So, you’ve found out about the booming cryptocurrency market, and you’re ready to dive in, with one exception: you’re limited on funds. You’re not an anomaly considering the wide variety of
traders found in the digital asset market. Old and young, poor and rich have all caught the crypto bug and have found ways to increase or decrease their stack. Join us as we list the best ways to day trade when you’re running low on cash.
Trade Security Tokens
Security tokens are the up and coming digital assets that will take the crypto world by storm. By getting on the train early, you’re likely to make significant gains off of a small investment.
By trading security tokens, you’re buying stocks within a company or asset. Security tokens have real value backing them, and this means that they’ll be in demand constantly. This method allows you to trade an asset that has reason to rise or stay flat and has little reason to plunge since the tokens actually have a cushion underneath them.
Trade Newly Listed Coins
Popular exchanges like Binance and Bittrex list new coins often. These coins generally see massive trade volume, which allows these coins to see significant pumps in price in a matter of minutes. It’s not uncommon to see a newly listed coin on Binance rise 50% or more within an hour.
This extreme price rise is thanks to the overall volatility of the asset. This means you’ll need to be aware that the coin’s value can decrease in an instant. We only recommend this option when using minimal amounts to guard yourself in the event of getting caught in a downturn.
On the other hand, if you caught the pump, then we recommend setting a stop-loss while you’re in profit. By doing this, you guarantee your gains, and you’ll have less stress if you need to walk away from your trading desk.
Another option when trading an active pump is to enable price alarms. These price alarms are invaluable because you can set specific parameters to give you insight into how the movement of the coin is progressing. Setting a lower and higher threshold can give you a reliable indicator of when to sell.
Sell every 3-5% Rise, Rinse, and Repeat
In crypto, 3-5% rises happen within seconds. Day traders of traditional stock markets can only dream of these types of gains. In this method, it’s best to cut the greed and consistently sell a slight rise always to lock in profits.
After you’ve done this a few times, you can begin increasing your trade amounts to potentially make more money. You’ll need to monitor popular coins that have high volume because low volume coins probably won’t change in price fast enough for you to make decent money off of a small investment.
Timing pumps in the crypto market are near impossible unless you build a trading bot with high tech algorithms. Since this isn’t possible with low funds, it’s best to make small gains often.
Even if you don’t land that 30% increase, you could potentially net a 3% rise 5 times in a day.This means you could see a 15% gain in 24-hours, whereas that 30% rise took a week to materialize.
Educate Yourself on Crypto Markets
Although this method doesn’t include trading, it enables you to become a confident trader. Understanding the market is beneficial because you’re less likely to get caught in a dump in price. This knowledge allows you to stay ahead of the curve, allowing you to trade your funds efficiently.
When you’re educated in the crypto markets, you’re able to spot trends before traders who aren’t aware. This knowledge goes a long way when paired with the other techniques listed.
When you know a coin is announced on Binance, you know exactly where you’ll be trading the volatility. When you snag a 5% rise, you know not to be greedy and to keep moving.
Only Trade 1-3 Cryptocurrencies at a Time
When trading with low capital, it’s best not to spread yourself thin. Allocating an even amount between 1-3 digital assets will give you enough room to make money on each trade. Putting all your capital in one trade could net you a considerable amount, but your chances increase by spreading your investment.