The best cryptocurrencies for short term day trading
Day trading is the practice of buying crypto assets, holding them for a short time (typically less than 24 hours), and selling them at a profit. It is a very risky trading strategy too, but with the right approach, it can be used to cash in on the short-term volatility in the market. However, not all cryptocurrencies are suited for day trading. In fact, here are some attributes that typically define the best day trading assets.
The asset needs to have a relatively high trading volume. This makes it easier for orders to get filled.
Day trading assets also need to be newsworthy in that, if something happens, they get covered in major crypto news.
Finally, the asset also needs to be relatively more volatile compared to other cryptos.
Well, in case you want to day trade crypto, the following are some two assets you can consider based on the criteria above:
The main reason why Bitcoin (BTC) makes it into the list is based on the sheer trade volume. As one of the most popular cryptocurrencies in the world, it is also a newsworthy coin. After all, news related to Bitcoin will always be on the front page of any decent crypto site.
Data Source: Tradingview.com
At the time of writing, BTC had a 24-hour trade volume of nearly $24 billion. Also, Bitcoin is supported in most crypto day trading derivatives, including futures, CFDs, options, and others.
Tether (USDT) is the largest stablecoin. Just like Bitcoin, it has a huge trading volume. In fact, its trading volume at the time of writing was around $61 Billion, nearly 3 times more than Bitcoin.
Tether (USDT) is however not nearly as volatile as Bitcoin but there is enough volatility there for a day trader to profit. It also gets a lot of press coverage so you are going to have all the info you need.
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