Just like other assets, cryptocurrency is currently experiencing a bear market phase, with the general prices of tokens gradually declining in value. Unfortunately, there is still not a glimmer of hope that this bear market will end anytime soon. For this reason, most crypto traders are trying to apply strategies that will help them make the best out of their trades. If you fall into this category, we’ve provided a guide on how to make $100 a day trading cryptocurrency.
How does crypto trading work?
Regardless of your market expertise, you need a blend of time and experience to understand how the market works. This is because the crypto market is volatile and unpredictable as you cannot be sure if the chat will rise or crash flat the very next minute.
However, crypto trading follows the basic principles of any other type of trading. You purchase crypto via a legitimate platform like Bitmama to store in your wallet. Similarly to stock trading, you can either decide to short your position or go long with your asset.
This means that if you think the value of your coin will rise over a specific period, you buy and hold the coin long term (going long). On the other hand, if you think the value will drop at a certain point, you aim for the asset’s maximum value and sell for a profit before the decline (going short).
Either way, the goal is to make a profit off that asset.
What are the requirements for trading cryptocurrencies?
The most crucial requirement for trading cryptocurrencies is patience. It might sound odd, but it’s true and for good reasons. Most people act out of hype or market pressure, jumping on the bandwagon while believing it’ll simply be a cash-in and cash-out walk in the park. However, they fail to understand that there are several highs and lows in crypto trading and while everyone can handle the highs, your resolve is stretched thin during the lows. This is where patience comes in.
To be successful, you have to learn patience and study the market so you don’t fall into that trap. Start small and focus on learning while you make mistakes and lose money (you most likely will). On the bright side, you come out smarter and more experienced, eventually honing the skills and experience you need to make money trading.
Another rule of thumb is to trade only on legitimate platforms (like Bitmama) and do your own research every step of the way. Never trust crypto influencers or assets outrightly at face value. Understand the value before you buy.
How to make $100 a day trading cryptocurrency
There is no definite path you can take on your quest for how to make $100 a day trading cryptocurrencies. However, the key activities you can engage in to increase your chances include:
1. Trading
This is the basic act of strategically buying and selling cryptocurrencies to make a profit. However, you need to grasp the volatility of crypto. One minute, your coin is high flying, the next, it’s down by over 80% in value. Yes, the crypto market is that volatile and expertise is the difference between knowing if a dip is a correction in the market or just part of the daily volatility.
You need to be skilled and attentive to the market to make money through crypto trading. Understand how to read crypto signals/ performance charts, and then make informed decisions based on experience and research.
With time, you’ll become good enough to make more than $100 daily through trading. However, it requires much practice, time and experience to master the art. Buying crypto on Bitmama is a good place to start.
2. Mining
Mining is one of the easiest ways to make $100 without trading. It does not require any technical skills or market understanding. However, a mining rig is not cheap to establish and acquiring the required hardware could be a challenge due to global chip shortage.
The process refers to when new transactions are locked into the blockchain by solving complex mathematical problems. The first computer to solve the problem verifies the transaction and receives crypto as a reward.
3. Peer-to-peer lending
With peer-to-peer lending, you can lend the cryptocurrency you have and in turn, get a reward. This allows you to profit without ever selling or trading your coins. The process is guarded by smart contracts for security.
4. Investing
Making a profit off investing in cryptocurrencies is all about buying and holding. The growth potential of the crypto market at large is huge, so holding crypto coins in the long term may see their value appreciate and you cash in on profit.
With crypto investing, you do not need to be worried about daily or weekly charts and market fluctuations. This is why we recommend that you focus on stable cryptos such as Ethereum and Bitcoin when investing.
You’ll love this – How to choose the right coin as a crypto investor
5. Staking
Still wondering about other means to make $100 a day trading cryptocurrency? Staking is one of the easiest ways to build passive income and increase your chances. With staking, you store your cryptocurrency in a specific wallet and dedicate it to a network. That network then makes use of your crypto to validate the transactions held on it and pay you interest in return.
With Bitmama for example, you can stake your crypto
Tips to increase your chances of making $100 a day trading cryptocurrency
We’ve provided some tips to increase your chances of making $100 a day trading cryptocurrency below:
1. Stay updated on the crypto market trends
It is very important to know whatever goes on in the crypto market. In fact, it is the number one tip to follow if you want to increase your chance to make $100 per day trading crypto. You can stay updated by following crypto-related blogs and reading the news. Another good place to get crypto news is on social media platforms, however, you must get it from reliable sources.
Staying updated on what is happening in the market will help you to make the right decision. Market analysis from news sources is as important as technical analysis. Staying updated with the news can even help you to figure out the other valuable digital coins available in the crypto market.
2. Mathematical analysis
Mathematical analysis is very important for day traders. Basically, it helps you to review the market trends and predict the results of distinct trades. Nonetheless, if math and calculation are not your forte don’t be bothered. You can just try to understand the basics like reading patterns and charts. Moreover, there are some remarkable automated tools and software that can take care of this for you.
3. Manage your risk
Managing risk is another important part of trading in crypto. This aspect is very important because it enables you to reduce your losses as much as possible.
The basic principle of managing your risk is to trade only what you are willing to lose. Avoid using a lot of money, especially if you are a beginner. You have to move through the learning curve, hence, you have to make gradual progress.
4. Diversify
Crypto is just like any other type of investment, which means you have to diversify. We have various kinds of crypto coins, so it would be unwise to just put your money in only one coin.
Find out all the digital coins performing well and try as much as possible to diversify the kind of coins you trade. It is another good way to manage risk. If one coin performs poorly, you can easily make money trading the other coins.
5. Be patient and consistent
Patience and consistency will take you very far in crypto trading. It is best to remain patient when trading crypto because there would be good and bad days. Also, staying consistent is very important as it will enable you to learn fast.
How much do crypto traders make?
While there’s no direct answer as to the amount of money a crypto day trader earns, due to different factors like the amount of money invested and experience, day traders make reasonable money. Research indicates that the average crypto day trader’s salary is roughly $109,000 every year.
As for the highest-earning crypto day traders, they make up to $180,000 every year, while the lowest-earning crypto traders earn $63,000 every year. This data applies to traders in the United States.
Applying the tips provided above to your daily crypto trading will increase your chances of getting the best returns. However, just like any other kind of investment, cryptocurrency trading carries risks and the outcomes are never guaranteed. For this reason, we recommend that you only invest an amount that you are willing to lose. This is the best way to mitigate your losses.
As the best crypto exchange app in Africa, Bitmama offers a secure marketplace for crypto enthusiasts. Perform activities like crypto exchange, crypto staking, and creating virtual dollar or crypto cards for online payment. Get started today by downloading the Bitmama app.
