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Day Trading Crypto: Explained Lucidly for Beginners!

Once upon a time only the large financial market institutions, brokerages, and trading houses traded activity on a daily basis on stock markets. However, the age of the internet has made trading more accessible. This has made the average individual investor trade on a regular basis.

Crypto day trading has come up as a lucrative career option for many. However, the daily trading aspect is a little challenging for beginners and novices. Even if you don’t have the proper know-how, technical knowledge, experience, plan, and strategy, you’ll not be able to make profits from crypto day trading of stocks (including blue chip stocks, penny stocks, value stocks, etc.), cryptocurrencies, and other tradable crypto assets. Even the most seasoned crypto day traders also experience loss.

So, let’s check out everything you always wanted to know about this trading strategy. This guide will help you to know the trading basic concepts to earn crypto and strategies associated with crypto day trading, which will ultimately help in entering the market.

What is Day Trading?

Day trade is the practice of traders to buy and sell securities and cryptocurrencies within a single trading day. Making profits from this kind of successful trades is most common in stocks, forex, and cryptos.

Crypto day traders are especially well-educated, experienced, and well-funded individuals who use high amounts of leverage and short-term trading strategies to make profits from small price movements, occurring in most liquid stocks, fiat currencies (US Dollar, Euros, Yen, Yuan, British Pound, and many more), and cryptocurrencies. As digital coins such as Bitcoin (BTC), Ethereum (ETH), and other altcoins have high volatility, a new breed of crypto day traders have started to focus on the digital currency markets.

These traders are attuned to events that cause price movements in the short term, especially within a day. They base their trading decisions on various factors including technical analysis, news, interest rates, corporate earnings, scheduled announcements, crypto market trading psychology, crypto market expectations, and many more. Crypto day traders take advantage of the sudden but significant price movements of the stock markets, currencies, and cryptocurrencies that take place due to crypto market reactions on many factors.

What are the Popular Strategies to Day Trade?

There are many popular daily trading crypto strategies, also called intraday trading strategies and they are:

  • Scalping

It is one of the most popular trading strategies that involve attempts by crypto day traders to make multiple small profits throughout a single day by taking advantage of small price changes.

  • Range Trading

This kind of trading is used by those crypto day traders who rely on technical analysis. They mainly use the supports and resistances for buying and selling stocks, fiat currencies, or digital coins.

  • News-Based Trading

Many crypto day traders wait for news that has the potential to make the market forces react, thereby increasing the volatility of price changes. With increased volatility, news-based traders seize the opportunity to make small-to-large profits from favorable price movements.

  • High-Frequency Trading (Hft)

Sophisticated algorithms are used in this trading strategy for exploiting small or short-term market inefficiencies.

What are the Characteristic Features of a Day Trader?

A professional crypto day trader usually has the following characteristic features:

  • In-Depth Knowledge and Experience of the Marketplace
  • Sufficient Capital
  • Knowledge and strategy of technicals
  • The discipline of trading regularly
  • Availability of analytical Software

Is it possible to day trade crypto?

Cryptocurrency exchanges serve a worldwide clientele, are unregulated, and operate around the clock. Crypto day traders can place orders at any time of day or night, and exchanges are always open for trading.

How many times can you trade crypto in a day?

Most exchanges do not impose a daily transaction restriction. So you may exchange BTC as many times as you like each day. You may purchase and sell coins 24 hours a day on a crypto exchange.

Is crypto trading on a daily basis profitable?

Due to the extreme volatility of the cryptocurrency market, day trade may be quite profitable. The good news is that even when volatility is low compared to other asset classes, it is strong enough to earn a return on transactions.

How to Become a Crypto Day Trader?

Step #1: Pick cryptocurrencies with high volatility and liquidity as your first choice.

Step #2: Apply the Money Flow Index Indicator on the 5-Minute Chart.

the 5-Minute Chart with the Money Flow Index

This day trading method employs the Money Flow Index as a technical indicator. This indicator tracks the smart money’s activities and measures when financial institutions purchase and sell cryptocurrencies.

The MFI indicator should be set to 3 periods.

Step #3: Wait for the Money Flow Index to reach the 100 level.

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

Which crypto is best for day trading?

Best cryptos to trade daily are:

Ethereum (ETH): The second-largest cryptocurrency by market size, sees high trade volumes. It is very volatile, although the degree of volatility depends on market circumstances, current events, etc.

