Best Suitable Cryptocurrencies for Day Trading “ Bitcoin Hunts Blogs
Cryptocurrency is one of the greatest innovations in the modern era. Over the years, cryptocurrency has grown to unprecedented heights, gaining widespread popularity and acclaim among investors over the globe. Popular digital currencies such as Bitcoin and Ethereum have contributed to its success by attracting investors to the crypto community. Cryptocurrencies are an alternative to fiat currencies and they can also be traded against fiat currencies and other cryptocurrencies. Cryptocurrency trading is becoming a major trend in the financial markets as many people are willing to invest their funds to potentially receive awesome rewards. Each cryptocurrency in circulation was created to fulfill a use-case and their mode of operation of dependent on that domain. For example, Ether. Ether is a well-known digital currency that is created as a fuel for the Ethereum ecosystem. It is deployed as a digital coin for smart contracts operations and building DApps on the Ethereum blockchain. It is highly valuable to be well informed of the purpose of a digital currency before investing in that cryptocurrency.
Before diving into the best suitable cryptocurrencies for day trading, you must understand the concept of day trading. Day trading is trading actively on an asset. It is usually within a day or multiple times within a day. Day trading is aimed at earning intraday profits from a volatile market. It is all about opening multiple positions and closing them all within a day. There are thousands of cryptocurrencies in circulation but not all of them are best for day trading. Here is a list of cryptocurrencies best suitable for day trading.
Ethereum (ETH)
Ethereum is the second-largest cryptocurrency in the world with a market cap of 496 billion. It is popular for its reputable contributions to the blockchain network but it is also a highly rewarding cryptocurrency platform. Ethereum provides a good amount of volatility which is beneficial to day traders in making intraday profits. It is available in most exchanges and is also employed as a payment option in some organizations.
Tether (USDT)
Tether popularly referred to as “USDT” is a stable coin priced at $1. It is one of the cryptocurrencies with the largest trading volumes. The reason for such high volumes is that there’s a belief that there’s a very low possibility of the price falling below $1. Many investors make use of USDT to guarantee the stability of their investments in a volatile market.
Binance Coin (BNB)
Binance coin (BNB) is the most popular exchange-owned cryptocurrency. It was released a few years ago by one of the leading exchange platforms- Binance. As soon as the cryptocurrency was launched, people trusted the platform enough to invest huge amounts. Binance is volatile and an ideal cryptocurrency for day trading because of its growing demand.
Binance has set the pace for other platforms to own their cryptocurrencies. many other platforms have adopted this approach and incorporated it into their platform. An example is , a blockchain-based fantasy sports platform, which uses Fanspel (FAN) as a cryptocurrency.
Conclusion
There are thousands of cryptocurrencies in circulation but not all are best suitable for day trading. Some are long-term targets and can only provide little return on investment.
Originally published at https://www.bitcoinhunts.com on May 18, 2021.
