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Cryptocurrency
Many investors, especially those looking for profitable short-term opportunities, are turning to cryptocurrencies and for good reason. Potential profits from this market far exceed what you can achieve in stocks and even forex trading. That's because, unlike stocks and forex, cryptocurrencies are highly volatile, creating many long and short opportunities at any given moment.
That said, not all cryptocurrencies are equal, and some present better day trading opportunities than others. For this reason, we have compiled a list of the top cryptocurrencies to trade in 2023.
Each of these coins has shown high volatility over time, and they are available on most top cryptocurrency exchanges. In this guide, you will also learn about how to get started in your day-trading journey.
The top 10 best cryptocurrencies to trade today
Given the high volatility of the cryptocurrency trading market, many investors are turning to short-term trading. If you like the idea of short-term trading, below are the top 10 cryptocurrencies to day trade today.
Binance coin (bnb)
Ethereum (eth)
Terra classic (lunc)
Bitcoin (btc)
Cardano (ada)
Ripple (xrp)
Chainlink (link)
Dogecoin (doge)
Shiba inu (shib)
Cosmos (atom)
Virtual currencies are highly volatile. Your capital is at risk.
A closer look at the top cryptocurrencies for day trading
One thing that stands out among the top cryptocurrencies to trade today is that they are all liquid and volatile. This makes them perfect for anyone looking for cryptocurrency day trading opportunities.
Now that you know all 10 are perfect for cryptocurrency trading, let's look at each of them in depth. The best part is that they are also among the best cryptocurrencies to trade and hold long-term.
Binance coin (bnb)
The binance coin is the cryptocurrency that powers the binance exchange – the largest cryptocurrency exchange by trading volumes. This means that the long-term growth of binance coin is closely tied to the growth of the binance cryptocurrency exchange.
Bnb offers various uses for its holders, from discounts on trading fees and access to upcoming token sales through binance's launch pad program. In addition, it can be used within the company's smart chain (bsc), which creates nfts and allows users to participate in building dapps.
It is no surprise that bnb has become one of the most popular cryptocurrencies for day trading in recent times. The token's stability and low volatility make it appealing for crypto traders looking to day trade or scalp some gains on their investments, as opposed to other currencies, which might be more volatile depending upon market sentiment.
Virtual currencies are highly volatile. Your capital is at risk.
Ethereum (eth)
Ethereum is one of the best altcoins on this list, and it's not hard to see why. The blockchain was built with smart contracts in mind - which allow for code that runs without any interference from third parties. But even more than its functionality as an app store powering these kinds of applications, ethereum also has appeal to short-term traders and long-term cryptocurrency investors.
The demand for either tokens for paying gas fees has made it one of the most sought-after cryptocurrencies on exchanges. Not only does this token provide access to smart contracts, but also as an investment that is continually drawing in retail and institutional investors for day trading and long-term investment.
The appeal of ethereum for cryptocurrency day trading is clear when you look at its price action. There are strong supports and resistances that offer predictable market entries and exit points. This makes ethereum very popular among those who want to day trade cryptocurrencies but need some predictability on price movements.
The best part about ethereum trading is that eth is one of the most liquid cryptocurrencies in the market today. Ethereum is only second to bitcoin in trading volumes, and when you couple this with its price predictability, it is easy to see why it is one of the best cryptocurrencies to day trade today.
Virtual currencies are highly volatile. Your capital is at risk.
Terra classic (lunc)
Terra classic has one of the most resilient communities in the cryptocurrency market. Since the collapse of the terra luna ecosystem earlier in 2022, lunc has become a speculators paradise, and volumes are high all the time, especially when there is token burn news. This liquidity, coupled with its high volatility, makes it a top cryptocurrency to day trade.
Virtual currencies are highly volatile. Your capital is at risk.
Bitcoin (btc)
Bitcoin, the world's most popular cryptocurrency with a market capitalization of over $437 billion, according to coinmarketcap, is still worth considering for day traders. Bitcoin’s first-mover status has allowed it to gain traction in such an otherwise flooded industry that continues evolving daily. While there have been some challenges along the way, including price fluctuations and regulations, bitcoin remains a top cryptocurrency for day traders looking to capitalize on market volatility.
Anyone who has ever tried day trading knows that volumes matter. The higher the volumes that a trading asset has, the better its odds of success. On this front, bitcoin is miles ahead of the competition. With more than $20 billion in daily trading volume, bitcoin is the most liquid cryptocurrency ever. Most top cryptocurrency exchanges can give investors tight spreads on btc thanks to the huge trading volumes. This makes day trading strategies like scalping possible with btc.
