What is Day Trading?

Day trading is the business of trading assets within the same day to gain small profits from temporary price fluctuations. In the constantly evolving cryptocurrency world, it’s a race against time and accuracy.

So, what sets day trading cryptocurrency apart? Well, unlike traditional markets that close after hours, the crypto market is . This has the advantage of creating a virtually limitless list of trading opportunities for the traders — though it leaves them open to the significant risk of overtrading or losing steam. 

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It relies on the blockchain concept, which is trusted for decentralisation as it brings about the transparency and security of the transactions.

Day trading strategies are based on technical analysis, awareness of market sentiment, and keen perception of news that may affect volatility. While this kind of trading is not for everyone, people who like activity and actively engage in a fast-paced trading environment find it very rewarding.

How Much Can a Crypto Day Trader Make?

The earnings of a crypto day trader depend on skill, experience, and market conditions. While some traders boast daily profits of hundreds or even thousands of dollars, others also face steep losses.

Profits and Taxes in Singapore

In the Singapore context, potential earnings are intrinsically linked to tax obligations. It is important to understand the tax implications: 

Investing: Singapore has no capital gains tax. If you buy crypto as a long-term personal investment and sell it later for a profit, those gains are not taxed. 

Trading as a Business: Day trading is different. If you trade frequently, systematically, and with a clear profit-seeking motive, the Inland Revenue Authority of Singapore (IRAS) may view this as “carrying on a business”. In this case, your profits are considered taxable income, subject to your personal income tax rate. 

There are a few key factors influencing profitability:

• Volatility: Coins like and often see significant price swings, creating profit opportunities. 

• Risk Tolerance: Profitable traders set clear boundaries for acceptable losses and stick to them.

• Scalping Frequency: High-frequency strategies like scalping can lead to small, consistent profits but require focus and discipline. 

Can You Make a Living From Day Trading?

Some traders make a living through disciplined strategies, but it's not guaranteed. Beginners should focus on building skills and managing risks before relying on trading as a primary income source.

It's crucial to remember that day trading is not a guaranteed path to wealth. Successful traders invest in education, practice, and advanced tools to refine their strategies. It is also important to understand how works, as this will impact your net returns. 

How to Start Day Trading Cryptocurrency

Starting your journey as a crypto day trader requires preparation and a clear strategy — here’s what to know to start your day trading journey: 

Set a Specific Time Frame

Identify your based on your goals and availability. Popular intervals for day traders include 15-minute, 1-hour, and 4-hour charts. Shorter time frames help capture quick price movements, while longer ones allow for broader trend analysis.

Perform Technical Analysis

Technical analysis is the backbone of day trading, and by learning to read candlestick charts and recognise patterns, traders can make data-driven decisions. Tools like moving averages and Bollinger Bands can help you identify trends and entry points.

Practice Risk Management

is key to long-term success. Use stop-loss orders to minimise potential losses and take-profit levels to lock in gains. Never risk more than 1-2% of your capital on a single trading day.

Assess your comfort level with risk tolerance. High volatility can lead to rapid gains — or losses. Setting clear boundaries ensures you stay within your financial limits. 

Emotional Discipline

This is a difficult skill to master. The 24/7 crypto market’s volatility can trigger emotional responses like fear and greed.

Here’s how a day trader can practice emotional discipline:

1. Steer Clear of FOMO (Fear of Missing Out): Avoid chasing rapid price increases. Stick to your analysis and defined entry points. 

2. Refrain From Revenge Trading. After a loss, the urge to immediately make the money back can be strong. This often leads to irrational decisions and further losses. Step away and reassess. 

3. Stick to Your Plan. Your risk management rules (like stop-losses) are only effective if you follow them. No matter what happens, stick to your trading plan and don’t let emotional impulse take over. 

Is Crypto Day Trading Worth It? 

Day trading offers significant opportunities — but it isn't without challenges. Whether it’s worth your time depends on your goals, risk tolerance, and commitment to learning.

