Cryptocurrencies are digital currencies. They can be exchanged or speculated against just like all traditional currencies, but they exist outside the control of financial institutions and governments. There are some government initiatives to create government-backed digital currencies.

There are a huge variety of cryptocurrencies. They all have unique features and applications. There are also a lot of worthless currencies that was created to scam people who did not know better than to invest in them.

Traditional money

The vast majority of people use traditional currency on a daily basis. That is the national currency in the form of, for example, Japanese Yens, US dollars and Euros. That money is created and managed by a central bank in the issuing country. Then they are passed on to ordinary banks before they end up in our hands.

Traditional money is very vulnerable to inflation, politics and interest rate changes. This is what made someone want to create a currency that is not dependent on any banks at all. The first cryptocurrency to be created was Bitcoin, which was launched in 2009.  Bitcoin is unfortunately also very volatile and the value keeps fluctuating making it less usable than traditional currencies.

What is Crypto?

Cryptocurrency is simply explained as a digital currency that is not linked to any banks or authorities. Cryptocurrency is also called “decentralized currency”. The control of the currency goes through a distributed database.  Not a single institution such as a bank.

The distributed database is usually a blockchain. It is a public database where information is spread over a number of computers or “nodes”. Advanced technology such as cryptography means that transactions are secured and verified.

Cryptocurrency provides a fast and flexible means of payment that can be easily transferred across national borders. In the case of ordinary currency, large fees are often charged when they are to be transferred. The fees to transfer crypto is often lower. Cryptocurrency can be a good choice if you want to be able to transfer money anonymously, quickly and cheaply,

Cryptocurrency is largely anonymous. Payments are handled via a digital crypto wallet that gives the user an address that consists of numbers and letters. The real name is not displayed in the transactions.

Day Trading Cryptocurrency

Day trading cryptocurrency isn’t just for finance bros and professional traders—it has become increasingly popular among ordinary retail investors thanks to the high volatility and 24/7 market. But while the fast price swings and constant action can be tempting, cryptocurrency day trading requires more than just “a hunch”. It takes discipline, a strategy, and appropriate risk management to avoid wiping out your bankroll.

What Is Cryptocurrency Day Trading?

When we talk about cryptocurrency trading, we typically mean trading where at least one of the currencies in a currency pair is a cryptocurrency.

Examples:

• USD/BTC (United States Dollar / Bitcoin)
• BTC/ETH (Bitcoin / Ether)
• DOGE/EUR (Dogecoin / Euro)

Day trading refers to a type of trading where you open and close positions within the same trading day and never leave positions open over night. Day traders attempt to profit from short-term price movements that takes place within a single trading day.

Cryptocurrency day trading is thus cryptocurrency trading where we open and close positions (buy and sell currency) within the same trading day. You’re not holding on for days, weeks or months, hoping to capitalize on longer-term growth.

Day traders tend to make fast decisions based on technical analysis.

Why Has Cryptocurrency Trading Become Popular Among Day Traders?

• Volatility Cryptocurrency is known for being volatile, and this is true for both crypto-fiat pairs and crypto-crypto pairs. That means big moves and more opportunities, but also higher risk. Since day traders profit from price movements that take place within a single trading day, many of them opt for high volatility assets.
• 24/7 Market
  Trade whenever you want, no matter your time zone or schedule. Unlike traditional markets, cryptocurrencies trade 24/7, including weekends and holidays. This can be great for flexibility—but it also means there’s no market close to force a break. Without a plan, you could find yourself glued to charts and emotionally drained.
• Diverse Assets
  Thousands of coins mean countless trading pairs and niches, from blue-chip coins like BTC and ETH to highly volatile niche altcoins.
• Buzz Blockchain based cryptocurrencies emerged in the 21st century and is still something quite new and exciting. The booms and busts of this new asset class have gotten a lot of attention in both mainstream media and more specialized outlets, and this has in turn helped make day traders more interested in cryptocurrency speculation.

