Cryptocurrency has taken the world by storm ever since its introduction to the market just a few short years ago. The extremely volatile nature of cryptocurrency has made regular folk into multimillionaires in as little as a few short weeks. However, there’s no doubt that it’s also wreaked havoc into many other’s finances if they guessed the crypto market incorrectly.
Day trading cryptocurrency has also been on the rise as more and more folk have been applying the principles of day trading to the crypto markets. Day trading in itself has massive potential to make millions. So when combined with a market as powerful as a cryptocurrency? The possibilities are endless.
In this article, we’ll take a look at the five top benefits to day trading cryptocurrency so you can see what’s in store for you.
1. Increase Your Rate of Return
The very nature of day trading is that it increases your rate of return. Rather than simply following the 7% year on year increases of the market, it enables you to reap the benefits of the daily gains.
Given that markets typically go up and down as much as 1% or more in a single day, if you time the market right you can far exceed any yearly rate of return. The cost of this is added risk, but that’s the same story as with any high-upside investment theme.
2. Small Barrier to Entry
Day trading cryptocurrency has a very small barrier to entry. Because of the nature of day trading, you can day trade with very small amounts. Thus, there’s no reason to build up enough money to buy a significant deposit that many long-term cryptocurrency trading schemes require.
This is especially true when you’re day trading on Binance — very little initial investment is required.
3. Learn about Cryptocurrency
Another major benefit to day trading cryptocurrency is that you will begin to grow intimately familiar with cryptocurrency. You’ll gain a greater understanding and appreciation for how the blockchain works, and will understand the natures of each cryptocurrency and what they are used for.
4. Learn Basic Day Trading Skills
On the flipside, you’ll also gain basic day trading skills if you don’t have these already. Day trading small amounts of cryptocurrency is a great way to learn how to make gains in day trading.
It’s common to lose your shirt as a newbie day trading in the stock market, so crypto is a great place to get your feet wet.
5. Take Advantage of Both Rises and Falls in the Market
The nature of day trading allows you to capitalize and make money both when the market falls or when it rises. You do this by shorting the cryptocurrency whenever it falls (betting that it will fall, increasing your capital).
Day Trading Cryptocurrency is the Way to Go!
It’s obvious that day trading cryptocurrency is the way to go. With a powerful platform like Binance, you’re only a few clicks away from reaping these five benefits.