Besides the volatility characteristic of all cryptocurrencies, bitcoin stands out as a top cryptocurrency to trade for its current adoption levels and growth potential.
None of the other cryptocurrencies match bitcoin in terms of merchant adoption. At the same time, institutional investors are increasingly seeking exposure to bitcoin. This gives bitcoin good short-term potential and makes it one of the best cryptocurrencies to buy and hold for years.
Virtual currencies are highly volatile. Your capital is at risk.
Cardano (ada)
What if you could harness the power of blockchain without bleeding your bank account dry? Cardano is a cryptocurrency that aims to compete with ethereum in terms of features, but at below $1 per token, is affordable for most investors. Charles hoskinson, who was part of the original ethereum team, developed cardano. Hoskinson and the rest of the cardano team hope this new network will provide even more value than his previous work while remaining accessible to many, primarily through its low barrier to entry staking.
With its 'proof-of stake' mechanism, cardano only uses a fraction of the energy requirements of bitcoin. This gives it a high adoption potential while creating a source of passive income for those that stake ada tokens.
For day traders, there is a lot to love about cardano. Ada is one of the most traded cryptocurrencies today. Like other top 10 cryptocurrencies, ada has high trading volumes at any given time. This means cardano spreads are low on all top cryptocurrency exchanges. It also means that cardano is a perfect cryptocurrency for scalpers and traders employing different day trading strategies.
Virtual currencies are highly volatile. Your capital is at risk.
Ripple (xrp)
There's a lot of buzz about xrp, but is it worth your time? The answer depends on if you have short-term or long-term investments in mind. If you are a long-term investor, you need to consider xrp's core fundamentals and the risks involved.
However, for traders with narrower spans between trades (i.e., those looking only at what lies ahead today), ripple (xrp) offers some attractive trading opportunities. That's because it has one of the largest communities in crypto, and xrp volumes are usually high on most cryptocurrency exchanges.
Ripple is also highly volatile, and its volatility will likely increase in the coming days and months. That's because there is a lot of speculation that the ongoing court case between ripple and the sec could be close to its end. It's been a tough few years for ripple. The uncertainty of the sec case has caused major fluctuations in recent months and could provide some exciting opportunities for those looking to day trade xrp in 2023 and longer.
Virtual currencies are highly volatile. Your capital is at risk.
Chainlink (link)
Chainlink (link) is an obvious inclusion in the list of top cryptocurrencies for successful day trading in 2023.
Chainlink is a network of oracles that provide data to decentralized applications. These networks are not centralized, so they allow the dapps access to real-world insights without being vertically integrated with one source for all information.
The data oracles on the chainlink network are an essential part of keeping dapps running smoothly. By aggregating information from various sources, this service ensures that every piece sent through its system gets accurate feedback. To guarantee the accuracy, the network rewards data providers with link tokens if they deliver facts as requested by a smart contract.
Over the years, link has become one of the most popular cryptocurrencies for day trading. That's because link is listed on almost all the best cryptocurrency exchanges in the market, which makes it highly liquid. Besides, due to its high utility, and currently depressed prices, link continues to attract many traders, which keeps volumes high at all times. The result is that link is practical even for scalping day trading strategies.
Virtual currencies are highly volatile. Your capital is at risk.
Dogecoin (doge)
If you follow the crypto markets, it's no secret that dogecoin was one of the 2020s most popular coins. It survived may 2021 without majorly falling apart and remains one of the most popular meme coins to trade today.
While dogecoin has lost a significant portion of its value for the better part of the year, it remains one of the most popular meme coins for day traders and long-term investors. With the right factors at play, doge has shown higher return potential than most cryptocurrencies.
Doge is an amazing cryptocurrency for short-term traders because its price can rise quickly and fall quickly. This makes it perfect for taking advantage of any trading opportunities, regardless of the prevailing market conditions. While this volatility may not be ideal for the risk-averse, those who can shoulder it have multiple profit opportunities from dogecoin at any given time.
Most importantly, day traders love dogecoin for its high trading volumes. Dogecoin's high trading volumes come from its large and passionate community, numbering over 4 million on social media platforms. This coupled with the fact that doge is available on most top cryptocurrency exchanges, makes it one of the best for day trading.
