Home Cryptocurrency How To Make $50-$100 Dollars a Day Trading Crypto 2023

How To Make $50-$100 Dollars a Day Trading Crypto 2023

by edward

Beginners in crypto trading usually want to know how much they can make in a day. There’s no fixed amount because the daily profit from trading depends on many factors, like market movement and capital. With swing trading, you can make $50-$100 daily, although you must utilize proper trading strategies.

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Getting Started With Swing Trading

There are various trading strategies based on time frames, and swing trading is one of them. Day trading and swing trading are the more popular options.

Swing trading typically requires following a trade for more than 24 hours. Swing traders use 1-hour to daily time frames, although smaller time frames are used to monitor finer market movements and execute a trade at the best possible moment. Swing trades typically last a week, although some traders follow a trade for several weeks and still refer to their strategy as swing trading. In short, in swing trading, you take advantage of market movement over a few days or weeks.

How Does Swing Trading Work?

Swing trading capitalizes on the upward and downward trends or ‘swings’ in crypto prices. Swing traders hope to make several small wins that add up to sizable profits in the long run. For example, other traders might earn a 25% profit over five months, while swing traders may earn 5% weekly! Swing traders use indicators to determine the momentum of a cryptocurrency and to choose the best entry and exit points.

How To Make $50-$100 Swing Trading

The crypto market is volatile and sometimes can be hard to predict. Therefore, a structured trading approach and rule-based trading strategy are essential if you want to make a profit. To make $50-$100 a day,  you need some basic strategies:

  1. Conduct thorough research on basic trading procedures, cryptocurrency options, and trading platforms. The research process is continuous since the crypto market is very dynamic.
  2. Choose suitable cryptocurrencies to trade. There are thousands of cryptocurrencies available on exchanges worldwide. However, a relatively small portion is suitable for trading. The right crypto can give you a head start in making a profit.
  3. Understand volatility. This is very important if you do not want to lose all your capital. Massive price movements against you can wipe out your investment if you put no safety measures in place. Stop losses automatically exit trades when you’ve lost a percentage of your capital.
  4. Have a budget. To make at least $50 daily, you need to assess how much you are willing to invest. To avoid losing all your money, you must only risk 1% to 2% of your trading capital. Therefore, the $50 profit will come from that portion of your capital.
  5. Adopt a good trading strategy. Find an excellent rule-based strategy and stick with it.
  6. Set realistic trading goals. Most successful traders win 50% to 60% of their trades. Do not aim to win 80% or 90%; you might deplete your capital.

5 Benefits of Swing Trading

1. Requires Less Time Than Day Trading

This is one of the significant benefits of swing trading. Unlike day trading, where you need to constantly watch the market for movements, you only need to analyze the market and choose your trading position in swing trading. You can then check the trade anytime to see if things are going your way or to leave the trade and take your profits.

2. You Use Technical Analysis

There is more volatility in lower time frames than in higher time frames. Trading decisions in day trading are therefore based more on sentiment than technical analysis. However, swing trading has less volatility (less, not zero), and the market follows specific patterns. Therefore, traders can rely on technical analysis to make their trading decisions. This helps you to achieve consistent results.

3. Swing Trading is Simple

Instead of spending much time and effort establishing intrinsic value and tinkering with fundamental analysis, you can focus only on price movements and volume. This saves you time and effort and offers you more flexibility to focus on other stuff.

4. You Can Maximize Short Term

Swing trading allows you to capture the bulk of market swings, thereby maximizing your potential for profit in the short term. Swing trading is positioned within timeframes that allow you to make substantial profits with the right trading strategies. With swing trading, you can easily make $50-$100 a day without spending all your time looking at charts.

5. Alot of Flexibility

Swing trading allows you to buy and sell cryptocurrencies for small profits, which will accumulate substantially if you trade consistently. This lets you easily optimize your strategy to suit your current trading landscape. Unlike day trading, in which you have to monitor the market constantly, or position trading, in which you are committed to more extended periods.

Top 3 Coins for Swing Trading

1. Ethereum (ETH)

Ethereum is one of the best altcoins you can add to your trading portfolio. With a faster transaction time and a higher transaction volume than Bitcoin, Ethereum offers several benefits to traders. Some of the benefits are:

  • Fast transaction times
  • High market capitalization
  • Large network size
  • Lower volatility compared to some other altcoins
  • Huge potential for growth

2. XRP

Ripple is one of the altcoins that can hold a candle to the sheer power of Bitcoin and Ethereum. There are several significant aspects in which this cryptocurrency does a better job than the two leading cryptocurrencies. These include:

  • Still faster transaction times
  • Low transaction fees
  • Huge potential for growth
  • Endorsement by large financial institutions, such as Bank of America and Santander
  • Versatile transaction network including fiat currency and other cryptocurrencies

3. Bitcoin

Bitcoin is the foremost cryptocurrency, and it is the crypto of choice for many traders. This has several reasons, including its huge market cap and liquidity. The following are some other benefits of Bitcoin:

  • High liquidity and accessibility
  • Lower volatility compared to some other altcoins
  • Highest market capitalization
  • High return potential
  • High growth potential

Final Thoughts

You can make sizable profits from crypto swing trading. However, it would help if you had the knowledge and expertise to achieve this. Making $50-$100 can be easy, depending on how much risk you want to take, your knowledge, and your trading capital.

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