So, you are a crypto trader looking to day trade cryptocurrencies. You trust bitcoin but know that day trading it can be a hassle due to its high price. No worries. We have got you covered with this list of best cryptocurrencies to day trade in 2022.
Here you go.
- Fantom (FTM) – Fantom is an open-source smart contract platform. It’s highly scalable (due to high throughput and low fees), secure (with a global, leaderless PoS network), and Ethereum compatible. Even when the crypto market entered a bearish phase, the fantom token kept making slow pace strides. Over 80+ dApps are already deployed on the platform. The token is available on famous exchanges like Binance and OKEx Korea. Presently, the token is hovering somewhere around $1.54.
- Lucky Block (LBLOCK) is a token especially developed for gambling purposes. It makes a good opportunity to day trade due to its price volatility. Currently, it has been facing issues like its users having to pay taxation fees when transferring money from a decentralized exchange to a centralized one. That’s why the team behind Lucky Block is planning to introduce version 2 which will also have a bridge to the Ethereum network.
- Ethereum is a popular cryptocurrency for day trading due to the lower risk involved in trading Ethereum. The demand for the coin is always high. So, you can rest assured that you are not going to lose your money for good. Ethereum is now patching up the limitations of its version 1. The demand and thus the price of the coin is expected to surge with Ethereum 2.0. Ethereum is also amongst the most favored coin for trading by crypto signals providers. As it is the most used blockchain, there’s some reliability.
- TRON makes a good choice for day trading cryptocurrency. It is highly volatile and has got a buzz around itself. An increasing number of dApps are using the TRON blockchain making it a probable challenger for Ethereum. This has led to increased enthusiasm and thus the trading volume of this currency.
What to look for in a day trading cryptocurrency?
When you are looking to day trade, you are looking to make profits within one trading day. This trading strategy is especially popular among technical analysis expert traders. Here are a few things you should look out for when day trading.
Only a cryptocurrency that is volatile enough can give you good returns through day trading. Low/No volatility would mean that you can hardly earn any profits. Thus, even if it sounds counterintuitive to your cautious self, choose a volatile cryptocurrency.
If you want to day trade, every second counts. If you want that your trade is entered and exited at the exact time that you place the order, the trading volume of the cryptocurrency should be high. So, while choosing crypto to trade, have an idea of its trading volume.
- Transaction costs
Day trading means that you will be making a lot of transactions on a single day. You don’t want high transaction fees to chip away at your profits. So, choose a cryptocurrency with low transaction costs.
If a currency oscillates in a range of $50, it would still count as a volatile currency. Now imagine if its lowest price is $50 and the highest recorded on the day is $100. If you are only trading one or two of such coins, you are not going to gain much. To have any real profit, you need to make big investments.
Day trading doesn’t need you to worry too much about the fundamentals of a project. Just keep an eye on the technical indicators along with any major news event that might have an impact on the price of the coin. If these factors are taken into consideration, day trading can possibly help you make excellent returns.