The advent of electronic trading platforms made day trading a popular activity and a viable career. And with the growth of cryptocurrencies, spot and derivative markets have made it possible to pursue crypto day trading.

While trading has an inherent risk, especially something as volatile as crypto, it does have several advantages. Check out some potential pros of day trading crypto below.

This is not financial advice. If you're interested in any form of investment, you should approach a licensed financial advisor who can give you the best advice based on your needs and risk appetite.

1. Easy Set Up

A person holding a smartphone showing live trading graphs_

You don't need to go through complex processes to start day trading. The first requirement to start trading is a mobile phone and an internet connection. You must then open an account with a reliable crypto exchange or broker. So, if you're turning this into your career, you should only use the safest crypto exchanges.

It's also easy to open accounts on these exchanges. If you want to see how straightforward it is, check out our step-by-step guide on opening a Binance account. Furthermore, many exchanges require low minimum account balances. So, you likely won't have issues with funding your account.

Once you have an account and have funded your wallet, you're now ready to day trade cryptocurrencies.

And contrary to how it works for many businesses, you don't have to rent an office or worry about strategies to draw customers. Day trading allows you to trade from your home or anywhere you find comfortable.

However, just like any business, you'll have to put in hard work studying the factors affecting the cryptos you want to trade and the price movement in search of trade entries. After all, there's no such thing as easy money.

2. 24/7 Accessibility

Four Time Zone Clocks, White Background

Since cryptocurrency isn't based on any traditional market, like forex or stock exchanges, you can trade crypto 24 hours a day. Because of this, you can schedule your day trading activities to the best time you want, either during the day, at night, or even during weekends.

The 24-hour accessibility gives global access to the crypto market, and you can trade cryptocurrency no matter your time zone. All you have to do is plan your time properly to make it work.

3. Benefit From Bull and Bear Markets

an illustration of the bull and bear in a financial market

Crypto spot trading allows you to benefit from higher crypto prices. When you buy a crypto asset, your investment will increase as the asset's price rises. However, it will also lose value if the crypto's price falls.

But if you take advantage of crypto derivatives, you can benefit from both a rising market and falling crypto prices. When you think the price of an asset is about to drop, it's possible to short an asset so you could make money even if the market falls. However, note that shorting anything could also lead to unlimited losses, as evidenced by the GameStop meme stock event in 2021.

4. Many Crypto Assets

Hands holding various cryptocurrency coins

When day trading cryptocurrencies, you can access a wide range of assets. Many exchanges provide access to hundreds of cryptos, allowing traders to choose the ones that best fit their preferences from numerous options. For instance, Binance offers over 350 cryptocurrencies, while Coinbase and Bybit each have more than 250 cryptocurrencies for trading.

With this massive number of coins, you can easily diversify your portfolio, benefit from multiple cryptocurrencies simultaneously, and even help protect your income if some fail.

5. Diverse Trading Strategies

If you play to day trade professionally, you should have a crypto trading strategy. Many day traders use scalping and day trading strategies to profit from the market since most trades carried out using them are closed within the same day.

These day trading strategies allow trading with different styles, like studying candlesticks to get market information and finding valuable patterns like the breakout and retest and the head and shoulders pattern. You can also use indicators and tools to get market data and combine all these with other analysis methods to make trading decisions.

You see your results faster with day trading strategies since most trades are concluded quickly. Day trading also allows you to trade with trading bots, which helps you to trade without your involvement. In this case, the bot handles a part of or the whole trading activity, and you only have to wait for the result.

6. Take Advantage of Market Volatility

a picture of crypto coins and crypto charts

Cryptocurrency volatility refers to the degree of crypto assets' price fluctuation over time. The crypto market is very volatile and experiences many short-term wild swings.

As much as fast intraday price movement can work against you if you do not manage risks well, it also presents many opportunities you can exploit. The higher the volatility of an asset, the greater the chances of getting trading opportunities quickly.

7. You Won't Have to Answer to a Boss

Being employed means you are subject to some rules and regulations, and they may limit your freedom. However, crypto day trading allows you to work at your own pace. This may be attractive if you value your independence and want more control over your work life.

Day trading also gives you total control over your investment decisions. You can choose which crypto to buy and sell and when you want to do it. This way, you take responsibility for your success or failure rather than rely on others.

8. You Can Use Leverage

price board

Leverages are funds that exchanges or brokers make available to traders to increase the size of their trading position beyond the size of their actual trading balance. With leverage, you have higher exposure to the market. Although this entails greater risk, you could also get more considerable gains if the trade goes in your favor.

For example, with a trading balance of $10,000, a 10% profit would give you $1,000 as profit. However, if you use a leverage of 1:20, you can open trades worth as much as $200,000 while having the same $10,000 as your trading balance. With the same leverage, a 10% increase would give you a profit of $20,000.

Therefore, leverage reduces your capital requirement to execute large trades since you can execute such trades with the borrowed fund. But again, if your trade fails, you'll have to repay the capital you borrowed. So, you shouldn't use leverage unless you're 101% sure that your trade will result in a profit.

Day Trading Can Be Lucrative, But It Isn't for Everyone

Day trading provides a lot of attractive advantages. Thus, those who can take the time and effort to learn the required skills, be abreast of market trends, and master the psychology of trading can make a lot for themselves from this highly profitable activity.

However, day trading isn't for everyone. This activity entails serious risks, including the possibility of losing more than you've invested. So, before jumping into it—whether you're doing it part-time or turning it into your career—you should have enough savings to get you through in case your trades don't work out.