How to Start Day Trading Cryptocurrencies

• Learn the basics about blockchain technology, cryptocurrencies, factors that are known to impact the exchange-rates, crypto storage and security, and crypto exchanges before you get started.
• Make sure you have a fast and reliable internet connection, and a device that is suitable for your trading strategy. While it is possible to trade on a mobile phone, many day traders prefer a computer set up with one or more large screens.
• Choose a reliable exchange with low fees, good liquidity, and fast execution. A cryptocurrency exchange with advanced order types is preferable.
• A charting platform, e.g. TradingView, can be very helpful.
• Many successful cryptocurrency day traders rely heavily on price action and technical analysis, not gut feelings or hype tweets. Learning about technical analysis is therefore a good idea. Just as with traditional forex speculation, you can use technical indicators like RSI, MACD, Bollinger Bands, and volume trends to time entries and exits.
• Start by focusing on only one trading pair—like BTC/USDT or ETH/USD—and learn more about this specific pair. Many novice traders spread themselves too thin, trying to jump on every possible opportunity.
• Start with a small amount and set clear rules. What’s your entry signal? Where’s your stop-loss? What profit are you aiming for per trade? How much of your total account balance are you allowed to risk on a single trade?
• Use a notebook or digital journal to track your trades and learn from mistakes.
• Stick to the plan. Emotional and spontaneous trading can deplete your account. Adjustments to the plan should be done with a clear head – not in the heat of the moment. Adjustments should be based on facts and analysis, not FOMO.

Risk Management

Day trading without a proper risk-management routine is asking to get wiped out, and many novice cryptocurrency traders quickly burn through their entire bankroll. You need a risk management plan that takes the volatility of cryptocurrencies into account and meshes well with your personal preferences and risk-willingness.

Here are a few examples of things to keep in mind as you develop your risk management plan:

• Always use stop-loss orders, and have a routine for how you determine where to put those stop-loss orders. Cryptocurrencies can move 5%, 10%, even 20% in minutes—especially small-cap altcoins. Always decide how much you’re willing to lose per trade.
• Have a rule in place for how much of your total account balance you are permitted to risk on a single trade. A good rule of thumb for beginners is a maximum of 1%. That means that if your account balance is $10,000 you will never risk more than $100 on any single trade. As you gain more experience, you can increase the cap to 2%.
• Have a rule in place for how much of your total account balance you are permitted to risk on a multiple of trades at any single time. This helps keep you in the game when there is a sudden storm on the market that impacts all your trades.
• Use take-profit orders to ensure positions are closed at the predetermined price point. Closing trades manually instead increases the risk of emotional decision making. Greed is a powerful emotion and you will be tempted to keep a winning position open just a little bit longer….just a little bit longer….just a little bit longer….
• Having a great risk-management plan is not enough; you need the discipline to actually follow it. This will often take practice, and you should also have routines in place that reduces the risk of emotional trading. Evaluate yourself and try to pinpoint what makes you more likely to engage in emotional trading. Not getting enough sleep? Being pre-occupied about something outside of trading? Maybe you are prone to revenge trading after a scathing loss? Put routines into place to counteract your weak spots, and know when you should abstain from trading.

Common Mistakes to Avoid

• Chasing pumps If a coin just skyrocketed, you’re probably too late to achieve that rags-to-riches fantasy. Following a trend can absolutely be a valid strategy, but you need to do it with a clear head and be aware of the risks.
• Revenge trading
  Lost a trade? Don’t try to “win it back”. Understand that losing trades is a part of the game. You need to develop a trading strategy and risk-management plan that keeps you profitable in the long run. The goal should be to keep profits larger than losses, over time.
• Ignoring fees
  Frequent trades mean fees add up fast. Make sure you understand concepts such as spread, commission, and miscellaneous fees. Pick a crypto exchange or broker where the fee structure is suitable for your trading strategy.
• FOMO
  Leaning into the Fear-Of-Missing-Out (FOMO) is a quick path to emotional trading. Do not jump into a trade without a clear plan because “everyone else is doing it”.

Is Cryptocurrency Day Trading Right for You?

Cryptocurrency day trading isn’t for everyone. It’s stressful, fast-paced, and comes with real financial risk. But for those who enjoy charting, quick decisions, and are willing to study and stay disciplined, it can be a legitimate way to grow capital.

With that said, many traders actually prefer day trading over swing trading and other longer-term strategies, because with day trading you always close all open positions before you end the trading session, and there is no need to lay awake at night, worrying about open positions or investments.

