Day trading with cryptocurrency ✅ Here's how

Day trading is considered to be one of the most lucrative ways to make money in the crypto market. But in practice, short-term trading with Bitcoin and Co. is not as easy as it sounds in theory. This article aims to give you an understanding of the basics of day trading with cryptocurrencies and how it works. 

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What are cryptocurrencies?

Cryptocurrencies – sometimes simply called crypto – are various types of currencies that exist digitally or virtually and that use cryptographic methods to secure transactions.

Cryptocurrencies have no central issuing or regulatory authority. A decentralized system is used to record transactions and issue new units. Crypto networks are often based on a decentralized database, the so-called blockchain, which is managed jointly by market participants.

The best-known and strongest cryptocurrency is considered Bitcoin. This was first traded in early 2009. In November 2021, the Bitcoin price reached its all-time high. At that time, a bitcoin was worth over 68.000 US dollars.

Basics of day trading with cryptocurrencies

Day trading is a strategy of buying and selling a financial instrument on an exchange-like market within the same day. It is also known as intraday trading, due to the fact that trades are usually opened and closed within a single day. The idea of ​​day trading has grown in popularity in recent years.

So, the goal of day trading is to profit from small movements in the market. Day trading on the crypto market is considered to be particularly profitable as cryptocurrency prices can be very volatile. For comparison, it is a rarity that a traditional stock or a raw material has increased in value by 10 percent or more in a single day. Such jumps are very common in cryptocurrencies.

As with other forms of cryptocurrency trading, day trading goes beyond mere speculation. It requires a strategy adapted to the peculiarities of cryptocurrencies and a deep understanding of the fundamental and technical processes in the market.

Most day traders rely on technical analysis to generate the right ideas. They use current price action, volume, chart patterns and other indicators to identify ideal entry and exit points for their investment decisions.

However, they also pay attention to important news and other developments that could affect the prices of the digital asset in the short-term. In a nutshell: learn the basics of day trading It is best if you deal extensively with the matter and show perseverance.

What speaks for day trading with a cryptocurrency?

Of course, the intention to make as much profit as possible is the main reason for day trading cryptocurrencies. Cryptocurrency prices fluctuate more than any other asset class. This presents an opportunity for all traders who know their way around the market.

At the same time, however, the volatility of the crypto markets also harbors a not inconsiderable risk. Day trading is often not for the faint of heart, as it requires minute-by-minute decisions and leveraged investment strategies.

However, as long as you have a solid cryptocurrency day trading strategy, can analyze trends and keep your cool under stress, the crypto market could be lucrative for you.

Special crypto day trading strategies

Short-term cryptocurrency trading will only be successful if you have the right cryptocurrency day trading strategy. The two most important are:


Scalping is a classic day trading strategy in which traders attempt to capitalize on increased trading volume. You can exit trades within minutes of entering them and take small profits in the process. Some scalpers also use software tools to automate their trading activities.


Arbitrage is one of the most popular strategies out there. It involves buying a cryptocurrency on one trading platform and selling it on another, taking advantage of price differences between the two platforms.

Conclusion: crypto day trading 

Day trading cryptocurrencies can be very profitable. However, long-term success in the fast and changeable markets requires a certain perseverance and good strategies. You should also always be aware that you can also make losses when trading.

Do you want to trade cryptocurrencies with the best conditions?
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Callie Machalat

Callie Machalat from understands the information needs of the crypto community members, traders, researchers and developers looking for reliable information to understand and participate in the crypto revolution.

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