Some of the most attractive advantages of crypto day trading are:

• High-Profit Potential: Short-term strategies can generate quick returns.

• Flexibility: you can trade anytime, anywhere, making it suitable for remote work.
  

However, day trading crypto can have a couple of potential downsides, too. For example, day trading requires significant focus and time. Plus, without discipline, the volatility that provides profits can also lead to losses.

If you’re disciplined, well-informed, and equipped with a solid risk management strategy, day trading crypto can be a great rewarding venture.

What Are the Best Indicators for Day Trading Cryptocurrency? 

Successful day traders rely on a variety of technical indicators to make informed decisions. Here are some of the key indicators for day trading:

Relative Strength Index (RSI)

RSI estimates the speed of value changes to distinguish overbought or oversold conditions. Divergence among RSI and price trends can demonstrate upcoming reversals.

Moving Averages (MA)

Moving averages track average prices over a specific time frame, revealing trends and price movements. The simple moving average (SMA) provides an average over time, while the exponential moving average (EMA) responds quicker to recent prices. Crossovers between short and long-term MAs are common signals for trend changes.

MACD (Moving Average Convergence Divergence)

MACD highlights trend reversals and momentum strength. occur when the MACD line crosses over the Signal Line, and bearish signals when it crosses below. Its histogram shows momentum strength, helping with timing entries and exits.

Volume

Volume measures trade activity, confirming trends and market sentiments. High volume during price movements supports trend strength, while low volume can signal weakness. It’s also crucial for validating breakouts and distinguishing real moves from false signals.

To use indicators effectively, it’s generally best to combine multiple indicators for the most holistic, well-rounded view. Try to match indicators with your time frame, too — for example, use RSI for short-term trades. 

What Should You Look For When Day Trading Crypto?

When day trading, choosing the best crypto is critical. , significant price movements, and strong market sentiments.

High Volatility

and Ethereum are known for their rapid price fluctuations. This high volatility creates opportunities for profit within short periods. Traders also monitor the , as its volatility and growing ecosystem have made it a popular choice for short-term trading opportunities.

High Liquidity

Assets with high trading volume ensure the smooth execution of trades. High liquidity reduces slippage, which is crucial when entering or exciting positions quickly. 

Market Cap

Large-cap cryptocurrencies are more stable and less prone to sudden drops. For beginners, these assets provide a safer entry point.

Market Sentiment

Stay updated on news and events that impact market sentiment. Social media trends, government regulations, and economic developments can all influence trader behaviour.  

Resistance Levels

Identifying support and resistance levels helps pinpoint optimal entry and exit points, minimising risk and maximising returns.

How Does Market Sentiment Affect Crypto Day Trading?

Market sentiment, the collective mood of traders and investors, significantly impacts crypto day trading. Social media trends, news, and global events can quickly sway prices and trading volumes — for example, a tweet from an influential figure or news of regulatory changes can trigger rapid price shifts.

Leveraging Social Media Trends

Platforms like Reddit and X influence sentiment and traders can monitor trending hashtags and use sentiment analysis tools to gauge market tone.

Responding to News and Events

Positive news, such as corporate adoption, often drives prices up, while negative events, like regulatory crackdowns, can lead to sell-offs. Staying updated with reliable news sources helps traders act swiftly.

Tools for Sentiment Analysis

Certain tools can help analyse social media trends, measuring metrics like engagement and sentiment scores to predict price movements. 

On-chain analytics platforms can also provide deeper insights, such as tracking how much is moving into or out of exchanges, which can signal shifts in market sentiment. Using these tools together gives traders a clearer picture of how sentiment is likely to affect price action. 

While technical analysis focuses on price trends and patterns, sentiment analysis provides a human-centred perspective, allowing traders to anticipate emotional market reactions. Combining both approaches can lead to more informed and successful trading decisions.

