Day traders are searching for different ways to improve their trading skills and become even better to register larger profits. However, it is not necessary to do difficult courses to get better trading pairs for day trading activities.
Using Bitcoin (BTC) and Ethereum (ETH) could be a good idea, but they might not be the best coins for day traders. If you want to know which are the best cryptocurrencies for day trading, then you are in the right place.
Disclaimer: the information shared by AltSignals and its writers should not be considered financial advice. This is for educational purposes only. We are not responsible for any investment decision you make after reading this post. Never invest more than what you are able to lose. Always contact your professional. financial advisor.
When we think about which are the best cryptocurrencies for day trading we always think about Bitcoin and Ethereum. Well, they have large liquidity and they are available in most of the exchanges around the world. But they might not necessarily be the most volatile virtual currencies.
In the next sections, we share with you why we think that there are some other tokens that could be very useful for those users that perform day trading activities. Although not all of you would find them useful, we are sure that they would sometimes be a better option.
Some of the best cryptocurrencies for day trading include Binance Coin (BNB), Litecoin (LTC), XRP and other decentralized finance (DeFi) tokens.
Let’s start with Binance Coin (BNB). This virtual currency is the one used on the Binance ecosystem. Users can rely on it to pay for fees on the Binance exchange and also to pay for fees on the Binance Smart Chain (BSC).
This coin could be used by day traders because it is more volatile than other virtual currencies. Day traders are focused on volatility, which is something that would allow them to make money. With BNB, traders would be able to get access to a coin whose price fluctuates on a regular basis.
At the same time, due to the fact that it has been growing over the last few years, Binance Coin became more popular and its price has also been driven by demand.
Litecoin (LTC) is another virtual currency that could be used by day traders that want to make profits in the cryptocurrency market. The reason behind that is related to the fact that Litecoin has very clear price movements.
That means that the price of Litecoin is usually following patterns that make it easier for traders to place buy and sell orders. At the same time, it can be traded against both USDT or BTC. With both pairs, Litecoin could be a good choice in order for them to make profitable trades.
One last thing, when LTC gets close to a halving event, its price became very predictable.
When we talk about DeFi tokens we think of Uniswap (UNI), ApeSwap (BANANA), SushiSwap (SUSHI), and many others. These are some of the best cryptocurrencies for day trading because their prices are volatile. However, one thing to mention is that they are also driven by large demand.
There are periods in which the demand for these digital assets is so high that it could be very useful for traders to open a trade and make profits with it. There are different DeFi tokens in the market, but the ones we mentioned are just some of those that could be used by day traders.
Another thing that is worth mentioning is related to the risks involved in trading these coins. It might be possible for some of these DeFi projects to disappear in just days. This is why you should closely follow the events to avoid losing all your funds.
XRP could be one of the best cryptocurrencies for day trading due to two things: its predictability and its price fluctuation. XRP could move from $1 to $0.5 in just a few days and it could also do the same from $0.5 to $1.
Although this is just an example, it could happen, You should follow the market and analyse how XRP is moving in order to make a decision and get access to this virtual currency. If you are a day trader, remember not to stick to just one coin but also move to different digital assets.
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