Tron (TRX): Tron is the fastest-growing blockchain with high trading volume. Like other cryptocurrencies, you never know how unpredictable the next price change will be.

Binance Coin (BNB): Binance, one of the major crypto exchanges, backs this coin. It is the fourth most traded coin on the market.

It is generally more volatile than the other two cryptocurrencies, although nobody knows for sure. To trade BNB effectively, keep up with the latest news on the cryptocurrency exchange, the coin itself, etc. (EOS): has significant trading volume. It’s quite volatile. According to Coindesk, recently surged 100% in one day after the network recommended increasing staking payouts. So keep up with the latest bitcoin news to take advantage of such chances.

Tether (USDT):

Tether is the dollar’s stable coin. While not optimal for profiting, USDT can be useful to traders.

Can you buy and sell crypto all day?

​​Cryptocurrency trading is unique in that it is open 24 hours a day, 7 days a week. We are fortunate to have a market that never closes.

Should You Start Day Trade?

Yes, you should start trading daily only if:

  • You have some knowledge about the market conditions (stock/crypto/fiat currencies)
  • Experience of trading
  • Good and clear idea about your financial goals, capital available, and risk tolerance level.
  • Know-how of analyzing technicals, trading strategies, knowledge to read chart patterns.

Buy Cryptocurrencies Now

If you are ready to invest in altcoins or buy Bitcoins through online brokerage accounts of centralized or decentralized cryptocurrency exchanges, you can do so in a legit way by investing through cryptocurrency apps. You have to open an account with such an exchange, verify details (including basic personal information), and then fund your cryptocurrency trading account.

The best thing about Bitcoin and different types of cryptocurrencies is that the transactions are done without the intervention or involvement of central banking authorities or other banking entities. This is one of the reasons why more and more investors (including corporates, venture capitals, and institutional investors) are heavily investing in cryptos.

You can start depositing funds to your crypto exchange account to buy cryptocurrencies by connecting your bank account (savings accounts or checking accounts), transferring fiat currency money online through bank transfer, credit cards, debit cards, and other payment options. If you need further assistance, you may consider taking help from the vibrant and helpful cryptocurrency communities. You can trade cryptos with credit cards (business credit cards or personal ones), debit cards, or other payment options through reliable crypto trading platforms. You can also check the savings calculator to know how much you should save on a weekly, monthly, or yearly basis. Check the financial news to know more about the prospects of various assets so that you can build long term wealth

In case you are bullish on the future prospects of Bitcoin BTC, Ethereum ETH, Bitcoin Cash BCH, Litecoin LTC, and other altcoins, you can start investing in Bitcoin and other altcoins with USD. Then transfer them to hot wallets (including mobile app wallets and software wallets) or cold wallets (including most secure hardware wallets) and hold them for a longer time period for a significant price appreciation. Keep your XRP safe with Ledger Nano S, Trezor One, other Ledger and Trezor models, or other popular ones.

This will help you get a higher return in the long run, much more than investing in stocks (both day trade stocks, short period investment stocks, and long term products), mutual funds, index funds, real estates, yield savings accounts, real estate investment trusts, fiat currency or real money trading (forex trading), and others. In fact, many retirement funds, retirement accounts (IRA accounts such as Roth IRA) are allowing cryptocurrency investors to purchase XRP, Bitcoin, Chainlink, and other digital assets of investment in the portfolio so that the prospects of these funds increase due to the higher returns of cryptos. If you are thinking about building wealth, you should include cryptos in your portfolio like other crypto investors.

Therefore, it can be concluded that holding Bitcoin Ethereum and other cryptos can help you to build real wealth and multiply your net worth. You can learn investing basics to buy crypto currency and other digital assets to make more gains. You can start going through Wall Street Journal and other investing magazines on cryptos to learn more about investing in cryptocurrencies and make better financial decisions. You can learn about valuation calculation to true bitcoin value and assess the overpriced or underpriced situations instantly. As a beginners guide, you may also check out the trading basics provided by various cryptocurrency exchanges such as Coinbase, Binance, Kraken, and others. There are many brokers for beginners as well. So, read reviews of customers before joining a crypto exchange.