What Are Other Cryptocurrency Trading Strategies?

Diversifying your approach with alternative strategies can improve overall performance.

Arbitrage

Buy low on one exchange and sell high on another. exploits price differences across platforms, offering quick profits with minimal risk. It requires monitoring multiple exchanges simultaneously to act quickly when opportunities arise.

Scalping

This strategy focuses on small, frequent gains. Scalping requires quick execution and is best suited for assets with high liquidity and low fees. Traders often use short time frames, such as 1-minute or 5-minute charts, to maximize efficiency. 

Range Trading

Trade within defined price ranges by identifying support and resistance zones. This method is ideal for stable market conditions. It works best when the market lacks a clear trend, making price movement more predictable. 

HODL (Buy and Hold)

Hold onto crypto assets despite short-term volatility. This long-term strategy emphasises potential growth over time. Investors often use this strategy for coins they believe have strong future potential.

Futures Trading

Speculate on future prices without owning the underlying asset. While this strategy offers leverage, it also comes with increased risk. 

Tools and Platforms for Day Trading Crypto

Choosing the right tools is essential for day traders in Singapore. 

Reputable Crypto Exchanges

Your first consideration should be the trading platform. In Singapore, you should use a digital payment token service provider that is committed to the highest standards of compliance under the Monetary Authority of Singapore (MAS) rules and regulations. These platforms adhere to strict guidelines on asset segregation (holding your crypto in a trust separate from company funds), security, and AML/CFT. 

Charting Software

While most exchanges offer built-in charting, serious technical analysis requires a powerful platform like . Gemini’s integration with TradingView allows you to use professional-grade interactive charts, indicators, and drawing tools to analyse market trends. You can also execute trades on Gemini (using the Active Trader low-fee structure) directly from the TradingView interface, streamlining analysis and execution. 

Portfolio Trackers

When making numerous traders, it can be difficult to track your performance manually. A or crypto accounting software can help you monitor your profits and losses, as well as stay organised for potential tax reporting. These tools aggregate data from multiple sources, such as exchanges via API keys and on-chain wallets via public addresses into a single dashboard.

Is Day Trading Legal in Singapore? 

Yes, day trading . However, it operates within a specific regulatory framework. Most cryptocurrencies, like Bitcoin, are treated as Digital Payment Tokens (DPTs). However, some tokens can be treated as securities and fall under the Securities and Futures Act 2001 (SFA) if they have features of shares, bonds, or units in a fund.

For DPTs, the regulations under the Payment Services Act 2019 (PSA) primarily targets the exchanges (DPT service providers), not individual traders. Any DPT provider in Singapore must be compliant with MAS requirements, including:

• Strict AML/CFT and Asset Protection: Providers must follow anti-money laundering (AML) and counter-terrorism financing (CFT) rules. They must also segregate customer assets from company funds.

• Clear Risk Warnings: Providers must show clear risk warnings and conduct a risk awareness check before allowing you to trade.

• Payment Restrictions: Providers cannot accept Singapore-issued credit cards for retail crypto purchases. 

• No Leverage: DPT providers are prohibited from offering margin, credit, or any form of leverage to retail customers.  

• Advertising Restrictions. To discourage speculation, providers are banned from offering promotional incentives to the public (like sign-up bonuses, referral perks) or operating public crypto ATMs.

• Tax Obligations. Legal status doesn’t negate tax obligations. As a day trader, you are likely “carrying on a business”, and your profits are subject to income tax.

The Bottom Line

Day trading crypto is an exciting but demanding pursuit — day trading can bring major rewards if you’re willing to put time into learning. By paying attention to market trends, understanding your risk tolerance, and keeping safe by using MAS-compliant platforms, Singapore traders can navigate the cryptocurrency market more confidently.

If you know the tools and strategies and have committed to learning, then you can take challenges, convert them into opportunities, and do well in the crypto trading world.

Ready to get started? and get started with crypto day trading today.