How to trade cryptocurrency – a day trading strategy

How to trade cryptocurrency and earn money every day? Profitable daily cryptocurrency trading using the MFI Cash Flow Index.

Hello, gentlemen traders! Would you like to study the strategy of day trading in cryptocurrency and consistently earn from $ 500 a day? Today you will learn how to trade cryptocurrency using simple technical analysis tools.

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How to trade cryptocurrency and make a profit every day?

First of all, it is important to have a structured approach and strategy with strict rules for opening and closing trades when trading during the day. The high volatility of bitcoin and other altcoins has made the cryptocurrency market look like a roller coaster. This is an ideal environment for day trading, because during the day you will have enough fluctuations up and down to get a decent profit.

How to trade cryptocurrency

Before trading bitcoins or any other altcoins during the day, it is reasonable to wait until you have a high volatility value. The good news is that even when you have a low volatility indicator compared to other asset classes, this volatility is still high enough that you can make moderate profits from your trades.

Day trading in cryptocurrency also requires proper timing and good liquidity for accurate entries. Many cryptocurrencies and crypto exchanges are very illiquid to offer the instant execution that you can find when trading Forex currencies. To determine the liquidity, you need to look at the 24-hour volume of cryptocurrency trading. This will help you – a good free resource for measuring the market volume of any particular coin. Remember that a lack of liquidity can lead to significant slippage and, as a result, to large losses.

How to trade cryptocurrency

Day trading in cryptocurrency does not require daily trading. We should conclude deals only when all the conditions coincide in our favor. Therefore, avoid trading on weekends and trade only on days with the highest trading volume.

Crypto Day Trading Strategy

Below we will look at the rules for entering a purchase transaction using the cryptocurrency day trading strategy.

Step # 1: Pick up coins with high volatility and liquidity

The first thing you need to do is choose coins with high volatility and liquidity. If you do not trade bitcoin, which is the most liquid cryptocurrency, and you like altcoins, try to choose those coins that have good liquidity and volatility.

There are more than 1,600 coins on the market, and their number continues to grow. By trading only the best cryptocurrencies, you will be able to trade profitably with less risk.

Cryptocurrency day trading

Step # 2: Set the Cash Flow Index indicator on a 5-minute chart

The daily cryptocurrency trading strategy uses one simple technical indicator, namely the MFI-the cash flow index. We use this indicator to track the activity of smart money and assess when institutional traders buy and sell cryptocurrency.

Preferred settings for the MFI indicator - the 3rd period. You also need to change the default buy and sell levels from 80 to 100 and, respectively, from 20 to 0.

Cash flow index

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Step # 3: Wait until the cash flow index reaches the level of 100

The value of 100 of the MFI indicator shows the presence of large sharks on the market. When buying, smart money can not hide its tracks. They inevitably leave traces of their activity in the market, and we can see this activity by the MFI indicator.

Technical indicators are not always correct, so we have added a few more conditions to fine-tune our cryptocurrency day trading strategy. Namely, during the current day, we need to skip the first two values of the 100 MFI indicator and study the reaction of the price to the cryptocurrency.

The price should be held during the first and second values of 100.

MFI indicator

If the price falls after the first two MFI signals, it means that, most likely, we will have a day of falling.

Step # 4: Buy if MFI = 100 and if the next candle is bullish

Now we can wait for the third signal of the MFI indicator above 100. It doesn't have to be the third reading of MFI = 100, you can take any other one. If your time does not allow you to catch the third value of 100 on the MFI indicator, you can simply choose the next one if all the other conditions are satisfied.

Then we will also need a bullish candle. The closing of this candle should be close to the upper end, which gives us a candle with very small shadows.

Cryptocurrency day trading strategy

This brings us to the next important point that we need to establish when trading cryptocurrency during the day, namely, where to place our protective stop loss and where to fix the profit.

Step # 5: Set a Stop Loss and Take Profit

The obvious place where you can set a protective stop loss is below the daily minimum. A break below this level will signal a shift in market sentiment, and it is best to exit the deal.

We recommend taking a profit within the first hour after your trade has worked. If you hold a trade for more than one hour, the probability of success will be lower. At least, this is what our testing results on the history showed.

Cryptocurrency day trading strategy

See also what brokers exist for trading cryptocurrency.


With the help of the cryptocurrency day trading strategy, you can trade almost every day and earn good money, thanks to the high volatility of cryptocurrencies. Using just one MFI indicator makes this strategy simple and clear. Profitable trading for you!

Read also the article " What are stablecoins?".