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Table Of Contents

• What Is Crypto Day Trading?

• Which Crypto Is Best For Day Trading?

• How To Choose The Right Crypto For Day Trading

• 7 Tips On How To Day Trade Crypto Like A Pro

• 3 Best Strategies For Day Trading Crypto

• What Is The Best Crypto Platform For Day Trading?

• 10 Best Resources To Learn Crypto Day Trading

• Risks Involved In Day Trading Crypto

• Learn How To Trade Profitably in The Digital Dollars Trading Discord

What Is Crypto Day Trading?

Crypto-day trading involves opening and closing all your trades within one or two days. This strategy is less risky than taking a more prominent position and waiting for a more significant price movement or using leverage, which can amplify positive and negative movements. The goal of day trading crypto is to take advantage of short-term price fluctuations.

Reasons Why Crypto Day Trading is Popular

Day trading crypto is popular for a variety of reasons. First, it is generally considered less risky than taking a more prominent position and waiting for a more significant price movement or using leverage, which can amplify positive and negative movements. 

This is because day traders buy low and sell high or short an asset's price, hoping it will drop. Second, day trading seems perfect for the crypto market, which sees high volatility and liquidity, allowing for rapidly executed transactions. Additionally, day trading is more accessible to create short-term technical analyses.

Market Sentiment and Price Movements in Crypto Day Trading

When day trading cryptocurrencies, you must closely watch market movements and sentiment and be ready to act almost immediately when market trends change. Market trends change rapidly when discussing the cryptocurrency market, which is characterized by its high volatility.

High Volatility and Opportunities in the Cryptocurrency Market

Day traders rely on changing market trends to open and close profitable trades. The cryptocurrency market is characterized by high volatility, which means more opportunities for profit.

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Which Crypto Is Best For Day Trading?

1. Bitcoin (BTC)

• Average daily volume in May 2024: $103.5 billion

• 30-day volatility: 2.4%

Bitcoin is the leader in the crypto world and the preferred choice for many day traders. With high liquidity, large trading volumes, and a well-established market, Bitcoin offers ample opportunities for day traders to profit from short-term price fluctuations. Traders also benefit from the availability of Bitcoin trading pairs on most exchanges, making it easily accessible for day trading strategies.

2. Ethereum (ETH)

• Average daily volume in May 2024: $21.4 billion

• 30-day volatility: 3.0%

Ethereum, the second-largest cryptocurrency by market capitalization, is another top choice for day traders. With its smart contract functionality, Ethereum provides many trading opportunities. The cryptocurrency's robust ecosystem, filled with decentralized applications (DApps) and tokens on its blockchain, results in high trading volumes and liquidity. Ethereum's price movements exhibit significant volatility, making it attractive for day trading strategies.

3. Solana (SOL)

• Average daily volume in May 2024: $5.54 billion

• 30-day volatility: 7.5%

Solana, a highly efficient blockchain platform capable of executing smart contracts, has emerged as a serious competitor to Ethereum. Integrating the Proof-of-Stake consensus mechanism with features like Proof-of-History enables Solana to process thousands of transactions per second at low costs. Solana sees use across diverse sectors, from decentralized finance to NFTs, making it a popular choice for day traders.

4. XRP (XRP)

• Average daily volume in May 2024: $2.04 billion

• 30-day volatility: 3.7%

XRP, known for its fast and low-cost cross-border payment solutions, is a top choice for day trading. With a large market cap and widespread support on significant exchanges, XRP's price movements can be influenced by partnerships and collaborations, creating opportunities for day traders.

5. BNB (BNB)

• Average daily volume in May 2024: $1.51 billion

• 30-day volatility: 8.9%   

As Binance's native cryptocurrency, BNB has gained popularity among day traders. Benefits include reduced trading fees and participation in token sales on the Binance Launchpad platform. With Binance's increasing adoption, BNB has seen substantial growth in trading volume and liquidity, offering traders ample day trading opportunities.

