Did you know that a successful crypto trader always keeps a list of suitable coins for day trading? The day trader always keeps an eye on those crypto coins that are volatile and traded in high volume. Additionally, crypto traders divide their watch list into different segments for short- and long-term trading opportunities. If a coin has a 5–10% intraday fluctuation, it means it is the suitable target for today’s lunch and dinner.
Good morning.
Successful crypto traders always look to the trading volume of the coin; if a coin has a below-average volume, traders always avoid it. Maybe this trading volume is generated because of quantitative traders, and there is no interest in retail investors.
How a trader judges a crypto coin’s trading volume
First, you should compare the coin’s weekly or monthly volume with the day trading volume. If you have found that day trading volume is increasing, it means this coin is watched by thousands of retail investors. It is most suitable for day trading. If the coin’s daily volume is lower, in this case, we can assume that this trading volume is made by the quantitative traders.
How much the volume
The obvious way to look for day trading volume. If a coin traded 1 million times, if a coin has increasing volume, it is the self-evidence of retail investor interest. Another idea is to look at the trading volume of coins in the early morning. If the morning exceeds the daily average, then you should put this coin into your watch list. For this, you can use robots or crypto screeners to find the appropriate coins for your list. The reason why we search for these coins is that they always bring a lot more profit compared to other coins.
How to find the fuel for your rocket.
Successful traders are always in search of soaring fuels. If the coin has no major news or no Twitter community discussion and only the coin volatility. Never target this coin because it’s riskier than others. Never consider those hot coins that are mentioned by many platforms. These coins always have extreme marketing influence and these coins never give you a high winning rate.
Why is the coin rising and falling?
It is also seen in the crypto world that a good project with positive news lacks the high value. Investors do not consider them a good choice for investing. Do not confuse it with a market phenomenon; it is normal in the trading world. Retail investors always target those coins that have a lot of discussion and news related to them.
Another aspect you should consider when you are watching coins. If the coin price is fixed at some level and does not change very well. However, the trading volume is much higher, which means this coin is sold by long-term investors, and they sell at the acquisition price. If you have found this behavior, you should ignore such coins.
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