Benzinga found Bitcoin, Ethereum, Ripple, Solana, and Chainlink the best cryptocurrencies for day trading. You can buy them from the top exchanges including eToro, which is offering a sign-up bonus of $10 when you deposit $100 or a $50 bonus when you trade $500 worth of cryptocurrency.
Crypto day trading has become a popular way for individuals to potentially make quick profits in the volatile world of cryptocurrencies. However, it can also be risky and requires a strategic approach in order to be successful. Choosing the “best” cryptocurrencies for day trading can be overwhelming with numerous options available. This guide aims to serve as your tool for navigating the digital landscape, identifying the most promising cryptocurrencies for successful day trading in 2024.
What Is Crypto Day Trading?
Crypto day trading is a strategy where traders buy and sell cryptocurrencies within the same trading day to take advantage of small price movements. By entering and exiting positions within the same trading day, this approach enables traders to profit from the volatility of the cryptocurrency markets. Day traders need to have a high tolerance for risk, be able to make quick decisions, and constantly monitor the market to be successful in this trading strategy.
Best Cryptos for Day Trading
Wondering which crypto coin is best for day trading? Here's a few of the leading options, taking into account volatility, liquidity and market trend.
Bitcoin (BTC)
Even in 2024, Bitcoin (BTC) will rule the day trading space. Many things support its standing as a strong contender. With a high average daily trading volume exceeding $30 billion, day traders may efficiently pinpoint Bitcoin's opening and closing positions. The price swings of Bitcoin, though, can have two sides. Its 30-day volatility is around 2.04% (bitbo.io), which offers plenty of chances to benefit when prices change.
It provides several trading pairs and options designed especially for day trading techniques. The extensive availability of Bitcoin on most trading platforms makes it an easy choice for busy traders looking for a flexible cryptocurrency asset for their day trading activities. Day trading is essentially made ideal by Bitcoin's unparalleled liquidity, market domination, price volatility and accessibility. This cryptocurrency “king” enables traders to take advantage of transient price swings and the market's quick pace to potentially profit.
Ethereum (ETH)
Beyond Bitcoin, Ethereum (ETH) is a formidable competitor for 2024 day trading cryptocurrencies. Huge volatility in Ethereum means there are a lot of chances to profit from short-term price swings. BeInCrypto reports that the daily trade volume averages $21.2 billion, making it one of the top liquid cryptocurrencies in the industry.
Ethereum's blockchain technology facilitates a large ecosystem of tokens and decentralized applications (Dapps). This active environment feeds the day trading engine even more, contributing to high trade volumes and liquidity. Ethereum's availability expands trading possibilities on several platforms, including online brokers. Considering previous hacking instances, using cold wallets for storage gives additional protection. Lastly, Ethereum is perfect day trading crypto because of its special combination of high volatility, liquidity and smart contract capabilities.
Ripple (XRP)
xrp
XRP$0.608811*
*prices delayed up to 10 minutes+0.02%
24HDisclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Ripple (XRP) 's special qualities and the possibility of quick profits draw in day traders. Its volatility offers many chances to benefit from daily price changes.
Another feature is liquidity; XRP is one of the largest altcoins by market capitalization. Because of the large daily trading activity, day traders will find smooth entry and exit points. Day traders may be even more fascinated since some analysts think XRP has room to appreciate value over the long run.
Over XRP, though, is a cloud of regulatory ambiguity. The U.S. SEC's continuing litigation added a significant risk element. Before choosing to day trade XRP, traders should consider this legal dispute seriously.
Solana (SOL)
sol
Solana$158.71*
*prices delayed up to 10 minutes+3.32%
24HDisclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Solana (SOL) is a layer 1 smart contract blockchain that explodes with a special combination of volatility and rapidity. Although its volatility provides many chances for fast money, prudence is advised for every project into the cryptocurrency market.
Solana can complete transactions at a blistering pace — more than 65,000 per second. It also charges very low transaction costs, which reduces the financial strain of regular trading.
Another benefit is liquidity; Solana has listings on important markets and a sizable market capitalization. Because of the large daily trading volume, day traders are assured a seamless flow of entry and exit locations. Additionally, day traders benefit from the platform's expanding ecosystem of decentralized apps, which drives increased trading activity and potentially higher volatility.
However, given its immaturity in relation to behemoths like Bitcoin and Ethereum, Solana might be more volatile and present higher risk. Day traders entering Solana's fast-paced world should carefully balance the risks and possible profits.
Chainlink (LINK)
link
Chainlink$12.14*
*prices delayed up to 10 minutes+1.16%
24HDisclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Chainlink (LINK) moves past its function as a blockchain oracle network as many day traders speculate on the price of LINK. Its features allow it to be appropriate for active trading even if its main purpose is to link smart contracts to actual data.
First, day traders have many opportunities to benefit from short-term price fluctuations since Chainlink shows a lot of price volatility. Second, enough liquidity is ensured for easy entry and exit points by its popularity and high market capitalization.
An important benefit of Chainlink is its versatility. Some traders day trade LINK, while others choose to invest in it for the long term using the HODL technique, depending on their risk tolerance and expected returns.
