Cryptocurrencies, like all other assets is currently deep in the doldrums of a bear market, and it’s been 3 years since it’s last foray into a bear market like this one. Bitcoin is trading off of it’s all time high, by an astounding 70%, and we’re not out of the woods yet. Make no mistake, it’s entirely possible Cryptocurrency Numero Uno could shed another 20% of market value.
So, with all this volatility surrounding the crypto space, and let’s face it the overall economy, is it better to just trade crypto in the short term until all the dust settles? And, if that be the case, then is it possible to make $100 a day trading cryptocurrency?
Making $100 a day trading cryptocurrency is certainly in the realm of possibility
It will however, require the discipline of a hunting cat.
The price changes in cryptocurrencies are erratic, and abundantly volatile. However, volatility is great for trading, as there are great entry and exit points all throughout the day. So yes, the opportunity is ripe for anyone to pocket an extra $100 a day, assuming you’re on the right side of the trade.
Take Bitcoin for instance, on August 5th which was just a ho-hum day of trading; in 7 hours it increased in value by 1.15%, then 13 hours later it had lost .82% of its market value. For an asset that’s been trading around $23,000, this offers plenty of opportunity to find an entry and exit point which could reward your pocketbook with an extra $100 a day.
In order to make a $100 a day trading cryptocurrency you have to adopt the right mindset.
Traders don’t look at gains in terms of home runs, they are all about singles, occasionally a double, and maybe a couple of stolen bases.
Heck, they’ll even take a beam ball, if it gets them on base.
Making a $100 a day trading crypto adds up to $36,500 per year. This is because The Crypto Market never closes, so this can be done 7 days a week, every day of the year.
Adopting the mindset of a trader is step 1, and likely the most important step of this process. You have to find a way of being able to eliminate the thoughts of “oh I know I can make a 5 banger on this trade, if I just do this”. It’s the THIS that gets you into trouble. Those thoughts are simply noise meant to take you off of your goal, so don’t fall for it.
If you’re a trader and need guidance with maintaining a traders mindset, this post from Investorsunderground.com may help you.
“Baseball is a game with a lot of waiting in it; it is a game with increasingly heightened anticipation of increasingly limited action”
The same can be said for trading cryptocurrencies.
Trading, like baseball takes patience. In baseball, its like the batter waiting for the right pitch to execute his well rehearsed swing. A swing that can deliver a line drive over the shortstops head into the gap for a stand up single or double.
In order to make a $100 a day, you need ‘stand up singles and doubles’.
Patience in Trading is about recognizing trends and behaviors, along with having a keen understanding of Macro Level Economics.
To Make $ 100 a day trading Bitcoin, start by buying on a Thursday.
After examining each trading day for the last 10 years, it appears ‘Bitcoin Thursday’s’ on average, have more negative price trades, than any other day of the week.
It’s true, 10 years of history shows that on average, Bitcoin’s first trading price on Thursday, is only .01% above the last traded price on Wednesday.
Compare this to Wednesday’s where it is up .90% from the last trade on Tuesday.
Here are how the rest of the days of the week stack up, when compared to the last trading price of the day prior.
While it’s not a perfect analysis of when to trade, historically speaking, it does appear buying on Thursday and selling on Wednesday will put you in position to increase your odds of making a $100 a day trading Bitcoin.
Use staking to improve your likelihood of making $100 per day in Crypto.
Let’s face it, timing the market is difficult for newbies, and requires discipline and timing, which not everyone possesses. What if you wanted to be in the Crypto Market, but were looking at a more ‘hands off’ approach?
This can be done, but it will require a larger time horizon than that of a trader. Here’s how:
Staking your Crypto
Staking is the process of owning a Cryptocurrency and being paid a yield (return) to ‘house’ your cryptocurrency on an exchange. Some of the most popular exchanges which offer staking are Coinbase, FTX, Gemini and Binance (if you live outside the US).
Why Staking is good for you, and for the Network.
Not every cryptocurrency offers Staking, only those which are on Proof of Stake Networks. Proof of Stake means the coin holders can assist in the security of the network. As transactions happen the nodes which are a group of coin holders, act as verifiers of each transaction.
Proof of stake networks are more energy efficient than that of Proof of Work Networks, such as Bitcoin. The second most recognizable Cryptocurrency Token; Ethereum is set to change over to Proof of Stake this September, when the ‘Merge’ occurs. At the point of the Ethereum Merge, the Networks will be; faster, more scalable, more secure, cheaper to use, and alas, energy efficient.
For an in-depth look at the process of Cryptocurrency Staking, refer to this comprehensive article from Wealthsimple.com.
Making $100 a day trading cryptocurrency doesn’t mean you have to time the market.
If you have capital and are looking to deploy it in the Crypto Market, making $100 per day, may be as simple as having a $36,000 return on investment.
It’s conceivable you could buy Bitcoin today for $23,500, and Ethereum for $1,700, and make a return in one year of $36,500, which would average out to $100 per day. And, you don’t have to time the market, all you have to do is buy and hold.
Suppose you bought 1 Bitcoin today for $23,500 and this time next year its selling for $40,000. Your profit would be $16,500.
Then you also bought 10 Ethereum today at $1,700 each for a total of $17,000. Next year each coin is selling for $3700, your profit would be $20,000.
You’ve just made $36,500 in profit, or $100 a day trading cryptocurrency.
For more information on ways to capitalize on Ethereum, check out this post.
What are your thoughts on the overall Cryptocurrency Market, are you making $100 extra a day?