Virtual currencies are highly volatile. Your capital is at risk.
Shiba inu (shib)
Shiba inu is one of the most famous meme coins in the market today. Since its 48,000,000% rally in 2021, the shib community has grown exponentially.
Shiba inu has been listed on almost all the top-rated cryptocurrency exchanges. The has seen its liquidity shoot up over time, making it one of the cryptocurrencies of choice for day traders.
Cosmos (atom)
Cosmos is gaining traction as one of the blockchains that could open the way for blockchain mass adoption. It is scalable and also allows for the creation of an interconnected network of blockchains.
This has seen cosmos adoption grow over time, making it one of the most valuable cryptocurrencies by market capitalization. This has made cosmos a highly liquid cryptocurrency, perfect for day traders.
Virtual currencies are highly volatile. Your capital is at risk.
A simplified guide to cryptocurrency trading
Cryptocurrency trading is just like any other financial asset trading. It entails the short-term buying and selling of a cryptocurrency over a short period. For instance, if a cryptocurrency trader expects the price of ethereum to go up within the day, they can buy it in the morning, let its price rise, then sell once their price target is hit.
When you invest in crypto, it's crucial to consider your investment's time frame. However, because cryptocurrency price movements happen so quickly, especially compared against more traditional markets such as stocks or bonds, short-term cryptocurrency trading approaches tend to focus on much smaller time frames.
Crypto trading has always been considered one of the most profitable strategies for traders who want to make big bucks in a short time. One common tactic is buying crypto's that are about to go up before they peak, then selling them immediately. It's called scalping, and cryptocurrencies with high trading volumes, have better outcomes than when trading conventional assets with lower volatility.
That said, even as you analyze our list of best cryptocurrencies to day trade, it is important to remember that this strategy is inherently risky. That's because in a volatile market like cryptocurrency, it can be hard to predict how prices will go within hours. As such, if you are to succeed when day trading cryptocurrencies, you need to develop a high-risk tolerance.
How does cryptocurrency trading differ from investing?
The difference between crypto trading and investing is often misunderstood, but it's an important distinction to make if you want your money working for you.
Crypto trading is a high-risk but potentially lucrative venture that allows traders to take advantage of short-term price movements. When day trading cryptocurrencies, buy or sell orders must be closed within the day. It's a high-risk strategy, but if done right, it can lead to significant returns on investment.
On the other hand, cryptocurrency investing is about buying and holding cryptocurrency for years. When investing in cryptocurrencies, you have an advantage in handling volatile markets. Unlike traders, who often time the market and try buying low or selling high, crypto holders need not concern themselves with what seems like a perfect opportunity at any given moment. That's because emotion doesn't play nearly as big a role with these investments over extended periods.
For instance, while bitcoin is usually highly volatile short term, with up to 70% declines in price, the overall trajectory has been up over the last decade. Bitcoin started trading in 2009 at under $1, and at its current price of $20,000, is still one of the most profitable investments ever. That's despite a drop in the price from highs of $69k in 2021.
There's another major benefit, too: unlike people trading stocks (or other traditional assets), those investing in cryptocurrencies don't need to worry about waiting too long. With cryptocurrencies, anything between 5 to 10 years is enough to give you multiple times what you can get from the s&p 500, for instance.
With this in mind, it is only natural to wonder, is cryptocurrency trading better than long-term investing? Whether you want to become a cryptocurrency day trader or a long-term hodler is a function of your risk tolerance. If you are into high-risk, high-return investments, then cryptocurrency trading is a worthy consideration. On the other hand, if you are uncomfortable with volatility, then long-term cryptocurrency investing could be ideal.
Virtual currencies are highly volatile. Your capital is at risk.
Understanding cryptocurrency day trading
The idea behind crypto day trading is that you want to take advantage of quick fluctuations in the market. You open and close your position within a single business day, meaning if prices move up or down quickly throughout that period, then it's possible to make a profit.
To help you better understand how to day trade cryptocurrencies, here is an example of how it's done.
A cryptocurrency speculator expects the price of ethereum to go up during the day. From a hypothetical price point of $1300, the trader expects ethereum to hit $1350.
Buying volumes surge, and during the day, ethereum ends up hitting a high of $1500.
The trader decides to close the trade, giving them a profit of 15.3%.
On the flip side, a trader can decide that the price of bitcoin will go down after starting the day at $19,800.
The trader then opens a short position, with a target of $19,200.
