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Author: Admin | 2025-04-28
Not to be confused with how to short altcoin, which you can learn with our guide on how to short cryptocurrencies, short-term altcoin trading is a method of trading through which individuals purchase digital currency with the intention of only holding it for a short period – minutes, hours, days or weeks. This is often the type of strategy day traders employ. As the name suggests, the goal of short-term trading is to own the cryptocurrency for a short time before selling it for a profit.Short-term trading, or day trading, can be profitable if you correctly anticipate a quick increase in the price of an altcoin. However, it also requires the trader to be more focused on the markets and be ready to react to any change that occurs. Without having significant time to dedicate to a short-term strategy, it can’t be effective.Advantages of short-term altcoin tradingThe main benefit of short-term trading is that there is a definite opportunity to see significant returns on the investment. In contrast to traditional currencies like the US dollar or the Euro, which often doesn’t see movement of more than 1% in value, altcoins routinely experience changes that occur quickly. In some instances, prices can double in hours or overnight, as you can see in the price charts that we have available at CAPEX.Another advantage of short-term altcoin trading is that the cryptocurrency market does not follow the Pattern Day Trading Rule. This rule applies to traders in the US and caps those with less than $25,000 in their trading account to just three day trades each week. With altcoin trading, US-based traders, as well as those in other jurisdictions, can trade in any amount at any time.Disadvantages of short-term altcoin tradingBecause of the high volatility of the digital currency market, altcoin prices can
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