We often talk about the high volatility of the cryptocurrency market, as it is a bad thing. While sometimes it certainly is a bad thing, there are sometimes when it can be seen as something positive.
Crypto day trading is a strategy where the high volatility of digital assets can help you make some good profits. Of course, you should keep in mind that it is not for everyone, and if not executed properly, it can lead to some major losses as well. There is much risk involved in day trading, which is why we suggest you do proper research and learn more about crypto, before you start looking at day trading as a primary source of income.
Before you start trading cryptocurrencies, you must know what day trading is and how it works.
Our main advice here is not to look at this article as investment advice. As always, we suggest you always do good research and never invest more than you are willing to lose.
What is crypto day trading?
As the name suggests, crypto day trading is a process of buying and selling cryptocurrencies in a single day. Day traders buy and sell their assets multiple times a day, taking advantage of the price volatility and the short-time price fluctuations.
As we already said, this can be a profitable, as well as a risky, activity.
Day trading is different from regular investment, as it requires analyzing prices and crypto assets through another lens.
How to choose cryptocurrencies for day trading?
There are several factors to look at when searching for the right digital assets for day trading. Firstly, make sure the crypto you’ve chosen goes for low fees, as this will help you maximize your profits, and minimize your costs.
Volatility
Although it is often seen as a negative thing, volatility can also have some advantages, especially when it comes to day trading.
Volatility means the asset’s price is constantly changing, so there are many profit opportunities. After all, this is what you need in day trading.
Volume
The good cryptocurrency for day trading has high liquidity and huge trading volume. This means that lots of people are trading that crypto, so it is easy to buy and sell it.
Current news
Last but not least, current news can help you find cryptocurrency or crypto pairs that are trending and will have active price movements in the future.
5 Cryptocurrencies good for day trading
As you already know what to look for in a cryptocurrency for day trading, we’ve prepared a list with some of the best options on the market today.
Fantom
It is probably the least popular crypto on our list, but still it can be an interesting choice for day trading activity. It comes with low fees, fast transaction speed and high volume.
At the time of writing it is in 54th place by market cap, and is worthed $0,31299.
Solana
Solana is a fast and scalable cryptocurrency, suitable for day trading. It can handle up to 50,000 transactions per second, and comes with low transaction fees.
Solana is popular and future-proof, meaning there are always new traders seeking this crypto on trading platforms.
At the time of writing, it is in 10th place by market cap and can be bought for $20.68.
Ripple
Ripple comes with low transaction fees, making it perfect for day traders who don’t want to pay high fees eating into their profits. Moreover, Ripple offers high transaction speed, which once again makes it perfect for day traders.
At the time of writing, Ripple has a price of $0,519484, and ranks in 6th place by market capitalization.
Ethereum
With the wide price range of Ethereum, there are many opportunities to buy low and sell high. Moreover, this is one of the most popular cryptocurrencies, meaning you will always be able to find buyers and sellers.
At the time of writing, Ethereum is worthed $ 1,856.80 and is at the second place by market cap.
Bitcoin
It is the largest and most popular cryptocurrency, with the biggest market cap. Also, it is the most liquid crypto, and there are always buyers and sellers available.
At the time of writing, Ethereum is worther $26,677.50 and is in first place by market cap.
Final words
Before you start day trading, we suggest you find a good platform that has all the features you need. As we always suggest, do good research before you start trading, and never put more money than you are willing to lose.
Cryptoarbi is an automated platform for triangular crypto arbitrage. All you need to do here is choose the right subscription plan, and we will do the work for you.