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Crypto Day Trading Pros and Cons

Pros and Cons of Day Trading in Crypto

So as the name suggests, day trading in crypto is a short-term trading method in which buying and selling of cryptocurrencies are done on the same day to profit from modest price variations that occur during the day. It is a high-risk endeavor made possible by the cryptocurrency markets’ extraordinary volatility and liquidity. Day traders can make a lot of money thanks to the advent of crypto trading. However, day trading necessitates a deeper understanding of crypto and blockchain technology to achieve consistent success.

Day Trading – An Intro

Crypto day trading is a trading method in which crypto assets are bought and sold on the same day. This is an excellent technique for those who want to participate in the cryptocurrency market but don’t want to step into the complexities of buying and selling cryptocurrencies. Without actually owning any cryptocurrencies, this trading style tries to make rapid gains by betting on short-term price swings. Unlike traditional day trading, Crypto day trading necessitates a deeper understanding of crypto and blockchain technology to achieve consistent success. It is a high-risk investment made viable by the cryptocurrency markets’ unique volatility and liquidity. So, it’s crucial to realize that day trading comes with dangers like any other kind of investing. Day trading may only be profitable over time if traders take it seriously and do their homework.

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Day Trading Strategies

As we already know, day trading is technical and may only be profitable over time if traders do proper research. Moreover, day traders must be diligent, focused, objective, and emotionless in their work. In addition, candlestick chart patterns, trendlines and triangles, and volume are some of the crucial instruments day traders should know. 

Besides these, here are some pointers for entering the high-stakes, high-risk world of day trading. If you want to make money buying and selling stocks in one day, you can try them out, but don’t expect to succeed right soon.

Begin Small

Start with the minor day trading stocks. When you enter the market as a newbie, limit yourself to one or two stocks per day. Seeing opportunities is much easier with only a few stocks to track. Trading fractional shares have become increasingly popular in recent years. This allows you to specify lesser monetary amounts to invest.

Trading at the Right Time

After the markets open in the morning, investors and traders begin to place orders, further contributing to price volatility. A trader may be able to spot trends early on and place orders to benefit. For newbies, reading the market without making any moves for the first 15 to 20 minutes may be preferable. It is typically less turbulent in the middle of the day. At the end of the day, the pace picks up again. Although rush hours provide chances, newbies should avoid them at first.

Knowledge Is Power

Complete your research. Make sure of the budget you want to invest in. Keep up with the selected firms, equities, and the overall markets. Examine business news and save links to reputable online news sources. Determine how much money you’re willing to risk on each deal and stick to it.

Reserve money that you are willing to lose and that you can trade. It necessitates your attention and time. The best scenario is if you had constant monitoring of the markets and the ability to detect opportunities throughout trading hours. It’s crucial to stay alert and move fast.

Profits Should Be Realistic

To be profitable, a plan does not have to be successful all of the time. The crypto market can be nerve-wracking at times. To be a successful day trader, you must learn to control greed, hope, and fear. Make your decisions using logic, not emotion. Ensure each trade’s financial risk is confined to a certain percentage of your account and that entry and exit methods are specified.

Follow the Plan

Successful traders must move quickly, but they do not need to think fast. Intelligent day traders can use options methods to hedge their positions. They’ve planned ahead of time a trading strategy and have the discipline to stick to it. It’s more vital to stick to the formula than to make money. Choose the order types you’ll use to initiate and exit trades. It’s handy when you merely want to get in or out of the market without worrying about receiving an actual price.

Advantages of Day Trading

Day traders can maximize their profits by using the unique features offered by the crypto market.

The market is open around the clock.

One of the most distinctive features of crypto trading is that it is available 24 hours a day, seven days a week. Because the market never closes, trades can be made at any time. Depending on your time zone, you can access markets on any day or night. You also don’t have to be concerned about losing out on possibilities that come during regular business hours because they can happen at any time.


One of the most appealing aspects of day trading crypto is the ability to profit from volatility. You can benefit from the market’s ups and downs because it will naturally fluctuate in price during the day. The trick to making this work for you is to take tiny positions so that your loss isn’t as significant as if you took an enormous investment. Another advantage of day trading cryptocurrency is that you have more control over your trades than someone who invests directly in a stock or bond market. Unlike cryptocurrency, those assets do not trade every minute of every hour of every day.  

Data Transparency

Cryptocurrency values are listed on exchanges worldwide, making them easily accessible to anyone looking to buy or sell, and you do not have to pay fees to use exchanges. That means you can examine data critical to day trading without any restrictions. Similarly, these exchange interfaces will frequently include a variety of technical analysis tools. Although this will not make or break your decision to start day trading crypto, it is unquestionably a bonus and can assist you in getting started.

Disadvantages of Day Trading

There are also disadvantages to crypto day trading, just as there are to most things in our life.


The crypto market is small in comparison to other stock markets. It can be not easy to exit a position at the price you want at the time you want it, which is not ideal for a day trader. Slippage is a more significant issue in financial markets than in other asset types.


If a marketplace fails, is hacked, or disappears with everyone’s money, there is no one to help you, and there is no insurance policy to help you recover your losses. Moreover, the 24/7 availability of the market could mean fewer times during the day when you can perform predictable and thus successful trades.

A Tiny Universe

While there are hundreds of cryptocurrency coins and tokens on the market, the reality is that only a portion of them are genuinely traded on most exchanges. Only a few coins can be exchanged on exchanges, and it can be challenging to enter and leave positions rapidly enough. This indicates that experienced traders or those who know what they’re doing should use it.

Bottom Line

It is essential to know about trading, its strategies, and its pros & cons. It’s the first rule to enter a business to do complete research about it. Similarly, knowing the crypto market is very important. After that, you can find if it is the best to fit for your present lifestyle and budget. It’s better to do your research.

Protip: BuzzShow Network is a game-changer in the crypto market. It is a very unique and good option to invest in. The platform rewards its user with “Goldies (GLDY)”, the platform’s native utility token for watching, sharing, uploading, and curating videos. You can earn these tokens on the platform and also trade them. In addition to being converted to ETH and Polygon Matic, they can be exchanged for fiat currency as well. 

Visit Buzzshow Network if you’re looking for a safe approach to start trading cryptocurrency.