Crypto day trading is a short-term trading strategy based on the purchase and sale of crypto assets on the same day.

Considering the high volatility, day trading in the cryptocurrency market is considered to be a very lucrative business.  Since the cryptocurrency market is highly volatile than other traditional markets, even a low volatility value in the cryptocurrency space can mean modest profits when handled well.

Reportedly, a look in to the crypto trader’s annual salary reveals the top earners by day trading in the cryptocurrency space have an annual salary of $163,000 with an hourly wage of $78 in average.

Day trading crypto is a high-risk venture made possible by the distinct volatility and liquidity in the cryptocurrency markets.

For instance, Ethereum provides good volatility to its investors and provides a great opportunity to attain considerable profits. The profit factor and the volatility factor make ETH one of the suitable cryptocurrencies for day trading. Also, ETH is easily available on most exchanges and it is priced at $3,324.95 at the time of writing.

Typically, in the US, the minimum account size is considered to be $25,000 to day trade per speculators who are obsessively in the game cashing out worthy trends.  This means risking $250 per trade, while keeping up with the 1% risk guideline.

The primary reason for why day trading is a bad idea has a lot to do with transaction costs. The two most visible transaction costs are “taxes” and “fees” like trading commissions. Depending on the trading platform you use and the kind of security you will be trading, you will have to pay a commission every time you buy or sell a stock.

There are day traders who trade with just $500. Those who are trading with a very small investment should look for commission free platforms for active traders with great software packages.

Whether it is worth all the time screen gazing while day trading depends upon the total amount of money you have invested in day trading, the risk guideline you follow, the taxes, fee, and the ROI.

If the cryptocurrency trading platform of your choice permits a very low starting capital at $100 or even less – good for you for learning; however, when it comes to making some decent profits and life changing money – to sense the pinch with skin in the game that is serious enough it takes some substantial investment.

Day traders are employees of financial services companies such as banks. and investment funds, as well as private individuals. The popular day trading strategies are scalping, momentum, and contrarian trading.

A different type of classification about day trading styles name: scalper, day traders, swing traders, and position trader.

In cryptocurrency trading, the token prices keep fluctuating throughout the day, and intraday traders try to draw profits from these price movements by buying and selling shares during the same trading day.

Day trading involves using technical analysis and charting systems to make as much trades in a single day. For instance, a 1% risk approach making 100 trades in a day.

Swing trading is a strategy whereby traders aim to profit from price movements across a short to medium time frame. The focus in this process is to catch the swings in the market, which can happen over days, weeks, or months.  Swing trading is very difficult in a consolidating market and when the market is going sideways because it is harder to capture large price changes.

Traders should choose the strategy which complements their skills, preferences, and lifestyle.

In swing trading, cryptocurrencies with the largest market capitalization are considered the best options. These are often the most actively traded coins on cryptocurrency exchanges and marketplaces, like Bitcoin (BTC), Ethereum (ETH), and Tether (USDT), for example.

The profit potential is more with efficient trading practice.

Position trading is a popular long-term trading strategy where in the traders hold a position for a long period of time and this is usually months or years. Position traders ignore short-term price movements and they prefer to rely on more precise fundamental analysis​​ and long-term trends. Example, Michael Saylor, Dan Held, and all BTC holders can be called position traders as they rely purely on fundamentals.

Scalping is a trading strategy that involves trying to profit from relatively small price movements.  Scalping is a trading technique of capitalizing on small price changes. Scalping crypto means to scalp spot or derivative crypto markets. Scalping positions are typically closed as soon as they become profitable, earning a profit in the neighborhood of 2%.

You need to rework the different trading types to suit crypto markets. It is with reworking tweaking and coming up with customized approaches to suit a portfolio and lifestyle will be stuff like “Crypto Traders Annual Salary at $163,000 with an hourly wage of $78” make sense. It is all about practice, skill and market exposure.