile, so you should be able to make moves fast as a day trader. Deciding on the exchange to use can be pretty challenging. However, here is what you should look for in a reliable business.

• Check if the exchange supports this digital currency or any other crypto you want to trade.

• Find out the various user reviews of the exchange. You can highly rely on the deal if it has positive and genuine reviews.

• Find out the different deposit methods you could use when you want to fund your exchange accounts.

• Find out the number of years the exchange has been active. The longer the crypto exchange has been in business is a good sign of stability and credibility.

These tips should help you select the best and reliable trading platform. 

2. Pick Your Investment

Once you have opened an account with a good platform, decide on the crypto you want to trade. In this case, people are day-trading Bitcoin. This digital currency is, however, very volatile. However, volatility and liquidity are elements the day trader needs to actively participate in the Bitcoin market.

To be a successful Bitcoin day trader, you should do much more than read the charts. Instead, it would help if you understood what the blockchain does, its network size, and its governance. Therefore, day traders should be ready to research a lot and follow news on this electronic currency blockchain update. 

3. Pick a Trading Strategy

There are many day trading techniques that virtual currency traders use to make gains when trading this virtual currency. But, these digital money traders should decide on one effective strategy that works for them. Here are the most popular trading strategies day traders could use.

You could use a bot to trade this virtual currency. A bot is simply an automated software tool investors use to sell and buy this digital asset at a predetermined time or when the market meets predetermined conditions to maximize profits. 

Range trading is a strategy that capitalizes on sideways markets by pinpointing stable, high, and low prices. Most day traders use the range trading technique to identify a period to purchase this digital currency when sold at a low price and sell when bought at a higher price to make profits.

The Bottom Line

Day-trading Bitcoin is risky as it involves frequent buying and selling of this digital currency. So, if you want to practice day trading, research thoroughly to have an effective strategy and stick to your entry and exit points.