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$1.11*
*prices delayed up to 10 minutes-1.00%
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$245.89*
*prices delayed up to 10 minutesDisclosure: 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$14.81*
*prices delayed up to 10 minutes+2.00%
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: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
High Profit Potential
Crypto day trading provides the chance to earn substantial profits quickly because of the fluctuating prices of cryptocurrencies. Traders can take advantage of swift price changes and trends to achieve returns that may surpass those of traditional investment approaches.
24/7 Market Access
Cryptocurrency markets are open all the time, unlike traditional stock markets that have fixed hours. This enables traders to respond to market fluctuations immediately, take advantage of opportunities as they come, and trade when it suits them.
Diverse Trading Options
The cryptocurrency market offers a wide range of coins and tokens for trading. This diversity enables traders to diversify their portfolios, manage risks, and implement various strategies suited to different cryptocurrencies.
Use of Leverage
Several cryptocurrency exchanges provide leverage, enabling traders to borrow money to boost their trading capabilities. This can increase potential profits by letting day traders manage larger positions than their account balance would typically allow.
Community and Resources
The crypto trading community is active, featuring various forums, research groups, and educational materials. This fosters an environment where traders can exchange insights, strategies, and market analysis, assisting one another in understanding the complexities of crypto trading effectively.
Cons
High Volatility
Cryptocurrency markets are highly volatile, often causing significant price changes quickly. This unpredictability can lead to considerable financial losses for day traders if market conditions shift rapidly.
Emotional Stress
Day trading is a fast-paced activity that can cause significant stress and anxiety. Traders often go through emotional ups and downs in response to market changes, which may influence their decision-making and result in impulsive trades.
Lack of Regulation
The crypto markets have limited regulation, which can leave day traders vulnerable to scams and inadequate protections. This lack of oversight can complicate safe navigation of the market and raise the risk of investment losses.
Time-Consuming
Day trading successfully involves thorough research, analysis, and constant market observation. Many traders often need to invest a considerable amount of time in studying price changes, news, and market trends, which can be challenging, particularly for those with additional commitments.
Risk of Overtrading
The fast-paced nature of crypto day trading can result in overtrading, where traders conduct numerous trades in a limited timeframe. This can increase transaction costs and lead to decisions based on emotions, which may heighten the risk of financial loss.
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
What is the most profitable crypto day trading strategy?
A successful crypto day trading strategy typically includes technical analysis methods, like moving averages and support/resistance levels, along with momentum indicators to determine entry and exit points. It is also important to implement risk management techniques, such as stop-loss orders, to safeguard against large losses while aiming to enhance potential profits.
Is crypto good for day trading?
Cryptocurrency can be a viable choice for day trading because it tends to be highly volatile, resulting in notable price changes in brief periods that can create profit opportunities. However, it’s crucial to recognize the associated risks, as these fluctuations might also result in considerable losses if not handled properly.
What crypto will be big in 2024?
Predicting which cryptocurrencies will succeed to a great extent by 2024 is challenging due to the market’s volatility and various influencing factors. Nevertheless, well-known coins such as Bitcoin and Ethereum, along with new projects within the DeFi and NFT spaces, are typically seen as having considerable potential.
Which crypto can give 1000x in 2024?
Predicting which cryptocurrency will reach a 1000x return next year is uncertain due to market volatility and various influencing factors. Nevertheless, newer projects that offer innovative technology, strong use cases, and active communities could experience significant growth if they gain popularity.
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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.