What Are the Downsides of Day Trading Crypto?

Many fortunes have been made in cryptocurrency, but it is important to always keep in mind that many, many more have been lost. The flip side of unprecedented price surges of several hundred percent is sudden drops. The very high volatility of crypto prices is a double-edged sword, and you need to keep this in mind. Making a loss is a matter of when not if. A good strategy will determine whether that loss is ruinous or merely unfortunate. 

In addition to price risks, the cryptocurrency space also presents some unique security risks that are not present in traditional financial markets. Security breaches at centralized cryptocurrency exchanges are risks that you should understand.

Finally, trading fees can be quite high, especially for strategies that employ a very high frequency of transactions. It is important to understand the costs of actually using a trading platform before investing in it.