Day trading is one of the traders’ most beloved strategies, but just like the other tactics out there, it has evolved. So, apart from just buying the dip and selling the rip spontaneously, enthusiasts should consider some other factors for considerable gains, including the cryptocurrencies they’re about to trade.
That’s because a lot of virtual coins proved promising at first but failed to bring the desired ROI. The market is undoubtedly unpredictable, all the more so when it comes to digital currencies, which are still in the early stages. However, some of these assets have proven to have more potential than others, and that’s what we’re going to discuss in the following.
Best Cryptocurrencies For Day Trading
Cryptocurrency has emerged as an incredible investment option, whether long-term or short-term. This kind of asset also allures from a day trading perspective, providing participants with a pathway to significant profits that often surpass what can be achieved in forex trading or stocks. However, choosing the coins you want to trade daily can be daunting, as not all cryptocurrencies are worth it.
A promising asset, in this sense, should possess characteristics such as utility, liquidity, volatility, publicity, and of course, a high trading volume. All these factors can be checked on an exchange like Binance, which will significantly help you buy Bitcoin or other coins at a correct, actual price.
Remember – the ultimate goal of this strategy is to open and close positions several times during a single day, earning rewards from the price fluctuations. And the best coins that can help reach this goal include:
Binance Coin (BNB)
As you might have already guessed, Binance Coin is the token that powers the respected exchange, Binance. It has recently emerged as one of the most promising coins to trade within 24 hours or less, but the reasons are still unclear for many.
Well, since BNB is dependent on the success of Binance, it can increase or decrease in value at the same pace the platform does. But at the time being, Binance is the largest cryptocurrency exchange as regards trading volume, so inevitably, BNB receives attention from traders and investors alike.
Traders worldwide use Binance Coin to complete transactions on the Binance platform, so it has considerable utility. Besides, the coin is massively liquid, with a high trading volume and price movements that allow traders to earn substantial ROI.
Its daily trade volumes, for instance, are worth approximately $700 million, so it’s clear that this coin has great potential. Developers can also benefit from BNB, as it can be used within Smart Chain, which is popular for dApps and NFTs.
Ethereum (ETH)
Ethereum remains one of the preferred assets for day trading in 2023 too. The famous altcoin supports a range of applications (smart contracts, NFTs, dApps) and has multiple use cases, which is why it’s in continuous demand. Smart contracts, for example, run automatically when conditions are met, so there’s no need for a financial intermediary to validate transactions.
This is undoubtedly a good reason to invest in Ethereum, but what many don’t know is that the crypto also appeals to day traders. Ethereum’s price action is more trackable than in the case of many assets, making the market entries and exit points quite predictable for short-term traders.
Another reason Ethereum is one of the best virtual currencies to day trade is its liquidity: it has long been one of the most liquid crypto assets in the marketplace, along with big names such as Bitcoin, Tether, and Cardano.
Cardano (ADA)
Cardano is a third-generation cryptocurrency, as opposed to Bitcoin and Ethereum, which are first-generation, respectively second-generation currencies. This coin’s peculiarities have brought Cardano to the top of the most valuable digital currencies by market cap, so it’s clearer than ever that this hot crypto is here to stay.
Remember that Cardano is the first-ever PoS (Proof-of-Stake) blockchain, meaning that it addressed environmental issues before others did. This mechanism also makes ADA staking a more robust method to earn passive income.
The network is known for its speedy transactions, which are also conducted at a lower cost than in the case of other players in the game. For this reason, Cardano supports numerous dApps, believed to represent the future of online applications soon.
Polkadot (DOT)
Polkadot has emerged as one of the most sought-after digital currencies in the global market, but many still don’t know what it actually is. The Polkadot is a Web 3.0 project aiming to prioritize scalability and provide users with more reasonable fees and faster speeds when it comes to transactions.
Polkadot’s native token, DOT, has a unique utility, facilitating the cross-blockchain transfer of data, which earns it a top spot on the most promising virtual coins for day trading.
Today’s high demand that DOT boasts is clear proof that the token is not going anywhere and is also likely to beat many of the coins that traders consider viable. You can convince yourself Cardano is a not-to-be-missed leap by checking on its volatile price action and daily trading volumes on a reputable exchange.
How To Invest In Bitcoin?Avalanche (AVAX)
Avalanche has, indeed, fallen off the list comprising the top ten largest cryptocurrencies by market cap, but there’s hope it’ll get back on track soon. The Avalanche blockchain is known for its low gas fees and high scalability, and these things matter to market participants.
So, don’t be surprised if AVAX will meteorically skyrocket in the foreseeable future. The token has already not-to-be-ignored success due to the platform’s affordability range and fast transaction processing. So, undoubtedly, the blockchain’s efficiency is one of Avalanche’s main lures.
Investors appreciate that the platform is on their side, and so should traders. The AVAX coin could be the next Polkadot or Cardano in ROIs, as it has enough movement to sustain profitable 24-hour trades.
Obviously, these are just a few of the many cryptocurrencies that could prove profitable for day trading. Other noteworthy coins are Solana (SOL), ApeCoin (APE), Dogecoin (DOGE), Shiba Inu (SHIB), and Ripple (XRP). So, if none of the above discussed didn’t grab your attention, ensure you check out these latter-mentioned ones.
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