Cryptocurrencies are one of the most volatile assets in the finance world. Now, in order to capitalize in the crypto markets as a day trader, it is crucial to trade the correct cryptocurrencies on the right exchanges.
A feature about day trading is that you can capture big percentage moves in a very short period of time! Now, if you aim to make big percentage returns in a short span of time, you need to find cryptos that are volatile, meaning they will make large moves in a short period of time. But, all cryptocurrencies do not make big moves in a short period of time. The top crypto, Bitcoin, will usually only move around 5%-10% per day.
Let’s take a look at some cryptocurrencies which often make 10%-20% moves in just a few hours. It is crucial to manage your risk correctly when trading volatile cryptos. You can make a lot of money in a short period of time trading these, but you can also lose a lot of money in the same amount of time if you do not have proper risk management.
Ethereum is the second biggest cryptocurrency in the world. ETH tends to closely follow the path of Bitcoin, similar to most of the major altcoins out there. One of the best things about day trading Ethereum is that you can short sell it on the Kraken exchange. This means you can make money on it when its price goes down.
Binance Coin (BNB)
Binance Coin is the token of the Binance Exchange. The coin has been one of the stronger altcoins recently, showing some relative strength to Bitcoin and the other altcoins.You can trade BNB on the Binance Exchange.
NEO is a good option for day trading because it will not always just follow the price action of Bitcoin like other altcoins. The coin will seldom go on big runs on its own, and show relative strength to Bitcoin at times. You can trade NEO on Bittrex, Binance, or Bitfinex.
EOS recently had a massive run following the news surrounding the potential applications of its blockchain. You can trade EOS on Kraken, Binance, or Bitfinex.
Ethereum Classic (ETC)
Ethereum Classic is the least volatile out of all aforementioned altcoins. The coin is in the list if you are looking for a slightly less volatile altcoin to day trade. ETC was recently added to Coinbase which helped give a boost. Bitcoin is also a good option, but ETC has slightly more range to play around with. You can trade ETC on Kraken, Coinbase, Binance, or Bitfinex.