Bitcoin trades as the trader had anticipated, closing the trade at $19,200.
At the end of the day, the trader books a profit of 3%.
Both of these examples indicate how profitable day trading can be when done right. It is essential to know that day trading, while lucrative and enticing, is risky. You must watch your trade at all times just to ensure that your trade is going as anticipated.
That said, if you have the time to study charts and enter multiple good trades in a day, it is possible to be consistently profitable when day trading.
Types of cryptocurrency trading strategies to try out
Just like traditional assets, there are multiple strategies that you can use to trade cryptocurrencies.
Here are some of the most common ones.
Cryptocurrency day trading
Day trading is all about the quick bucks. If you're looking for some high-paced action with quick returns, then this strategy might be just what your bank account needs. While it is risky, it can be as profitable as any other cryptocurrency trading strategy with the right skills.
Crypto scalping
Scalping is all about taking advantage of tiny market movements. Day traders often focus on hours when they trade cryptocurrencies, but scalpers can make quick decisions based on very little information. They have horizons ranging from minutes down to seconds because it's not about waiting for trends in your favor.
In most cases, scalpers tend to automate their strategies to take advantage of the tiniest market movements. They also make use of cryptocurrency signals. Crypto signals are available on telegram, discord, and other cryptocurrency groups focusing on feeding the correct information.
Dollar-cost averaging
Dollar-cost averaging is a great strategy for investors who want to keep crypto investment risks low by buying consistently in small amounts rather than making one lump sum payment. You don't really care much about daily price movements when dollar-cost-averaging. You buy cryptocurrencies with a long-term view of the market.
The best thing about a dollar-cost averaging cryptocurrency trading strategy is that the investor does not feel emotional pressure. That's because they do not concern themselves with daily price movements, and the amount they commit regularly does not impact their lifestyle.
Buy and hold cryptocurrency trading strategy.
Traders who want to go the distance may choose 'buy and hold'. This strategy is passive, as no trading is required. It's perfect for those looking for long-term success. A person who uses this strategy strongly believes in the strength of blockchain technology and its potential to change finance and many other industries.
The biggest advantage of a buy-and-hold strategy is that you are betting on the tech and not just speculating. It is a strategy that works well with stocks, and even in crypto's short history, it is a success. For instance, anyone who bet on bitcoin in the early 2010s has reaped big time. This period has gone from under $100 to a high of $69k.
Virtual currencies are highly volatile. Your capital is at risk.
Is there an ideal time to trade cryptocurrencies?
Ideally, any time is the best time to trade cryptocurrencies. That's because the cryptocurrency market is open 24 hours daily. As such, you are good to go so long as you can spot a trading opportunity.
That said, there are several factors that you need to put into consideration to avoid trading losses. One of them is liquidity. The best time to trade cryptocurrencies is when the market is most liquid. This is when you are likely to get the best prices when trading. Such times are usually when there is big news around specific cryptocurrencies.
It is also notable that, in most cases, trading volumes tend to drop over weekends. That's because institutional players are usually not in the market. This means even on the best altcoin trading exchanges, you are unlikely to get filled at the best prices.
Virtual currencies are highly volatile. Your capital is at risk.
Top cryptocurrency to trade today – conclusion
If you have read this article up to this point, then you have a good idea of the best cryptocurrencies to day trade today.
Of all the coins we have discussed, binance coin stands out as one of the best cryptocurrencies to trade. Binance coin is liquid, and while it has the volatility needed by cryptocurrency day traders, it is not as erratic as most cryptocurrencies.
Ethereum is also a top cryptocurrency for day traders to watch as it comes with highly predictable support and resistance levels.
Terra classic is also another top cryptocurrency for day traders as it is extremely volatile. Terra classic can be highly profitable for traders that can properly time its various news.
Virtual currencies are highly volatile. Your capital is at risk.
Faqs on crypto trading
Which is the best cryptocurrency for trading?
While all the cryptocurrencies discussed above are good for trading, binance coin stands out. It is liquid, and volatile while also remaining relatively stable.
Is day trading the only way to make money in cryptocurrencies?
There are multiple ways to make money in the crypto market besides day trading. Amongst them include buy-and-hold and dollar-cost averaging strategies.
What are the most important considerations when day trading?
You need to consider many factors, but the most important ones are liquidity, volatility, and the time of getting and exiting the market.
Virtual currencies are highly volatile. Your capital is at risk.
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