What are the best cryptocurrencies for day trading? The crypto market is booming as of now and has gone through drastic changes in recent years drawing the attention of a large number of professional crypto traders and enthusiasts.
You can earn substantial profits in the cryptocurrency sector in different ways. One of the most common, popular and proven ways to make considerable profits from the crypto market is by “day trading”.
Remember, at the end of the day, you will need to close all your positions, a prime requirement of day trading. Check out Best Cryptocurrency Podcasts.
However, for that matter, you should know how exactly to pick the best crypto. With so many different variants of it available in the market, it is no surprise that you will have difficulty in choosing the best type of crypto for day trading.
- 6 Best Cryptocurrencies for Day Trading
- Factors to Determine Best Crypto to Day Trade
6 Best Cryptocurrencies for Day Trading
If you are clueless about it, here are the five best cryptocurrencies that you can rely on for day trading.
1. Binance Coin (BNB) – Best Overall
Initially, the coin was Ethereum based but lately Binance has launched the main-net coin.
The main purpose of using the BNB tokens is to pay the different fees of the exchange when you use their services. This includes the listing fees, the exchange fees, and the trading fees.
BNB is one of the most favored coins and is used by most day traders. This is due to its ever-growing popularity, best overall performance and returns, and high demand among the users.
2. Ethereum (ETH) – Runner Up
After BNB, comes Ethereum. This runner up cryptocurrency has quite a high volatility. However, the use case as well as its popularity among the day traders is significantly growing due to the decentralized nature as well as its smart contract application.
When it comes to day trading, the Ethereum will offer a higher chance to make more profits due to its high amount of volatility.
This is the best part of this trading coin which you will get to trade in almost all major crypto exchanges.
The blockchain platform will even allow you to build up decentralized applications and generate new tokens as well.
This is good for the day traders as it allows them to make more profit within a short period of time by creating more volatility.
3. EOS (EOS) – All Round Support
This cryptocurrency has been able to garner billions of dollars of late due to its exponential development. It is due to its better use and functionality that the price of it has gone up multiple times.
This has resulted in a high level of volatility. Therefore, if you choose this specific coin to trade, you can make large profits making the most out of its volatile nature.
Moreover, you will get all-round support from an active team, which is another good reason for its popularity. And, this is also available in almost all major crypto exchanges across the globe.
4. Tron (TRX) – Consistent Development And Positive Feedback
If you want an active community, then Tron is the right currency to choose for day trading.
You will not only get active and prompt support from the different users in this community but you can also get in touch easily with the co-founder, Justin Sun, who is quite active over social media and the crypto pages.
Another good thing about this crypto coin is that it is always in the news primarily for its development efforts and positive feedback. This popular crypto is also available in most of the major exchanges around the world.
5. True USD (TUSD) – A Popular Stable Coin
True USD is a popular stable coin. You can buy it and sell it the same day with a hope to make significant profits because the value of it usually fluctuates quite frequently during the day, often by several cents.
You can trade it for other cryptocurrencies as well. This will minimize the chances of incurring any loss during day trade even further.
Market critics are of the opinion that this coin has gained even more traction after the scam happened to Tether and Bitfinex.
6. Tether (USDT) – A Larger Trading Volume
In spite of the scam, Tether is considered to be one of the most viable options for the day traders. There are several other good reasons that make it one of the best cryptocurrencies.
First, it has a much larger trading volume which draws more day traders towards it. Another good reason for you to choose this coin for day trading is that it will not have too many and too drastic price fluctuations because it is a stable coin.
Factors to Determine Best Crypto to Day Trade
Choosing the best crypto for day trading will mainly depend on the type of cryptocurrency trader you are.
A typical Day Trader will trade in quite short time duration, often ranging from a couple of minutes to a few hours. A Day Trader covers about 27% of the entire crypto market trading.
If you are a Scalper, then you will need to choose the best tokens to trade within the shortest time frames and make the most out of it. Scalpers usually cover 18% of the crypto market trades and spend hours in front of the trading terminal.
However, there are several other significant factors that will need to be considered while choosing the best crypto for day trading. Here they are.
As said earlier, you will need to choose the most popular cryptocurrency type for day trade. You can make your choice on the basis of the trading volume of a particular cryptocurrency.
This is determined by the number of trades that specific coin makes in a day. If this number is higher you can rest assured that it will have a much better trading volume.
However, it is also necessary that you keep a watchful eye on all the activities that happen around that specific token throughout the day.
This means, you will need to spend several days on your research before you find a good cryptocurrency to ensure it is a healthy and rewarding investment.
This means the price fluctuation of the specific cryptocurrency across different exchanges.
This is one of the most significant things that happen in a cryptocurrency market and eventually determines whether investing in that specific digital asset will be a triumph or a failure for a day trader.
Ideally, to become a successful Day Trader, you should choose a cryptocurrency that has notable upward price volatility.
This will ensure that the price of it will spike more frequently allowing you to make the most profit out of it while day trading.
Typically, the price of a coin in the crypto market may fluctuate anywhere from 10% to 50% during the whole day.
One of the most significant requirements for crypto day trading is that the specific crypto coin that you choose is supported by one or more reputable and reliable exchanges.
This is one of the most significant aspects that you should look for because as a day trader, you will store all your digital assets in the wallets of the exchanges. This is quite risky if the security feature of the exchange and the wallet is not high.
In order to make the right choice, check out the quantity of coins listed on the exchange and also check the transaction fees charged by the exchange and their transparency level.
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This will enhance your confidence in the market and also help you to know the best-performing crypto types.
Also, read the reviews of several successful day traders. All these reviews will allow you to know about the market trend and the possibility of the price of the specific coin chosen by you to rise or fall.
Remember, the crypto market is not regulated as it is in the fiat currencies and therefore this industry is very susceptible to negative news. Go for those exchanges and currencies that are popular and have a good impression on all traders from all over the world.
In order to ensure success in crypto day trading, you should choose the right coins to trade in the first place.
An exchange with an active team and a coin with a high success rate will make your day trading venture more profitable for sure.