Cryptheory: Crypto and Internet

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Basics of day trading with crypto

2 min read

Before we dive into cryptocurrency day trading, it helps to take a closer look at the concept. Day trading involves trading various financial instruments such as stocks, foreign exchange or cryptocurrencies within one day. The aim is to profit from short-term price fluctuations. So we use the volatility of cryptocurrencies to profit from it.

Preparation for day trading

Preparation is the key to success in cryptocurrency day trading. Here are some important steps to keep in mind:

Research and market analysis

Before entering into a trade, you should conduct thorough research and conduct a comprehensive market analysis. Follow the latest news and developments in the crypto world. Analyze the price charts and identify possible trends and patterns. Sound analysis will help you make informed trading decisions. With many brokers and exchanges you can also trade with play money. Maybe that’s a good idea before committing any real capital.

Risk Management and Capitalization

Risk management is an important aspect of day trading. Set yourself clear limits for losses and profits and stick to them consistently. Think ahead of time how much capital you are willing to commit to day trading and stick to that budget. Avoid excessive risk and diversify your portfolio to minimize potential losses.

Day trading techniques: A selection


Scalping is a strategy where you take advantage of small price movements to make multiple trades in a short amount of time. Scalpers typically only hold positions for a few minutes or seconds. This strategy requires quick decisions and precise market observation.

swing trading

Swing trading involves taking advantage of medium-term price movements. Swing traders typically hold positions for a few hours to several days. This strategy requires more thorough analysis and patience as you are targeting longer price movements.

breakout trading

Breakout trading involves trading on the break of a support or resistance level. When the price breaks through such a level, traders open positions in the direction of the breakout. This strategy requires close observation of price movements and quick reaction.


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The data and statistics provided by Glassnode are trusted by the world’s leading investors, hedge funds, banks, asset managers and crypto companies.

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.