Is it Profitable to Trade Cryptocurrencies on a Daily Basis – 2024 Review

If you do some digging online, you’ll learn that one of the most frequently used bartering strategies is, day trading. People who buy/sell assets on a daily basis are present in almost all financial markets including Forex, stocks, different commodities, and of course, the increasingly popular cryptocurrency markets.

However, is it really profitable to trade cryptocurrencies every day? Fortunately for all people that are looking for an answer to this question, this article will help. But, before we take a look at the reasons why it might be suitable for you, let’s first take a look at what day trading actually is:

Day Trading: Explained

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Simply said, day trading is a short-term trading strategy and individuals use it for holding a cryptocurrency for a few minutes to a couple of hours. The objective is to sell the cryptocurrency before the day ends, in the hope of making a quick, but generally small profit from the sales.

You can think of it as a strategy that incorporates entering and exiting positions on the same day. Since you’ll make the deals during the same day, it’s also commonly referred to as ‘intraday’ trading. The entire objective of the dealers is to utilize this strategy in order to try and make some money from the constant changes in the prices.

The expression “day trader” could also be heard in the stock market, where people can only operate during the week and the working hours. However, with the emergence of different trading platforms such as the ones featured on Day Trading, people can now access their trading accounts 24/7/365 in order to generate revenue.

So, How Do They Make a Profit?

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To be successful in the industry, it’s crucial that a tradesman has vast knowledge and understanding of the market. Most commonly, they will utilize different analysis in order to create trading strategies. Additionally, they might use the price variations, different chart patterns, as well as technical signs to determine the exit and entry points of the deal.

The objective of traders is to generate revenue from market volatility. Hence, some of the most crucial elements of day trading are to look at liquidity and volume, which is especially true when talking about the exiting points. Keep in mind, a large slippage that could occur will probably have a huge impact on your account, which is why they’ll most commonly buy/sell in liquid pairs.

What Are The Most Popular Strategies For Generating a Profit?

As we mentioned, it is possible for you to earn a small profit by day trading cryptocurrencies. However, you should know that you’ll need to use some strategies that will ensure that you generate a profit. The strategies that you’ll definitely want to consider using include:

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  1. Fading – is a strategy that a lot of people love and most people will short sell the cryptocurrencies that have a quick growth while assuming that other people might take a long position. This combination creates an imbalance between the purchases and sales, hence, the value will get lower.
  2. Scalping – most people working in this industry will sell as soon as their assets become profitable after they cover all of the interest expenses and commissions. This will turn out to be a suitable strategy only if you make small but profitable trades and if you act fast in order to prevent any losses.
  3. Momentum – in this case, the traders will purchase a cryptocurrency if it’s moving upwards with an improving volume. Next, they’ll make a sale when the price is moving down, assuming that the price direction continues, hence, they’ll be able to make a successful trade that’ll be profitable.
  4. The Daily Pivot – while assuming that most trade actions are on a daily basis, the person might choose to purchase for a lower price and then sell the assets when the price increases. Additionally, they could choose to sell it at resistance and then purchase the position again.

What Are The Benefits And Drawbacks?

By now, it’s pretty clear that you can make a large revenue from day trading if you utilize the right strategies and if you expand your skills and knowledge. However, you should know that there are some benefits, as well as drawbacks that you might come across, including:

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  1. You’ll Be Independent – one of the first benefits you’ll gain is that you’ll be self-employed, which means that you’ll be working for yourself and you won’t have to answer to anyone. Hopefully, you’ll be able to reap all the benefits by utilizing your knowledge and skills in the field.
  2. You’ll Feel Happy – there are only a few other things in life that can provide you with the same happy feeling of yielding a large profit that you earned by yourself and by utilizing all of your skills and strategies. Keep in mind, you’ll answer to no one, meaning that you’ll be able to use your profit on whatever you want.
  3. It Might Be Difficult to Stop – when you get the taste of those sweet earnings, you might start noticing that you spend more and more time on your trading account. However, although many will consider it a benefit, it’s actually a drawback, especially since it can cause stress.
  4. The Market is Always Changing – the market will constantly be changing which is one of the things that can drastically influence your revenue. This can also lead to you making some really big mistakes, all of which could cause you to lose a lot of money while trading.


Choosing to day trade cryptocurrencies can turn out to be a lucrative business. However, before you can be successful and generate a profit, you’ll want to expand your knowledge and improve both your experience and skills, which you can do by following some of the strategies mentioned above, as well as by reading everything there is about making such trades.

So, now that you’re aware that day trading can be a lucrative business, you might not want to lose any more of your time. Instead, you should open up a new tab and start searching for different guides and tutorials in order to learn more about the industry, as well as to improve your knowledge and skills.