Which is the Best Crypto to Day Trade?

How to start trading crypto intraday

To successfully launch into the world of crypto day trading, consider the following detailed steps:

• Clarifying Investment Goals and Risk Appetite:

  • Clearly articulate your financial objectives with day trading

  • Perform a thorough self-assessment to determine the level of market fluctuation you can endure without compromising your peace of mind

• Selecting an Optimal Trading Platform

  • Opt for platforms with intuitive interfaces that facilitate rapid trading decisions and execution

  • Search for competitive fee structures to ensure that transaction costs don't erode your profits

  • Demand a diverse range of tradable assets and tools that enable you to craft and execute various trading strategies

  • Emphasize the importance of stringent security features to protect your capital against cyber threats and exchange vulnerabilities

• Leveraging Exchange Ratings:

  • Utilize comprehensive reviews and ratings of crypto exchanges found on reputable financial websites

  • Evaluate each platform based on key performance metrics such as user experience, fee schedules, the breadth of available cryptocurrencies, and the robustness of security measures

To learn more about the best crypto exchanges, read our guide on 10 Best Crypto Exchanges (2024).

Ethereum (ETH)

Ethereum attributes for day trading are highlighted by:

• Substantial Market Presence:

  • Second only to Bitcoin in liquidity, Ethereum provides a stable ground for executing substantial trades quickly and effectively

  • The high liquidity also means ETH is less prone to extreme volatility, enabling more predictable intraday trading

• Hub of Innovation and Fluctuation:

  • The platform's native support for dApps and smart contracts introduces beneficial volatility, a key ingredient for profitable day trading

  • Upgrades such as Ethereum 2.0 can significantly influence price points, presenting timely opportunities for traders

• Impact of DeFi and NFTs:

  • As the backbone of the DeFi and NFT markets, Ethereum's relevance extends beyond its own ecosystem, affecting demand and price stability

  • Its widespread adoption in various investment products further cements its position as a preferred asset for day trading due to increased liquidity and market activity

Ripple (XRP)

Ripple's XRP offers unique advantages for intraday traders, thanks to:

• Real-World Financial Utility:

  • XRP's design for efficient cross-border transactions positions it as a vital tool for international banking, enhancing its credibility and market liquidity

  • Its capacity for swift, cost-effective transfers appeals to financial institutions, potentially driving its price upon new partnerships or regulatory news

• Dual Volatility Sources:

  • XRP's price is influenced by both global crypto market sentiment and Ripple-specific developments, offering traders varied opportunities for profit

  • Its comparatively low price enables holding larger quantities, magnifying the impact of price shifts on trading outcomes

Binance Coin (BNB)

Binance Coin stands out in day trading for reasons tied to:

• Strong Exchange Association:

  • BNB's integral role in the Binance ecosystem, including trading fee discounts, bolsters its demand and liquidity, key for quick, efficient trades

  • This close relationship with one of the world's leading exchanges provides a steady foundation for its volume and price movements

• Strategic Supply Management:

  • Binance's regular "burns" of BNB, aimed at reducing supply, can create speculative opportunities as traders anticipate the impact on price

  • These actions, combined with BNB's utility across Binance's services, create a dynamic trading environment with potential for profit based on platform activity and tokenomics

Best crypto exchanges for day trading

1

9.4/10

Go to broker

Your capital is at risk.

Minimum deposit:

$1

Review

The Binance exchange is one of the largest cryptocurrency exchanges in the world with its headquarters in Hong Kong. According to the CoinMarketCap cryptocurrency portal, Binance holds the top spot in terms of aggregate indicators of the platform's daily turnover, the number of novices and active users, liquidity, and web traffic (ranking, queries, statistics in search engines, etc.). The exchange is also a cryptocurrency startup that has its own “native asset” used in the Binance ecosystem as the “basis gas” (payment internal unit). More about Binance Card

Pros/Cons

•low commissions due to liquidity and trading volumes.

•high platform performance;

•proprietary BNB Coin which allows Binance to reduce the commission size;

•a proprietary cold wallet guarantees the security of your crypto assets by storing them.

•complex verification procedure;

•the exchange is not licensed by a regulator;

•The platform can go offline without warning;

•there are complaints about the technical functionality of the platform;

•there is an intricate mechanism for calculating commissions and rewards (grid system Maker/Taker).

Study Review

2

9.2/10

Go to broker

Your capital is at risk.

Minimum deposit:

₮1

Review

The BitGet crypto exchange provides traders with the opportunity to trade in spot, futures, and cryptocurrency. Cryptocurrency is used exclusively as instruments at the exchange: BTC (₿), LTC (Ł) ETH (Ξ), USDT (₮) and others. Trades are carried out on the crypto exchange’s own platform, which is available as a web terminal and an application for mobile devices. BitGet's fees are lower than its competitors in the market, with maker fees of 0.02% and takers of 0.06%. The commission can also be paid with bonus funds that each BitGet client receives upon registration, verification, and a trading account replenishment. There are no fees for maintaining an account, but a commission is charged upon withdrawal, the amount of which depends on the cryptocurrency in which the withdrawal is made. For investors, BitGet offers its own service for copying trades, and it is available at the exchange and at an affiliate program. Novice traders can use demo accounts to hone their trading skills, but there are no educational materials on the website. The BitGet cryptocurrency exchange provides services on an international level and cooperates with traders from different countries.

