One of the greatest innovations in this era of digital age is that of cryptocurrencies. Over the years, cryptocurrencies have earned immense popularity from all across the globe. Cryptocurrencies are designed to function as money. They are considered to be an alternative to the fiat currencies of the world. Trading in the cryptocurrency market comes as no big a surprise. A lot of people engage themselves in this market depending upon their risk-taking capability. The growing acceptance of cryptocurrencies both as an investment opportunity and also as a medium of exchange is all the more a strong reason to talk about them in today’s technology-rich world. That said, this article will talk about the top 5 cryptocurrencies that are best for crypto day trading.
Before jumping onto what are the best cryptocurrencies for day trading, having a fair idea as to what day trading is, always helps. Day trading is one of the most commonly used trading strategies used in both – the stock market as well as the cryptocurrency market. Those who indulge in day trading employ intraday strategies to earn profits from the volatile market. A lot of techniques are used to earn from intraday trading. Day trading is a strategy that revolves around the opening and closing positions several times during a single day. Yet another important feature of day trading is that the trader closes all positions at the end of a given day. Now that we have a clearer picture as to what exactly is day trading, let’s jump straight into what are the top 5 cryptocurrencies that are best for crypto day trading.
Tether (USDT)
Priced at $1, it is considered to be one of the best cryptocurrencies. The reasons are many. Today, Tether has a large trading volume. To be precise, Tether grabbed attention for having one of the highest 24-hour trading volumes. No wonder why this is so critical to the cryptocurrency market. Such high trading volume is also one of the reasons why more traders are getting inclined towards it. Though there has always been a firm belief that the price won’t fall below $1, it was some time back that the price did fell. However, this being a stable coin without many fluctuations is what grabs attention.
Ethereum (ETH)
After bitcoin, Ethereum is the most popular cryptocurrency in the world. Yet another reason why this is popular is that in addition to being a cryptocurrency, it is also a blockchain platform. With this platform, it is possible to create new tokens and also develop decentralized applications. As far as day traders are considered, a good amount of volatility is what provides for a great opportunity to profit, and that too within a short span of time. Now that Ethereum is listed on most of the exchanges, it is quite easy to trade in the same. It is priced at $3850.
Binance Coin (BNB)
It was just a few years back that one of the most reputed exchanges released their own cryptocurrency – Binance coin. When traders saw a reputed exchange releasing their own cryptocurrency, the trust came in naturally. The reason why BNB is chosen by day traders is because of its growing demand. Priced at $560, this is an ideal currency to start with day trading.