Lastly, Chainlink's developing ecosystem and industry acceptance feed the possibility of more trading interest and volatility, which is a double-edged sword for day traders but one that offers compelling prospects.
Online Cryptocurrency Trading Platforms
Our top crypto trading platforms list includes eToro, Kraken, Coinbase, Robinhood, and AvaTrade. They cater to various needs with diverse crypto options, competitive fees, and user-friendly interfaces.
- Best For:Broad Range of Crypto AssetsVIEW PROS & CONS:securely through Paybis's website
- Best For:Buying & selling DogecoinVIEW PROS & CONS:securely through Robinhood Crypto's website
Popular Crypto Day Trading Strategies
Day traders look for profitable prospects using a range of strategies. Here are several options to consider:
- Scalping: Scalping is buying and selling quickly — in minutes — to earn little from a large trading volume.
- Arbitrage: Smartly benefiting from the price differences of the same cryptocurrency on several exchanges is known as arbitrage.
- Range trading: This involves identifying a specific price range in which a cryptocurrency is trading and making trades based on price fluctuations within that range.
- Technical analysis: This involves determining entry and exit positions using charts, price patterns, and other technical indicators.
Pros and Cons of Crypto Day Trading
While day trading crypto can offer significant profit potential in a short amount of time, it also comes with its own set of challenges and drawbacks. To truly understand whether this trading strategy is suitable for you, it's crucial to weigh the pros and cons.
Pros
- Potential for high returns in a short period of time
- Trading is open 24/7, allowing for flexibility
- Access to a wide range of cryptocurrencies to trade
Cons
- High risk of losing money due to market volatility
- Requires a lot of time and research to be successful
- Lack of regulation can lead to scams and frauds
Things to Avoid When Day Trading Crypto
Here are some common crypto daytrading mistakes to avoid:
- Impulsive trading: Poor trading can result from impulsive decisions based on emotions, such as fear of missing out (FOMO) or responding to fear, uncertainty and doubt (FUD). Always ensure that careful thought and investigation support your choices.
- Overtrading: Trading too much or too little in too many transactions can quickly exhaust your resources and increase your chance of suffering significant losses. Prudent market exposure management and smart trading are critical.
- Ignoring risk management: Ignoring risk management techniques like diversifying your portfolio or placing stop-loss orders might put you in needless danger. Reducing risk is essential to protecting your wealth.
- Ignoring basic research: Poor investing decisions might result from depending only on technical research and neglecting the fundamentals of a cryptocurrency project. Always consider the technology, adoption potential, the project's team and goal.
- Chasing quick profits: Trying to make quick money without having a plan usually leads to failures and erratic outcomes. Create a clear trading plan, and steer clear of snap judgments motivated by the promise of fast money.
- Emotional trading: Trading motivated by feelings like fear, greed, or FOMO might result in snap judgments and poor performance. Following your trading plan and preserving emotional discipline is essential.
- Not setting stop-loss orders: Should transactions go against you, not setting stop-loss orders might lead to significant losses. An essential risk management instrument for safeguarding your assets is “stop-loss orders.”
Forget the Rest: Conclusion to Your Blueprint to Day Trade Crypto
Success with cryptocurrency day trading depends on learning different techniques and practicing discipline. Market volatility is used by reverse trading, momentum, arbitrage and scaling. Don't, however, overtrade, make snap judgments, or ignore risk management. Put stop-loss orders to use and combine technical analysis with fundamentals for a comprehensive strategy. Gains from these tactics can be steady, and you will be more prepared to have success in the cryptocurrency market.
Frequently Asked Questions
Can you make $100 a day with crypto?
Even if day trading cryptocurrency may bring in $100 a day, it requires a calculated, risk-taking strategy and in-depth market understanding. Steady success requires talent, self-control, and an eye toward long-term results. The amount of money you can make from day trading largely depends on the amount of starting capital used.
Is crypto good for day trading?
Cryptocurrency can be a good medium for day trading for risk tolerant investors. Large price swings allow for larger profits, and conversely, larger losses.
Which crypto exchange is best for day trading?
According to our panel of experts, eToro is the best choice for day trading due to its rich features and user-friendly design.
How much do crypto day traders make?
Day trading cryptocurrency is a wild ride; you may lose and make millions of dollars or, in other words, make millions. The problem is just 5% of individuals make money; the majority lose money. Your success comes from the market, approach, and risk management skills.
Do you need 25k to day trade crypto?
Having $25,000 to day trade crypto provides more flexibility and opportunities in the volatile market, allowing traders to avoid regulations, have more leverage, and manage risk effectively. Trading with less capital is possible but involves more risk and limitations in strategies and volumes.
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About Ishan Jain
Ishan Jain is a technical enthusiast with a knack for financial analytics and trading. Ishan primarily works on AI algorithms, business development, and software engineering for his ventures and side projects, and he produces Web3 content for Benzinga. Ishan has been involved in DeFi in a variety of ways, including heading a project at a crypto asset investment firm along with leading a blockchain security research project.