Unlike other financial markets, the cryptocurrency market never closes, making it the top choice for traders.

What makes the crypto market even more fascinating is that you don’t need a broker or margin account to trade, as it is completely free and open at all times. It’s no wonder most traders day trade the crypto market.

Day trading allows traders to open and close multiple entries daily, boosting their chances of making more profit. This article will decimate what crypto day trading means and how you can become a successful day trader.

Crypto Day Trading involves using technical analysis and tools to determine the daily price action of the crypto market. Day trading is commonly referred to as Intraday trading — you only need to identify your entry and exit points within the same day.

To be a successful day trader, you need an excellent grasp of technical and fundamental analysis and the ability to use market price volatility to your advantage.

Projects with high trading volume and adequate liquidity are your best bet at making profits. You wouldn’t want to trade projects with low liquidity as they usually have high slippage, making your exit pretty difficult.

And most importantly, you must apply proper risk management, be patient, and be very disciplined. Once you tread the crypto market with caution as a day trader, you are bound to limit possible losses and maximize profits.

Now that you’ve taken the mantle to become a crypto day trader, selecting a day trading strategy comes next.

Here are five strategies to consider:

1. Arbitrage
2. Scalping
3. Range Trading
4. Long Straddle
5. Bot Trading

Arbitrage

Arbitrage trading happens when the price of a crypto pair differs on different exchanges. Say a commodity is worth $0.1 on Exchange A and $0.15 on Exchange B. You’ll make profits by buying on Exchange A and selling on B.

To succeed, you need to buy and sell immediately, as the difference in price on both exchanges gets adjusted within a short timeframe. So, once you spot an arbitrage opportunity, don’t hesitate to buy and sell to prevent losses.

Scalping

Scalping is the fastest and most common day trading strategy. Scalpers make profits by buying crypto assets for a few hours and selling after small percentage gains. A bot can also be automated to scalp the market for you.

Scalping has minimal risks as you’ll rely on your analysis and sell at the slightest gain margin. So, if you don’t mind making small amounts of profits, scalping is a great choice.

Range Trading

Range trading requires a ranging (sideways) market and spotting the resistance and support levels. You only need to identify the overbought region (resistance/higher price) and oversold region (support/low price) to make profits.

You simply buy low and sell high by following the range of the market. If you’re looking for the best day trading strategy with minimal losses, range trading is an excellent choice.

Long Straddle

If you’re looking to profit off the crypto market’s volatility, look no further than the long straddle strategy. With this strategy, you make profits with any change in price, whether the price rises or falls. The downside is if the market doesn’t move or the price doesn’t change, then you’ll incur losses.

Bot Trading

Bot trading is the easiest day trading strategy as you only need to set it up to enter and exit the market at certain timeframes. Trading with bots has been gaining traction lately as it doesn’t require any technical analysis; the bot does it all.

Deciding to start day trading shouldn’t be difficult, as we’ve demonstrated what you need to get started. And although crypto trading is risky, day trading is highly profitable when you use a strategy that suits your trading abilities.

However, it’s essential to always do your research and apply proper risk management.