6. Tron (TRX)

• Average daily volume in May 2024: $1.39 billion

• 30-day volatility: 2.0%   

Tron stands out among day traders due to its wide availability across crypto exchanges and deep liquidity. TRX's volume regularly surpasses $1 billion, making it a popular choice. Notably affordable for transferring crypto due to low fees, TRX is widely used for transferring USDT, the largest stablecoin in the market.

7. Dogecoin (DOGE)

• Average daily volume in May 2024: $1.28 billion

• 30-day volatility: 9.5%

Despite starting as a meme coin, Dogecoin has become a prominent cryptocurrency for day trading. Its high volatility and active trading community lead to frequent price fluctuations, offering traders opportunities to profit from short-term movements.

8. Near (NEAR)

• Average daily volume in May 2024: $835 million

• 30-day volatility: 14.5%

Near, the native token of the NEAR Protocol layer 1 network is attractive to day traders due to its high volume, availability across multiple exchanges, and substantial volatility. These factors make Near well-suited for day trading strategies.

9. Chainlink (LINK)

• Average daily volume in May 2024: $820 million

• 30-day volatility: 7.8%

Chainlink has recently risen to the top 10 most traded coins, demonstrating high volatility and daily average volume. These factors contribute to its popularity as a top choice for day traders.

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We've helped our students to make upwards of $30,000+ in a single day through our 1-1 mentorship, Exclusive Workshops & VIP Events, Daily trading signals, live calls, and expert tips from Trey. Escape the rat race with Trey and the rest of the Digital Dollars Trading community today. Try it out today!

How To Choose The Right Crypto For Day Trading

1. Liquidity

Liquidity is the first aspect to consider when choosing the proper crypto for day trading. Liquidity refers to how easily a cryptocurrency can be bought and sold without affecting its market price. Higher liquidity means smoother and quicker transactions. Popular cryptocurrencies like Bitcoin and Ethereum consistently rank high in liquidity, making them popular choices for day traders.

2. Volatility

Volatility is another key factor in selecting a cryptocurrency for day trading. Volatility in crypto is a double-edged sword: it presents risks and opportunities. Day traders often thrive on volatility as it creates more profit opportunities. Altcoins, alternative coins to Bitcoin, usually exhibit higher volatility, making them attractive for day trading. However, remember that with higher potential rewards come higher risks.

3. Market Capitalization

The market cap of a cryptocurrency is also essential to consider when choosing the right crypto for day trading. Cryptocurrencies with larger market caps are more stable and less susceptible to manipulation. On the other hand, smaller market cap cryptos can offer larger gains but come with increased risk. As a day trader, having a mix of large and medium market cap cryptos can offer a balanced portfolio that is safe and profitable.

4. Market Sentiment

Another aspect to consider when selecting a cryptocurrency for day trading is market sentiment and the latest news in the crypto world. Stay updated with the latest news and trends as cryptocurrencies that are frequently in the news for good reasons can see increased trading volumes and price movements. A sentiment analysis tool can help gauge the market’s mood towards a particular crypto, aiding in making informed trading decisions.

5. Goals & Risk Tolerance

Finally, consider your goals and risk tolerance when choosing the proper crypto for day trading. Are you seeking quick profits or more comfortable with steady gains? Your strategy should align with your financial goals and the level of risk you are willing to take. By considering these factors, you can make informed decisions that align with your trading objectives.

7 Tips On How To Day Trade Crypto Like A Pro

Stay Informed and Educate Yourself

Stay informed about the cryptocurrency market, trading strategies, and technical analysis. Continuously educate yourself to improve your trading skills and knowledge.

Start Small and Grow Gradually

Begin with a small amount of capital to mitigate potential losses while you learn and refine your trading strategy. As you gain experience and confidence, you can gradually increase your trading capital.

Set Clear Goals for Every Trade

Set clear goals for every trade as a day trader; you want to be in and out. You can't let greed or fear keep you from closing a position. When the time limit you set expires, take whatever paper profit or loss you have and don't look back. It's incredible how much money people lose trying to chase their losses or maximize returns.

Implement Risk Management Techniques

Implement risk management techniques such as setting stop-loss orders to limit potential losses. Diversify your portfolio to spread risk across different cryptocurrencies.

