Is Day Trading Cryptocurrency Profitable?

Traders are always on the lookout for profitable trading strategies that can be used to make quick bucks. Irrespective of financial markets, there are some strategies that just need the right execution. One such trading strategy is day trading, which involves purchasing and selling the asset on the same day to avoid additional fees. But is day trading cryptocurrency profitable, or the market makes it impossible for day traders to get any profits? Let’s find out!

Day Trading 

Day trading is defined as the buying and selling of a security within a single trading day in any marketplace, commonly in the foreign exchange (forex) and the stock market. These day traders end the day without any open positions to avoid potential price changes overnight or when the market opens the next day. Expert day traders often ensure that they reduce their risks of making heavy losses.

Day Trading Cryptocurrency

For most people, intraday trading is bad if they do not keep an eye on changing market trends. Day trading for beginners is difficult as they do not understand the right circumstances or have no patience to learn how to trade and invest in the market. Day trading is small movements in prices that involve rapid buying and selling of securities. Though it can be a good idea, day trading crypto may lead to heavy losses if not done correctly. It demands enough time and capital to invest in day trading. 

Successful day traders invest in different cryptocurrencies that balance their investments, even if they lose some money. The success rate for day traders is only about 10%, where 90% lose their money. In contrast, an expert at Vantage Point Trading says that only 1% of day traders make money in day trading crypto.

Therefore, beginners should keep in mind that:  

  • Day trading is not a leisure time hobby. For some people, it is a full-time job.
  • It needs constant market news and trusted financial website scanning and updates.
  • A well-thought day trading strategy needs to be developed before starting day trading crypto.
  • You must develop patience and control emotions.

Day Trading Cryptocurrency Risks

Though day trading is an excellent opportunity to earn money, it is a risky game that may be bad for some individuals. Let’s understand why?

Day Trading Cryptocurrency at Mudrex

Possibility of significant losses

Day trading needs daily financial decisions which come with the possibility of losing hundreds or thousands of dollars. Day trading crypto has the most dynamic market, but beginners only hope to become rich in a day. Thus, many people do not realise that profit takes time and give up.


Day trading cryptocurrency for beginners is time-consuming due to intraday trading as they lack skills and basic knowledge of the trading. One needs to devote thousands of hours to learn and practice before entering into intraday trading.

Psychologically stressful

Day trading cryptocurrency is very stressful as a gambling game. It needs quick actions and decisions whether to buy or sell securities once the stock’s price goes up or down, increasing blood pressure. 

Risks of overtrading:

People who can’t control their emotions can undermine decisions and may experience overtrading. It leads to trading too large shares or making risky trades.  

Advantages Of Day Trading Cryptocurrencies

Day trading also holds many advantages and offers maximum profit. Let’s explore why?

Immature crypto market

The cryptocurrency market is still evolving, and that makes it easier to enter into it. One needs to gain knowledge before investing in the crypto market automatically. Quick but controlled reactions to any situation can avoid damages.


The cryptocurrency market is entirely volatile, which has made it more popular among investors. Investors may gain thousands of dollars of profit within a few hours. It is an excellent opportunity for day traders with strategies.    

24/7 market

Unlike other stock markets, cryptocurrency trading is open 24/7. It allows people to take full advantage of opportunities and invest whenever they want to invest.  

Conclusively, day trading for beginners is profitable only if they have enough money to invest, some experience, strategic planning, and most importantly, patience to deal with both profit and losses. Educate yourself with Mudrex, before entering into intraday trading. Or you can invest in automated investment solutions at Mudrex where experts handle all trading.

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