Crypto Day Trading Strategies for 2021


Crypto day trading strategies for 2021 are a thing among investing enthusiasts and seasoned traders alike. 

New to this concept? No worries! Looking for insights on how to day trade crypto in 2021? Welcome to the CoinMetro blog! We’ll guide you through the basics of crypto day trading and shed light on which crypto day trading strategies to use in 2021.

The Basics of Day Trading Crypto for Beginners

Do you want to become a crypto day trader? Let’s start with the very basics – the definition of crypto day trading. If you’re an active trader watching the markets on your screens as you’re reading this, feel free to skip the upcoming bit.

Trading means buying and selling assets with the aim of making a profit and generally focuses on stocks, shares, and currencies. Trading cryptos means buying and selling digital assets. Crypto day trading is the buying and selling of digital assets with the aim of making a profit in the same day.

Last year, the CoinMetro team published a thorough guide to crypto day trading strategies for beginners. It will help you to get started in the cryptoverse – as a day trader. Do yourself a favour and check it out to learn about the fundamental principles in a comprehensive way.

If you’re curious to learn something more specific, you could start with finding out more about day trading bitcoin.

Best strategy for day trading crypto in 2021

Strategies for Day Trading Crypto in 2021: How-To

Right, so what’s the best day trading cryptocurrency strategy in 2021? Let’s be honest, there’s no such thing as the best strategy. Why? Day trading is not the easiest of investment options. 

As a day trader, you need to be able to apply different strategies. For all our sakes, don’t think of crypto day trading as a get-rich-real-quick option. Is day trading crypto worth it? It certainly is. Below, you’ll find an insightful checklist of crypto day trading strategies to try in 2021. It will help you to beat the odds and increase your chances of winning.

  1. Educating yourself is a must. There are over 3,000 coins out there, so knowing which ones have a potential to moon comes handy. This is true not just for beginners, but for skilled traders as well. The world of crypto is ever-changing.

The number of crypto-related educational resources available online is getting closer to infinite. Lucky for you, our blog and YouTube channel are two great places to start your journey. There you’ll find everything you need to know about crypto and blockchain – from amazing infographics and helpful articles to in-depth explanations from CoinMetro’s CEO Kevin Murcko himself.

  1. Finding a reliable exchange to day trade crypto. When you’re ready to start, you’ll need to choose a trading platform to apply your freshly gained knowledge into practice, or to further polish your skills. Again, the CoinMetro platform certainly deserves your attention.

CoinMetro is especially good for novice day traders as it offers the option to copy trade among many other cool features. This means that you can mirror the trades of experienced traders – and in just a few clicks.

How does it work exactly? Mirror trading allows you to select the listed trades of more experienced and successful traders, who are registered users – just like you. This means that you implement the exact same trades on your account. That sounds amazing, doesn’t it?

  1. Managing your risks. Copy trading or not, just starting out or skilled enough, always manage your risks. Never day trade more than you can afford to lose. We’ve all heard stories about traders who win big, but they also lose big. So will you at some point – in fact, it’s a predictable pattern.

  2. Setting realistic profit goals. How much can you make day trading crypto? Aim for a humble return from several altcoins – let’s say, 5%. At the end of the day, week, month, this strategy has a potential to accumulate a larger return on your initial investment.

  3. Buying low, selling high. Buy Low, Sell High must be the most popular strategy for selling and buying assets that reflects how market cycles work. As you can guess from its name, this method implies buying assets at a lower price and selling assets at a higher price.

It’s a good strategy for beginner traders to try. Simply put, the strategy requires you to watch the markets and spot the moment when the prices start going down. A good time to buy is when support occurs, that is, when the downtrend is expected to pause. The reason behind it is concentration of demand. To better understand the concept of support, we recommend learning more about trendlines and moving averages as they are used on charts to identify support areas.

At a later point in time, the situation recovers, and the prices go up again, which is the best time to sell.

As any other strategy, Buy Low, Sell High may be difficult to implement consistently. Low and high can be relative, and the markets, unpredictable. Equally important, price does not always equal value. The price may be roaring, but the asset value may turn out to be nothing more than a hype. And vice versa. That’s why we often recommend combining different strategies.

Being a day trader, you might also want to swing trade for a change. Now that we’ve covered the definition of crypto day trading, swing trading cryptocurrency is only different in that it means buying and selling crypto after a certain degree of movement in the charts. This particular type of trading is a good fit for those who don’t want to spend hours on monitoring their trades.

The final words of wisdom here – try to implement different strategies and see which one or the combination of which ones works best for you. After all, it’s the only way to find out!

  1. Using additional tools. Monitoring cryptocurrency news as well as educating yourself about the best crypto to day trade or cryptocurrencies to watch in 2021 is the foundation of crypto day trading, but using additional tools like trading indicators will help you to get a much better grip on it.

Our top three indicators include Moving Average Convergence Divergence, Fibonacci retracement, and Bollinger Bands.

  • The Moving Average Convergence Divergence allows you to measure the strength of an asset’s price movements;
  • The Fibonacci retracement uses two extremes (such as peak and trough) to detect support and resistance levels that are important in day trading;
  • Bollinger Bands help you to visualise overbought or oversold conditions.
  1. Learning more about trading psychology. Psychology is a powerful tool to master, and is very applicable to trading in general. Understanding what impacts the markets as well as the behaviour of traders can help you to minimise risks, but not avoid them entirely.

  2. Trying not to complicate things. It is quite common to believe that the more diverse your trading portfolio, the better. However, diversification is not the ultimate recipe for success. Our advice is to keep it simple. Watching too many coins and tokens will distract you.

  3. Thinking outside the box. Don’t only choose the all-time favourites, but go for some volatile and liquid coins as well. Because why not? Day trading crypto implies taking risks, and relying exclusively on the top assets is not a guarantee for profiting either.

Day Trading Crypto Strategies for 2021: Roundup

Take it or leave it, no guide will tell you what the best day trading crypto strategy is. The perfect strategy for crypto day trading in 2021 depends on your profile. Remember, each day trader is unique.

There are the rules of thumb that are passed along in the process of crypto day trading by the more seasoned traders. These rules focus on education, risk management, useful tools, and other useful tips and tricks.

Whatever your set of skills, you need a reliable exchange platform to practise crypto day trading strategies on. Cue CoinMetro. There’s something for everyone! You can buy crypto instantly and trade on the lowest fees in the market.

New to the crypto market? Try mirror trading and copy professional traders automatically. Looking for something more advanced? Trade crypto on the CoinMetro platform using the best tools and indicators.

Any thoughts or comments? Have your say in the comments section below!