If done correctly, day trading in cryptocurrencies—buying and selling digital assets in one day—can be a successful tactic. Based on their volatility, liquidity, and market momentum, murex Research ranks the top 10 cryptocurrencies likely to be perfect for day trading in 2024.
1. BTC, Bitcoin
Why It’s Perfect: Being the most well-known and biggest cryptocurrency, Bitcoin is highly liquid and experiences significant daily price swings, which qualifies perfectly for day trading. Its market domination also results in notable trading activity among several exchanges.
Trading Tip: Track short-term patterns by concentrating on technical analysis utilizing key indicators including moving averages and the Relative Strength Index (RSI).
2. Ethereum (ETH)
Why is it ideal? Because Ethereum plays a part in distributed apps (DApps) and decentralized finance (DeFi), it is the second-largest cryptocurrency by market capitalization and boasts a strong ecosystem. For traders, its price volatility in combination with notable trading volume makes it a great choice.
Trading Tip: Look for strong activity around network improvements and DeFi innovations that can cause significant pricing swings.
3: Solana (SOL)
Why It’s Ideal: Renowned for minimal costs and fast transactions, Solana has attracted a lot of interest from developers as well as merchants. For day traders seeking rapid market swings, its volatility makes it a fierce competitor.
Trading Tip: Track Solana’s daily trading volume as well as developer updates for any price swings.
4. Cardano (ADA)
Why It’s Perfect: Cardano’s scalable research-driven development makes it often in the news. These elements support the price swings day traders might profit from.
Trading Tip: Watch forthcoming project initiatives and alliances that might affect the ADA pricing.
5: BNB Binance Coin
Why It’s Perfect: The native coin of Binance, the biggest bitcoin exchange worldwide, is BNB. Frequent burns and their use in lowering trading fees on Binance cause significant price swings that BNB routinely observes.
Trading Tip: Following Binance’s statements on coin burning and promotions for maximum trading volume
6. Polkadot (DOT)
Why It’s Perfect: Polkadot’s technology developments, as a project aimed at blockchain interoperability, cause regular price surges. For day traders, its trading volume is still somewhat high, thus it is a good option.
Trading Tip: Track fresh parachute auctions and environmental changes that can affect DOT’s pricing.
7: Avalanche (AVAX)
Why It’s Perfect: Frequent speculative trading results from Avalanche’s reputation as among the fastest smart contract systems available on the blockchain. The swings in AVAX’s market present many chances for intraday trading.
Trading Advice: Focus on tracking Avalanche’s DeFi advances and cross-chain integrations as your trading tip.
8. DOGE (dogecoin)
Why It’s Perfect: Though founded as a humor coin, Dogecoin’s great volatility and market liquidity make it ideal for day trading. Often driven by social media or celebrity sponsorships, sudden price adjustments offer chances for rapid profits.
Trading Advice Track Twitter activity for cues on price swings, particularly from big influencers.
9. Ripples (XRP)
Why It’s Ideal: XRP is still a highly liquid asset despite legal conflicts that give day traders lots of chances to profit from price volatility. The usage of the ripple as a cross-border payment method also keeps the coin under attention.
Trading Tip: Track the continuous lawsuit involving the U.S. SEC since decisions can significantly affect prices.
10. LINK Chainlink
Especially as Chainlink’s network alliances expand, its utility in running distributed Oracle networks generates recurring waves in its market price. Day traders would find LINK an attractive target since its price swings can be rapid and significant.
Watch for new alliances using Chainlink’s Oracle services on smart contract systems.
Strategies for Day Trading Crypto in 2024
Though these cryptocurrencies have great possibilities, effective day trading calls for a well-considered plan:
- apply technical analysis: Finding trading chances will depend critically on awareness of chart patterns, resistance/support levels, and technical indicators including RSI and MACD.
- Order Take-Profit and Stop-Loss: Setting specified exit points helps safeguard gains and restrict losses in the very erratic crypto market.
- Track Market Mood: Watch market news, social media trends, and world economic events that can affect pricing.
- Key: High Liquidity: Pay close attention to cryptocurrencies with strong daily trading volume so you may effectively enter and leave positions.
- Use Variability: Day traders in cryptocurrencies live for volatility. A cryptocurrency’s chances to earn from short-term trades increase with more price fluctuations it goes through.
Expert Views
Day trading in 2024 will gain greatly from the growing acceptance of cryptocurrencies on institutional and retail platforms, claims Mudrex Research. While cryptocurrencies like Bitcoin and Ethereum will always be mainstays, experts point out that smart traders will have great possibilities from newly developed tokens like Solana and Avalanche.
Extra Data
Day trading in the Bitcoin market is not for the timid. Unlike conventional markets, crypto trades around the clock, hence prices may change quickly even during off-peak. Traders must keep discipline and properly control their trades using automated trading bots or alerts.
FAQs
- Is trading cryptocurrencies day-wise profitable? Indeed, it can be, but it calls for strong risk management strategies, knowledge, and expertise.
- When should one-day trade cryptocurrencies? Usually during overlaps in American and European trading hours, the optimum period is when the market exhibits the most liquidity and volatility.
- Which cryptocurrency is ideal for day trading beginners? Comparatively, to other cryptocurrencies, Bitcoin and Ethereum are the most liquid and least dangerous.
- Does starting day trading call for a lot of capital? No; owing to fractional trading, you can start with small amounts.
- What dangers does crypto day trading present? Market volatility and leverage constitute the main hazards. If poorly controlled, both can cause significant losses.
Staying focused and concentrating on top-trending cryptocurrencies will help traders perhaps profit from the exciting realm of crypto day trading in 2024.
