Do you want to start day trading crypto but feel unsure how to go about it? You’ve come to the right place, as, in this guide, we will cover various trading strategies that allow crypto day traders to make the best of their investments.
The crypto industry has become one of the most profitable investment vehicles for traders in the last decades. Crypto profit returns are higher than any other asset type due to the fact that cryptocurrencies are a growing, speculative market. That also means cryptocurrency investments are quite risky and can lead to huge losses if not executed properly. But if you know when to buy and when to sell, it is possible to minimise your losses and maximise your profits.
Investing in digital assets can be intimidating for a lot of beginners, especially those who are looking to become day traders. After all, there are thousands of digital currencies in the cryptocurrency market, hundreds of cryptocurrency exchanges and trading platforms, and new digital asset types like NFTs. It’s even hard for seasoned traders to differentiate scams from legit money-making opportunities.
Still, it is possible to make profits in this trillion-dollar worth industry, even if you are starting out with as little as 1,000 USD, as long as you do your research, plan ahead and be strategic about your investments.
How Does Trading Cryptocurrencies Work?
The increasing value of Bitcoin and the emergence of new cryptocurrencies fueled a whole new trading market: cryptocurrency trading. Crypto day traders invest in digital currencies that they think are promising and strategize to make the most out of their investments.
Digital assets are volatile by nature, but the volatility makes it possible for traders to make swift profits. Of course, swift losses are also a part of the game when we are talking about digital currencies. Anyone can join a crypto exchange and start investing in these assets, but if you don’t know what you are doing, you can only rely on dumb luck to last in the game before you fail to keep up.
That is why it is best to learn as much as you can and thoroughly research the market before you start making crypto investments. Once you understand how the market moves and learn the basics of the trade, you will have a much better chance of earning money from day trading.
Research the Market Before You Start Trading
Beginners should start by learning the ropes of the cryptocurrency market, such as the key factors that affect crypto prices. A good way to do that is to read about the price history of major digital currencies like Bitcoin and Ethereum. Since these assets are very well-known, their price history is carefully tracked and analysed by experts and the media. Once you understand what makes the market move, you can start devising trading strategies, or look up how people take advantage of the crypto market fluctuations.
If you have your eye on a new cryptocurrency project you think is worth a try, make sure to find out as much as you can about the developers behind the project and the resources they have. Unfortunately, there are more scam coins in the crypto market than fair products, so the importance of market research can’t be understated. Scam coin developers often employ influencers, or even celebrities, to market their products and take advantage of the FOMO mentality to increase their profits. Keep in mind that if a project sounds too good to be true, it probably is.
If you are not looking for long-term investment but rather prefer day trading – buying and selling digital currencies daily – you need to do even more thorough research. Day trading is a risky business; you can make or break the bank with this approach, and it really requires attention, patience, and an understanding of market cycles. While day traders make profits from short-term price changes, they still have to understand how crypto prices move in the long term to refrain from investing in the wrong coin at the wrong time.
Most day traders combine long-term cryptocurrency ownership with day trading. Some day traders hold Bitcoin and Ethereum while they buy and sell other altcoins. Of course, some of them trade Bitcoin and Ethereum as well and make immense profits from their ventures, but there is no reason you can’t do both if you want.
What Is a Crypto Day Trader?
Crypto day traders buy and sell digital currencies within a day to profit from daily price fluctuations. Crypto prices can move astronomically within the span of a day, especially compared to other asset types, thus providing an attractive opportunity to those who are willing to take the risk.
Day traders monitor prices during the day – and by day, we mean the whole 24 hours since the crypto market doesn’t sleep – and make strategic buy and sell choices. Of course, since each exchange has its own crypto market, prices fluctuate across crypto exchanges as well: Bitcoin prices can be slightly higher at one exchange compared to another, which creates arbitrage opportunities: Day traders can buy coins on an exchange where the prices are lower, and sell them on another one where prices are higher.
Can You Start Day Trading With 1000 USD?
While day trading can be risky, it can also be rewarding, especially if you stick to your budget. If you only have 1,000 USD to start with, don’t overextend your means to make up for your losses or let the winners high cloud your rational judgement. Day trading can be a rush, especially if you are a beginner, but keeping your eyes on the road is a must.
Day trading can often cause anxiety or adrenaline. Beginners can find themselves glued to the screen watching the crypto price roller coaster in real-time. While that may seem like a good idea at first, it can be taxing for your mind and body. If you want to start day trading with a limited budget, you need to learn how to take advantage of trading strategies to manage your investments when you are not looking.
