Day trading, or intraday trading, involves buying and selling coins within the same 24 hour period. Day traders are active for only a few hours to days, making quick gains by buying low, selling high, and closing their positions before the market falls again. They make money on the price fluctuations in between exchanges and fees.
Day traders aim to capture gains that accumulate across time zones; they pay close attention to hourly price movements and execute trades rapidly when they see signals appearing. If you can make accurate predictions about where prices will go after a short amount of time (from seconds to an hour), this practice may be profitable for you.
Day trading crypto may be worth your while in Mena for several reasons.
There are over 1,500 coins on Coin Market Cap. As more exchanges come online, more currencies you can easily trade for other coins will be more currencies. It means even if there is a bear market in one currency, you might find another currency trading at an all-time low – buying cheap and selling high is how day traders make money. The biggest exchanges offer over 100 different altcoins to trade with BTC or ETH, so the number of options has increased dramatically in just the past couple of years.
There are many arbitrage opportunities between different exchanges due to price differences. Cryptocurrencies can differ by 10% or even 15% between exchanges within Mena (the Middle East and North Africa). If you can score this price difference, you can profit without moving funds between exchanges.
- Exchange 1: 0.0001 BTC/ADA
- Exchange 2: 0.00014 BTC/ADA
Here ADA is trading at 14% more on exchange one than two, meaning if you bought ADA on one, transferred it over, then sold it for 1% more on the second exchange. You’d have made 0.0086 BTC instantly.
Regulations might end up coming into play within Mena eventually. Still, there are no preventing traders from making money every day without worrying about the government shutting anything down. In some countries, cryptocurrencies are not allowed to be exchanged at all. Still, the exchanges in Mena have thousands of different altcoins available, so there is no risk of being stuck with a difficult or impossible currency to sell.
Mena currencies don’t move as quickly compared to other areas, particularly more developed European and American markets. However, it still pays off good money quickly since crypto prices fluctuate by the minute.
One of the biggest hassles with trading is getting coins in and out of exchanges. The more times you have to do this, the less profitable it gets since transferring coins can take days or even weeks, depending on where they are sent. Mena exchanges have local wallets set up for easy buying and selling, so one transfer is all that’s required.
Since Mena currencies don’t move as fast compared to other areas, there are more opportunities to make money – not only by day trading but also by swing trading (holding positions for several days). Traders who use technical analysis chart patterns can find better signals between different currency pairs because the spreads (price differences) are higher for Mena currencies.
Mena exchanges tend to be cheaper than those in Europe and America. They don’t have as many users, so the trading volumes aren’t as high, but it also means you can get coins with a lower price tag. Many altcoins will cost $0.05-$1 per coin at most which are significantly lower than what is seen in other areas – and that opens up the doors to make more money since each coin counts towards your daily profit goal.
Although there isn’t much information available about Mena crypto communities online right now, this area has potential because of small-scale support from Google and YouTube+ profiles who talk about Mena cryptocurrencies. The more communities grow and create a market, the faster traders make money and generate capital gains.
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