Can You Make $100 a Day with Bitcoin Trading?


The digital currency that heads the market Bitcoin, has many impressively engaged traders around the world. The desire to earn fast money and get huge returns in some cases, in hours and even in minutes has brought many into day trading in the crypto world. But is it really possible that earnings in the realm of cryptocurrency ever increase by more than 100 dollars a day?

In this article, we aim to uncover the nature of the Bitcoin trading process; its benefits and constraints, and whether it could be possible to earn a fixed amount of $100 a day will be discussed.

Understanding the Basics of Bitcoin Trading

That being said, before even discussing the possibility of earning $100 a day let us try and understand the basics of trading in Bitcoin. For one, unlike normal stock markets, Bitcoin has no closing hour and it operates 24 hours including on weekends, which also means that risks and opportunities are always present. The price of bitcoins, like any asset class, is more relational in the use of some of the following.

Market Sentiment: Negative OR positive sentiments concerning pieces of information can cause the prices of bitcoins to change.

Institutional Investment: The bitcoin market Ecosystem may also rely on some institutional investments for its evolution.

Regulatory Announcements: This risk can result from policy changes by the government regarding the treatment of cryptocurrencies.

Technological Developments: The price of Bitcoin can also be increased or decreased according to the changes in its background by the steps implemented.

Strategies for Trading Bitcoin

A trader has many options when it comes to offsetting the costs of purchasing bitcoins;

Day Trading: A trader places multiple calls to the order executing several new buys then sells for much higher amounts than the previous until closure is executed on the order fires in its reversal.

Swing Trading: This means selling the currency within 48 hours to ten days after acquisition based on occurring price shifts.

Scalping: This is fast and almost all the time it is the traders who are making tens or even hundreds of trades since the movement of price is less than two hundred pips in profit.

If the refined price is evaluated at one hundred dollars many capitalizing will be day trading if not otherwise persisting in the scalping options patience irrespective of the risks since those options for them present opportunities of recovering their investments in a pretty short time frame.

Can You Really Make $100 a Day?

The short answer is yes, with some qualifications. There is a possibility of making 100 dollars a day on average if you combine the right skills, experience, and strategy. Still, one must acknowledge the fact that the crypto market has enormous volatility and what works one day may not work the next. Let’s take a more detailed view of the most suitable parameters for consideration:

1. Starting Capital

In order to be able to get steady returns, one needs to consider his or her initial capital. Though most traders aspire to start their example with lower figures about $1,000 and less, this may curtail your profit potential. More significant amounts, such as $5,000 and more allow one a good chance of earning $100 a day or more.

To begin with, there is an investment of $1000 and let us assume that I want a return of 10% - which is tough but not impossible in crypto - that is therefore a profit of $100. Regarding the amount of $5000 injected, one could target only a 2% return to reach the desired $100. Bear in mind though that more capital led to more risk exposure as well.

2. Risk Management

There is high volatility in the crypto market as a whole and it is important to properly manage your risk if you want to work as a Bitcoin trader. Setting stop-loss orders, implementing small leverage, and adhering to a uniform approach are essential to achieving success in the long period.

When the issue of risk management is ignored, you stand to make losses more than gains, and in most cases not, such is the case in a gambling market such as a bitcoin market. A fairly traditional risk management strategy consists of limiting the amount at risk on a single trade to a small percentage of the trading account, typically 1-2%.

3. Market Conditions

Making $100 per day is very much possible due to the dependencies on market situations. In a bull market i.e. when the price of Bitcoin keeps rising, it could be easier to achieve your target because there are more chances of buying and selling. However, in a bear market, it can be quite difficult to make a consistent win.

It is not uncommon that once an approach is applied, successful traders would make necessary adjustments to suit that approach. For instance, consolidation phases of the market could favor scalps or quick trades, whereas in the case of active trends swing trades could be more beneficial.

4. Leverage

Exploiting the advantages of leverage is common among Bitcoin traders in an effort to enhance their returns. Possibly the biggest benefit to the use of leverage is the ability of a trader to hold a bigger position with a controlled level of capital. For example, using 5x leverage on a $1,000 trade means you effectively control a $5,000 position in Bitcoin.

Though leverage enables the trader to achieve faster results in this case a daily earning of $100, it also makes the venture very risky. If you were to lose money, then leverage would deepen the loss and not help you. Thus, there is a need for any trader to remain careful and refrain from excessive usage of financial leverage to avoid too much exposure to the fluctuations of the market.

5. Technical and Fundamental Analysis

For day traders, technical analysis is of absolute importance. If one wishes to make money in the market, it is crucial to learn how to read and predict price patterns on a chart, and when to employ tools such as the RSI, MA, and Bollinger bands.

Additionally, the other assumption is fundamental analysis which is focused on news and other events regarding Bitcoin that can help predict price movements of this cryptocurrency’s market. These methods also are being used in combination to improve results among traders.

6. Emotional Control

It's possible that the most neglected aspect in trading in the crypto-currencies remains emotional control. Market moves can occur within short periods of time and because of fear or greed, one can make mistakes. Traders have to be disciplined and deal with their strategy rather than act based on emotions which would result in an unwanted trade.

7. Platforms and Fees

Another factor that should be considered when seeking to maximize returns from the market is the consideration of trading platforms. In connection with the above, it should be noted that exchanges also have different fees. For example, some exchanges will impose a flat fee for every deal arranged on the platform while others will impose a trade fee that is a percentage of the trade value. All these fees can put a dent in your profits thereby making it more difficult to earn $100 every day.

Realistic Expectations: The Challenges

Making $100 each day may not be dicey. However, consistent profits would be adventurous and risk-taking due to the necessity of skills, experience, and knowledge of the market. Below are some challenges to consider:

  • Time Commitment: Day trading is demanding since it includes close monitoring of the market and executing trades promptly by connecting the computer. It can be quite taxing and also stressful in a very volatile environment.
  • Market Risk: It only takes seconds and minutes for the price of bitcoins to change and even the best traders can make caustic mistakes.
  • Learning Curve: Dealing with crypto, in this case, Bitcoin, has a very significant learning curve. For example, it could take the total beginners even some months to profit.
  • Psychological Stress: The market dynamics of Bitcoin can also inflict psychological stress on users. Selling everything after losses, overcoming fear, and then not forgetting, on narrow-term ideas amongst the long-term strategies is necessary.

Conclusion: Is It Sustainable?

Yes, making $100 a day trading Bitcoin is possible, but it does not just depend on chance. What is needed is a combination of strategy, risk management, funds, and emotional control to be successful in the long run. Although a certain trader is capable of making such gains consistently others may find it hard owing to the volatile nature of crypto trading.

Before leaping, however, ask yourself if you have the time, patience, and risk appetite to earn Bitcoin trading as a source of living. Do not put in all the capital at once, refine your methods, and take into account that in the field of trading, more often than not a steady pace is better than a constant rush.

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