One way you can do this is to utilise trading software and different order features provided by crypto exchanges. Some exchanges even offer you the chance to trade cryptocurrencies on the market through demo accounts. While you won’t earn any profits from this type of learning program, the experience can be invaluable as you realise how you can make the best of your money without actually risking anything.
Once you figure out the basics of day trading, you can start investing for real. You won’t suddenly become a millionaire a few days after you start day trading, but you can steadily grow your earnings to increase your overall capital if you are patient enough.
Crypto Trading Platforms
In order to start day trading, you need to open an account on a cryptocurrency trading platform. There are hundreds of crypto exchanges out there, which doesn’t make it easy for beginners to decide at once. You might have access to tonnes of crypto exchanges, depending on your region, and they will likely have different advantages and disadvantages you have to consider. If you are based in Australia, you may not have access to some of the popular crypto exchanges that operate in the US and the rest of the world, or they might have serious limitations. That said, crypto exchanges in Australia are much better regulated than their counterparts in the world, so that is a bonus for beginner traders.
As you grow more confident as a trader, you might want to open accounts on other crypto exchanges. This allows you to buy and sell cryptocurrencies across multiple exchange markets and take advantage of prices differences. However, monitoring two or more crypto exchanges will take more time and effort, so don’t overextend yourself from the get-go and start small. It is a good idea to utilise crypto portfolio tracking apps to stay ahead of the game even when you are not staring at your screen.
How to Pick the Right Cryptocurrency Exchange
To pick a crypto exchange and start trading, consider the answers to these questions carefully: Is this a safe and reputable platform? Is the platform regulated and is it transparent about its operations? Is it secure from hackers? How high are the trading fees? As a day trader, you will be constantly buying and selling digital currencies, so a platform with high fees may not be what you are looking for. Of course, trading volume is another important metric: In order to be able to take advantage of price fluctuations, you need to have access to a platform with many active users so that you can buy and sell instantly.
Unfortunately, there are many crypto exchanges out there that lie about their trading volumes and their operations. Again, research is critical to ensure your success as a day trader, even before you start making actual trades.
Now let’s look at different types of crypto exchanges you can use as a crypto day trader.
Centralised Trading Platforms
Most crypto exchanges you have heard about, such as Binance and Coinbase, are centralised trading platforms. These platforms are operated by companies and foundations, and they function as marketplaces where people can buy and sell their digital assets.
Crypto day traders often use centralised trading platforms because they have more traffic and trading volume, not to mention better trading features compared to decentralised platforms. Most centralised crypto exchanges allow you to sell and buy crypto for fiat currencies such as AUD or USD, unlike decentralised platforms that only let you trade digital assets.
Different centralised crypto exchanges have different benefits. For example, Coinbase is known as a good crypto exchange for beginners despite its high fees, whereas Binance is popular because of its wide coin selection and low fees. While some crypto exchanges are better suited to experienced traders because of their complex user interfaces, picking a platform with advanced trading tools is actually a good idea. It can take you a while to figure out all the bells and whistles of a trading platform, but your efforts will pay off when you start trading, as you will have the necessary tools to actualize your trading strategies.
Of course, you can’t research every crypto exchange out there, as that would be a massive waste of your time. Thankfully, you don’t have to. You can simply read and compare some of the most well known and popular exchanges like Coinbase, Binance, Robinhood, eToro, Swyftx, and Coinspot and pick the one that suits your needs best among these crypto trading platforms.
Decentralized Trading Platforms
Decentralised crypto exchanges or DEXes for short, are crypto-to-crypto exchanges that function through the use of smart contracts. DEXes allow for higher privacy as they don’t require ID verification, but they don’t allow fiat-to-crypto trades either. You can quickly trade less-known altcoins on these platforms, though overall trading volumes are smaller compared to centralised exchanges.
As a beginner, you may want to hold off jumping into the altcoin market for a while, especially for micro-cap digital currencies. Micro-cap cryptocurrencies are very cheap, and you can buy a lot of coins for small prices, but they are also very volatile and can be manipulated easily by malicious actors. That said, once you the basics of crypto trading and understand how crypto prices move, investing in and trading altcoins can give you an edge in your day trading.