Warning: Since day trading is so fast-paced, and comes with quick rewards and punishments, it can feel a lot like gambling – especially if you don´t make a solid trading plan in advance and stick to it. Long-term successful day traders tend to treat it like a business—with analysis, rules, strategy, and risk control. If you treat day trading like a night at the casino, you are much more likely to burn through your bankroll and end up with zero. If you know that you easily get hooked on gambling, day trading is probably not a wise choice for you. There are other types of trading and investing available that are better for someone who should stay away from the day trading environment. If you want exposure to the cryptocurrency market, you could for instance look into cryptocurrency Exchange-Traded Funds (Crypto ETFs) and use them for longer-term investments. You could also purchase a chunk of cryptocurrency outright and store it as a long-term investment.

Investing in Crypto

The cryptocurrency is also used by those who want to invest or speculate in the currency. The value of the cryptocurrency can vary greatly in value due to unstable exchange rates. Its ups and downs make it possible to make money by buying when the value is low and selling when the value has gone up.

Investing in cryptocurrency can also involve a great deal of risk. The exchange rate for the cryptocurrency fluctuates a lot, as cryptocurrency has relatively high volatility.

Therefore, the risk of losing a lot of money is high on this type of investment. It is especially risky to use cryptocurrency for margin trades. Margin trades means that you “borrow” money from the broker to buy cryptocurrency. It is then possible to invest 10 000 euros in cryptocurrency even if your equity only corresponds to 500 euros. The more you leverage you use the bigger the risk and potential profit.

Shorting crypto can also be extremely high risk.  If you short crypto you borrow the coins from the broker and will need to pay them back at a later date. This can be very expensive if the currency increase in value. Another option if you want to speculate in crypto is to trade crypto-based binary options.  These options are high-risk high-reward but have a limited downside which makes it easier to never risk more than you can afford to lose.

Many cryptocurrency exchanges offer a crypto copy trading feature. It is a feature that makes it easier for beginners to start trading crypto through the ability to copy other users’ purchases and investments. It increases the chances of making smart choices that work in the long run. (provided you chose a good trader to copy).

Never invest more money than you can afford to lose. It is better to start small and learn to understand how cryptocurrency trading works. It is an educational and fun process when done responsibly

New currencies

There are various mechanics for creating new cryptocurrencies. A certain number of digital currency units are usually created in advance, and new currency units must be recovered at a predetermined rate. The process of extracting new cryptocurrency is often called mining and is something you can do from your own computer. You need a graphics card and other equipment, among other things.

Mining is difficult and complicated and it requires a lot of computing power. By extracting crypto, you are rewarded with cryptocurrency. The cost of electricity can be higher than the value of the coins mined.

Where to buy crypto

As a beginner in the cryptocurrency world, it can be difficult to know where to get cryptocurrency. What is needed is a user account with a so-called crypto exchange. Choose a platform that is regulated by financial authorities.

Then the desired amount is deposited into your exchange account with one of the various deposit options available. With most crypto exchanges, it is possible to deposit money with a Visa card or regular bank transfer.

Once the deposit is complete, it’s time to start exploring the market and finding the cryptocurrency you want to buy. There are different types of cryptocurrencies such as Ethereum (ETH), Bitcoin (BTC) and Ripple (XRP). Make a choice and confirm the purchase. The crypto is stored in a digital wallet.

Cryptocurrency is quite advanced with all the technology but it is quite easy to buy. The complicated mechanisms behind the currency are not necessary to understand in order to trade with the cryptocurrency and be able to enjoy it.

Cryptocurrency can cost a lot or very little, depending on the exchange rate. It is possible to buy parts of a currency unit. For example, you can buy 0.0001 BTC.

There are many cryptocurrencies to buy. Bitcoin is the most popular, but there are many others to choose from.

How to Store Cryptocurrency Safely

Once you’ve bought cryptocurrency, the next step is just as important as the purchase itself—storing it safely. It is essential to understand the different ways to store cryptocurrency, how they work, and what kind of pros and cons each option offers.

Storing cryptocurrency is all about finding the right balance between convenience and security. If you’re just starting out and trading small amounts, a reputable so-called hot wallet might be enough, but as your holdings grow, investing in a so-called cold wallet becomes essential.

