Crypto Day Trading Guide: Strategies, Risks and How to Start
Risks of crypto day trading
Day trading cryptocurrencies carries significant risks that all traders should understand before committing capital.
High volatility
Cryptocurrency markets are notoriously volatile. Prices can swing dramatically in minutes due to market sentiment, regulatory news or large trades. While volatility creates opportunities, it also increases the risk of substantial losses. Stop-loss orders could be used to potentially protect capital from sudden adverse movements.
Leverage risks
Many platforms offer leveraged trading, allowing traders to control larger positions with smaller capital. While leverage can amplify gains, it equally magnifies losses and can result in losing more than your initial investment. Leveraged…
