Daytrading is risky, and loads of people who attempt it lose money. Time and again there are Reddit comments by people who regret not forgetting their exchange password or so: Had they temporarily lost access, they would have ended up with more crypto.

Why do people start daytrading then?

The thing that lures people into daytrading is that more money may be earned by trading than by simple investing. Daytrading is the practice of trading stocks, bonds, and other financial instruments on trading platforms. These days it can be a mobile app, even in tradfi.

The business gets risky when people become daytraders just for the ends of making quick money. - That is, risky mostly to themselves.

It is true that the "greedy" behaviour even impacts the markets as a whole, up to certain extent. People who want to get rich quick are prone to using high leverage when they trade. Overleveraged positions are easier to hunt and when they get forcibly closed, it can trigger insane amounts of volatility.

But it would be superficial to say that a couple of guys with highly leveraged positions have this much power over the whole crypto market. That would be like saying that the panic on SHIBUSD market is what moves the DOW index or so. It just doesn't happen like that. It's just that most of them are going to lose a lot of money eventually - as soon as they get too greedy with their leverage.

Psychologically, who is the right personality type for daytrading?

Contrary to popular belief, if you're the kind of person who gets a kick out of watching percentages rise and fall, or if your fingers itch to tap at a keyboard as soon as the charts start looking bearish, then daytrading will not be for you.

Daytrading requires you to make abrupt decisions multiple times a day, and the key aspect you need to have for that is certain emotional detachment.

If your heart rate goes up the moment you set your eyes on the chart, please, do not daytrade.

Technical analysis is not exactly science, but technical traders are generally less degenerate

If you have some interest in technical analysis, then you're probably in ok shape to daytrade.

If you think that only halfwits would judge a market based on chart patterns and indicators, then you are probably not fit for trading in the long run.

You are actually quite right that technical analysis is most of all a self-fulfilling prophecy. But truthfulness or whatever you may call it is not important here.

Crypto markets tend to move rapidly compared to most legacy markets, and they move especially on news. But the thing is, there is such a thing as gaining on swings and losing on roundabouts: Only the trader who decides based on probabilities can be profitable in the long run.

News and Twitter hypes are all right, but relying just on them will rob you off your money in time.

Knowing to code helps a whole lot

Trading is mentally hard. It's hard because it can be tough to make decisions quickly. You might need to make a lot of decisions in a single day, too.

Making quick decisions is probably one of the hardest things about trading and the most common cause of burnout. You need to be able to stay calm and collected for long stretches of time, and make decisions based on probabilities.

If you now think that you're definitely not the type of person who can do that long-term, then rest assured: Nobody can. 

One way day traders try to lessen their stress of making decisions is by automating their trades. That's why knowing to code helps, but in fact there are several no-code bit platforms for crypto traders too.

If you can code, there is an even wider variety of trading bots out there that take care of a lot of the legwork, and it's easy enough to set up once you know what you're doing. The other option is to let your exchange automate your trading - FTX has a simple algo interface for instance. On-exchange automation is super useful also for the basic transactions, such as dollar cost averaging. There is really no reason why you should waste your attention on that kind of trade.

Bottom line

Whether you are daytrading or DCA-ing to hodl, there are always risks that come with the territory. Daytrading has its own set of hazards, though they can be minimized if you put in some work and if you make effort to avoid burnout.

An oversimplified bottom line would probably go like, do not waste your attention and use automation when you can, and use your head not your feelings.