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Is it possible to make $100 a day trading cryptocurrency? Absolutely yes! If you are just starting crypto day trading, here is everything you should know about making money day trading.
The best way to make $100 a day on cryptocurrency is to invest around $1000 and track a 10% rise on one pair. This is a realistic approach compared to investing $200 and tracking a 50% rise on the pair. This is because, when it comes to crypto investment, the trick is to always put a substantial amount of money and increase your chances of making a profit from it.
But, before you make $100 a day, you need to know how to day trade. And, day trading works for people who are willing to dedicate their time and money. For starters, you need to have time and the right software to analyze data – so that you can make the right decisions.
Making $100 a day might not happen on the first day but with proper skills and experience, you can reach your target.
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Table of Contents
How to Day Trade Crypto: Make $100 a Day Trading Cryptocurrency
Day trading is buying and selling trades on the same day. If you want to day trade you need to dedicate some time to learn the skill. The best day traders spend enough time analyzing the trades to make a profit. Here are some tips to help you with day trading:
Mathematical Analysis
Mathematical analysis is important for day traders. It helps you to study the trends and predict the outcomes of specific trades. If math is not your forte don’t be worried. You can still learn the basics like reading charts and patterns.
Even better, there are incredible automated software and tools you can use for this. Indicators for NinjaTrader 8, from BuySide Global, are an excellent example. With NinjaTrader 8 automated software platform, you get analytics, trends, and support to help you with the technical analysis.
Whether you are interested in Futures, Forex, Stock Markets, Crypto, or CDCs, these analytics tools have your back. Note that using the right software is important, as it gives you the confidence to know that you are making decisions based on real data.
See Related: How to Make Money in the Metaverse: Innovative Ways
Stay Updated on the Market Trends
It is important always to know what happens in the crypto market. You can do this by reading the news and following blogs. Social media is also a good place to get news, but you must do that from reliable sources.
Staying updated on what is happening in the market will help you to make the right decision. Market analysis from news sources is as important as technical analysis. Staying up to date with the news can also help you to know the other coins available in the market.
Manage Risk
Managing risk is an important aspect when investing in crypto. When you manage risk you will trade for a long time without losing hope.
The first step is to invest only in what you can lose. Avoid investing a lot of money as a beginner. You have to go through the learning curve, so making gradual progress is the way to go.
Diversify
Like any other form of investment, you need to diversify. We have different types of crypto coins, so do not put your money in just one coin.
Look at the coins performing well and try to diversify your investment. It is one of the best ways to manage risk. If one coin performs badly, you can make money with other coins.
Be Patient and Consistent
Patience and consistency will go a long way in trading. It is advisable to stay patient when trading because you are likely to have some good and bad days. Staying consistent is also important as it will help you to learn fast.
As a beginner, you will need to learn trends and analytics. And therefore, trading every day will help you to learn.
How much do Day Traders Make?
While there’s no straight answer as to how much a day trader makes, due to varying factors like experience and money invested, day traders make good money. Research shows that the average day trader's salary is around $109,000 annually.
On the other hand, the highest-earning day traders make up to $180,000 per year, while the lowest-earning traders make $63,000 per year. This is data based on traders in the United States.
But to reach this level, remember to have the best tools and use a trading platform or brokerage platform. If you are just starting as a day trader, NinjaTrader is a good place to start. The platform offers you the best charting features, trade simulation, and market analysis tools.
The best thing is that it allows you to start trading at as low as $400.
Best Way to Flip Money
It is possible to make good money in crypto. However, you need to know the strategies to help you make money. Here are some of the best ways to flip money:
Buy and Wait to Sell at a Profit
Buying for speculative purposes is one of the most common ways to make money on crypto. With this strategy, you need to have some liquid cash with you. You will have to wait until you get your money back.
Sometimes the prices might go down instead of going up, so you still need to consider this. Buying crypto for speculation is ideal for beginners because, during this time, they get an opportunity to learn. Try using reliable platforms like Coinbase when doing so.
See related: Coinbase Earn Review 2021: Can You Earn Money?
Get Dividends
It is possible to earn dividends by owning crypto. There are coins out there termed digital assets. Owning these coins gives you dividends, just like it happens with stock.
However, it is important to do research to determine which coins are doing well before putting in your money. Doing enough research will help you to get good dividends from the coins. Some coins you can invest in include COSS, CEFF, NEO, and KUCOIN.
Day Trading
Day trading is a common way to earn money from crypto. You will need to dedicate time and money using this trading method. Most day traders do it as a full-time job because it involves doing research and analysis.
Making money through trading is possible and making it your full-time job. Day traders make good money when they become good at it.
Using reliable trading platforms like the NinjaTrader, and the best indicators such as the NinjaTrader Indicators, you can certainly make $100 a day trading cryptocurrency or more.
Staking
Staking crypto is a way to earn money by holding crypto in a particular network. With this method of crypto investment, you make money when your coins are in your digital wallet.
Staking might not earn you a lot of money, but it is still a good way to earn money. This is the least common way to make money with crypto.
How to Take Profits in Crypto
The whole point of trading crypto is to make a profit. A time will come when you need to cash out or take profits. When it comes to taking a profit, you might need to invest the profit back or get the equivalent of cash.
Here is how to take profit in crypto without selling;
Peer to Peer Lending
Peer-to-peer lending (P2P) is a good way to take profits in crypto. With this method, you loan your crypto and will get an assured return of at least 20%.
Peer-to-peer lending is popular with Ethereum coins, and you must use smart contracts to help with trading. This is a good way to take profits from crypto without selling it.
Arbitration
Since cryptocurrency is global, it allows trading in different currencies. In this method of taking profits, you will have to look for another site that trades crypto in a different currency, like bitcoin.
If they offer a better rate with your bitcoin, you can take your profits there. This is a good way to earn money and maximize your profits.
Taking Profits vs Holding
Taking profits vs holding is always a debate. The truth is that it depends on your situation.
If you are a new trader, you need to practice a lot. It is advisable to hold your crypto instead of taking the profits. Holding the profits will help you to learn how to trade and learn from the market trends.
When to Take Profits in Crypto
You can take profits in crypto at 50%. This is a good place to set your profit because it allows you to grow your profit and diversify your risk.
The truth is that every trader has a preference depending on the risk they are willing to take.
Best Coins to Collect for Profit
Before collecting any crypto coins, you need to do enough research. You need to check the coins that are performing well and also make sure that you can make a profit from them. Here are some of the best coins to collect if you want to make a profit;
- Bitcoin
- Ethereum
- Solano
- dogecoin
- Cardano
- Polygon
New coins are coming up daily, so you need to be on the lookout. Reading news and researching will help you make the right choice.
What is Spot Trading in Crypto?
Spot trading is buying and selling crypto in real time. Using this method, you sell or buy crypto on the live market based on the indicated current price. With this method of trading, you hope to sell the coins in the future time at a profit.
You need to be a seasoned trader to use this method because it involves some level of risk. Spot trading might be intimidating for some people because you might not have much time to plan when buying or selling your coins.
Does Pattern Day Trading Apply to Crypto?
Yes, pattern trading applies to crypto because it is a form of security. Pattern day trading applies to all retail investors preventing them from risking too much, trading in so many trades within a short period.
The best thing about crypto trading is that you do not have to worry about trading limits. It is possible to trade as much as you want because crypto is not regulated by FINRA or the SEC like other forms of securities like stock.
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