Use Stop Loss Orders

Use stop loss orders as an excellent way to take the emotion out of day trading. Set yourself a stop loss when you open your position to ensure you don't lose more money than you can afford. That way, the app will automatically liquidate your position when this limit is reached, removing the risk of you feeling compelled to hold on for a reversal that never comes.

Use Take Profit/Limit Orders

Use take profit/limit orders, like stop losses, these help you maintain a healthy level of stoicism. Setting a take-profit order to sell your coins as soon as your target return (1-2%) is realized will prevent you from holding on in the hope of more significant gains. More often than not, the trend reverses before you can react, and you go from an excellent 2% return to a -1% loss in the blink of an eye.

Control Emotions

Control emotions, as emotions can cloud judgment and lead to impulsive decisions. Stay disciplined and avoid making trades based on fear or greed. Stick to your trading plan and avoid chasing losses.

3 Best Strategies For Day Trading Crypto

1. Steady Incremental Profit Accumulation Strategy (SIPAS)  

As a day trading newcomer, minimizing the chance of market swings and fluctuations is advisable. Now, that can be tough when dealing with volatile instruments like crypto, but there are some measures you can take. This is where a good conservative strategy like SIPAS comes in.  

Use USDT As Your Base Currency

It's hard enough to allow intense fluctuations on one side of a crypto pair but never mind both. As a stablecoin, Tether is immune from the wild swings commonly seen on the crypto market, which means you can focus all your attention on the coin you are hoping to profit from. Whenever you are asked, "Which crypto coins are best for day trading?" Consider recommending USDT as one of the best crypto day trading coins.  

Set A Realistic Profit Target

Aim for a 1-2% return from several different altcoins that have demonstrated relative stability over the past 2–3 days. You should shoot for 7–12% profit per 12-hour trading shift, which translates to a weekly profit of more than 50%.  

Avoid More Volatile Altcoins

While you can make 5-15% on a single trade with a more volatile asset, you can lose just as much, too. You can certainly make money trading massive swings, but this is an entirely different strategy and not one for absolute beginners. With SIPAS, you ought to limit yourself to 1-2% returns over multiple trades in order to avoid big losses.  

2. Swing trading strategy  

Prolific trader Jesse Livermore, often referred to as one of the best crypto day traders to follow, once said: "It is the big swing that makes the big money for you." He also applied swing strategies quite successfully to make bumper profits. On its most basic level, swing trading involves holding positions longer than 24 hours. Swing traders generally keep their positions open for 3 days and 3 weeks, usually around heightened volatility, such as reporting season or regulatory reviews.  

In a market as volatile as crypto, however, it can be used any time. Swing trading is really a blend of day trading and position trading, with an emphasis on technical analysis. When looking for swing opportunities, traders first have to identify resistance or support levels. Then, they try to find a bearish or bullish trend on the brink of a reversal in order to strike just as the countertrend begins.  

This strategy can undoubtedly bring huge returns. The only problem is the potential losses it could see you run up just as easily. Aside from the advantage of buying opportunities at multi-month lows, crypto beginners might be better off leaving swing trading when they've gained more experience.  

3. Stop-loss hunting  

This strategy is more for the market makers or whales, as they're known in the crypto context. How does day trading crypto work with the stop-loss hunting strategy? Essentially, it involves selling large quantities of a coin to push the price down and trigger stop-loss orders. Once the price is sufficiently depressed, the whales then buy up all the recently discounted coins, which often triggers a recovery by itself.  

Stop-loss hunting works best with low-volume/small-order book coins. Provided they hold enough coins, whales can force down prices by placing a myriad of simultaneous market-price sell orders. But what if I told you you don't need to be a whale to take advantage of this strategy?  

You might not be able to initiate the process, but if you can spot it in motion, you can ride the whales to a decent profit. Because stop-losses are typically placed around psychological levels, we often see violent fluctuations around these resistances. Therefore, when you spot the price of a coin falling rapidly in and around such levels, get ready to buy in.  

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What Is The Best Crypto Platform For Day Trading?

1. Binance  

Binance, the world's largest crypto exchange, offers low fees, low slippage, and a vast array of over a thousand trading pairs for crypto day traders. With an easy interface and a wide range of products, Binance suits beginners and experienced crypto day traders.  

