Crypto glossary
Day trading
Day trading is opening and closing positions within the same day to profit from short-term price moves, without holding exposure overnight.
A day trader aims to capture intraday swings, typically working on charts from 1 minute to 1 hour, and ends each session flat. In traditional markets the session is defined by exchange hours; in crypto, which trades around the clock, day traders set their own window, often around the US and European sessions when volume is highest. Tools include order flow, intraday levels, VWAP and fast execution on exchanges with low fees.
Crypto attracts day traders because of its volatility, low entry barriers and easy access to leverage through perpetual futures. That same mix makes it unforgiving: fees and spreads are paid on every trade, and leveraged mistakes can wipe out an account in minutes.
Studies of retail day traders in stock and futures markets have consistently found that the large majority lose money over time, and exchange data on leveraged crypto accounts points in the same direction. Strict risk limits, a tested strategy and realistic accounting of costs are the minimum for anyone trying it.
Example
A trader opens a long on ETH perpetuals at the US market open after a bounce off VWAP, takes profit two hours later and closes all positions before going to sleep.