Are you interested in making a steady income of $100 daily through cryptocurrency trading but don’t know where to start? If so, you’ve come to the right place. Despite the intricate nature of the cryptocurrency world, you can earn income from it without wasting your time and hard-earned money.
Trading cryptocurrencies is similar to stock trading and involves buying and selling currency or stock. So you can buy and sell crypto daily. That means focusing on short-term rather than long-term trading, which requires a huge investment.
Like any type of trading, day trading is risky, and you need the right skill set to earn consistent profit.
Here are the top five effective crypto trading strategies that can generate $100 daily.
How To Make $100 In A Day Trading Cryptocurrency: 5 Effective Ways
1. Day Trading
You can easily make $100 a day trading cryptocurrency with day trading. Day trading involves buying and selling crypto several times in a single trading day. This strategy aims to maximize trading profits even with small price movements.
If you have a small capital, you must take several trades with small risks to hit your target. On the other hand, a larger capital allows you to use a bigger lot size, which means you can attain your target even with a single trade. Nevertheless, risk management is crucial in day trading because you don’t hold trades for long.
To reap success in day crypto trading, you must effectively understand the technical and fundamental analysis. That allows you to use past behaviors to predict future behaviors of the cryptocurrencies. You also need to be well-updated with the market trends and news since industry events impact the price.
HODLing is another excellent way to make your first $100/day through crypto. Ideally, HODLing is synonymous with crypto investing, whereby you buy and hold a cryptocurrency for the longest time possible as you expect to make profits when prices increase.
You need a cryptocurrency with strong growth potential to make $100 through HODLing as an investor. After choosing the ideal crypto for HODling, you must buy and hold it until the price increases to your target.
One strategy for successful HODLing is to invest in a cryptocurrency with a strong use case, innovative technology, and an extensive community of users. For example, Ethereum (ETH) is a cryptocurrency with a strong potential for growth because of its smart contract functionality and capability to support decentralized applications (dApps).
Another cryptocurrency that has gained popularity for HODLing is Bitcoin (BTC), which has a limited supply and is considered a store of value.
However, making $100 daily with this method can take time since you can hold trades for an extended period. But you can still achieve your goal by targeting $30,000 profit a month which translates to $100 a day.
3. Crypto Mining
If you’re a computer wizard, you will benefit more from this strategy. Cryptocurrency mining is adding transactions to the blockchain by solving complex math problems with specialized hardware. Miners usually receive newly minted cryptocurrencies as a reward for such computational work.
Making $100 daily with mining is easy if you choose a profitable cryptocurrency. In addition, you ought to have high-quality mining hardware and access to cheaper electricity.
One of the most well-known cryptocurrencies to mine is Bitcoin. Still, the difficulty of mining Bitcoin has increased significantly over the years, making it difficult for individual miners to make a profit. Other profitable cryptocurrencies you can consider for mining are Ethereum, Monero, and ZCash.
A reliable mining software will help you connect the mining hardware to the blockchain and become part of the mining pool. Furthermore, you also need a PC with a specialized graphics processing unit (GPU) for faster graphics rendering. Alternatively, you can use an application-specific integrated circuit (ASIC) miner designed for a special purpose to enhance your chances of earning rewards.
To maximize profits and decrease costs associated with bitcoin mining, use renewable energy or move to a place where electricity is cheap to keep prices down.
Staking is a passive income-earning method that allows you to put your assets to earn money without necessarily selling them. It works like a savings account where you deposit your money and enjoy the interest. So, you can make $100 daily with staking by keeping cryptocurrency on your eWallet and dedicating it to a particular network.
The support network receiving the digital currency will use it to validate their transactions, and in return, they will offer cryptocurrency fees and tokens to the original currency owners.
While making $100 daily through staking is still possible, you need to invest a significant amount of money. It’s important to know that staking rewards usually vary depending on the cryptocurrency and staking pool. For example, staking 1000 Cardano tokens will earn you a reward of 5% annually, which amounts to $1.37 daily. Therefore, to earn $100 daily, you must stake 72,992 Cardano tokens, which is a considerable investment.
To hit your daily target with staking, you should follow these steps-
- Choose a high-yielding cryptocurrency: Staking is currently available for several cryptocurrencies, including Ethereum, Cardano, and Polkadot.
- Set up a staking wallet: Popular staking wallets include Atomic Wallet, MyEtherWallet, and Trust Wallet.
- Purchase and transfer the cryptocurrency to the staking wallet: Once you have set up the staking wallet, purchase the cryptocurrency you wish to stake and transfer it to the staking wallet.
- Select a staking pool: If you’re new to staking, join a staking pool. Staking pools combine multiple users’ stakes to increase their chances of earning rewards. Popular staking pools include Binance Staking, Kraken, and Coinbase.
- Start staking: Once you’ve selected a staking pool, you can start staking your cryptocurrency. The staking process is automated, and the rewards are automatically distributed to your staking wallet.
Lastly, always remember to diversify your cryptocurrency investment. While other aspects like managing risks, consistency, and following up with market trends are helpful, new cryptocurrencies that could be more rewarding are emerging daily.
As such, diversification will help you make more money in crypto trading because you will spread your coins to work for you in multiple areas.
Besides, it’s a great way to spread risks. If one investment backfires, you will still have others to earn from. However, you must be careful, especially when investing in new coins, as many scammers are out there.
Watch out for cryptocurrencies with unrealistic ROI promises. Also, make use of crypto trading tips to avoid making massive losses.
Tips for Trading Cryptocurrency
A) Learn Extensively about Crypto Trading
To make $100 a day trading cryptocurrency, you must learn extensively about crypto trading. Frequent practice is a way to gain robust experience and start trading like a seasoned pro because the crypto world is volatile and unpredictable.
B) Invest in Highly Rewarding Cryptocurrencies
With the right crypto trading skills from mastering the basics of crypto, market research, rational thinking, and risk management, it’s time to purchase a lucrative digital currency like Bitcoin, Ethereum, and Litecoin from a legitimate platform or the exchange market. Once you buy your crypto, keep them in a secure digital wallet.
C) Buy and Hold or Sell for Profit
Buying and holding cryptocurrency is a brilliant idea when you anticipate its value to increase after a given period. However, if you think the crypto’s value will drop or rise, analyze and optimize your entry positions for precision and, ultimately, massive profit. Now that is how to make money with Bitcoin or any other type of cryptocurrency.
D) Patience is Key to Successful Trading
Crypto trading is not a walk in the park. Things won’t get easy instantaneously if you don’t have patience. Many people have high expectations and walk into cryptocurrency training, hoping to make hundreds of dollars the next day.
Hitting huge profits while trading cryptocurrency is easy, but you should consider the lows and highs. Every crypto trader will tolerate the highs, but as the lows set in, that is when your determination is on the test.
E) Start Small and Be Persistent
Don’t hesitate to start small with crypto trading. You will only lose a little money even if you make a mistake. Furthermore, that will also be a learning experience, and you need consistency as you advance your trading skills. Don’t give up because you will make money in that trading game as soon as you get well-versed in the cryptocurrency market.
Day trading is one of the best ways to make $100 daily trading cryptocurrencies. However, remember that crypto trading is also risky, and there are other options that you can consider to make more significant profits. The best day trading alternatives include mining, HODLing, and staking. So, diversify your investment with these methods to avoid putting all eggs in one basket.