Can Day Trading be profitable in Crypto ?

[Len Saldua]

I know there's a lot of day traders in stocks, and I've heard some do it in crypto ( although most do it at a loss ) so I'm wondering if realistically you can do a profitable trade in crypto.

Let's take a real example.

In this mini rally we're having, I've noticed Illuvium is one of the few tokens that is in the red( less than 1% on the daily when this was posted )


1 ILV is $119 on my CEX... but the sell price is $116 and the buy price is $123

Doing a simple trade using USDC to buy one ILV token would cost me $10.40 in ETH Fees on EXODUS. If I was doing it from my CEX, it would probably be cheaper, but I'd end up paying just as much ( sometimes way more ) if I want to take my new ILV token and deposit it in a hardware wallet. So either way, even if I buy ILV and it makes me a 15% gain in less than 24 hours, I barely break even !
So how do I make a profit ? Do I need to buy 30 ILV to maximize my gains ? Or is there any other way ?

[Len Saldua]

I forgot to add... if ILV does make me 15% gains in one day... and I want to "lock in" those gains, it means I have to sell into USDC, which means selling at a slightly lower price than the quoted price and possibly losing 4% in the process.
And by the way, I don't know how this would work in stock trading, as I don't think stocks go up by 15% to  20% in one day... most likely they would go up by 4% on a good day

[Lorokan]

I know there's a lot of day traders in stocks, and I've heard some do it in crypto ( although most do it at a loss ) so I'm wondering if realistically you can do a profitable trade in crypto.

Let's take a real example.

In this mini rally we're having, I've noticed Illuvium is one of the few tokens that is in the red( less than 1% on the daily when this was posted )


1 ILV is $119 on my CEX... but the sell price is $116 and the buy price is $123

Doing a simple trade using USDC to buy one ILV token would cost me $10.40 in ETH Fees on EXODUS. If I was doing it from my CEX, it would probably be cheaper, but I'd end up paying just as much ( sometimes way more ) if I want to take my new ILV token and deposit it in a hardware wallet. So either way, even if I buy ILV and it makes me a 15% gain in less than 24 hours, I barely break even !
So how do I make a profit ? Do I need to buy 30 ILV to maximize my gains ? Or is there any other way ?

To my understanding, what you have explained above is simply an arbitrage example, where you buy cheaper from platform A and sell for a higher fee on platform B. It is a separate type of trading entirely different to day trading.

Day trading involves you watching and studying chart movements for particular tokens and aim to trade atleast 1-2% profits more than 2 times a day from each single pair. This involves good knowledge in TA as well as trading psychology.

Be sure to understand that the 2 methods of trading differs so you do not rekt your capital.

[Len Saldua]

No my friend, I think you misunderstood me. It's true I mentioned two platforms, but I'm just comparing the cost of trading on two platforms, the whole trade could have been done in either platform beginning to end, no need to go from one to the other.
What I meant was:  Buy ILV while it's in the red. Wait till it goes up 15% in price. Sell it into USDC.
That whole process would barely break even for the reasons I explained before.
And one other thing, both EXODUS and my CEX ( just as an example ) allow swapping one token for another, so I normally don't need to look at pairs. Just buy using USDC or Tether, make a profit, sell into USDC or Tether. Not that I have done it like that though, I trade in longer timeframes.

[blockman]

Let's just take it this way. Day trading is profitable if you're good at it and manage to have those decisions right if you're into spot trading. Also in futures, there are people making money there but it's not easy because they've studied very well on it and invested money just to lose in return for the lesson that they'll get. But setting aside those stories, the majority are losing more money in trading and that's the reality that has to be recognized by many.

[DoublerHunter]

Let's just take it this way. Day trading is profitable if you're good at it and manage to have those decisions right if you're into spot trading. Also in futures, there are people making money there but it's not easy because they've studied very well on it and invested money just to lose in return for the lesson that they'll get. But setting aside those stories, the majority are losing more money in trading and that's the reality that has to be recognized by many.

^ Definitely right and here is my simple explanation.
Day trading is very risky, it seems like you gamble your money, though it is profitable it's also easy to wipe out your money if you will be made a wrong decision. In gambling, it is a high odds which is possible can make a high profit.
However, if you are good enough at trading it becomes very easy for you, you need skills and knowledge before you will become profitable in trading.