Decentralised crypto exchanges generally have lower fees compared to centralised trading platforms. Keep in mind that security and reputation are important factors when it comes to DEXes as well. Decentralised trading platforms like Sushiswap, Uniswap, and Pancakeswap are some of the most well-known and popular options you can easily try out once you begin trading BTC and other altcoins.
Most Popular Cryptocurrencies for Day Traders
There are thousands of cryptocurrencies on the market, so how do you start day trading when you have so many options? Well, there is no easy answer to that question, but it is a good idea to start learning what you can about some of the most popular digital currencies out there.
As a day trader, you should know your way around Coinmarketcap. Coinmarketcap keeps a detailed list of most cryptocurrencies on the market and ranks them according to various metrics. You can evaluate digital assets based on their trading volumes, market capitalizations, circulating supply, and other criteria. There is often some information about the cryptocurrency project as well, which can be a useful starting point. Of course, one of the most important things to keep an eye on is the price charts. You can see the daily, weekly, monthly, and yearly price movements of different cryptocurrencies and make decisions based on your analysis.
While it is hard to say whether a given coin is a scam or not simply by looking at the numbers, cryptocurrencies with higher market caps tend to be more reliable and stable – at least compared to the thousands of other coins.
Bitcoin is the world’s first and most valuable cryptocurrency. It was launched in 2009 by the pseudonymous Satoshi Nakamoto, but today it’s known as an open-source digital currency used by millions of people across the globe. Bitcoin has made headlines multiple times in the last few years and is often the reason why people enter cryptocurrency trading. Its immense success has fueled countless cryptocurrency projects, known as altcoins (alternative coins).
Bitcoin’s success lies in its vision and originality. It was the first cryptocurrency to use blockchain technology in order to prevent the double-spending problem, which inspired many others to start their own blockchain-based digital currencies. Thanks to Bitcoin’s blockchain, Bitcoin owners across the world can buy, sell and trade BTC rapidly, without needing third-party intervention.
Of course, when you are day trading Bitcoin (and other altcoins), you will most likely use third-party support in the form of crypto exchanges. Unfortunately, trading fees are part of the crypto ecosystem. Since Bitcoin is the largest cryptocurrency, the Bitcoin network has a lot of traffic, something that increases transaction fees as well. If you want to day trade Bitcoin, you should make sure you are not paying more than what you have to for trading fees.
Bitcoin prices can change 8% or more within a day, so day trading Bitcoin can be both very rewarding and risky. Bitcoin is one of the world’s most-watched assets, so if you are day trading BTC, you need to be quick on your feet to take advantage of its price movements.
Ethereum isn’t the first altcoin in existence, but it can be called the first truly original altcoin project. Like Bitcoin, Ethereum also utilises blockchain technology, but it’s so much more than a digital currency. Ethereum is a blockchain-based platform for digital apps and services, and anyone who knows Ethereum’s programming language, Solidity, can build their application on top of the Ethereum mainframe.
Users can interact with the Ethereum-based apps (also known as dApps) in exchange for the Ethereum network’s native cryptocurrency Ether (ETH). Ether is necessary to be able to do anything on the Ethereum network, so the value of Ether increases as Ethereum-based projects increase in number and quality.
Ethereum became a popular hub for decentralised finance apps, as well as for entertainment and arts. Decentralised finance (DeFi) apps allow users to make online payments, stake cryptocurrencies for profit, lend and borrow crypto funds for investments. Many developers also build their own cryptocurrencies on the Ethereum blockchain.
Best Tools for Day Trading
Day trading can be stressful, especially if you are monitoring and tracking multiple cryptocurrencies. Luckily, there are some tools that make crypto day trading much easier.
Day traders need to be alert to daily price changes and make quick trades when they see a good opportunity. Keeping track of price movements and responding adequately to price increases and falls can be hard for humans, but the whole process becomes manageable with a little help from technology.
There are two great tools you need to have in your toolbox when you are day trading cryptos. These are portfolio tracking apps that help you monitor multiple digital currencies and trading bots that can automatically execute trading strategies even when you are not paying attention to the markets.
Portfolio Tracking Apps
Portfolio tracking apps are perfect for crypto day traders, as they help you monitor the price movements of all the cryptocurrencies you have and the ones you’re thinking of including in your portfolio. Manually checking out prices all day can destroy your patience (and eyes!) but having a platform that displays all the information you need is a neat solution to the problem.
Portfolio tracking apps show real-time price fluctuations in the crypto market. This way, you can see all of your assets and their worth on a single display screen. Some portfolio tracking apps sync with crypto exchanges to allow you to execute trades, so you can make rapid trades as you watch price movements.
