How to Make Money Day Trading Bitcoin
How to make money day trading bitcoin must be one of the most frequently asked crypto-related questions. Cryptocurrency trading used to be the territory of the fintech minds, but with the advent of all things online and easy-to-use crypto exchange platforms, everyone can now do it.
Crypto day trading attracts thousands of new users every day, and the number is expected to continue to rise. Looking to join in?
Let’s find out below what day trading bitcoin is and whether it’s really worth it.
The Basics of Day Trading Crypto
Crypto day trading is the buying and selling of digital assets with the aim of making a profit within the same day. The main idea is to buy at a lower price and sell high. Sounds pretty easy and lucrative, doesn’t it?
Indeed, all you need to do to become a day trader is open a trading account and make a deposit. From that point onward, unless you’re just plain lucky, it can be challenging for beginner traders who have no knowledge of the day trading crypto rules and strategies.
Speaking of which – we strongly recommend our recent blog post on crypto day trading strategies for 2021.
How Much Money Do You Need to Start Day Trading Bitcoin?
According to some financial advice – the more, the better. That is only true in relation to commission. Also, the more money you have to invest, the more you can afford to lose. If, however, you’re on a tight budget, our advice is to never invest money that you can’t afford to lose.
Start by investing a little and see how it goes. Sometimes, you’ll get lucky, but you have to keep in mind that the prices always fluctuate. No surprise you can win some or lose a lot in just a few hours!
Which Exchange to Pick?
Deciding on which crypto exchange to choose can be frustrating. There’re just too many!
Look for an exchange that’s secure, offers both simple and advanced features, lower fees, prompt execution, and great service. Wait, that’d be CoinMetro.
We’re not afraid to say we’re positively the best exchange in the industry. Being exceptionally regulated, we aim at suiting everyone’s needs – from novice to seasoned traders.
How to play cryptocurrency trading? If you just want to try your hand at trading, feel free to check out CoinMetro’s Demo Version. Don’t worry – no real funds involved.
How Do I Make Money Trading Bitcoin?
Crypto day traders make money by trading bitcoin with the aim of buying low and selling high. This trading strategy implies holding your position for a short period of time – minutes or hours. Day trading rarely means holding your positions overnight. After all, the name of the trading strategy suggests closing your positions by the end of the day.
True, the crypto market is open 24/7. This can be considered both an advantage and a disadvantage. You can trade round the clock, but would you spend your nights monitoring the screens? Hardly so. But as the markets are always unpredictable, holding a position during the night can go both ways – good (as in uptrend) and bad (as in downtrend). You never know what you’ll wake up to.
Being a bitcoin day trader, you’d be thus interested in short-term price movements during the day that occur as a result of a happening that can impact the market. Breaking news, for example.
How to pick crypto for day trading? Day trading bitcoin makes perfect sense profit-wise. See, BTC is the best-known cryptocurrency and a volatile one, too.
Have a closer look at the graph below showing bitcoin price fluctuations throughout January 2020:
Source: The Block
Some profit could have been made there, don’t you think?
Bitcoin can be volatile enough even for an experienced trader. Meaning? Volatility is generally your friend. Day trading wouldn’t be possible if all cryptocurrencies were stable coins.
Equally important, bitcoin is a liquid digital currency. In other words, it can easily be converted into ready cash. It is no exaggeration to say that all major crypto exchanges deal with bitcoin.
By the way, we published a number of useful articles about how to withdraw bitcoin to cash.
Is Day Trading Crypto Worth It?
Yes and no.
Yes because it’s easy and available to everyone. Definitely yes if you are able to manage your risks to the point of not investing unreasonable amounts of money.
Maybe no because no trader can profit every single time they place an order. Using additional day trading crypto tools, such as stop-loss, to prevent actual losses – yes, but profiting every time when closing a trade – highly doubtful.
How to make money day trading bitcoin? By doing your research before starting out. Make sure you know what you’re doing. Educating yourself requires some time and effort, but it will pay off in the long run. Making profits consistently takes more than just good luck.
Good news – there’s the one thing that’s been sorted out for you. The best crypto exchange for beginners and pros – CoinMetro. Don’t waste any more time looking for a better alternative and jump on board!