Are you familiar with the stock market? How about cryptocurrencies? Would you like to make $100 a day trading cryptocurrency?
It seems simple enough, right?
If only things were that simple in cryptocurrency online trading, every trader would leave their 9 to 5 jobs and start analyzing and playing the profitable market.
A good amount of math is involved, which may or may not be good news for you. Prediction algorithms, keeping up to date with market trends, analysis, and a steep learning curve are just some things you need to consider, understand, and learn if you want to invest and earn money in cryptocurrency trading, especially for beginners.
Check out this article to learn how to trade cryptocurrencies and avail yourself of some crypto trading tips to make that 100 bucks, or more, from cryptocurrency trading.
Let’s jump in!
How Does Trading Cryptocurrencies Work?
You’ll need to spend ample time learning how to trade and gaining experience in the crypto trading world, and even then, as unpredictable and volatile as the market is, one can be too sure if the chart will go up or crash in front of your eyes.
It works by purchasing a cryptocurrency through a legitimate exchange market or professional crypto trading platform. Then, store that cryptocurrency in your digital wallet. Like stock trading, you can go long with your asset or short your position.
In other words, if you think the value will increase over a specific period, you buy and hold the cryptocurrency long-term, hence the term “going long.”
But, if you think the value will decrease at a certain point, you aim for the asset’s maximum value and sell it at a profit; you, therefore, go short. You were able to sell your asset, making money and taking the profit home.
This decision is like one of those TV shows where you have to pick three boxes, and the host constantly makes the contestants second guess. That’s what it feels like at the start.
What Are the Requirements for Trading Cryptocurrencies?
The first and foremost requirement for trading in cryptocurrencies is patience. Hard to believe? I know what you might be thinking, I’m not the Bob Ross of crypto trading, but this is genuine and sound advice.
Many people jump on the hype train, thinking it’ll be a walk in the park. Earning money and hitting those profits is too easy. But there are a lot of highs and lows in cryptocurrency trading. Everyone can handle the highs, but when the lows hit, your determination is tested.
Be patient and learn about the market to ensure you don’t fall into that category. Start small so it won’t affect you even if you make mistakes and lose money. Instead, taking you to greater heights will be a learning experience. Eventually, you’ll learn to trade and make money in this trading game.
Once you decide to start active trading, you must make your account on a trusted and legitimate trading platform. Do your own research every step of the way. Never trust those influencers of certain cryptocurrency assets at face value, and make sure you know the value of what you are buying.
Make sure you know what the best cryptocurrency exchange market or platform is. For example, for day trading standard stocks, where you’re buying and selling stocks, Forex is one of the best trading platforms.
You’ll also get plenty of opportunities to make money trading on these well-established platforms:
|$25 in Crypto.com Coin (CRO)||Use our link, open an account with referral code usmefwh2jp, and stake CRO||Get FREE Crypto!|
|$5 in Free Cryptocurrency||Use our link and open SoFi Invest Android or SoFi Invest iOs account, then redeem a $5 bonus to a new SoFi Crypto account||Get FREE Crypto - Android|
Get FREE Crypto - iOs
|$50 in Free Bitcoin||Use our link and deposit at least $400 of crypto within 30 days||Get FREE Crypto!|
|$25 in Free Bitcoin||Use our link and buy at least $100 of crypto within 30 days||Get FREE Crypto!|
|$10 in Free Bitcoin||Use our link and buy at least $100 of crypto within 30 days||Get FREE Crypto!|
|$10 in Free Bitcoin||Use our link and buy at least $100 of crypto within 30 days||Get FREE Crypto!|
How Can I Make $100 a Day Trading Cryptocurrency?
There are specific trading strategies that you can use to make $100 a day. We’ll go through all of them one by one.
Depending on where you lie on the spectrum of dealing with cryptocurrencies, there are a few routes that you can take.
So, what steps must you take to make $100 a day trading cryptocurrency?
The first thing you need to know is the volatility of cryptocurrency.
One minute the coin you’re holding is going up; you return from lunch to find out that the price has decreased by 80%. That is how much the cryptocurrency market fluctuates. You must know if a dip is a correction in the market or just a part of the daily volatility.
You need to be on your toes to make money through trading. You should be skilled at using your chosen cryptocurrency trading platform to understand the performance charts and then mix it up with your experience to make a solid judgment call.
Trading cryptocurrencies for quick cash is mostly done in the short term. Eventually, you’ll be good enough to make more than $100 daily through trading. But make no mistake; it takes time and experience to master this skill well.
The secret to trading and investing is all about buying and holding.
As this whole industry is very new, the growth potential is big, so holding cryptocurrency in the longer term is one of the best ways to make money.
You don’t need to be concerned too much about the daily, weekly, or monthly changes in the market as you target a longer date before you sell off your asset.
Unlike trading, what you need to focus on in investing is stable cryptocurrencies, such as Ethereum and Bitcoin. Going for newer options is not recommended because they haven’t been around long enough to be considered a stable and safely appreciating asset.
Mining is when new transactions are locked into the blockchain, solving sophisticated math problems. The first computer to solve the math problem verifies the transactions and gets cryptocurrency as a reward.
Mining doesn’t require any analytical skills or research for trading platforms. You don’t have to look out for fluctuations. All of that comes later when you have the currency in your possession.
The procedure is pretty straightforward but requires a lot of technical knowledge and a good amount of capital. Setting up a mining rig is not cheap, and acquiring the necessary hardware is a challenge, primarily due to the ongoing global chip shortage.
