Virtual currencies have gone through so many ups and downs which has affected traders positively and negatively. Those that understand the market always take advantage of opportunities they find to make profit within a short time. Crypto traders, however, are preparing their minds to accept any loss that may come when prices fall quickly. To be safe from this risk of facing a loss, traders prefer to buy and sell a digital currency within a day. This type of trade is safe and it is easy to make quick profit within one day.
The process of buying and selling Crypto coins has the same purpose as other items in the real world. Every trading activity is done with the goal of making profit. People buy items like hard currencies, gold, goods, and sell them at a price that is more than what they cost. Generally, buying and selling have either long or short-term goals. A long-term trade is when a trader keeps an item for a long time before selling it. While a short-term trade is when a trader keeps an item for a few minutes to hours before selling. Therefore, buying and selling activities can be affected by how long a trader holds an item before it is sold.
Day trading is a good example of short-term trade, since it can mean holding an item for a few seconds to a few hours. The purpose is to sell an item before the day ends with the hope of making a profit quickly. In the virtual currency market, this type of trade is used because Cryptocurrencies change in prices fast. This means a trader can make a high amount of profit within a few seconds or minutes of buying a cryptocurrency if prices rise.
There are methods used by people to study trading activity in the world market today. One of the methods is called speculation, which means to predict the change that will take place in a market by considering certain events. An analysis of charts is also used to check the way prices move and guess whether it will either rise or fall. These methods are important for digital coins since changes in price are fast within a short time.
Some factors a trader has to consider before choosing a coin for day trading include; volatility, volume, recent news, active team, exchange. In this write-up, these factors will be explained in detail and how some cryptocurrencies for day trading meet these criteria for their use.
Volatility is one of the main factors to consider since it shows how fast items change in price over a given time. The market for virtual currency is known for that since prices rise and fall quickly. This means that a crypto user that wants to make gains in a short time must choose a crypto asset with price changes that move upward. For instance, if a crypto asset with 5% price volatility of five was bought at $80. If the value increases in an hour, the coin will be sold at $84. An additional gain of $4 will be gotten for just a period of one hour.
Another factor is the volume and popularity of a cryptocoin which depends on the number of buys or sells it has daily. The higher the number of buys or sells, the better its volume. On the other hand, the lower the number, the smaller the volume of the cryptocoin. Recent news and events about a crypto asset can affect its volume. For example, if a bank in the United States announces that it will use ripple tokens for international payments. People will buy ripple tokens because of this news, and that will lead to an increase in the demand for ripples.
Other factors like exchange and active team have to be used when choosing a currency. The cryptocoin must be approved by an exchange network that is genuine. This will help reduce the cryptotrader’s risk of making a loss. The cryptocurrency must also have a team available at all times to respond to questions from users.
Based on the factors clearly explained above, the best crypto asset for day trading according to many views is Etherum. It is the second most common and most popularly used crypto asset behind Bitcoin. Etherum has a high volatility value and that shows it can produce more gains for its users in just a little time. The more interesting thing about it is that even when the value falls, the more gains users will make from it. It is important in making contract agreements for industries and individuals in the world of business. The increase in contract cases today has led to high demand for the cryptocurrency on a daily basis.
Virtual currency Binance is rising and becoming popular across several cryptocurrencies. It was created from Etherum and today it has risen to become one of the most used cryptocoins. All the crypto exchanges have listed the coins among the most popular digital currencies. This is why it attracts so much attention in day trading, hence increasing its demand in the cryptomarket.
In addition, there are other virtual coins such as true USD, EOS and Tron. Tron is used in day trading because of the active support team that created it and the quick rise in value. There is so much positive news about the coin which is the reason for its high demand in day trading. EOS and TrueUSD are highly volatile in nature which is the reason for their high demand. True USD is a coin that changes value in a day which makes it a good choice for day trading.
Finally, since day trading is all about making gains in the shortest possible time, a cryptotrader must understand the changes of most commonly used cryptocoins. A good knowledge of the recent news or events about such currencies is needed because it increases opportunity for gains. Crypto Traders should make sure the crypto coins that are chosen for day trading are popular in most crypto exchanges in the world of cryptocoins. Day trading can be a ladder for getting rich quickly provided there is good information on the cryptomarket.