Cryptocurrency (otherwise known as “crypto”) is a digital currency you can use as an investment, an alternative payment method, or both. Decentralized and encrypted, this medium of exchange has gained global attention for its ease of use and trading profit potential. Many “crypto millionaires” are emerging with the rise of cryptocurrencies.
Expert analysts at Yahoo Finance estimate the growth rate of the cryptocurrency market to be 12.8% from 2021 to 2030. With Statista reports showing that an average of 1.1 million Ethereum transactions take place daily. The second most valuable cryptocurrency after Bitcoin—it’s clear that crypto is dominating the digital age.
Ethereum and Bitcoin are just two types of cryptocurrency blended into a pool of thousands, with over 10,000 digital coins existing as of 2022. As a market projected to reach US$37.87bn in 2023, profit margins are exceptionally high for cryptocurrency investors and traders.
TripleA claims more than 300 million global crypto users or 3.9% of the worldwide population. The majority of crypto owners reside in Asia (160 million), followed by Europe (38 million), Africa (32 million), and North America (28 million).
Whether you are a crypto user or considering investing in digital coins, take a moment to learn why digital money is developing such a golden reputation.
Why is Cryptocurrency Valuable?
Cryptocurrency is a name inspired by cryptographic techniques that allow people to securely purchase, sell, or trade digital coins. Unlike government or bank trading, cryptocurrency trading does not require a central authority. Because of this, crypto is transforming how we can spend money, invest in assets, bank, and earn money.
A report by Investopedia found that crypto has six key attributes: scarcity, divisibility, acceptability, portability, durability, and resistance to counterfeiting (uniformity).
Let’s expand upon these points to understand better why cryptocurrency is such a valuable asset:
- Scarcity – As supply dwindles, demand for cryptocurrency soars. The scarcity of cryptocurrency contributes to value inflation and generates more interest from investors.
- Divisibility – The banking system is evolving with the growing adoption of cryptocurrencies, which can be divided and traded into smaller pieces. For example, Bitcoin offers great divisibility since the coin has eight decimal places.
- Acceptability – People in different countries exchange funds and assets using the same type of cryptocurrency since digital coins are widely accepted.
- Portability – Cryptocurrencies are available wherever you are, even if the global finance system’s major intermediaries encounter a problem.
- Durability – Once a crypto transaction is complete, it is irreversible. All crypto-related transactions are permanent and final, making them durable and immutable currency.
- Uniformity – A transaction must have a valid input equal to the total output. It is not possible to spend the inputs elsewhere. Cryptocurrency software monitors the blockchain to confirm uniformity and prevent additional coins from being produced unless the network approves.
During the Milan Fintech Summit, keynote speakers announced that the total cryptocurrency value inflated to $34.3 billion in 2022. Currency Exchange International notes on its website that over 15,000 worldwide companies accept Bitcoin as a preferred payment method.
Analysts attribute the popularity of this market to their versatility since crypto can serve as a unit of exchange and a store of value.
What is Cryptocurrency Day Trading?
Cryptocurrency trading refers to purchasing and selling digital currency assets with the primary goal of making a profit. When making money with real-world stock exchanges, various things are tradable to yield profit, including stocks and shares like precious metals, diamonds, company shares, and different currencies.
Trading goals differ depending on the person. Typically, two main types of cryptocurrency day trading goals are short-term and long-term. While short-term trading refers to holding assets for a few seconds to a few hours, long-term trading focuses on holding assets for as long as possible before selling at a higher price.
An ever-growing list of cryptocurrency trading methods is prevalent in today’s colossal market. But, most involve market speculation or chart analysis. Speculation refers to the belief that prices will sink or skyrocket due to specific events, such as Dogecoin (DOGE) surging 25% after Elon Musk tweeted about it.
Conversely, chart analysis refers to a cryptocurrency trading practice that involves assessing the price fluctuations of certain digital assets and, based on previous price dips and leaks, trying to figure out which direction it will go. Traders can analyze chart prices for changes every few seconds, minutes, or hours.
How to Make $100 a Day Trading Cryptocurrency?
While it does help to have experience trading cryptocurrency to earn money, learning from the ground up is possible. Due to the deep-seated volatility of cryptocurrency assets, traders in this industry ought to understand that they involve a high level of risk and should brush up on their knowledge before investing.
Market knowledge is the first step to making a profit trading crypto, and once you implement your knowledge consistently, you can turn over money daily. Here’s a step-by-step overview of what it takes to earn $100 (or more) per day by trading cryptocurrency:
- Firstly, you should research the most valuable and popular cryptocurrencies before deciding which one(s) you want to dabble in.
- Secondly, traders must find a trustworthy cryptocurrency to buy and sell digital coins 24 hours daily. If you envision yourself day trading full-time, opt for an exchange that features numerous pairings – the two currencies trading against one another. For example – if you conduct chart analysis and notice that the price of Bitcoin looks set to increase against the value of Ethereum, you would be on the hunt for an exchange with an ETH/BTC pairing.
- Once you have selected a cryptocurrency exchange, you can sign up, deposit funds (most crypto exchange networks require a minimum deposit of? to get started), and designate a whole day to test the trading screen’s unique features. Since all cryptocurrency trade exchanges feature a chart, studying price movements is advisable.
What is the Future of Crypto in the Next 5 Years?
As a fast-moving market that is advancing with technologies, it is tricky to precisely say what the future of crypto will look like in the next five years. Despite the uncertainty, a market research report published by Fortune Business Insights pinned a $1,902.5 million valuation on the 2028 global cryptocurrency market, growing from $910.3 million in 2021 at a CAGR of 11.1% during the forecast period (2021-2028).
Furthermore, there will likely be battles over harsh regulation, combined with the rapid growth of Web3 platforms – a centralized version of the Internet – and global Bitcoin adoption. On top of this, there will be rising interest in NFTs, which are unique digital assets that cannot trade for each other but can be purchased using cryptocurrency.
Although many believe cryptocurrency could be the future of money, many believe the opposite. Before going into the cryptocurrency trading market, it’s essential to consider the risk. So long as you are willing to take a chance in a volatile market, cryptocurrency could be a worthwhile money-maker and a learning curve that could help you to become a better trader.
When Do the Crypto Markets Close?
There is no closing time for crypto markets since they do not close. Crypto markets operate 24 hours a day, seven days a week, all year round. This means you can earn a daily profit 365 days a year. If you make $100 daily, that’s $36,500 in passive income.
Contrastingly, the stock market is more strict in terms of trading times. Regular trading hours for the stock market vary from Monday to Friday. Cryptocurrency markets are decentralized; therefore, they can operate without any central medium for transaction verification. Because of this, they function 24/7 without any network interference.
The only downside is that, although crypto markets operate 24/7, cryptocurrency exchanges may close for short periods. It is common for a crypto exchange to go down amid high congestion and during site maintenance or upgrades.
When an app or crypto exchange is temporarily disabled, you cannot trade. Thus, proving the importance of finding a crypto trading platform that rarely (if ever) has downtime.
Approximately 99% of traders face three challenges when crypto trading: time limitations, scams, and missed opportunities. Do your research and read reviews to understand the best cryptocurrency exchanges and avoid losing money.
Ensure the exchange you are keen on signing up for serves customers in your specific state and country. The rules and regulations are constantly updated and may vary significantly from location to location. It would help if you also considered other things when crypto day trading, such as your asset choices, liquidity, the amount you want to invest, and the level of security offered by an exchange.
Since exchanges usually make money by charging a transaction fee, it’s essential to read a company’s terms and conditions beforehand. Safeguard yourself from unexpected market crashes by working with an exchange offering customer support and insurance.