Best Practices for Storing Cryptocurrency

• Learn the difference between a cold wallet and a hot wallet. Then, get a cold wallet (or wallets) for savings and a hot wallet (or wallets) for small, everyday amounts and short-term crypto trading.
• Back up your private keys or recovery phrases and store them in one or more secure, offline locations—think safe deposit box or fireproof safe.
• Treat your keys like cash—because once they’re gone, they’re gone. There is no recovery process.
• Enable two-factor authentication (2FA) on any wallet or exchange you use.
• Be cautious with browser extensions, links, and downloads to avoid phishing attacks.
• Be extremely suspicous about

Cryptocurrency Wallets: What They Are and Why You Need One

Cryptocurrencies like Bitcoin and Ether don’t live in a physical wallet like a dollar bill or euro coin. Instead, they are stored on the blockchain, and your wallet holds the keys that give you access to your funds. In this manner, it is a bit similar to having money stored digitally with a traditional bank and using your internet bank credentials to prove you are the rightful owner.

Keys stored in cryptocurrency wallets are essentially long strings of numbers and letters.

• Public key: Like your account number. It is used to receive cryptocurrency transfers.
• Private key: Like your password. It is used to access and send cryptocurrency.

If you lose your private key, you lose access to your cryptocurrency. That’s why how you store these keys matters a lot.

Hot Wallets vs. Cold Wallets

Hot Wallets (Connected to the Internet)

Hot wallets are connected to the internet. They are convenient and easy to use for regular transactions. They come in the form of:

• Mobile or desktop wallets like Trust Wallet, Exodus, or Electrum.
• Web wallets offered by exchanges like Binance, Coinbase, or Kraken.

They’re great for beginners and for active traders, because they’re fast and simple. The downside? Since they’re online, they’re more vulnerable to hacks, phishing, malware, and similar attacks. If you’re holding a lot of cryptocurrency, you shouldn’t keep all of it here.

Cold Wallets (Offline Storage)

Cold wallets store your cryptocurrency keys offline, making them far less vulnerable to hacking and similar attacks.

Examples of cold wallets:

• Hardware wallets, like Ledger or Trezor, which are physical hardware devices you plug into your computer.
• Physical wallets, which are just your private keys printed or written down and stored somewhere safe. Paper wallets are popular, but you can also have your keys written on something more durable, e.g. etched into metal.

Cold wallets are best for long-term storage. They’re not as convenient for frequent trading, but they’re much safer if you’re holding large amounts.

Custodial vs. Non-Custodial Wallets

Another key distinction that is important to understand when you pick wallets for your cryptocurrency is the different between custodial wallets and non-custodial wallets.

• Custodial wallets (usually exchange wallets) will keep control of your private keys. It’s easier to recover access if you forget your login, but technically, you don’t fully control your cryptocurrency.
• Non-custodial wallets give you complete control over your keys and funds. But if you lose your key or recovery phrase, no one can help you get it back. If you want full control, go non-custodial—but back everything up properly.

Examples of Major Cryptocurrencies

Blockchain-based cryptocurrency is no longer a niche experiment. It’s a full-blown sector of the global economy, with major players competing not just for market dominance but for real-world use and adoption. While there are thousands of crypto tokens in circulation, a handful of cryptocurrencies make up the bulk of the total cryptocurrency market value and sit at the top in terms of market capitalization, utility, and global influence. These are the ones investors, developers, and institutions tend to watch especially closely—and for good reason.

Below, we will take a look at a few example of well-known cryptocurrencies that ranks high when it comes to market capitalization, utility and global influence. They are widely supported, deeply liquid, and more resilient to market shifts than less well-established cryptocurrencies. They are certainly not risk-free—but they are a lot more stable than that random coin someone shilled in your DMs.

Bitcoin (BTC): The Original and Still the Largest

Bitcoin (BTC) remains the undisputed heavyweight of the blockchain cryptocurrency market. Launched in early 2009, it was the first successful blockchain-based currency and it still leads by market cap, trading volume, and adoption. It’s often referred to as “digital gold” because many use it as a store of value rather than a means of daily exchange. Despite the emergence of newer crypto coins, Bitcoin’s brand recognition, decentralized nature, and capped supply has kept it firmly at the top.