Defi tokens and NFTs (Non Fungible Tokens) are the next generations of crypto coins. These decentralized coins have started to become very popular among traders who trade cryptocurrency. You can buy and sell them through cryptocurrency trading platforms too. Whether you buy Ethereum ETH or buy Dogecoin, you should also invest in Chainlink LINK, Litecoin LTC, Binance Coin, Cardano ADA, Polkadot DOT, Dogecoin DOGE, and trade Litecoin LTC for better diversification of coins. To diversify your portfolio, you may also buy stocks through stock brokers.

Get better guidance on improving your personal finance, retirement planning, management of cash flows or capital gains, and investment ideas from financial advisors and wealth managers or hedge funds, especially the ones who are not averse to cryptocurrencies such as Bitcoin and others.

While day trading, you should always try to invest only that much which you can afford to lose money. When you do margin trading, be very careful. Financial protection must be there in your mind always while you make cryptocurrency trades. That’s why having a secure financial plan is so important.

You should definitely learn about

  • Trading for beginners
  • Different trade ideas
  • How to choose brokerage firms and stock exchanges?
  • Using price actions to one’s advantages
  • Margin Requirement
  • Margin Call
  • Margin Account
  • Daytrading Margin
  • Trend Trading
  • Market Maker
  • Fundamental Analysis
  • Short Sell
  • Market Research
  • Success Rates Of Day Trades
  • Trading Vs Investing
  • Swing Trading
  • Time Frames Of Trading
  • Successful Ways Of Buying Stocks And Cryptos Throughout The Day
  • Risk Management
  • Financial Industry Regulatory Authority
  • Trade On Margin,
  • Foreign Exchange Trade
  • Pattern Day Traders
  • Day trading rules
  • Active trading
  • Secrets of a successful day trader
  • Stock price actions
  • Day Trading Tools and trading software, and many others.

Day trading guides and trading courses can be of immense help in this regard. Also check out informative sites such as motley fool for more information. While investing in cryptos, try to buy BTC, LTC, and others through centralized or decentralized exchanges and reliable online brokers.

Choose Cryptocurrency Copy-Trading Bots to Increase Crypto ROI

Cryptocurrency Trading Robots (such as automatically scan the market in real-time and trades for you. They run 24×7, which means that you can keep earning your passive income even when you are sleeping. This gives you an edge over other investors as it enables the bot to book profits on your behalf when other investors are sleeping.

Smart crypto investors always remain prepared to get the best of a big market move. They don’t wake up suddenly. To remain alert round the clock, they use cryptocurrency trading bots so that they don’t miss any big market movement. is a Trading Bot, cloud-based platform, on which you can connect to major crypto exchanges such as Binance, Bitmex, Bitfinex, OKEX, Kraken, Bitstamp, and Bitpanda.

The best thing about the Napbots trading software is that you don’t have to monitor charts and candles to predict your next move. Any novice trader with zero skills can also start trading like a pro and earn money with this unique trading tool. Let Napbots take full control over your trades in just a few clicks. Now, sit back and enjoy earning money.

You may also check “Napbots Review – Simple Way To Increase Your Crypto Returns” before taking the plunge.

What’s so special about NapBots?

NapBots crypto trading software is special because it comes with:

  1. A unique trading algorithm that processes market data for you
  2. A unique crypto trading robot library so that you can create your own mix of trading strategies
  3. Autopilot mode that enables you to automate trading 24×7
  4. An easy-to-use interface so that you can copy the proven strategies of NapBots to make successful trades and make money

How does NapBots help you to Make Money?

With NapBots, you can enjoy financial independence by trading cryptocurrencies on autopilot mode and earn money automatically. To make it work on your behalf, you have to do the following:

Step #1: Connect to one of the available trust crypto exchanges.

Step #2: Select from the unique list of performing Bots of NapBots

Step #3: Choose a plan that suits your investment style

Once you have completed these three steps, NapBots is ready to trade cryptos and earn money for you. Happy Trading!

Why Choose NapBots?

  • NapBots offers complete trading automation solutions through the use of its own tested trading strategies; offering quantitative automate trading strategies previously reserved for hedge funds to the public.
  • The setup and installation process are easy. So, the non-experts can also use it. The simple and special approach of NapBots helps it provide you with excellent ROI.
  • The team of professionals behind NapBots has extensive experience in the financial market. They have put their years of experience in place so that you can easily automate the management of your funds with no technical skills. This service can run 24/7 and work as your passive source of revenue even when you sleep.

Related Resources:

If you still need assistance, you can refer to the following step-by-step purchasing guides for the various payment methods: