5 Different cryptocurrencies with daily potential; which ones can you trade today?

Cryptocurrencies are increasingly becoming one of the best platforms to make money in the digital world. One of the major ways to make money through cryptocurrency is trading, and day trading has become the most popular form of trading. Even though trading is profitable, not all cryptocurrencies have good potential to make money for you as a trader. It is essential you do research and scale-out the best coins with the potential that you can trade and make money. Here, you don’t have to stress about researching a crypto coin with good day trading potential. Below are the five different cryptocurrencies with daily potential which you can trade today. Firstly, you must understand a crypto coin and how it works.

Introduction: What is a crypto coin, and how does it work?

A crypto coin is a digital currency that uses cryptography to secure transactions. Cryptography is the science of using codes and symbols to encode information. The aim of using cryptography is to ensure safety and security.

Crypto coins are used in various industries such as finance, gambling, and even on the World Wide Web. The main reason why people use crypto coins is that they are highly secure and reliable. The functionality is increasing daily. Crypto coins are known to be used for agriculture and gaming. Football clubs have begun to adopt crypto coins into the world of entertainment. This is to tell you the functionality list of the crypto coin is endless.

Crypto coins are increasing daily in the digital world. Presently, there are over 600 crypto coins worldwide, and the numbers keep rising.

How do crypto coins work?

Crypto coins work on the blockchain system and can serve as both investment and a means of payment. There are several ways to make money using a crypto coin. It can be through mining, trading, or HODLing.

You probably may be wondering how this crypto coin is created? Crypto coins are made through a process called mining. Mining involves using computer power to break down and solve complicated mathematical formulas to generate coins. Mining is highly technical and time-consuming, so that no anybody can mine. As a trader, you can buy currencies from brokers and exchanges and store them in your digital wallets.

Gradually, the financial and investment market is beginning to adopt crypto coins, and in the future, it can be for transactions including stocks, bonds and other financial assets.

5 Different cryptocurrencies with daily potential that you trade today

Below are the five best cryptocurrencies with daily potential that you can trade today and make a good fortune.

· Bitcoin (BTC) – Best Cryptocurrency with massive liquidity and the largest market cap

· Ether (ETH) – Best cryptocurrency with massive potential

· Lucky Block (LBLOCK) –  Best overall Cryptocurrency to Day Trade

· Binance Coin (BNB) – Best coin with easy fundamentals to understand

· Dogecoin (DOGE) – Best market’s top meme coin

1. Bitcoin (BTC) – Best Cryptocurrency with massive liquidity and the largest market cap

Bitcoin is the most valuable cryptocurrency on earth. Do doubts about that. This crypto coin’s global appeal and high liquidity make it one of the best day trading cryptocurrency choices.

Additionally, Bitcoin is the crypto coin with the highest adoption. Nor crypto coin has enjoyed such global leverage as the Bitcoin. Traders of bitcoin have the privilege to enjoy arbitrage trading inclusive.

2. Ether (ETH) – Best cryptocurrency with massive potential

Ethereum is the second most valuable cryptocurrency after Bitcoin. The consistent growth of the Ether coin over the years has appeased investors to purchase and trade more on it. After Bitcoin, it has had the highest adoption and is regarded as the mother of Defi coins. Also, Ethereum has the largest layer – 1 smart contract blockchain in the cryptocoin sector, which means it is too big to fail. Also, Ethereum is built on the Ethereum blockchain, where it derived its value.

3. Lucky Block (LBLOCK) –  Best overall Cryptocurrency to Day Trade

Lucky Block is one of the emerging crypt coins that wants to break into the online gaming space, which is currently valued at $230 billion. If you are a gamer, blockchain allowes you to play and win crypto coins, and the luck block is one of the best out there. To take advantage of this opportunity, you have to play games available on Lucky Blocks’ platform. Earlier this January. The token got listed on PancakeSwap for $0.00020. in less than a month, in early February, LBLOCK reached an all-time high of $0.0096. currently. LBLOCK is traded at $0.0039, which means it has recorded massive jumps from its listing price.

Currently. LBLOCK is only found in decentralized changes, do the developers of the coin are presently working to upgrading the coin so that it can be available on centralized exchanges.

The LBLOCK V2 was announced in March, and it is expected to boost the trading experience with the coin and avoid excess taxation. The upgraded coin will come with a price booster mechanism that will launch LBLOCK to Ethereum liquidity pools, making it more convenient and easy for day traders.

4. Binance Coin (BNB) – Best coin with easy fundamentals to understand

Binance Coin is the native coin of the Binance exchange – the world’s largest cryptocurrency exchange. It is the most popular exchange token in the world and one of the best crypto coins for day trading. The fact that it is the native coin of the world’s largest crypto exchange, Binance, which is always on the news, makes it the third-largest crypto coin in the market cap. Also, this implies that the exchange will spill over to affect BNB’s price.