[logfiles]

Day trading is not suitable if you are going to keep withdrawing and depositing into your CEX daily, especially if you have a few funds. Also, you can decide to use limit orders instead of being a taker or user of market orders if you want to sell your coin at a specific price.

Day trading is profitable if you know what you are doing. I speak from experience.

[goaldigger]

Day trading is profitable, but the question is can you handle the stress? How much knowledge do you have in trading?

Simple trading strategy might not work in long term so better to work on learning how to trade effectively using a different indicators to know the trend. This is not just a simple buy and sell, successful day trader spend their time analyzing the price movement and a real trader will not come into the battle without any strategy.

[blockman]

Let's just take it this way. Day trading is profitable if you're good at it and manage to have those decisions right if you're into spot trading. Also in futures, there are people making money there but it's not easy because they've studied very well on it and invested money just to lose in return for the lesson that they'll get. But setting aside those stories, the majority are losing more money in trading and that's the reality that has to be recognized by many.

^ Definitely right and here is my simple explanation.
Day trading is very risky, it seems like you gamble your money, though it is profitable it's also easy to wipe out your money if you will be made a wrong decision. In gambling, it is a high odds which is possible can make a high profit.
However, if you are good enough at trading it becomes very easy for you, you need skills and knowledge before you will become profitable in trading.

Yeah, there are similarities between both of them. You either make it or break but most of the time, you'll break it. The risk that day trading has is also the same as gambling because emotions are involved. And if you're too emotional with your trades then you're unlikely to make it.
At least for trading, you can do it by studying and gathering experiences and ideas and strategies for you to win without luck on your side and that's the opposite of gambling.

[strunberg]

Let's just take it this way. Day trading is profitable if you're good at it and manage to have those decisions right if you're into spot trading. Also in futures, there are people making money there but it's not easy because they've studied very well on it and invested money just to lose in return for the lesson that they'll get. But setting aside those stories, the majority are losing more money in trading and that's the reality that has to be recognized by many.

futures trade maybe only suitable for those have good result in spot trading , they could analize market well and also manage their emotion and psychology. maybe for some traders, future could growth their balance massively due its potency in each trades that could earn more than 100% only in short term, but for some traders it could easily make their money lost and even liquidated by margin call.

[xSkylarx]

Doing a simple trade using USDC to buy one ILV token would cost me $10.40 in ETH Fees on EXODUS. If I was doing it from my CEX, it would probably be cheaper, but I'd end up paying just as much ( sometimes way more ) if I want to take my new ILV token and deposit it in a hardware wallet. So either way, even if I buy ILV and it makes me a 15% gain in less than 24 hours, I barely break even !
So how do I make a profit ? Do I need to buy 30 ILV to maximize my gains ? Or is there any other way ?

If you're going to day trade, you don't have to keep withdrawing the amount you will buy or else you will just definitely lose profit plus it's very hassle to do that repeatedly. What you can do is just deposit a specific amount on the exchange like 100$ then use that to buy and sell crypto. Any amount beyond 100$ will be considered your profit, it's up to you if you will withdraw it on a daily basis or maybe weekly.

Since crypto market is very unstable, getting profitable in day trading is difficult to do. Even expert traders still prefer their job or other source of income rather than just focus on trading.

[monineklutak]

Let's just take it this way. Day trading is profitable if you're good at it and manage to have those decisions right if you're into spot trading. Also in futures, there are people making money there but it's not easy because they've studied very well on it and invested money just to lose in return for the lesson that they'll get. But setting aside those stories, the majority are losing more money in trading and that's the reality that has to be recognized by many.

futures trade maybe only suitable for those have good result in spot trading , they could analize market well and also manage their emotion and psychology. maybe for some traders, future could growth their balance massively due its potency in each trades that could earn more than 100% only in short term, but for some traders it could easily make their money lost and even liquidated by margin call.

However, it comes back to adjusting to each person's ability to trade,
because not everyone can trade futures so think carefully first and that's important,
the risk of losing money will always be there so we must be prepared for that

[pawanjain]

I know there's a lot of day traders in stocks, and I've heard some do it in crypto ( although most do it at a loss ) so I'm wondering if realistically you can do a profitable trade in crypto.

Let's take a real example.

