Our experts have carved out the best cryptocurrencies for day trading. Among thousands, Benzinga found Bitcoin, Ethereum, Ripple, Solana, and Chainlink the best to buy now from the top exchanges including eToro or Coinbase.
For day traders looking for quick returns, the cryptocurrency market is an exciting playground of volatility. But choosing the “best” cryptocurrencies for day trading might feel like navigating through a crypto jungle with so many possibilities flashing before your eyes. This guide will be your machete, guiding you through the digital jungle and pointing out the most promising cryptocurrencies for 2024-day trading success.
What is Crypto Day Trading?
Crypto day traders buy and sell digital currencies over the short term to profit from transient price swings. 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 look for profitable prospects using a range of strategies. Those consist of:
- Scalping is buying and selling quickly — in minutes — to earn little from a large trading volume.
- Smartly benefiting from the price differences of the same cryptocurrency on several exchanges is known as arbitrage.
- Technical analysis involves determining entry and exit positions using charts, price patterns, and other indicators.
Best Cryptos for Day Trading
Let's investigate a few of the leading candidates, taking into account volatility, liquidity, and market patterns.
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 $31 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 2.08% (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 $6.9 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 for day trading because of its special combination of high volatility, liquidity, and smart contract capabilities.
Ripple (XRP)
xrp
XRP$0.466007*
*prices delayed up to 10 minutes-2.48%
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 from May 2024 added a significant risk element. Before choosing to day trade XRP, traders should consider this legal dispute seriously.
Solana (SOL)
sol
Solana$135.28*
*prices delayed up to 10 minutes-2.10%
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 (dapps), 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$14.00*
*prices delayed up to 10 minutes-0.32%
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.
82% of retail CFD accounts lose money.
Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts.
Things to Avoid in Crypto Day Trading
Here are some key things 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.
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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.