Additionally, BNB has numerous functions within the Binance ecosystem ranging from being the medium for fee payments to staking in the BB Vault to serving as the utility token that enables its users to get discounts when they use it to buy virtual gifts, pay for shopping bills, and traveling fees. Its functionality makes it an excellent coin for day trading. BNB is fairly liquid.

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5. Dogecoin (DOGE) – Best market’s top meme coin

Dogecoin, known as Elon Musk’s coin, is one of the best cryptos to day trade. Dodge coin is regarded as the poster child for meme coins. Mem coins refer to assets that don’t have a specific use case but are still popular.

One of the major characteristics of meme coins is their price volatility. DOGE experienced a price jump of as much as 20% in a single day. Being a day trader and having such a boom is an added advantage.

What is the Crypto Day Trading Strategies?

Crypto day trading can be profitable only when you have the right strategy, and below are the three best strategies to employ as a crypto day trader.

1. Scalping

Scalping is a strategy that entails you looking to capitalize on increased trading volume. You can enter into a trader and within minutes exist it after taking small gains. There are also trading bots you can use to automate your daily trading activities, as it makes the process more convenient. However, as a scalper, you need a huge amount of capital to earn good returns as gains from this day trading strategy are usually very small.

2. Arbitrage

Arbitrage is the most popular day trading strategy in the market. This strategy entails buying a coin from a platform and selling it on another. It simply takes advantage of the price disparity between two or more exchanges or platforms. For example, the price of Ethereum on Binance could be $13,000, while on Coinbase, it is traded for $13,500. If you buy two ETH coins on Binance and sell it immediately on Coinbase, you have made a $1,000 profit. The earnings or profit here are small, similar to scalping, and you need a huge capital to leverage the system.

3. High-Frequency Trading

High-Frequency trading entails the use of algorithms and trading bots to quickly enter and exit a crypto asset within a short amount of time. Quantitative traders use a computer program to create sophisticated algorithms that help them take advantage of the price changes in seconds and even milliseconds. However, this strategy is best suited for advanced traders because it requires you to have a strong knowledge of computers and mathematics, including complex crypto market concepts.

What Is the Best Crypto Platform for Day Crypto Trading?

The best crypto platform for day trading is eToro. eToro is known for its flexibility and versatility. Built in 2007, eToro is fully regulated by top-tier financial institutions and offers some of the best crypto apps. One of the reasons it is regarded as the best platform for day trading is that it provides a Copy trader feature that allows crypto newbies or beginners to find top traders on the platform, copy their daily trading moves, and make money with ease. Also, it has a low trading fee of just 1%, and you can fund your account with as low as $10 in most countries.

Advantages of Crypto Day Trading

· Crypto day trading is a winning strategy on a well-laid research plans

· It is one of the best ways to take advantage of the high volatility of the market to make money daily

To enjoy these advantages, there are some things you need to avoid some things while day trading. They are:

· Overtrading – please always have a risk management plan as overtrading will cause you unnecessary losses

· Trading more than you can afford to lose

· Not doing enough research before entering the market

· Trading FOMO

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Frequently Asked Questions (FAQs)

What is the most effective day trading strategy?

Scalping is the most effective day trading strategy in that it exposes you to a larger number of trading opportunities with little risk. If your research is well done, as a scalper, you will record more winning than losses. Also, you don’t need advanced mathematical and computer science knowledge, so a beginner can easily use the strategy.

Is day trading cryptocurrency good?

As you have well-grounded and solidified knowledge of cryptocurrency and analyzing trends, day trading can be highly profitable for you. It is simply taking advantage of crypto coins’ high volatility rate. Day trading is the most extensively used trading strategy across all financial markets, including forex, stocks, and crypto.

Can crypto day trading be a full-time job?

Yes, it can be a full-time job. However, you must have a groundwork laid down and the strategy you want to employ, and you must be sure of how it works. With this, you are good to go into the market and make it a full-time business.

How much do you need to trade crypto currency full time?

There is no specific amount outlined. You can start a trade with as little as $10. The major depending factor will be the exchange or platform you will be using. Most crypto platforms have a slated minimum amount to begin trading with.

Conclusion

Cryptocurrencies are highly volatile unregulated financial assets you need to know before going into the market, or you will lose badly. The volatility of the market makes gaining and losing very easy. So ensure you take and build your crypto knowledge basis and understanding of the market concepts and protocols before becoming a day trader.

Originally posted 2022-07-04 12:58:50.