Did you know if you rely on unknown sources for crypto investment? You are targeted by the market maker, who wants to deceive you by releasing the smokescreen to invite you to join the big loss trip to Hollywood. Do you have some money to waste? If not, why are you listing those sources? The best sources are always competing coins, major coin holders, top analyst firms, and others you believe have the highest authority.
Strong coins
For successful crypto trading, it is important you should first be familiar with the strong crypto coins for trading. These coins always had a large intraday move in the past. If a coin has gone parabolic on the daily charts, it is also a good indication of a successful coin. Additionally, if a coin has moved more than 100% in a few days, this coin has the potential, and coin market news also pays attention to it. This coin price is always broken out, trading these coins is the basic profit method.
For crypto trading, the supply and demand affect the 100% intraday movement. For example, if a coin has a large supply, even with the best news, community discussion, and analyst support, it never causes more than 10% intraday movement. So, you never make enough money in such types of coins.
For example, Bitcoin has a limited supply and is getting higher and higher. If you are not able to trade in Bitcoin, look for those coins that have less supply and more demand.
Trend and its Continuation
As a crypto trader, always look at the active coin from the previous trading day in the morning. Sometimes, these coins have the potential to continue the momentum of the previous day. But it is never the fixed rule that you always invest in those coins.
In the morning, watch and check the details of the previous day’s highs and lows of a coin. If you have found a coin that has the price breakup of the previous day’s high. This will be the indication of the new batch of buyers force and short-term traders covering their position. You should keep a close eye on subsequent crypto coin breakouts.
If the coin makes a strong breakthrough, it is possible in a few days it will pull back. Before it pulls back to its moving average, avoid these coins for trading.
Misjudgments
You could consider the crypto market to be irrational. Whenever you are watching coins, you have a clear catalyst to learn about the coin. Every coin has some strengths and weaknesses throughout the day. Especially in the morning, noon, and evening. Sometimes at the noon interval, the news breaks, and coins surge quickly, but it does not mean you can quickly take a position. Avoid those coins that surge 10% in five minutes without major news. These coins are targeted by the market makers who are trying to deceive you to make them profitable.
The most important coins are those that are experiencing intraday extremes. Moreover, if these coins are trading on high volume, this should be your best choice. From my experience, you are not required by any catalyst to judge these coins. But for the safer side, always calculate every aspect before participating in day trading.
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