7 Best crypto for day trading? Strategy & How it works?
As we all know that today, the discussions of cryptocurrencies, and blockchain industries have become a hot topic all around the world. In
fact, the upcoming year is already all set to fill all the corners with Web3, and its implications all over the world map.
When the global population is tied their shoe laces to be absorbed in the Web3, Blockchain derivatives, and NFTs to generate income with an alternate source, where are you? We are here going to present you with one of the most advantageous cryptocurrency trading strategies, and of course the best cryptocurrencies with which you can earn the maximum of profits in the year 2023.
Day Trading Strategy
Before moving forward, let’s have a quick look at day trading, one of the prominent crypto trading strategies. Crypto day trading is a trading strategy where traders buy and sell cryptocurrencies within a single day with an aim to make profits from short-term price fluctuations. Day traders typically hold positions for a few minutes to a few hours and close them before the end of the trading day to avoid overnight risks.
Doesn’t matter whether you are trading in cryptocurrencies, stocks or other currencies, being a financial day trader you need to be aware of some basic key pointers. Day trading requires a high level of discipline, knowledge, and skill, as it involves constantly monitoring market movements, analysing price charts, and making quick decisions.
It can be highly profitable if done correctly, but it can also be very risky, with the potential for significant losses. It's important for day traders to have a solid understanding of the markets, to have a well-defined trading plan, and to manage their risk carefully. It's also important to keep in mind that day trading may not be suitable for everyone and can be a stressful as well as a demanding occupation at the same time.
Best cryptocurrencies for day trading
Now let’s talk about some of the best cryptocurrencies for day trading.
In general, cryptocurrencies with high liquidity and trading volume may be more suitable for day trading. Furthermore, we are sharing with you some of the best cryptocurrencies in which you can trade to make, and take the benefits of day trading. The first, and foremost cryptocurrency on which people from each corner of the world have eyeballs in every mini seconds is Bitcoin. Besides it, there are various altcoins also in the list which includes popular coins such as Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), Dogecoin (DOGE), and others. However, it's important to keep in mind that day trading can be highly risky, and any investment decision should be made after conducting thorough research and analysis, and consulting with a financial advisor.
Get a description on the cryptocurrencies that can be suitable for day trading strategies.
Ethereum is a decentralized, open-source blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (DApps). It has its own cryptocurrency, Ether (ETH), which is used to pay transaction fees and as a form of digital currency. Without a doubt, the second-largest cryptocurrency, Ethereum comes in the top list of cryptos for investments. `
Ethereum can be used for day trading, but it is important to understand the risks and volatility involved in cryptocurrency trading.
Solana is a high-performance blockchain platform designed to enable fast and low-cost transactions. It uses a unique proof-of-history (PoH) consensus mechanism that enables it to process transactions more quickly and efficiently than many other blockchains. The platform also uses a proof-of-stake (PoS) mechanism to validate transactions and secure the network.
Both the institutional and small time traders get attracted towards Solana because of its unique hybrid consensus strategy.
Polygon (MATIC) is a cryptocurrency and a layer 2 scaling solution for the Ethereum blockchain. Polygon aims to provide faster and cheaper transactions on the Ethereum blockchain by using sidechains and a proof-of-stake (PoS) consensus mechanism.
The Polygon network also supports the development of decentralised applications (dapps) and provides a suite of tools and infrastructure to help developers build and deploy their dapps more easily. MATIC has gained popularity in the cryptocurrency market due to its potential to reduce the congestion and high fees on the Ethereum network, as well as its ability to support the development of new dapps and use cases.
Dogecoin (DOGE) is a crypto that was created as a lighthearted alternative to Bitcoin. It was based on the "Doge" internet meme featuring a Shiba Inu dog. Dogecoin operates on a decentralized blockchain network and uses proof-of-work (PoW) mining to verify transactions and add new blocks to the blockchain. The supply of Dogecoin is not capped, and there is no limit to the number of coins that can be created.
Dogecoin is considered a highly speculative and volatile investment, and its value can fluctuate rapidly based on market sentiment and news events.
GanderCoin is an open-source, and modernistic peer-to-peer based digital currency. It was launched back in the year 2022. Also, the GanderCoin is developed upon one of the safest hash functions, called Scrypt Algorithm for a secured, transparent, and efficient electronic money transmission.
GanderCoin has signed its name in Indian history by becoming India's first crypto coin on 30 May 2022. Currently, it is enlisted on one of the fastest growing global cryptocurrency exchanges, CoinCRED. Besides it, GanderCoin is available on INDOEX, Lbank and COINLORD exchanges for buying, selling and trading purposes.
Avalanche (AVAX) is a cryptocurrency and blockchain platform that aims to provide high speed and low-cost transactions, as well as a flexible platform for building decentralized applications (dapps). The Avalanche network uses a consensus mechanism known as Avalanche Consensus, which is designed to facilitate fast and secure transactions with high throughput.
Avalanche has its own cryptocurrency, AVAX, which is used to pay transaction fees and as a form of digital currency. AVAX can also be staked to help secure the network and earn rewards. Avalanche has gained popularity in the cryptocurrency market due to its potential for high transaction speeds and low fees, as well as its support for smart contracts and other dapp development tools.
BNB is the native cryptocurrency of Binance, one of the world's largest cryptocurrency exchanges. Firstly, Binance Coin (BNB) was developed as an ERC-20 token on the Ethereum blockchain, but later moved to its own blockchain, Binance Chain. BNB has multiple use cases within the Binance ecosystem, including paying trading fees, participating in initial exchange offerings (IEOs), and buying goods and services from merchants that accept Binance Pay. Binance also uses a portion of its profits to buy back and "burn" (permanently remove from circulation) BNB tokens, which can help to increase the token's value over time.
We have discussed various cryptocurrencies with which anyone can begin their journey of day trading and get good returns. Also the list is far-far wider as there is a huge cryptocurrency catalogue all around the world.
The aforementioned content is offered primarily for educational purposes and is the opinion of the author and advertisers. It does not constitute investment advice. By using this, you acknowledge that Analytics Insight and the staff have not given any financial or investing advice. Anyone who wants to invest should have their own independent, professional counsel on finances or other matters. Don't make any investment decisions without first conducting your own research.
By- Riteshu Sen Jaiswar