You can use trading bots to automate your trading practices. Trading bots pull information from crypto exchanges and trade on your behalf. While that might sound like a good idea, especially if you are a beginner in crypto trading, you should still take your time to come up with a good strategy before starting to use bots. Trading bots can do a lot, but without a strategy, they are just as lost as you are. However, even though these bots can’t replace a good strategy, they can be used to implement it.
You can use the bots to make automatic buys and sells, according to price movements. Once you optimise a bot to follow a strategy, you can sleep well knowing that your investment is in good hands. However, make sure you update the parameters of your trading bot regularly as you switch strategies.
While there is some free trading bot software you can use, some of the most popular trading software will charge you fees. Some developers require monthly payments, while others take a cut out of your profits. Trality and Cryptohopper are some of the most popular crypto trading bots on the market these days.
Essentials of Day Trading
If you are intent on becoming a day trader, you need to have a good plan when you are starting out. We will outline the basic rules and guidelines of day trading, so you can have a solid plan in place when you start investing. In time, you will have more experience and can design your own strategy.
Choose the Right Cryptocurrency
Before you decide on investing in a particular crypto asset, make sure you read all the information you can find about the project. You can start by browsing the official project page, but remember that the official story is just that: a story. Naturally, developers try to showcase their projects in the best possible light, which is not always the full truth. Make sure you browse social media comments about the project on Twitter, Reddit, and other avenues, and of course, check the news. If the project has been around for a while, you should try to find out whether there is an actual product in development or in use.
If the crypto asset has been around for a long time without any new developments, or their aims and goals seem to change frequently, take it as a red flag. You can also read about the developers behind the project to get a sense of who they are and whether or not they seem capable of delivering what they promise.
Engage in Market Analysis
Once you learn more about a crypto asset, you should start analysing how the market moves. You might see that the crypto market goes through cycles of price increases and falls. In order to understand and foresee these cycles, you have to use all the tools in your arsenal.
Since cryptocurrencies are speculative assets that obtain their worth from whatever people are willing to pay for them, understanding public sentiment about a crypto asset is incredibly important to day traders. Your research should always take into account what mainstream news, as well as influential figures (like Elon Musk!), say about a given asset.
It may be hard to believe but a tweet from Elon Musk can shake the entire crypto market and cause some assets to lose or increase their value. This sort of analysis is also called fundamental analysis and requires you to consider disparate pieces of information together to obtain a clearer picture of the crypto market and to identify opportunities.
Use a Trading Schedule
Crypto day traders, especially beginners, often find themselves glued to their screens, anxiously waiting to see how prices move. This tendency towards always being up and alert creates a lot of stress and tension, and it doesn’t provide a good mindset for trading. While it may be tempting to be always on the lookout for new profit-making opportunities, the reality is that you will get burned out without a set trading schedule. Instead, make a trading plan and stick to it by being online only during certain times of the day. This will help you long-term, as you can preserve your energy (and health) and improve your day trading strategies.
Choose and Implement Trading Strategies
Trading strategies are various methods traders use to make profits. There are many day trading strategies traders employ, and each has its advantages and disadvantages. Some are riskier, whereas others are considered safer but less fruitful. As a beginner, you can try out some of the more basic strategies first, and move onto more complex methods later on as you begin to grasp how each tactic works.
One of the most important things about implementing a strategy is commitment. You should give it some time before you give up on a trading strategy, instead of trying to implement another strategy right away. Changing your strategy midway, or implementing more than one strategy at the same time can prevent you from learning helpful lessons, and it can be very confusing.
Use Stop-Loss Orders
Knowing when to stop can be a problem when you are day trading cryptos and especially when you are losing. You might be tempted to wait until the market recovers to make up for your losses or make other risky moves. Thankfully, most crypto exchanges have a magical feature just for that: You can place stop-loss orders that automatically sell an asset when the price reaches a certain level: This way your losses will be minimised.
Of course, nobody likes losing money, but it is an almost inescapable fact of crypto trading, and you shouldn’t take your losses personally or wallow in them. As such, it is very important to never invest more than you can afford to lose in cryptocurrencies or any other asset.
Day Trading Strategies You Can Try With 1000 USD
If you decide to start day trading with a 1,000 USD budget, don’t invest all of your money during your first week to try to make some cash. Day trading is a marathon, and as a beginner, you will have to learn the ropes before you can go all in. Try out a strategy with a small amount of your money to see how it goes, instead of using all your budget on the first try.
