Cryptocurrencies and derivative instruments based on cryptocurrencies are complex instruments and come with a high risk of losing money rapidly due to leverage and extreme asset volatility. You should carefully consider whether you fully understand how cryptocurrency trading works and whether you can afford to take the high risk of losing all your invested money. The main benefit is an excellent chance to make a high profit in a very short period of time. Because the cryptocurrency index may triple overnight or within several hours. The fiat currency market can’t provide such opportunities because prices usually only change about 1% during a day. Understanding how to trade cryptocurrency is about more than just blindly attempting to make a profit. A great way to remove much of the complexity surrounding crypto trading is to day trade.

trade cryptocurrency and earn at any time of the day or night

If you want to trade short term but don’t want to stick to your computer all the time, this time frame may be the right one for you. In traditional trading, traders who hold their positions overnight are categorized as swing traders. The volatility of Bitcoin can spike sharply in specific periods, which is an exciting trend in the trading world. Generally speaking, digital assets’ prices move fastest in the morning and during the first half of the day. Ultimately, it is all about purchasing cryptocurrencies at the right time rather than according to a specific schedule.

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For someone intent on timing a crypto purchase, it will pay to really analyze the history of specific investment types. Day trading can be a highly profitable strategy, but there are a few things to consider before starting. Since day trading requires fast decision-making and quick execution, it can be highly stressful and very demanding. Day trading can also be quite risky and requires a solid understanding of the market. Naturally, it will also require you to look at screens for extended periods.

trade cryptocurrency and earn at any time of the day or night

If the fees are relatively high then normally the holding times need to be longer. Day trading is an investing strategy that relies on frequent trades of one or more securities throughout the day to turn a profit. While traditional buy-and-hold investors are concerned with the long-term performance of a company, day traders seek to take advantage of more immediate profit-making opportunities. As the crypto market gains more attention, traders now find it easier to work with bots to enhance their trading strategy. Even though bots can help traders execute trades and take advantage of price differences across exchanges, you, as the crypto trader, still need a solid trading strategy to have successful trades. EOS has been experiencing a lot of runs since the news broke out of the potential of various applications on its blockchain.

Before day trading any asset, you should research which proven day trading strategies, such as scalping or range trading, are appropriate for it. Once you have developed a strategy you can safely consider day trading. Now that you know it is possible, The question to answer is how can you day trade crypto on Robinhood. You can use the Robinhood website or smartphone app to do your trading. In either case, you need to create a trading account with Robinhood and fund it with U.S. dollars. To open a new Robinhood account, you will need to provide proof of your identity. Day trading crypto or stocks on Robinhood is essentially the same as trading crypto on a centralized exchange like Coinbase or Binance.

Pros and cons of day trading cryptocurrency

Buy, sell and trade a range of digital currencies on this high-liquidity exchange – suitable for beginners right through to advanced traders. Find an exchange to buy, sell and trade cryptocurrencies by comparing deposit methods, supported fiat currencies and fees. Below are some of the trading strategies used by investors when day trading. But it’s less a question of whether you can day trade crypto and more a question of how you can day trade crypto properly (i.e., successfully). With the crypto winter upon us, you’re likely wondering how you can leverage different trading tools and practices in order to squeeze some profits from a bear market.

  • I suggest that you check the crypto converter tool of your exchange for more info on this matter.
  • The volatility of Bitcoin can spike sharply in specific periods, which is an exciting trend in the trading world.
  • Warren Buffet, George Soros and Steven A. Cohen all build capital today because they understand how the market reacts to different facts.
  • Exchange liquidity is influenced by a handful of internal factors.

Since the blockchain is shared over tens of thousands of independent nodes, the failure of a few poses no problem to access, and it is not possible for anyone to deliberately shut it down. For most people, it is a way to lose a lot of money in the comfort of their homes. A broker is a business that conducts financial transactions on behalf of a customer.

Crypto markets trading hours converter

With this tool, you can backtest ideas and new trading strategies, monitor and manage custom trades, and use a trading view or the manual system to send signals directly. The bots run in the cloud over the secure enterprise network that dotbig trading platform removes the necessity of downloading and installing the platform. HALgives access toautomated crypto trading strategiesdesigned by its team of professional quants. Let strategies do the work and monitor everything through your dashboard.


"Knowing what the blockchain does, its network size, governance, and protocols will allow you to assess the overall condition of your prospective investment," Greenberg says. "So, be prepared to learn a lot and follow news on your selected assets’ blockchain updates." That gives all the players in the market —individual investors and institutions — a chance to assess and reposition their assets for their next moves. If you choose swing trading rather than day trading, one downside is that you may not be able to get an optimized tax rate that’s created for day traders in some countries.

In some cases, we receive a commission from our our partners, however, our opinions are our own. There are some pros and cons to the fact that there are no defined crypto market hours. Even if you can financially afford to potentially lose money day trading, are you willing to do so?

How to trade cryptocurrency: key points and tips

The volatility of the crypto market means the value of digital assets can oscillate wildly. For traders looking to maximize profits in this market, they need to make moves fast. No matter the market, a day trader should have a thorough understanding of crypto as well as trading principles.