2. Coinbase  

Coinbase is a reputable and user-friendly cryptocurrency exchange that is a solid choice for day traders due to its intuitive interface, high liquidity, and variety of products available.  

3. Phemex  

Phemex is a high-volume centralized crypto exchange popular worldwide, offering high liquidity across markets. For new crypto day traders wanting to practice trading strategies without risking actual funds, Phemex stands out with its simulated trading market.  

4. Kraken  

Kraken is a trusted and popular exchange globally, boasting high liquidity and low slippage. This exchange is excellent for setting up custom bots for automated trading, as it collaborates with many trading bot providers and offers comprehensive API documentation.  

5. Mexc  

MEXC is a well-known crypto exchange, notable for its incredibly low trading fees, starting at 0% for both makers and takers. Although there is no fiat off-ramp, MEXC is excellent for day traders seeking a wide range of cryptocurrencies. The copy trading feature is a great way to imitate or get ideas from top-performing traders.

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Unlock financial freedom through expert options and crypto trading guidance with Digital Dollars Trading. We provide a premier community, mentorship program, and proven strategies to help you master profitable trading. 

We've helped our students to make upwards of $30,000+ in a single day through our 1-1 mentorship, Exclusive Workshops & VIP Events, Daily trading signals, live calls, and expert tips from Trey. Escape the rat race with Trey and the rest of the Digital Dollars Trading community today. Try it out today!

10 Best Resources To Learn Crypto Day Trading

1. Digital Dollars Trading

Are you looking to unlock financial freedom through expert options and crypto trading guidance? Look no further than Digital Dollars Trading. With a premier community, mentorship program, and proven strategies, we help you master profitable trading. Students have made upwards of $30,000+ in a single day through our 1-1 mentorship, Exclusive Workshops & VIP Events, Daily trading signals, live calls, and expert tips from Trey Munson. Join Trey and the Digital Dollars Trading community today to escape the rat race.

2. Coinbase Learn

Need a comprehensive educational platform to explain the concepts of digital currencies and blockchains? Coinbase Learn hosted by the popular cryptocurrency exchange, Coinbase, allows first-time crypto holders and veterans to brush up on technical knowledge and explore how the underlying technologies work.

3. Udemy's Cryptocurrency Fundamentals Course

Are you a beginner looking to learn how to use, buy, sell, and trade cryptocurrency in just over two hours? Udemy’s Cryptocurrency Fundamentals course is the perfect fit for you, ranking as the best course for beginners.

4. Crypto Zombies

Want to learn blockchain development through gamification? Crypto Zombies, an Ivan on Tech Academy creation, offers an innovative approach to teaching blockchain development through interactive coding lessons with a zombie-themed narrative. It caters to both beginners and experienced developers, gradually increasing in complexity.

5. Binance Academy

Are you a crypto beginner looking to get acquainted with key terms and concepts in the cryptocurrency and blockchain ecosystem? Check out the Binance Academy provided by Binance, a cryptocurrency exchange and creator of the Binance Smart Chain smart contract platform.

6. Ledger Academy

Looking for an excellent resource for blockchain and crypto education directly connected to practical security in the crypto space? Ledger Academy, developed by the creators of Ledger, provides in-depth tutorials and courses tailored to enhance users’ understanding of hardware wallets, secure key management, and overall cybersecurity in blockchain.

7. Udemy's Algorithmic Cryptocurrency Trading Course

Need advanced trading strategies in cryptocurrency? Udemy’s Algorithmic Cryptocurrency Trading course offers five cryptocurrency trading strategies and tested and ready-to-use Expert Advisors (EA) robots, making it the best course for advanced trading strategies.

8. Coindesk

Interested in crypto news, research articles, and more? Coindesk describes itself as a media platform for the next generation of crypto investors, serving millions of readers with the latest in digital assets and blockchain technology.

9. Coin Telegraph

Looking for a trustworthy resource for news and analysis in the blockchain and cryptocurrency space? Founded by Toni Casserly in 2013, Coin Telegraph delivers accurate, timely, and comprehensive news and analysis in the blockchain and cryptocurrency space, fostering a trustworthy environment for readers.

