How to Day Trade Crypto | Day Trading Crypto Strategies | IFCM
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How to Day Trade Crypto

How to Day Trade Crypto

First off, let’s see if crypto is good for day trading. Crypto market is highly volatile that is the very reason why many trades are looking for ways to move in and out of the market. Rather than buying and holding crypto (which is another widespread strategy), crypto day trading is offering short term opportunities to gain profits.

Basically you will be speculating on crypto's short term movements. Keep in mind that the volatility of the crypto market is good for profit, but it can also be dangerous and cause big losses.

There are many opportunities for day trading in the cryptocurrency market, mainly because they are very volatile. However, excessive diligence and investing significant amounts of capital in day trading can lead to large losses. It is better to stick to logic and have a strategy than to trade on emotions.


  • Cryptocurrency day trading is a strategy that involves entering and exiting a position in the market on the same day
  • The hardest part during crypto day trading strategy is to ensure stable profit
  • Crypto market is moving fast and unpredictable so you have to make sure to have an entry and exit strategy.

What is Day Trading Crypto

Cryptocurrency day trading is a strategy that involves entering and exiting a position in the market on the same day. It is also referred to as "intraday trading", reflecting the fact that trades are typically opened and closed within the same day.

The whole purpose of cryptocurrency intraday trading is to profit from small movements in the market. Day trading in the cryptocurrency market is especially profitable as cryptocurrencies can be volatile. For example, 10% jumps are very common in crypto.

Like other forms of cryptocurrency trading, intraday trading is based on technical and fundamental analysis. Most day traders rely on technical analysis to build the right trading ideas.

They use price action, volumes, charts, and other indicators to determine entry and exit opportunities to make investment decisions. Traders should also keep an eye out for fundamental news and other developer-related updates that could affect prices, especially in the short term.

How to Day Trade Crypto

The hardest part during crypto day trading strategy is to ensure stable profit. You will need to dedicate time to and effort to sharpen your skills and be in sync with the changing conditions of the market.

If you are a beginner you will need to start with basics - Cryptocurrency Trading Steps

  • Open a Cryptocurrency Brokerage Account
  • Fund your account
  • Choose a platform to trade on
  • Choose crypto to invest in
  • Choose a trading strategy
  • Consider bot trading
  • Store your cryptocurrency

Here are some steps and tips for you to follow to ease your day trading crypto.

  • Use proven strategies, otherwise, without a clear plan, betting money can result in the loss of large amounts.
  • Use risk management it will save your nerves and money
  • Crypto market is moving fast and unpredictable so you have to make sure to have an entry and exit strategy.
  • Crypto industry is evolving, since it's relatively new, thus you should constantly learn and improve trading skills
  • Decisions should be based on facts, not feelings. Just because you have a great trading day today doesn't mean you should increase your bets tomorrow and ignore market signals that don't match your expectations.

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Day Trading Crypto Strategies

Here are some day trading strategies for you to consider:

Range Trading

Cryptocurrencies are traded in a certain range for a while, but in some cases big players may manipulate the price of a coin, so there is an opportunity for you - if you notice these patterns you should take advantage of them. Traders need to be carefully paying attention to the overbought and oversold zones.

Overbought means that buyers have satisfied their needs and the stock is likely to sell; oversold means the opposite. Charting indicators can help them find these zones. Common indicators used for this purpose include the Stochastic Oscillator and the Relative Strength Index.

Trading the News

News trading can be used with cryptocurrencies. Related events happen regularly, including high-profile partnerships, product launches, token launches and distribution, new technology introductions, regulatory decisions, acquisitions, etc.

This approach is probably the only day trading strategy that does not rely on technical analysis, although the latter is required to support entry points. The conditions of this style are simple - the news will cause a bullish mood, but on the contrary, it will put pressure on the price of this cryptocurrency.

If you ask me, this strategy definitely needs to be mixed with technical analysis to be more successful.

Scalping Trading Strategy

Scalping trading strategy is widely used. Scalpers try to benefit from minimal price movements, which can last minutes or even seconds. Every trade doesn’t have to bring much profit - scalpers open multiple positions either simultaneously or separately, the goal is to make sure that all the positions’ aggregative return is positive at the end of any session.

Strategy relies very much on technical analysis, and scalpers are generally not interested in fundamental analysis. The best thing for them is volatility bursts in either direction. For entry and exit points, scalpers can use other strategies and use a combination of technical indicators.

Arbitrage Trading

Arbitrage is one of the most popular trading strategies in the market. It involves buying a coin on one platform and selling it on another, using the price difference between the two platforms. Like scalping, arbitrage tends to generate small profits. Thus, the larger your order size, the more profit you can make.

You can also use the Cryptocurrency Converter to convert prices online in real time and choose where to best implement your arbitrage trading strategy.

Bottom Line on How to Day Trade Crypto

Cryptocurrency day trading is indeed profitable, but only when you understand the concept well and are experienced enough to execute it correctly. However, it is important to remember that this is also one of the riskiest ways to interact with cryptocurrencies.

Understanding the details of how to trade cryptocurrency intraday is very important if you want to see long-term profits. The best way to manage this risk is to carefully study the cryptocurrency market and then develop and stick to an appropriate strategy. By following these precautions, you too can become a successful day trader in crypto.

The key is to practice and test which strategies work best for your trading style.

Crypto FAQs

What is Cryptocurrency Trading?

Cryptocurrency trading is the exchange of digital currency between traders. The fluctuations caused by supply and demand allow traders to profit from it. Cryptocurrency trading is both risky and rewarding due to its volatility.

How to Trade Cryptocurrencies?

You’ll need to open an account with a crypto brokerage company. The next step is to choose a trading platform. After that choose crypto to invest in and strategy to trade with. Final step is to store your cryptocurrency.

Can you Trade Crypto 24/7?

Yes. Cryptocurrency markets are open 24 hours a day, 7 days a week all year round. Traders have the opportunity to buy and sell without restrictions as the cryptocurrency markets do not close.

What are Most Traded Cryptos?

These are the 5 most traded cryptos all over the world

  • Bitcoin - Market cap over $846 billion
  • Ethereum - Market cap over $361 billion
  • Tether - Market cap - over $79 billion
  • Binance Coin - Market cap - over $68 billion
  • XRP - Market cap - over $37 billion

What is Cryptocurrency Market?

Cryptocurrency is a form of decentralized currency and It's a completely digital asset. At its core, cryptocurrency uses blockchain technology to generate code segments that are unique for each transaction, just like serial numbers. Every time cryptocurrencies exchange hands, code segments are written to a decentralized ledger.

Marisha Movsesyan
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