All about “Day Trading”
Day trading with cryptocurrency is a great way to gain extra profit from funds you own in cryptocurrency. However, there may be losses if the value decreases.
Instability of cryptocurrency
The simplest way to earn extra money is to buy a cryptocurrency (Bitcoin, Ethereum, Ripple …) when the price drops sharply and then wait for the right moment when the price will rise again to sell them at a higher price. For such daily earnings, the most important thing is that the cryptocurrency you choose is unstable, i.e. that there are frequent ups and downs, thus you can take advantage of the instability and manage positive exchange trading.
Predictability risks
However, this is a kind of price prediction principle, and we know that predictions are based on assumptions, similarly to gambling. When prices drastically fall, it is easier to predict their rising after, though it is easier to predict small rising of prices than the huge ones. Therefore, in case you are interested in beneficial day trading, I suggest trading with huge amount instead of small.
Here’s why it is a secure profit, there are two scenarios:
1. Trading with relatively small amount of $10K
Following the drastic fall of ETH price which starts after 3:15, monitor the curve and buy Ethereum coins at 03:50 (16.877 ETH) with all the available assets at the price of $1.185. In order to make a profit of $1,000 your next target price for sell would be $ 1,244 or increase of $99. According to the graph of 18 January 2021, it may happen in over a nine hours after (12:08) with many unpredictable moments in-between. In this specific case, the given scenario seems positive, though there might be strong chances of price decline and inflicted losses.
2. Trading with a larger amount of assets over $100K
Contrary to the first scenario, in this case you invest a larger amount of assets at the same time, you will be able to buy a larger amount of Ethereum coins (84,388 ETH) and the target price for sell to earn $1,000 would be $1.195 or a rise of only $10. Ethereum will reach this price in just 12 minutes later. It means that you goal is achieved in a way that is faster, secure and most importantly much more predictable.
In conclusion, Day trading is not recommended with small fund of assets.
How to manage a small fund of assets?
Surely there are alternative ways to passive income from day trading with larger amounts of assets. There are mutual investment funds, like beurax.vip for example, that pool smaller assets from multiple investors in more predictable and secure ways with larger amounts of assets.
Just imagine investing your $10K and each of the rest participants invest $10K also, so the company now has over the $100K (in reality much more), thus makes secure profits, most of those profits are paid to you as a fixed profit.
