In this article we will tell about the perfect coin for day trade but it is more important part to know that how we can choose a perfect coin for day trade and can earn lots of money with very less chance of loss in cryptocurrency trading.
So here we will talk about the factors which help to figure the perfect coin for day trade.
Contents of this articles
- What is day trade?
- How to identify the perfect coin for day trade?
- Best Coins For Day Trade
- How To Do Day Trade ?
- Precaution Before To Choose Coins For Day Trade
What is day trade?
Trading which involves a few days to trade and exit with small profit.
Day trade involve lots of research and analysis about a particular coin and that analysis and research about that particular coin helps us to figure out the direction of up or down easily.
For example if you will do research about digibyte (DGB) coin then you will get that its price is fluctuating around a particular value of 100 Satoshi to 300 Satoshi. Since it is another factor that in present time price of digibyte coin is somewhat high , because of the altcoin season in present time.
How to identify the perfect coin for day trade?
To find out a perfect coin for day trade depends upon many factors. But here we would like to talk about the main main factors only.
If a coin have high trade volume of 24 hours then it will be better to choose for day trade purpose. But keep in mind that it should not be for some time or temporary.
For example if a coin e.g ABC coin got hype in cryptocurrency market somehow then surely its volume will increase for few days until hype gone.
So coin should have a better amount of the volume for long term, not for short term.
Now come at the point that why we need such coin which need very high volume cap per day.
Actually high volume trade coins always have very less chance to crash with its average price, So very there exist very less chance to loss the money.
After volume we need to figure out whether the team of that particular coin is active or not. If any coin have good trade volume then its market will slowly get down, if team will not announce something special about it from time to time.
So it is always better to choose the coin which have better and active team.
Since this point of active team is regardless for few coins like USDT, TUSD, BUSD, BTC, BCH, BTG, Ethereum etc . These coins are very old and few of them are new but these are most popular to trade daily.
Stability In The Price
Stability in the price of the coin. If you are searching from a perfect coin for day trade then that coin should have a better stability. Stability in the sense , its price should not fluctuate more from ±5-10%. If a particular coin that you selected for the day trade have very high fluctuation then probably can give much profit but beside the chances of profit there are chances of loss.
Best Coins For Day Trade
This list of the coins are based upon our TrueBitcoiner.com team research, so it may be inaccurate in your opinion.
But here we would like to tell, TrurBitcoiner team members are doing trade with these coins and almost every year they are increasing portfolio by double
USDT ( Tether)
USDT coin is most stable coin and most useful coin for day trade with zero % chances of risk with your trade money.
If you want to make higher profit with USDT coin trade then it is better to gain knowledge of prediction about the market ( whether it will go up or down).
If market will go up then people will sell their USDT and vice versa.
DOGE is most perfect coin after USDT. Doge have good trading volume and its price have ±5-10% maximum fluctuation in a week. And there is 99% surity that its market can’t crash easily because it is supported by very high volume of investors since long time.
TRX is also one of the best coin to trade. TRX is how much perfect , we all knows very well. You can trade with this coin on daily basis but keep in mind that don’t do day trade with this coin during any hype in the cryptocurrency market for safe trade.
BUSD and TUSD coin
These two coins are like USD coin and they are best stable coin and are getting popularity day by day . So there are perfect choice if you want to do day trade with these coins.
This coin is also a good coin , it has very high volume and also team of this coin is very active.
After Bitcoin , there is one coin which is Ethereum. So under stability situation in the crypro market , you can trade with Ethereum.
: This coin also have lots of stability. If you will be able to figure out about the price fluctuation range then you will be able to make lots of profit with this small coin easily.
Beside all these coins there are numbers of coin which can be use for day trade, but those coins required lots of time to take eye attention or history trading graph analysis to figure out the price range fluctuation and 24 hour volume trade , team , future projects etc.
How To Do Day Trade ?
Here we would like to explain with USDT (Tether) coin example with USD( dollar).
At average, Price of 1 USDT = $1 .
But due to high trade volume down/up in the demand of buy sell in USD coin , it remains not easy for exchanges to maintain 1 USD = $1 .
This results into 1USDT = $0.92 to $1.05 .
So you should always remain ready with your USDT coin at exchange with advance buy order at $0.92 and after buy of USD put it for sell at $1+ price.
The best exchange to do this type of trade is BINANCE exchange.
Precaution Before To Choose Coins For Day Trade
Every person in this field have his own idea ,experience and ability to do analysis about a particular coin.
But here we would like to share our experience that you should always keep in your mind before to go with any coin for day trade.
- Don’t go with that coin which have low volume , such coins will take very long time to reach at high or low value price.
- Don’t choose those coins which are at situation of pump and dump . Since it is another fact that you can buy at low and sell at high price , which is a part of long term trading.
- Don’t follow other people’s trading coin, because that particular person may have his own experience with that particular coin since long time.
- Don’t loose patience during buy and sell. Sometimes to complete the buy order it can take one to two week. But patience will be key of success. And also don’t modify your order again and again otherwise your order will execute at very last.
- Under very critical situation , like very bad news, You should not go with day trade. While you can take decision for long term trade by buying the coin at dip.
- Only choose those coins for day trade with have fluctuation in their price of around ±1% at least. Otherwise it will take long time to get profit.
NOTE: Before to go with any type of investment in any field , do your own research and analysis. And don’t follow blind advice by any source including truebitcoiner.com
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