There are several strategies you can try out to see what works and what doesn’t. Once you commit to a strategy, it is important to wait until you see its results: good or bad. Especially during the first weeks of trading, your losses are as important as your wins because they will help you learn your way through the market. In other words, treat your losses as lessons to learn from, so that you can make better decisions in the future.
Once you learn the basics of day trading using the strategies we’ll outline in the next section as building blocks, you can develop your own unique plan to trade cryptos. As you learn more about market movements, your strategies will get better and more original, and you can try more combinations.
Arbitrage is probably the simplest crypto day trading strategy you can use but it requires swiftness, as well as attention. In arbitrage trading, crypto traders monitor the price of a selected trading pair, for example, the BTC/USD pair, on two or more crypto exchanges. If you see that the price of BTC is lower on one exchange and higher on another one, you can buy the assets from the former and sell them on the latter.
In order to make the most of arbitrage trading, you need to use a portfolio tracking app. This app can be integrated with an exchange platform to make your transactions even faster, which is quite important in day trading, as you don’t want to miss a window of opportunity when you spot one.
Crypto exchanges with more users and more trading volume tend to have lower prices as the competition is higher. Smaller exchanges usually have less liquidity and prices tend to be higher. Check out cryptocurrency prices on various exchanges before you commit to this strategy to identify the ones that will provide you with more arbitrage opportunities.
Crypto Bot Trading
Bot trading is frequently used by brokerage firms and professional traders on stock exchanges. A trading bot is basically software that automates trading by following programmed commands. You can instruct a bot to buy or sell a digital currency at a given time or when the predefined conditions have been met, such as an asset price hitting a certain level.
The advantage of using a crypto trading bot is undeniable as bots have no trouble processing complex information, such as calculating price changes across several exchanges and trading fees for possible transactions or analysing the overall swing of the market. However, a bot can’t make trading decisions by itself, and you need to decide on what you want it to do before you start bot trading.
Another advantage of using a bot is that you can try out a strategy by backtesting it. Backtesting allows you to simulate trading conditions from the past and see how your trading strategy would turn out given the conditions back then. Basically, you can test whether your hunches and decisions would lead to profit if you were trading at a given time. While the crypto market is constantly changing, backtesting is a good way of understanding how your strategies can hold up to the real market conditions.
Crypto scalping is a popular strategy for day traders and a good option to start with, as you can quickly see returns with this strategy. Crypto scalpers buy a certain amount of digital currency and sell as soon as the price increases enough to let them make profits.
Basically, you buy and sell digital currencies within the day in order to take advantage of small price changes. With scalping, you don’t wait to see if the price will swing even more; you simply sell when your profit is guaranteed. This is very easy to do, especially if you are using a trading bot to trade for you. Humans can get greedy for more but bots don’t have the same weakness.
While small profits from crypto scalping won’t make you rich overnight, you can build a steady income over time. Crypto scalping is less risky than other strategies, and it’s suitable for beginners.
Technical analysis is often used by brokerage firms and other professional traders on the stock market. Technical analysis uses historical and statistical data to make predictions about market movements. You can set up technical indicators that the software will track and make decisions based on statistical probabilities.
Technical analysis is a divisive subject in the crypto community, as some think it can’t effectively predict crypto market movements, while others still see value in using this strategy. While technical analysis can’t provide an accurate reading of the crypto market by itself, it can still be useful for traders as it allows you to compare past price patterns to find out how a strategy can possibly work.
You can use technical analysis in combination with other strategies. Since crypto markets are largely unregulated and prices of digital currencies change from one exchange to another, this tool won’t give you a clear idea of the market when used alone, but it can be valuable when combined with research.
Day Trading Crypto Guidelines
Let’s say you’ve chosen a crypto exchange, researched the cryptocurrencies you want to start trading, and picked a portfolio tracking app to help you monitor your digital assets. You might think that you are now ready to go and start crypto day trading, but there are some important things you need to understand before you make any decisions.
Crypto day trading is about research and strategy, and nothing will help you come up with the right strategies more than information. If you understand what makes crypto trading go round and round, you can make good decisions instead of just moving with the market as it twists and turns. So let’s talk about some core concepts that will help you become a good crypto day trader.
