Start your daily trading journey: How to trade cryptocurrencies and practical strategies

Intraday Trading - Effective or Risky Cryptocurrency Trading Strategies?

Cryptocurrency trading is not limited to just one path. Today’s generation of crypto traders has more options than ever: spot trading, futures contracts, swaps, or options. Each method has its own complexity, but trading psychology is the key factor that determines success or failure.

There are two types of participants in the crypto market: investors and traders. Investors allocate capital and wait, while day traders must constantly seek opportunities – they enter and exit within the same day, without holding positions overnight. This may sound simple, but in reality, it requires a completely different mindset.

Why do people choose intraday trading?

Intraday trading is not a specific strategy but a self-imposed discipline rule that professional traders have built over many years. From choosing which coin to trade, to which index to monitor, to profit targets and stop-loss levels – everything must be planned in advance.

Why choose this approach? Because it offers freedom and control. When you don’t hold positions overnight, you avoid unexpected price shocks at 2-3 AM. You can step away from the market, escape the stress of a 24/7 market, and start each day with a new plan.

Advantages and limitations of intraday trading

Positive aspects:

• Avoid overnight risks
• No need to worry about unexpected news while sleeping
• Opportunity to reset your mindset daily

Negative aspects: This is the point of debate: you might miss out on significant profits. For example: if you buy Bitcoin at $50,000 in the early morning and it increases by (2,500 ) by the end of the day, you take a profit of $2,500. But if Bitcoin continues to rise to $58,000 overnight, a medium-term trader would earn $8,000 while you only made $2,500 and cannot participate further.

Conversely, if Bitcoin drops sharply, you have closed your position and avoided losses. So: freedom comes at a price, which is missing out on potential gains.

Key factors you cannot ignore when trading

Bitcoin is the market leader

No matter which altcoin you trade, Bitcoin’s movements always set the overall market sentiment. When Bitcoin drops, almost all altcoins follow. When Bitcoin rises, altcoins also have a chance to increase (if their fundamentals remain strong). Therefore, price movements of BTC cannot be ignored when trading intraday.

News drives everything

The crypto market is highly sensitive to major events – whether it’s big companies buying Bitcoin, government policy decisions, or news from blockchain projects. Independent traders can be at a disadvantage if caught off guard by these news releases during trading hours.

Time zones matter

Major market movements often occur when:

• North America begins a new day (UTC-5)
• Asia starts trading (UTC+8, mainly China)

Understanding this can help you better prepare psychologically for these periods.

How to trade cryptocurrencies effectively: 6 practical strategies

1. Don’t put all your money into one trade

This is the most common mistake. Many traders are “blinded” by optimism and bet all their capital on a single position, only to be shocked when the price drops sharply.

Golden rule: Intraday trading requires you to preserve your capital continuously because you need to rotate funds across multiple positions. If you use all your money, you risk getting stuck and losing the chance to “save” a losing trade.

2. Cut losses quickly - This is the number one skill

When trading intraday, you cannot rely on price recovery the next day. If a trade goes wrong from the start, cut your losses immediately and move on to the next opportunity.

However, averaging down (by buying more at lower levels to lower the average price) is an option, but only in certain situations. Holding onto a bad trade for too long will waste both time and money.

3. Control greed - Your biggest enemy

Greed is the main reason many people lose money. When the market starts rising, rationality often disappears. You might think: “Why take profits early when it could go higher?”

Solution: Set clear rules for taking profits before entering the trade. For example: “If I gain 5%, I will sell 50% of my position. If I reach 10%, I will sell the remaining.” This way, you protect your gains while allowing room for further upside.

4. Be proactive, not reactive

Intraday trading is not about holding onto one or two coins. You must be able to adapt to daily market changes. If a trade isn’t working as planned, exit and look for better opportunities elsewhere.

Professional mindset means: doing thorough research, having a clear reason to enter each trade, and maintaining discipline to exit if the plan doesn’t materialize.

5. Don’t trade today if you’re not confident

If you don’t feel confident about the market today – whether due to unclear news or excessive volatility – don’t attempt to trade. The market will be there tomorrow. Patience is a skill that few learn.

6. Protect your capital as the top priority

Trading is not gambling – no profit is worth risking your capital. Always:

• Start with small positions
• Increase size when your trades are successful
• Reduce size or exit when signs of danger appear

Next steps

Intraday trading is not for everyone. It requires discipline, experience, and risk management skills. If you’re not ready for that, start with longer timeframes or smaller capital.

But if you’re determined to learn how to trade cryptocurrencies through daily trading, remember: each day is a new opportunity to learn and improve. No trade is too small to teach you a lesson, and no mistake is too big to recover from.