People have made large amounts of money trading cryptocurrencies and continue to do so. This doesn’t mean cryptocurrencies trading is easy and effortless.

There is a chance you will end up losing money, you might end up losing all of it, but with the right strategies you can certainly minimize risk and end up with nice profits.

If you have some money lying around, you too can get started in no time with as little as you like. It’s never too late to start cryptocurrencies trading.

You need to be strategic, patient, able to research and analyze market trends. As a rule of thumb – never invest what you cannot afford to lose.

Here a few ways to make money with day trading cryptocurrencies :

Buy and hold (HODL)

This is technically the simplest strategy of them all. If you have reasons to believe BTC, ETH, STN, or any other cryptocurrency is going to go up in price in the future you should simply buy this asset and hold on to it.

Market making

Market making is a trading strategy where the trader simultaneously places both buy and sell orders in an attempt to profit from the bid-ask spread. Market makers stand ready to both buy and sell from other traders, thus providing liquidity to the market.

Active trading

Active trading is any other strategy that you perform on exchanges with the goal of making a profit. A variety of different financial instruments, such as futures, bonds, options and other derivatives allow finance professionals to control the tradeoff between risk and reward with very high precision.

The world of cryptocurrencies did not develop markets that are that efficient yet and most typical financial instruments are either unavailable, or are limited to only some individuals and organizations, or have very small market cap compared to the size of the market. However, there's a lot of money to be made by intelligently trading crypto! The catch is that you need to make your own indicators and your own hedging strategies that work in this new domain.

Unless you're actively trading your portfolio in order to minimize the risk of losing money (in which case cryptocurrencies are probably not for you yet), you would typically deploy a trading strategy that you've created that exploits some flaws in the market and demonstrates some "guaranteed" return, at least until the market corrects that flaws that make your strategy profitable. Such strategies are usually called arbitrage.

Stay updated

News in the crypto world spreads like fire. Thanks to Twitter, Reddit, Telegram and crypto-specific news website, you can stay up to date with what’s going on. Pay close attention to the news on Twitter in particular and make sure they are from reputed sources.

Learn to ignore biased sources and rumors. This is where pump and dump schemes take place; people post misinformation on websites and hope for people to fall for it.

Recently, the hoax of Vitalik Buterin’s (founder of Ethereum) death started spreading from 4chan, which in turn crashed Ethereum price and wiped out $4 billion in Ethereum’s market value.

Don’t let these people get you; seek advice from trusted and unbiased sources, and make your investing decisions accordingly.

Set achievable goals

Cryptocurrency trading is not one of those get-rich-quick schemes. Set a realistic plan of return on your investment, it could be 5%, 10% or 20%. This market is very volatile.

If you don’t stick to your expected returns, you’re bound to panic and make mistakes.

As the crypto veterans will tell you, setting up realistic long-term goals (2-5 years) will take you a long way in cryptocurrency trading.

But the only rule that really means is :

"Never invest what you cannot afford to lose."