4. Peer-to-Peer Lending
Peer-to-peer lending allows you to profit without selling or trading your coins. How it works: you lend the cryptocurrency you have, and, in turn, you get a guaranteed return.
Smart contracts are also in place to ensure safe and secure lending. Many crypto trading platforms offer this service, such as:
|Buy crypto on Nexo and get up to 0.5% in crypto rewards for every transaction.|
|Grow your portfolio with Crypto.com and receive rewards up to 14.5% on your crypto assets.|
For the last option, we have staking. This passive income method is safe; you can keep your coins while earning income just by holding these coins.
With staking, you keep your digital currency in your web wallet and dedicate it to a specific network. Then, that proof of stake network uses your crypto to validate the transaction held on it. Think of it as a more efficient method than mining, and you get paid like how you would receive interest from a bank.
These are some ways to utilize the coins or capital you have to make a daily profit. But wait, there is more. There are specific trading strategies that you can use on these exchanges or trading platforms to make $100 a day.
For these sure-fire strategies to work, you need a minimum of $1,000 as an investment. These strategies are for spot trading. First, you must figure out a few cryptocurrencies that manage a minimum of 10% daily raise.
After that, you invest $1,000 in the one you feel has the best chance of going up. Place a tracker for a 10% raise, and as soon as it hits that marker, the application will notify you, and you can sell it, instantly making a profit of $100. Just rinse and repeat this process.
You can apply the same strategy with $500 and $2,000 by placing a tracker for a 20% and 5% raise, respectively. Both these options will make you $100 every day.
You need to remember that fluctuation can happen at any time, so make sure you have your notifications on and be vigilant.
Also, depending on your chosen platform, you’ll have to pay a trading fee.
Best Platforms to Trade Cryptocurrencies
To buy or sell cryptocurrencies, you must first open a reliable account with a cryptocurrency exchange. You can access the required tools for trading digital currencies and tokens from these exchanges, such as Ethereum, Dogecoin, and Bitcoin.
Check out this list of the best cryptocurrency exchanges:
|Up to $3,000 in Free Stock when you use this link||Must use our link||Get FREE Crypto!|
|1 Free Share (up to $200 value)||Must use our link and make a deposit – Europe Only||Get FREE Crypto!|
|$25 in Free Stock||Must deposit at least $100||Get FREE Crypto - Android|
Get FREE Crypto - iOs
Things to Remember in Trading Cryptocurrencies
You must remember a few things to start trading in cryptocurrencies: patience, consistency, research, risk management, and diversity.
- Good things come to those who wait. Remain patient and consistent. You won’t understand everything on the first day, and neither will you become a trading guru overnight. Time and experience are the best teachers, and these will be your best investment.
- Before diving in, research the topics, platforms, currencies, and software that will serve you well. This way, you’ll cut your potential losses since you came prepared and ready to face the challenges of the trading world.
- Play smart. Don’t invest more than you should. There is a good chance you’ll lose all that money. Only invest what you think you can afford to lose. Don’t follow and be influenced by others. Everyone is in a different financial situation. Instead, manage your risk; with time, you can invest more as you earn more.
- Lastly, never put all your eggs in one basket. Identify a few currencies that offer identical or nearly identical daily raise percentages. You can also try other trading opportunities, like Forex brokers (just be sure to learn how the forex market works).
Investing in 2 or 3 cryptocurrencies is not a bad strategy if you have enough capital.
Since the market is volatile, you can never be sure where it’ll end up 10 minutes, an hour, a week, or a year from now.
Frequently Asked Questions (FAQs) – Make $100 a Day Trading Cryptocurrency
Are Cryptocurrencies Legit?
Cryptocurrencies are not FDIC-insured. The legality of cryptocurrencies is still a hot topic in the community. There have been lawsuits regarding this.
On the other hand, people have become millionaires overnight due to cryptocurrency; the cars these crypto investors drive and the homes they live in are very real.
How Much Do Crypto Traders Make?
Crypto traders can make roughly $18,000 to $188,500 per year.
The actual number can only be speculated due to many factors, such as the amount invested, the currency invested, etc.
Which Coin Is the Best for Trading Cryptocurrencies?
The best cryptocurrencies for trading as the ones that have been around the longest and are the most stable. That would include Bitcoin, Ethereum, Tether, etc.
Conclusion – Make $100 a Day Trading Cryptocurrency
Day trading is one of the best ways to make money from the crypto markets. Remember that day trading in any market involves risk, whether stocks or crypto.
Understanding these tips and having a feasible crypto day trading strategy, including solid risk management tactics, will help you make that $100 a day and more.
You may also find some lessons from my own experiences dealing with cryptocurrencies.
For more information on cryptocurrency, here are some related articles:
- 5 Major Problems Of Investing In Cryptocurrency
- Crypto Arbitrage – How It Works & Best Trading Platforms
Founder of Spark Nomad, Radical FIRE, Journalist
- Expertise: Personal finance and travel content
- Education: Bachelor of Economics at Radboud University, Master in Finance at Radboud University, Minor in Economics at Chapman University.
- Over 200 articles, essays, and short stories published across the web.
Experience: Marjolein Dilven is a journalist and founder of Spark Nomad, a travel platform, and Radical FIRE, a personal finance platform. Marjolein has a finance and economics background with a master’s in Finance. She has quit her job to travel the world, documenting her travels on Spark Nomad to help people plan their travels. Marjolein Dilven has written for publications like MSN, Associated Press, CNBC, Town News syndicate, and more.