Crypto day trading is similar to any other type of day trading in the securities and investment markets. In day trading, the crypto investor purchases and sells crypto investments on the same day. It is a high-risk activity, and day traders have to look at distinct volatility and liquidity parts of crypto investing. 

While there are no set standards on how much money you need to day trade in crypto in the US. However, on average, you will need around $25000 to risk up to $250 in crypto day trading and stay within the risk line, which is 1%. 

It’s essential to get a deep understanding of crypto day trading strategies before you start day trading. Reliable resources like the Swyftx day trading guide can give you valuable daily trading strategies.

Range Trading

Investors can trade in cryptocurrencies like Bitcoin inside a specific range. The percentage of gain you make during day trading is usually higher than long-term trading (say 30 days or more). Here the investor leverages the market volatility associated with cryptocurrencies and buys when the price is low during the day and sells when the rise peaks. 

Market analysts assert that day traders can score up to 43% gains from Bitcoin day trading in 24 hours. Day traders usually depend on “resistance levels” given by market experts to carry out day trading. Refer to reliable trading sources on Swyftx day trading guide for more information on range trading. 

Investors must pay special attention to overbought and oversold zones when day trading. For range trading to be successful, the investor should understand the best entry and exit points relating to crypto they are trading in.


Anyone who wants to engage in crypto day trading must be familiar with the concept of scalping. This day trading strategy mainly involves using high trading volumes to book profits. If you are interested in scalping, you must first understand margin requirements, past crypto trends (of whichever currency you plan to trade-in), and the best entry and exit points. 

Trading volumes are other vital points to consider when engaging in scalping. Several scalpers use automated bots to assess and increase the frequency of trading cycles. 

These investors also exit the trade before any fluctuations, or short-term changes occur. The ROI of each trade is usually low, but investors earn significant profits by stacking small sums.

News and Sentiment Analysis

Several day trading beginners assume that short-term trading does not require careful analysis of market sentiments and crypto market news. However, the crypto market segment is highly volatile, and minor changes in the global environment can trigger drastic changes in crypto price trends. 

Even the news of minor business environment changes can send Bitcoin prices spiraling or skyrocketing. Extensive news and market sentiment analysis can considerably improve your trading results’ quality. Even tweets and social media posts from celebrities and influential entrepreneurs can cause significant changes to crypto prices.


Arbitrage is a typical day trading strategy used in all investment markets. It involves taking advantage of the buy and sell price or “spread” of the crypto asset in different investment markets. 

Crypto traders usually have portfolios when trading. The sellers buy the crypto from markets with lower “start” prices and sell the currency in markets with high “end” prices.

High-Frequency Trading or Bot Trading

Advanced crypto investors (typically corporate involved in crypto trading) use automated bots to carry out high-frequency crypto trading. This day trading strategy requires extensive trading knowledge and effort.

Wrapping Up

Crypto traders should clearly understand crypto trading regulations before they start day trading. You may also have to look into the tax regulations of the location. However, the first thing to do is find a good crypto trading exchange to safely carry out your day trading transactions.

Zorain Zubair
Zorain is co-founder of TechLapse. Based in Pakistan, Zorain is currently studying Business Management and aims to achieve the title of Chartered Accountant. Zorain loves writing about various technology news. He can be reached at: [email protected]
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