2022 has not been a good year for buying and holding cryptocurrencies as markets have fallen in the face of inflation, a pending recession, war in Ukraine, and continuing supply chain problems. However, day trading cryptocurrencies can still be profitable. Cryptocurrencies starting with Bitcoin and Ethereum and then down the list fluctuate throughout the day and provide ample opportunity to profit. What are some tips for day trading cryptocurrencies?

Can You Make Money Day Trading Crypto?

During a given day price swings three to five percent of Bitcoin and other cryptocurrencies are common. As with trading commodity futures, stocks, or currencies technical indicators are useful as they help indicate shifts in market sentiment. As a rule there are no useful fundamental indicators for trading Bitcoin and the rest. However, as the market has slid over the last year there has been a correlation between Bitcoin and the Nasdaq making this index a useful indicator for projecting crypto prices.

Are There Day Trading Limits on Crypto?

Crypto currencies are currently not regulated by the SEC like stocks are or the Commodity Futures Trading Commission with futures. Crypto currencies are not subject to pattern trading rules. Thus a day trader can enter, manage, and exit as many cryptocurrency trades as they like during a day. And there are no limits on the sizes of crypto trades. The only limits are those imposed by the amount of capital a trader has dedicated to trading and the portion of that capital risked on any given trade.

Are There Day Trading Rules for Crypto?

Day trades are those where buying and selling occur within a given market day. The pattern day trader rule applies when stocks are traded this way but cryptocurrencies are not subject to the same rules as stocks. Thus, there are no rules of this sort applying to crypto. Trading crypto does not require a broker so there are no broker-imposed rules regarding complexity of trades such as typically are with day trading options or futures contracts.

Does Day Trading Apply to Crypto?

Not only does day trading apply to cryptocurrencies but in the last year it has been a decidedly better approach than the HODL (hold on for dear life) approach espoused by many crypto enthusiasts over the years. Crypto markets have risen and fallen so dramatically that crypto promoters routinely start promoting at the bottom of a crash with the “projection” that the next peak will be higher than the last. Such projections have not panned out in 2022. As such day trading the routine peaks and valleys during the day has been a much more profitable way to trade crypto markets than buying and holding.

How to Make Money Day Trading Crypto

The best way to make money trading crypto is to keep your trades short, always set trading stops, and keep an eye on market technical. While crypto enthusiasts have promoted Bitcoin and the rest as refuges when the markets are crashing, that has been the case this year. When the Fed raises interest rates the S&P 500, Dow, and Nasdaq all go down and so does crypto. Thus, following larger market trends can also be profitable when day trading cryptocurrencies.

Is Day Trading Crypto Worth It?

Day trading crypto can be profitable. However, many who bought into Bitcoin and the rest years ago also bought into the idea that the sky was the limit for anyone who purchased or traded cryptocurrencies. That has not been the case for many. Day trading can be profitable but it requires knowledge, skills and discipline to make money day trading. At DayTradeSafe we teach an exclusive mechanical system that gives traders a framework for trading success. Our students graduate as benchmarked professional traders with the skills to successfully choose, enter, manage, and exit trades again and again.

How to Start Day Trading Crypto

One can start day trading crypto by simply getting an account with someone like Robinhood. But to trade successfully, profitably the better choice is to learn how to day trade before risking your money in cryptocurrencies, stocks, currencies, or futures. Check out DayTradeSafe training as well as trading platforms such as NinjaTrader. Learn how to trade and then choose your trading arenas based on the professional expertise which you will acquire.