Day trading is the act of purchasing and selling a crypto one or multiple times during the same day. Day traders can employ large amounts of leverage and short-term trading tactics to profit from small price changes in highly liquid cryptocurrencies.

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Day traders are tuned into the things that trigger quick changes in the market. Economic statistics, business earnings, and interest rates are examples of scheduled releases that are impacted by market psychology and expectations. When such expectations are not realised or are surpassed, the markets respond, typically with swift, big changes, which can be quite advantageous for day traders.

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Day trading is only profitable in the long run when traders take it seriously, allocate their time regularly, and do their own research to be knowledgeable. Day traders often look at liquidity, volatility, and volume when deciding what cryptos to buy. Also, they are recommended to keep up with the latest news that affects stocks. Some tools that day traders use to pinpoint buying points include candlestick chart patterns, technical analysis, trendlines and triangles, and volume.

scalping

This strategy aims to generate a number of small profits throughout the day on small price movements.

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range trading

Buy and sell decisions are generally based on support and resistance levels with range trading.

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trading based on news (buy the rumour, sell the news)

This strategy often takes advantage of trading opportunities created by the increased volatility surrounding news events.

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high-frequency trading (HFT)

These strategies rely on complex algorithms to take advantage of minute or transient market inefficiencies.