Top 5 Best Cryptocurrencies for Day Trading 2020

When it comes to day trading, beginners tend to be less successful than experienced traders: this is not an easy task. Want to join the rows of day traders? Let’s discuss day trading algorithm, how it differs from other approaches, and why it can be much more profitable. Also, we have prepared the list of the most profitable cryptocurrencies for day trading in 2020.
What Is Day Trading?

Day trading is a type of trading when several or many transactions are performed during the day (depending on the chosen strategy). Of course, any trader seeks to ensure that the number of successful operations prevails over unsuccessful ones. To reap maximum profit, you have to constantly monitor the news related to the cryptocurrency market, use trading instruments, monitor the slightest changes in the cryptocurrency rate, respond to trend changes in a timely manner, and so much more.

There are a huge number of different indicators that show the development of the current situation in the cryptocurrency market with a certain probability. However, it’s impossible to take all of them into account. Besides, they might provide absolutely different signals: some indicate the market growth while others may signify market decay. 

The art of successful trading means choosing the most significant trading indicators and analyzing them correctly to predict the course movement.

Each experienced trader prefers his own set of such indicators: altogether, they allow choosing the right strategy of trading on the cryptocurrency market. If the percentage of successful transactions falls, then after analyzing their actions, they should make some trading strategy adjustments. Is Crypto Day Trading Profitable?

When crypto trading is being perform according to certain strategies, it is more profitable during a relatively quiet development period on the market: a trader can notice some certain patterns in cryptocurrency behavior. If the trader identified these patterns correctly, his strategy can be effective for a while.

For the correct determination of patterns, the trader must understand the market, have some experience of trading, know the methods of technical analysis and receive up-to-date information from reliable sources and so on. But most importantly, the market should be relatively stable.

Strategies for different cryptocurrencies are similar since the cryptocurrency market is characterized by uniformity – all assets may fluctuate in price by the same patters. However, more experienced traders might be aware of the difference in the behavior of cryptocurrencies: they know which coins are trading well. As part of the strategy, the trader determines the entry and exit points, the period between the entry and exit points, the period for the next entry and develops standard reactions to price changes during some certain period. Best Crypto Coins for Day Trading 2020

Which assets are the most profitable for short-term trading? Here are five day trading cryptocurrency options that should be considered by both beginners and experienced users.  Binance Coin (BNB) 

Binance Coin (BNB) is a well-known crypto that has been introduced by Binance exchange: initially, it was Ethereum-based, however, recently, BNB discharged its mainnet coin. The clients use BNB tokens to pay exchange fees and for using some services and tools. The charges by and large incorporate trade expenses, exchanging charges, and listing fees. BNB is chosen by many day investors due to the growing interest and the fact that it was developed by Binance. It has been enrolled by all the mainstream exchanges and wallet companies, so it should definitely be considered in your day trading strategies.  IOTA (MIOTA)

IOTA is a cryptocurrency created for the Internet of Things. The crypto is utilized for data exchanges between gadgets connected in the Internet of Things. It is an open-source digital asset which centers around secure payments and exchanges. 

Aside from being listed on top exchanges, IOTA is a decent choice for day trading in light of the fact that it has bright future ahead. The number of Internet-empowered devices based on the Internet of Things is increasing – the industry is flourishing. Experts calculate that B2B spending on IoT innovations and devices will reach $267 bln in 2020. Thus, IOTA may have a lot of benefits in a long haul. Despite the fact that the volume isn’t so high for IOTA, it’s still a decent pick for day trading. Ethereum (ETH) 

Ethereum is the second biggest digital currency on the planet with pretty high price instability. Due to its smart contract application and decentralization, its use cases expand day by day. For daily investors, its volatility provides a great chance to benefit within a pretty short timespan. Best of all, you can profit whenever the ETH cost is going up or down. Besides, it is accessible on the vast majority of exchanges.  EOS 

EOS has grown exponentially: the developers managed to raise billions of dollars. Its value soared several times creating an elevated level of unpredictability. An experienced day trader can turn this unpredictability into serious profits. EOS is one of the top digital currencies ever, with group support and availability in the majority of the exchanges over the world. EOS can be considered as day trading basics – this asset is always worth buying.  Tron (TRX) 

Tron has an exceptionally dynamic blockchain with its main developer Justin Sun flashing in crypto media and social networks. Indeed, Tron is mostly known for positive news and improvements. Combined together with a high volatility, all these factor can make Tron one of the best digital currencies for an ordinary day trader. Well-known crypto traders support Tron, and you should take their opinions into account. Summary

Let’s finish our review with some simple tips to help you avoid the most common mistakes in trading:

  • You should not invest in just one digital asset – diversify your portfolio by including several different cryptocurrencies in it. This will allow you to trade actively on some pairs, while others don’t provide obvious points of entry or exit.
  • Try to never sell an asset for less than you bought it. As practice shows, sooner or later, the price returns to its previous level.
  • Avoid buying cryptocurrency on a rise and selling it on a fall.
  • Form the right approach to the value of your investment portfolio in the cryptocurrency market: profits are calculated in Bitcoin, not in fiat.
  • Avoid panic, especially with a sharp drop in value because it is always accompanied by corrections. After waiting a bit, you can sell more.
  • As a rule, with the growth of Bitcoin, altcoins fall in price. Consequently, alts grow most actively when Bitcoin price is flat or falling.
  • Keep up to date with information regarding the coins you have selected for investment. Information thrown at the right time can have a significant impact on the trend.
  • Never trade more than you can afford to lose.

Good luck! 

Disclaimer: This article should not be considered as offering trading recommendations. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. While price analysis is a useful tool, it should not be considered predictive for the future performance of any investment vehicle.

Any investor should research multiple viewpoints and be familiar with all local regulations before committing to an investment. Website personnel and the author of this article may have holdings in the above-mentioned cryptocurrencies.

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