Understand Market Volatility
In order to be a successful crypto day trader, the first thing you need to understand is crypto market volatility. No other asset class or market, including property, precious metals, or the Foreign Exchange (Forex) stock market, sees such dramatic changes as the crypto market within a given time frame. Even the sole volatility of Bitcoin can cause the overall crypto market capitalization to fluctuate millions of dollars.
Still, there is an upside to such volatility for traders who don’t mind the risk: Price fluctuations allow people to buy at low prices and sell high to make profits. Of course, in order for one person to buy low and sell when prices are high, another person has to sell when prices are low and buy when prices are high. As you can see, loss and profit are both parts of the game, and crypto day traders race with each other to be on the winning side.
Beware of Pump and Dumps
Assets like Bitcoin and Ethereum are more mainstream than most altcoins, and the ownership of these assets is more decentralised, so their price fluctuations are milder compared to low-cap altcoins. The price of a less-known altcoin can change even more dramatically, especially because of pump and dump schemes that have become common over the years in the crypto community.
There are social media channels and Discord groups devoted to organising pump and dump operations, where the price of a single asset increases several times over within a short time frame before it crashes. As a crypto day trader, it is important for you to be aware of these operations and avoid getting sucked in the pump and dump cycle.
Have a Plan
Day trading can be addictive, especially as you observe swift price fluctuations. It is easy for a trader to blindly buy and sell assets just because they think they are seeing an incredible opportunity. However, blindly investing in random assets can deplete your resources very quickly, and you might find yourself at a huge loss.
Having a plan and setting clear goals will help you make more strategic investments. You can (and should) be spontaneous when you see an opportunity, but don’t let your feelings dictate your decisions. If you see an opportunity, make a decision and stick with it. If you buy a digital currency during a price dip, decide what would be an adequate profit and sell when the price hits your goal. You don’t want to wait and see what happens, as this could lead to you missing the opportunity.
Refrain From Chasing Your Losses
We talked about how risky day trading cryptos can be, but beginners are usually very optimistic about their prospects and can be shocked and stressed if their investment causes them to lose money. However, losing is part of the trading process, and you should accept your losses with as much grace as you can, instead of doubling down on high-risk bets.
A gambling mind can overtake your rational thinking process very easily when trading, so be alert and don’t exacerbate the risks when you are day trading. That means knowing when to stop and call it a day. Remember, this is a marathon, and there is always tomorrow. Learn from your losses and move on.
If you find yourself on a losing streak, you might have to re-evaluate your strategy and your trading plan. Risk management is one of the important aspects of day trading, and that requires rational thinking, so give yourself some time to cool down and re-think your investment choices.
Practice the Craft
Day trading is a craft like any other where you have to learn skills and get familiar with the subject of your interest. That means learning how to use the tools you have at your command, understanding market movements, learning more about cryptocurrencies and trading strategies. You might learn a great deal by reading about these subjects, but nothing can replace experience when it comes to improving your trading.
Some crypto exchanges even offer demo accounts where you can practice trading strategies without investing money. Even if you don’t want to use that specific exchange long-term, it is a good idea to open an account and start demo trading before you move on to the actual thing.
Staring day trading cryptocurrencies with small sums of money is the best way to earn experience. Don’t invest all your budget on a single bet. Instead, try different digital currencies and different strategies with smaller sums to see what works for you and what doesn’t.
We often see media stories of people who made it big by day trading cryptocurrencies. However, remember that crypto millionaires aren’t representative of most day traders. Most non-professional day traders (retail investors) are people who are looking to make a steady income. Dreaming big is fine, but don’t confuse dreams with reality when you are trading.
A Few Final Words Before You Go…
You don’t need to have a lot of money to start day trading cryptocurrencies, and 1,000 USD is a perfectly good amount if you are just starting out. The cryptocurrency market is very volatile and subject to frequent price fluctuations, and day traders can make profits from these price movements. However, the cryptocurrency market isn’t easy to understand and predict, so traders have to establish a good trading plan and have a couple of trading strategies under their belt to be successful day traders.
Above all, crypto day traders need to have patience, information, and an appetite for research. They need to gather information about different cryptocurrencies, crypto exchanges, and trading strategies to put together a solid trading plan. Portfolio tracking apps and trading bots can be very helpful for traders, as they can automate monitoring and trading activities through these tools.
Last but not least, crypto day traders should understand that trading is a marathon and not a sprint. It may take a while for you to get proficient in trading strategies and market analysis, but starting small and being patient can get you very far in the game.