Pros/Cons

•availability of demo accounts;

•convenient ways to contact the support service;

•a wide range of cryptocurrencies for account replenishment;

•service of copying trades for receiving passive income;

•ability to reduce commissions using credits earned in the bonus program;

•ability to engage in algorithmic trading;

•the exchange uses hot and cold cryptocurrency wallets to store client funds.

•Deposits and withdrawals in fiat currencies are not available.

•There are no educational materials for novice traders on the exchange website.

Study Review

Strategies and considerations for crypto day trading

Crypto day trading thrives on volatility, where rapid price movements can spell significant profits or losses. Traders must be adept at predicting and adapting to market fluctuations to succeed. A phenomenon known as the “Block of Pop” encapsulates this—where a sudden price spike, often driven by news or large trades, can create fleeting opportunities for the vigilant trader.

The image depicts price movements of certain crypto assets within a 24-hour window

Active cryptocurrency lists, highlighting coins with substantial 24-hour movements, are indispensable tools for traders. These lists pinpoint where volatility is peaking, guiding traders to opportunities for in-depth analysis and potential entry points.

Effective market analysis marries the technical with the fundamental. Technical analysis deciphers chart patterns and indicators, while fundamental analysis considers economic factors and overarching market narratives. A skilled trader navigates these waters by synthesizing both approaches, aiming to predict the market's next move.

Yet, the keystone of day trading is not found in analytics alone, but in the mental resilience required to navigate this high-stress environment. It's about maintaining discipline amidst chaos, managing losses, and understanding the psychological toll the market can exert. Trading simulators serve as critical training grounds, allowing traders to hone their strategies and mental toughness without risking real capital.

Ultimately, crypto day trading extends beyond number crunching. It's a test of one's psychological fortitude and strategic acumen. Simulators, active currency lists, and a solid grasp of market analysis form the triad that underpins a trader's preparedness for the real-world arena of cryptocurrency markets.

Example of an intraday trade on the cryptocurrency market

Intraday trading in the cryptocurrency market involves a strategic blend of technical analysis, risk management, and a disciplined mental attitude. Let’s walk through a hypothetical trade using the Bitcoin (BTC) chart provided.

Example of an intraday trade, BTC/USD market

Technical Analysis:

Using the Supertrend indicator on the BTC chart, we identify a shift from red to green, signaling a potential entry point for a long position. This indicator suggests an imminent bullish trend.

Calculations for Entry:

• Entry Point: BTC price at $40,000

• Position Size: 0.5 BTC

• Total Investment: $20,000 (0.5 BTC * $40,000/BTC)

Risk Management:

• Stop Loss: Set at $39,500, just below a recent low to limit potential loss

• Risk per Trade: $500 (0.5 BTC * ($40,000 - $39,500))

• Risk-to-Reward Ratio: $20,000 (0.5 BTC * $40,000/BTC)

Trade Execution:

• Exit Target: BTC price at $41,500 based on the 1:3 risk-to-reward ratio

• Potential Profit: $750 (0.5 BTC * ($41,500 - $40,000))

Outcome Scenarios*:

• Positive Outcome: The market trends upwards as anticipated, reaching the $41,500 exit target. The trade closes with a $750 profit

• Negative Outcome: BTC drops to the stop loss at $39,500. The trade is automatically closed, resulting in a $500 loss

* Excluding commissions, slippages and other variables

This hypothetical scenario demonstrates the importance of combining technical signals with strategic risk management. By setting clear entry, exit, and stop-loss points, the trader manages potential outcomes, aiming to maximize gains while minimizing losses. Such calculated approaches are essential for successful intraday trading in the volatile crypto market.

Setting up for success in crypto day trading

Success in crypto day trading doesn't just happen. It's the result of meticulous planning and disciplined execution. Here are essential tips to set you up for success:

• Define Clear Trading Goals and Set Realistic Targets: Begin with a clear vision of what you want to achieve through day trading. Set daily, weekly, and monthly profit targets, but ensure they're realistic and reflect your capital and risk tolerance. Your goals should be specific, measurable, attainable, relevant, and time-bound (SMART)

• Risk Management: An absolute tenet of day trading is to never risk more than you can afford to lose. Each trade should only comprise a small percentage of your total capital, often suggested as no more than 1-2%. Utilize stop-loss orders to automatically exit trades at a predetermined level to protect against significant losses

• Use a Trading Journal: Keeping a record of all your trades, including the strategy used, the entry and exit points, the outcomes, and any relevant market conditions or personal notes, can be invaluable. A trading journal allows you to review your decisions and outcomes, learn from your mistakes, and improve over time

• Stay Informed and Flexible: The crypto market is influenced by a plethora of factors including regulatory news, technological advancements, and macroeconomic trends. Stay informed by following crypto news, market analyses, and community discussions. However, be ready to adapt your strategy as the market changes. Flexibility and the ability to pivot your approach based on new information are key to success

• Embrace Technology: Use trading tools and technologies to your advantage. Charting software, trading bots for automation, and real-time news alerts can enhance your trading efficiency. However, remember that technology should aid, not replace, your strategic decision-making process

For further insights, read our article on How to Become a Successful Crypto Investor?