In the world of crypto day trading, the ability to capitalize on small price movements is key. To make informed buying decisions, day traders consider various factors and utilize specific resources. Let's explore the process of determining what and when to buy.

What to Buy:

When choosing which cryptocurrencies to invest in, day traders focus on three essential factors:

Volatility: 

High price volatility offers opportunities for potential profits, as price fluctuations can be leveraged to the trader's advantage.

Liquidity: 

Liquid cryptocurrencies are preferred by day traders as they allow for easier buying and selling with minimal slippage.

Trading Volume: 

Analyzing trading volume helps traders gauge the market's interest and liquidity of a particular cryptocurrency, enabling them to make more informed decisions.

When to Buy:

Once you have identified the cryptocurrencies you wish to invest in, the next step is determining the optimal entry points. Valuable resources for this include:

ECN/Level 2 Quotes: 

Electronic Communication Network (ECN) quotes provide real-time data on bid and ask prices, helping traders assess market depth and identify potential entry points.

Real-Time News Services: 

Staying updated with breaking news and market developments allows traders to react swiftly to events that may impact cryptocurrency prices, providing potential buying opportunities.

Intraday Candlestick Charts: 

By analyzing intraday candlestick charts, traders can identify patterns and trends that may indicate favorable entry points based on their predetermined criteria.

To ensure consistency and precision, it is crucial to define and document the specific conditions for entering a position. Once a set of entry criteria has been established, traders should regularly check multiple charts to verify the validity of the conditions on a daily basis.

In day trading, the process of determining what and when to buy requires careful consideration of volatility, liquidity, and trading volume. Utilizing resources such as ECN/Level 2 quotes, real-time news services, and intraday candlestick charts can provide valuable insights. By establishing clear entry criteria and regularly validating market conditions, day traders can enhance their ability to make well-informed buying decisions and increase their chances of success in this fast-paced trading environment.