Ether(ETH): The Smart Contract King

Ether (ETH) isn’t just another cryptocurrency—it is the native token of the blockchain platform Ethereum. Launched in 2015, Ethereum is a trailblazer when it comes to smart contracts, allowing developers to build decentralized apps (dApps), launch tokens, and create entire financial systems without relying on banks. Ethereum powers most of the DeFi and NFT space, and even with scalability issues and rising competition, it continues to be an immense success. As the native token of Ethereum, the crypto coin ETH has become the second-largest cryptocurrency by market cap, and it has been upgraded to reduce energy use and boost transaction speeds.

Note: Even though Ethereum is the name of the network, a lot of people use the name to refer to the cryptocurrency Ether (ETH) as well.

Tether (USDT): A USD Stablecoin

Tether (USDT) was created with the intention of establishing a cryptocurrency that is pegged 1:1 to the U.S. dollar. It is designed for stability; not to appreciate in value. Among other things, it serves as a quick way to move funds between platforms.

Tether is controlled by the company Tether Limited, which in turn is owned by the British Virgin Islands-based company iFinex. iFinex also operates the cryptocurrency exchange Bitfinex.

Tether has faced serious criticism regarding the lack of transparency and verifiability of its claimed reserves of USD and other assets. Since market belief in the ability to convert USDT to USD is what keeps the exchange-rate pegged at 1:1, any issue with the reserves can have a major impact. A the end of 2023, Tether claimed to be holding $63 billion of U.S. Treasuries, $3.5 billion of precious metals, $2.8 billion of bitcoin, $3.8 billion of other investments, and $4.8 billion of secured loans in its reserves.

BNB: Binance’s Utility Powerhouse

Originally launched as a way to reduce trading fees on the Binance exchange, BNB has grown into much more. It now fuels the Binance Smart Chain (BSC)—a popular blockchain for building apps and launching tokens, especially among cost-conscious developers. BNB is used for everything from token launches to staking, and Binance’s global dominance has kept this coin among the top ten in the world by market cap.

The Binance exchange is owned an operated by Binance Holdings Ltd. Binance used to be based first in China, then in Japan, and eventually in Malta, but now has no official company headquarters.

USD Coin (USDC): A Regulated Stablecoin Alternative

While the stablecoin Tether dominates in volume, its competitor USDC is gaining ground fast, especially among institutions. Issued by Circle and backed by regulated U.S. financial institutions, USDC markets itself as the transparent and regulatory compliant stablecoin. It’s widely used in DeFi protocols, lending platforms, and digital commerce.

SOL: High-Speed Challenger

The network Solana emerged as one of the most serious Ethereum competitors, thanks to its incredibly fast transaction speeds and low fees, and this performance has made it a go-to blockchain for NFT marketplaces and DeFi apps. While the network has had some reliability hiccups, its native token SOL continues to hold a top-10 spot in terms of market capitalization.

XRP: The Cross-Border Solution

XRP, created by Ripple Labs, is built for fast, low-cost international transfers, aimed more at banks than everyday users. It’s fast, efficient, and scalable. However, it’s also been at the center of legal controversy, particularly a lawsuit with the U.S. SEC over whether it should be considered a security. Despite the drama, XRP remains widely used and heavily traded.

ADA: The Native Token of the Research-Driven Network Cardano

ADA is the native token of Cardano, a blockchain network that stands out for its research-driven approach to blockchain development. Every upgrade and feature is peer-reviewed by academics and scientists. It’s slower to evolve than competitors, but its focus on scalability, sustainability, and formal verification makes it appealing. Cardano supports smart contracts and is aiming to make decentralized applications more reliable, and faith in the future of Cardano has helped propel the market capitalization of ADA to soaring heights.

AVAX: Built for Speed and Scale

AVAX is the native token of Avalanche, a Layer-1 blockchain platform designed to support enterprise-grade applications while solving many of Ethereum’s limitations. Its architecture allows for high throughput without sacrificing decentralization. It’s become a favorite among developers looking to build scalable DeFi platforms and custom blockchain networks.

Dogecoin (DOGE): From Meme to Mainstream

What started as a joke has turned into a cryptocurrency mainstay with a huge market cap. Dogecoin (DOGE), was originally concieved as a parody of Bitcoin, but quickly built a massive following thanks to social media, internet culture, and support from well-known figures like Elon Musk. Today, DOGE ranks among the largest cryptocurrencies by market cap.

This article was last updated on: April 3, 2025