Cryptocurrency is trending all over the investment industry, and it is currently booming. Though the sector has faced many ups and downs, there are several ways with the help of which crypto enthusiasts can earn unimagined profits in this sector. With the help of one definite way, people can make much more than what they have expected, and the method is popularly known as day trading. With the help of our article, you will be familiar with the factors that will help a person make a profitable investment by picking up the best cryptos for day trading. Before jumping on to the elements, let us first know the different types of traders present in the trading market.
Also, while it doesn’t provide investment advice, Crypto-Chronicles is a great resource for learning more about the crypto market.
Position Traders: Such traders cover almost 35% of the market trading. Trade is believed to last generally for one week to a 1-month time frame.
Day Traders: such traders cover 27 % of the market tradings. They trade for a concise time frame, and it ranges from a few minutes to a couple of hours.
Swing Trader: swing traders cover 20 % of Crypto trading, and the method is somewhat similar to Position Trading. The trader invests in swings that are either upwards or downwards and are based on significant price movements.
Scalpers: Remaining scalpers cover 18 % of market trading. They sit in front of the terminal for hours and make the most of it even at the smallest time frames.
Now let us have a look at the factors that affect day trading. There are numerous factors based on which cryptocurrencies are decided for day trading. Some of them are listed below:
Volume-Volume helps you to determine the popularity of the crypto and the number of activities that take place in and around the token. However, to consider a cryptocurrency for day trading, it should have good volume. Volume helps to determine how healthy the currency is. You can also find the number of trades, more the number of trades, the higher is the volume.
Volatility –Volatility is referred to the price fluctuations, and it is one of the predominant factors in the cryptocurrency market. It merely means that the currency can either fail or succeed. Day traders should select crypto that has upward volatility to make huge profits. The coin price can fluctuate as high as 50%, and there is no surprise in it.
Crypto Exchange – Crypto Tradingshould be done with Cryptos that are acceptable by all reputed exchanges. Day traders are believed to store their valuable assets in cryptocurrency exchanges, and it is very risky, and the security is more. Look for the coins that are listed on the exchange and be aware of the transaction fees as well.