In this mini rally we're having, I've noticed Illuvium is one of the few tokens that is in the red( less than 1% on the daily when this was posted )


1 ILV is $119 on my CEX... but the sell price is $116 and the buy price is $123

Doing a simple trade using USDC to buy one ILV token would cost me $10.40 in ETH Fees on EXODUS. If I was doing it from my CEX, it would probably be cheaper, but I'd end up paying just as much ( sometimes way more ) if I want to take my new ILV token and deposit it in a hardware wallet. So either way, even if I buy ILV and it makes me a 15% gain in less than 24 hours, I barely break even !
So how do I make a profit ? Do I need to buy 30 ILV to maximize my gains ? Or is there any other way ?

There's basically no point of day trading when you say that the fees would cost you around 9% of the trade.
The volatility of cryptocurrencies is good for day trading but you will have to move to another platform like binance.
So that you don't have to pay such a huge fees. You can target for 3% to 5% gains where the fees is around 0.2% on binance.

[blockman]

Let's just take it this way. Day trading is profitable if you're good at it and manage to have those decisions right if you're into spot trading. Also in futures, there are people making money there but it's not easy because they've studied very well on it and invested money just to lose in return for the lesson that they'll get. But setting aside those stories, the majority are losing more money in trading and that's the reality that has to be recognized by many.

futures trade maybe only suitable for those have good result in spot trading , they could analize market well and also manage their emotion and psychology. maybe for some traders, future could growth their balance massively due its potency in each trades that could earn more than 100% only in short term, but for some traders it could easily make their money lost and even liquidated by margin call.

If you're good in spot, yes, you can be good in futures. But a newbie who jumps quickly into futures without having to try with spot, really are risk taker.
They're blinded by the leverage that others are setting and doing and think that they can just easily do it without anything to worry about. That's how the newbies today, they won't mind the risk they're taking at first tries but eventually will realize that they are doing it wrong.

[GatotKaca]

However, it comes back to adjusting to each person's ability to trade,
because not everyone can trade futures so think carefully first and that's important,
the risk of losing money will always be there so we must be prepared for that

Everyone who trades knows the risks. It's not just losses to crypto trading. even we can lose all our money. especially in futures trading.

for those who have mastered futures trading, looking for daily profits is very possible. even get 15-20%.
but it looks like the OP is still a beginner at crypto trading. which is indeed a different market on spot trading. even though trading on the spot, I think for day trading when we can choose the right asset we can get daily profits which we can lock in profits to accumulate in long-term investments.

[smartaction]

By day trading you can make 10-50$ daily profit using minimum $500.  If able to take right entry at right time. I love day trading.  But I always use altcoins for this. Altcoins price go up and down constantly. So day trading with altcoins is profitable. But if you think about bitcoin or Ethereum then you must have to hold them. Btc & eth is not for day trading.

[palle11]

Day trading is very convenient to make profit if you get the right entering position and this is one thing that make traders lose, wrong entry. If you enter market at the wrong time, you are certainly going to lose especially if you use a stop loss, the price will hit it before reverting to your position. I think day trading requires alot of care and accuracy to get better position for maximum profit.

[Franctoshi]

I know there's a lot of day traders in stocks, and I've heard some do it in crypto ( although most do it at a loss ) so I'm wondering if realistically you can do a profitable trade in crypto.

Day trading is profitable depending on the strategy that your using in order to navigate the volatile market, and can equally be stressful unlike swing trading.  Using like 15Mns -1 HR time frame is good if you prefer going into day trading while the Bigger time will be for direction. The most profitable way of trading is swing trading with that way you don't need to keep your eyes on the market looking for possible set ups and opportunity to take a trade , this where the biggest money is made and less stressful. So to profit from day trading you really need good strategy.

[ethereumhunter]

Day trading can give you profit but it depends on how good you analyze market movements. In addition, the coin selection factor will also affect our analysis because if we only use one coin to trade such as choosing bitcoin, it will not confuse us in trading. We only need to analyze how bitcoin moves from every minute, 15 minutes, 30 minutes, 45 minutes or 1 hour or more and we can see where the price will move. But if it trades more than one coin, then the time we need to analyze will be longer and we may be late in deciding.

[virasisog]

Day trading is profitable but it will only suit those who are fully equipped with knowledge on how to do technical analysis. It requires skills for you to deal with the volatility of the market because you can't just apply the basics of trading here which is to buy low and sell high but rather you have to deal with the movement of the market and analyze it. You should also have enough time to focus on it so you should be well dedicated.