Cryptocurrency has changed the way that we invest. Though there are still plenty of people who stay away from the world of cryptocurrencies, there are even more who have at least dipped their toes into the waters.
With the further integration of cryptocurrency into the investment world, it has brought out those who day trade cryptocurrencies. That includes some who learn how to day trade altcoins. But what goes into day trading cryptocurrencies and actually making money at it?
What is the Best Crypto for Day Trading?
Cryptocurrencies have taken the investing world by storm. They have gained immense popularity and value since their introduction with the clear favorite (and highest valued) being Bitcoin. But what are some of the others out there that are worth day trading?
Here are a handful of ways that you can learn how to day trade altcoins and make a good living. These are the ones that stand a cut above the rest.
Ethereum (ETH)
We all know that Bitcoin is the top dog in the cryptocurrency market. But after that, Ethereum is, without a doubt, the most popular in the world. What helps is that it is not only a cryptocurrency but also a blockchain platform.
Through that platform, it is possible to have new tokens created and to also develop their own decentralized applications. For day traders, there is definitely a good amount of volatility. This can help create a big profit in a short period of time. And since it is on most of the major exchanges, it is easy to trade as well.
Tether (USDT)
Not everything is Bitcoin or Ethereum. At the price of $1, Tether is considered to be one of the best crypto investments out there. They trade at a large volume, even having one of the highest trading volumes in a 24-hour period.
With that high volume, it allows more and more investors to get involved. There is also a firm belief that the $1 price is also the baseline, something that won’t be dipped beneath. It is considered a stable coin in a market where most are anything but.
Binance Coin (BNB)
Binance is one of the most reputable cryptocurrency exchanges around. It has been just a few short years since the exchange decided to release its own cryptocurrency, known as the Binance coin.
The coin was helped by the fact that the exchange has a reputable, trustworthy reputation. It is traded at around $500 or so, a great option for day traders because of its rapid rise in demand. It becomes just a matter of when to get off the ride to make money in day trading.
Can You Make $100 a Day Trading Cryptocurrency?
Whether you are experienced or not, you may be wondering whether it is possible to make $100 per day by day trading cryptocurrency. The short answer is that, yes, it is possible to make $100 per day trading cryptocurrency.
One of the best ways to achieve this is to start with roughly $1,000 and to track a 10% rise on a pair of cryptocurrencies. This is the more realistic approach than, say, investing $200 and tracking a 50% rise.
When it comes to crypto, the real trick is to increase your chances of turning a profit by putting a substantial amount of money into the endeavor. Of course, this is just the tip of the iceberg. You know how to day trade, first and foremost, and learn what skills and experience are needed to reach that target goal.
Tips for Making $100 per Day
Day trading involves both the buying and selling of trades within one given day. If you want to become a day trader, then it takes some time and experience to learn what is actually a very delicate skill. Some of the best day traders take a lot of time to analyze the trades that are most likely to make them a profit. Here are a few helpful tips:
Mathematical Analysis
Without a doubt, one of the most important things that you can do as a day trader is to perform mathematical analysis. This is the studying of trends in an attempt to predict what the outcomes of that specific trade will be.
The good news is that you don’t necessarily have to be a math whiz to make it work. You just need to know how to read charts and analyze patterns. But even then, there are a few different types of software out there that can make all of that easier.
No matter what you use, there are a ton of analytic tools that can help you along the way. Of course, finding the right software is crucial, too, as it can give you the confidence of knowing that your decisions are based on strong, real data.
Market Trends
Another major part of being a day trader is knowing what happens within the crypto market. This means following blogs and reading the news. Social media can have its benefits, but it isn’t necessarily the most reliable of means.
Staying up on the market helps day traders to make the right decision. Market analysis is as important as mathematical and technical analysis. It can give you the best idea of which coins that are available on the market make the most sense.
Conclusion
It should go without saying that it is anything but simple to make money day trading cryptocurrency. Even if you feel confident that you know how to day trade altcoins, they can be volatile enough that it creates winners and losers.
Having a better idea of which altcoins are a little less volatile and more consistent is a good place to start. Just keep in mind that cryptocurrency, in general, is a volatile market, and creating a living takes skill and experience.
