Day Trading

Day Trading is the practice of buying and selling cryptocurrencies in a single day.

Day trading takes place in not just the cryptocurrency markets, but also in the forex markets and stock markets.

Day traders use intraday strategies to profit on small movements in price that happen frequently in liquid and volatile markets like the cryptocurrency market.

Day traders can be hobbyists, lone traders on their own, professional traders who work for proprietary trading desk at banks, or institutional traders.

Mobile trading apps and $0 commission trades have made stock day trading very popular.

Crypto trading is seeing some of that same popularity, especially becuase day trading can now be done from a mobile phone, with a small amount of trading capital.

Day trading cryptocurrency strategies generally revolve around scalping, range trading, bot trading or arbitrage.

Day trading, like any trading, can be high-risk due to the volatility of the cryptocurrency markets, so please be careful.

Related Terms

Trading Bot

Crypto trading bots are software apps that do trading-related tasks, in an automated fashion, such as executing crypto trades or providing crypto market alerts.

Arbitrage

Borrowed from traditional finance, it’s the act of quickly buying a digital asset on one cryptocurrency, navigating to another exchange where that same asset is priced higher, and selling that asset for a profit.

Software Wallet

A form of cryptocurrency wallet that’s based on software, so installed as a mobile app or accessed via a website, or installed as software on a desktop or laptop computer. The software itself stores your private keys that are used to access your cryptocurrency funds.

Alameda Research

A crypto hedge fund trading firm started by FTX exchange founder and former CEO Sam Bankman-Fried (SBF) that was known for making huge bets on other crypto companies and businesses. Alamada Research was at the heart of the FTX liquidity crisis that resulted in both FTX and Alameda filing for Chapter 11 bankruptcy in November of 2022.

1 Minute (1m)

In crypto trading, the 1-minute time frame or chart is commonly used with scalping strategies to review a digital asset’s price movements plotted in 1-minute intervals over some specific time period. Each bar, candle, or column would represent price action for a specific 60 seconds