Is Day Trading Crypto Worth It?

Have you ever thought about day trading crypto? If so, chances are you have a few questions about whether it’s worth your time. Below, we explain how day trading works, and whether day trading crypto is worth it.  

What Is Day Trading?

Day trading means buying and selling assets during the trading day. The goal is to make profits from short-term price swings. You then close out your trading position when the markets close for the night. 

You can generate profits fairly quickly since you’re not holding investments for long. And with help from a prop firm, it’s easy to get up and running.   

How Does Day Trading Crypto Work?

Day trading crypto brings together the consistency of regular day trading with the spontaneity of crypto. Here’s how. 

• While regular trading may not begin until, say, 9.30AM ET, crypto trades happen any time. That said, most trades occur when the market is most active rather than at odd hours of the night.  

• You can trade any crypto coin, from Ethereum to Litecoin. This means you can diversify your portfolio with multiple digital assets. Or, you can easily trade crypto alongside your other day trades.  
• Typically, you won’t hold a crypto trade for more than a few hours. This is familiar territory for day traders who rarely hold an asset for more than an hour or two.  

You normally trade a crypto pair, and it’ll be against the dollar. You’re looking for waves, or volatility, in the crypto price. This is just like how regular day traders look for opportunities.

Is Day Trading Worth It?

It’s an interesting question – is day trading really worth it? For the right trader, yes. Absolutely. As with any investment strategy, though, it has its pros and cons.

Day Trading Advantages

• Flexibility: Whether you’re working part-time or just want a balanced lifestyle, you can make day trading work. There’s no need to work 24/7 or keep a constant eye on the market. But whenever you’re ready, there’s a market waiting for you.   
• Accessible: It has never been easier to start day trading. And when you join a funded prop firm like Our Forex Capitals, you don’t even need your own simulated capital to get going! 
• Engaging: If day trading is anything, it’s fast. It’s constantly changing and no two days are alike. If you thrive on the pressure of reacting to price swings and making quick decisions, day trading could be worth it.   

Day Trading Disadvantages

• Challenging: You need to really care about investing to succeed in day trading. Whether it’s learning a new market or refining your strategy, day trading requires commitment.  
• Volatile: Day trading can deliver big rewards and profits. But it can also be high-risk. You can offset some of this risk, though, by learning day trading strategies before you start.  
• Stressful: While the fast-paced nature of day trading works for some, it’s too stressful for others. If you prefer more predictability and find the swings challenging, it may not be for you.  

Is Crypto Day Trading Worth It?

If you plan on day trading, there’s another question to answer. Should you trade crypto? Ultimately, it depends on your own investment strategy. However, here are the main pros of trading crypto so you can decide if it’s worth your time. 

Pros of Crypto Trading

You’re the only one who can decide if crypto trading is worth it for you. However, here are some impressive pros to crypto trading you might want to think about. 

1. Market Flexibility

The crypto market is constantly changing. It’s volatile. While this could make some traders wary, it can actually lead to impressive gains.  

Transfers are fast, too, since everything happens digitally. Fast transfers benefit traders looking to capitalize on every minute of the trading day. 

2. Greater Financial Freedom

What can crypto offer that traditional currencies don’t? Financial freedom. The people control cryptocurrency – not banks or other financial institutions. This means there’s less chance of government-level interference or censorship. 

When compared with other markets, crypto is an accessible opportunity. 

Cons of Crypto Trading 

Having the right crypto trading strategies can make this a lucrative way to trade. But are there any downsides to crypto trading? Let’s consider some possible drawbacks. 

1. Market Volatility

Volatility has its own pros and cons. Just as the unpredictability can help you make returns, it’s also a risk factor. You never know what’s going to happen and you could lose your investment. Although, it’s worth noting that all investment carries a degree of risk, not just crypto.   

2. Limited Acceptability

Crypto is an evolving market. Although it’s more widely accepted than ever before, it’s still not a common currency in transactions. This does not make crypto a “bad” investment by any means. However, the limited acceptability may deter some traders depending on how they wish to use trading profits. 

For example, if you plan on spending your profits, you may choose a different asset. However, if you’re investing for the long-term and holding your profits, you may choose crypto.

Arguably, day trading crypto has more clear pros than cons. So, is day trading crypto worth it? It just might be. 

Is Day Trading Crypto Right for You?

Hopefully, you now have a clearer idea of whether day trading crypto makes sense for your investment goals.  

And if you want to start day trading, look no further than Our Forex Capitals. Thanks to our broker, Blueberry Markets, we offer 0 spreads during peak time and smoother execution. The result? Improved latency – and a better trading experience.  

Just remember to always check the coins you’re trading. Make sure they have a solid history or you run the risk of a “rug pull”. Rug pulls are a common scam and can cost you significant money, so invest wisely. 

Ready to invest? We’re always searching for successful day traders to partner with. Join the action and try our challenges today! 

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