Now that we know what to look for in a good day trading crypto, let’s take a look at some of the best options out there. Additionally, you can use the news to predict whether you should open short or long positions. However, current news can still tell you what cryptocurrency or crypto pairs will be trending and, therefore, will have active price movement in the near future. That’s because day traders make a profit off price fluctuations, not necessarily bullish or bearish trends. Recent market and industry developments are less of a factor in day trading than in long-term investment. When trading crypto pairs with low trading volume, you might encounter sharper price swings but can also get stuck with digital assets you don’t need, being unable to sell them. In other words, lots of people are trading that crypto, making it easy to buy and sell the asset. Secondly, the cryptocurrencies you choose should have high liquidity and a huge trading volume. Although this is often seen as a downside, it is a benefit in day trading, as, without it, there is scarcely any way to make reliable profits. Volatility means that the asset’s price is constantly changing, and there are a lot of profit opportunities. Volatilityįirst and foremost, you will need some volatile cryptos for trading. This way, you can maximize your profits by minimizing your costs - after all, nobody wants to spend all their earnings on trading fees. Before doing any other research, make sure that the crypto you’re planning to go for has low fees. When it comes to choosing cryptocurrencies and crypto pairs for day trading, there are a few things you need to look for. How to Pick Cryptocurrencies for Day Trading? Because of this, day trading is an entirely different beast from regular investment: it requires analyzing prices and crypto assets through another lens. This can be a highly profitable activity, but it also comes with many risks.ĭon’t go for more risk than you can handle.īy selling and buying assets in rapid succession, traders aim to capitalize on short-term price fluctuations instead of long-term trends. Day traders typically buy and sell multiple times throughout the day in order to take advantage of short-term price fluctuations. Crypto day trading is exactly the same, but with one exception: the asset here is a cryptocurrency or a crypto pair. How much does the average crypto day trader make?ĭay trading is the act of buying and selling an asset in a single day.Which crypto is the best for daily trading?.What is the Best Crypto for Day Trading?.How to Pick Cryptocurrencies for Day Trading?.
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