10. Udemy's The Complete Cryptocurrency & Bitcoin Trading Course 2024

Want to learn how to earn passive income from cryptocurrency trading? Check out Udemy’s lengthy Complete Cryptocurrency & Bitcoin Trading Course 2024, which promises to teach you just that.

Risks Involved In Day Trading Crypto

Engaging in day trading crypto signals can be thrilling, but it comes with its fair share of risks. Let's dive into the top risks that crypto day traders face in the vibrant realm of digital currencies.

1. Volatility

Crypto markets are known for their wild price swings. While these price fluctuations can present profitable opportunities, they can also lead to substantial losses. New traders may struggle to anticipate and respond to these price movements effectively.

2. Lack of Regulation

Unlike traditional financial markets, the crypto realm operates with minimal regulatory oversight. This lack of regulation makes the market more susceptible to fraud, scams, and manipulation. Day traders must exercise caution and conduct thorough research before executing trades to avoid falling victim to such activities.

3. Emotional Stress

Day trading requires quick decision-making and constant monitoring of the market. This can lead to emotional stress, causing traders to make impulsive decisions. Emotional responses can cloud judgment and lead to losses.

4. Lack of Knowledge

Many beginners need more in-depth knowledge for successful day trading. Without a solid understanding of trading strategies, technical analysis, and risk management, traders may make poor decisions that lead to losses.

5. High Costs

Day trading can lead to high transaction costs, eating into profits. Before starting day trading, individuals must consider these costs and ensure that the potential rewards outweigh the expenses.

6. Overtrading

The desire to make quick profits can lead to overtrading. Overtrading refers to excessive buying and selling of assets, resulting in higher transaction fees and increased losses due to market noise.

7. Market Hours

Crypto markets operate 24/7, unlike traditional markets. This constant availability can lead to sleep deprivation and burnout for day traders. Traders must establish healthy trading habits to avoid burnout.

8. Risk Management

Effective risk management is essential for day traders. Failing to set stop-loss orders or risking too much capital on a single trade can lead to significant losses. Traders must implement risk management strategies to protect their capital.

9. Technical Issues

Day traders rely heavily on technology to execute trades. Technical glitches, internet outages, or slow connections can disrupt trading activities and lead to financial losses. Traders must have contingency plans in place to address these technical issues promptly.

10. External Factors

External factors such as news events, regulatory changes, or unexpected market sentiment can lead to unpredictable price movements. These events may not align with traders' planned strategies, resulting in unexpected losses. Traders must stay informed about external market factors and adjust their strategy accordingly.

Learn How To Trade Profitably in The Digital Dollars Trading Discord

At Digital Dollars Trading, we understand that achieving financial freedom is a goal many people strive for but find challenging to attain. Our platform offers expert options and crypto trading guidance to help individuals unlock their economic potential. Through our premier community, mentorship program, and proven strategies, we equip our members with the knowledge and skills needed to master profitable trading in the crypto market.

Day Trading Crypto Signals

Our platform offers a range of resources to support our members in their day-trading crypto endeavors. One key feature is our daily trading signals, which provide valuable insights into market trends and opportunities. Members can make informed decisions and maximize their trading profits by following our signals. In addition, we offer live calls and expert tips from industry professionals, including Trey Munson, to help our members stay ahead of the curve.

1-1 Mentorship and Exclusive Workshops

Digital Dollars Trading goes beyond just providing trading signals. We offer 1-1 mentorship to help individuals navigate the complexities of the crypto market and develop personalized trading strategies. Our mentors have years of experience in the industry and can provide valuable guidance to help our members succeed. Moreover, we host exclusive workshops and VIP events where members can connect with like-minded individuals and learn from top industry experts.

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For many people, the traditional 9-5 work routine can feel like a rat race with no end. Digital Dollars Trading offers a way out of this cycle by providing the tools and support needed to achieve financial independence. Our platform has helped many students make $30,000 daily through expert mentorship and trading strategies. By joining our community, individuals can start on a journey toward financial freedom and take control of their financial future.

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