Anyone with a web browser and a connection can day trade, but not everyone has the same amount or quality of information at their disposal. It just so happens that some people have access to superior resources and methods than others, and this is why some traders can make consistent profits — even in volatile markets!
Of course, no one should expect any “get rich quick” scheme here. You need to do your due diligence if you want to become successful. Let’s concentrate on cryptocurrencies (as opposed to fiat currencies, see it here) so let’s get started by taking what we know about cryptocurrencies already into account:
Cryptocurrencies are decentralized
It means they’re free from government influence and central bank control. It means they’re also free from the pressure many traditional stocks feel to increase value. They’re more of a “wild west” form of investment, which makes them risky but exciting at the same time.
Cryptocurrencies lack regulation
It can be harmful because it leaves them open to fraud and manipulation (for example, pump and dump schemes). On the other hand, this freedom contributes to their volatility; prices change quickly and unpredictably over short periods, leaving potential traders without much recourse if they get burned.
A few factors play into how cryptos behave on any given day: demand news marketing hype. These three quantities constantly fluctuate due to outside influences like current events, so it’s often difficult to tell what will happen with any given cryptocurrency over the next few days.
That being said, a handful of cryptos tend to behave more predictably than others. These cryptocurrencies have various traits that make them ideal for day trading, and they’re listed below in alphabetical order:
Pronounced “Digital Cash”, Dash is a popular cryptocurrency designed to be easy-to-use and anonymous. One interesting fact about this particular token is that its developers created a system called “masternodes”, which automatically creates new tokens from thin air as long as specific requirements are met. It’s estimated that 97% of Dash will be released by 2300! It means it’s an inflationary coin, which is good if the goal is to have steady price increases over time.
Dash is also incredibly fast when it comes to completing transactions. It takes about 2.5 minutes for any Dash-related transaction to go through. This speed makes it a popular choice with merchants who need to process credit card payments — especially vendors in developing countries where traditional banking infrastructures are flawed or nonexistent.
As you can see, this cryptocurrency has many positive attributes that make it an attractive option for day traders looking for high-volatility high-return investments. It might not be the best idea to put all of your eggs in one basket, but if you’re savvy enough, then Dash could be an excellent foundation for your portfolio of cryptocurrencies.
Monero is a privacy coin designed to protect the identities of its users. It’s based on the CryptoNote protocol, which acts as an “umbrella” technology that protects all Monero-related transactions from being tracked by unwanted parties. It means there’s no way for anyone to tell who sent or received money — including government regulators, employers, or anyone else who might be spying on your activities.
Monero not only gives you complete control over your financial transactions but also allows you to be completely anonymous when it comes time to cash out your tokens at the end of the day. You can send money directly to people without having to go through any third-party service, and it’s possible to trade Monero anonymously (without having to provide your name or other personally identifying information).
There are about 15.5 million MXR tokens in circulation now, which means there’s plenty of room for growth as more people become aware of this unique cryptocurrency.
Also known as “Ethereum of China”, NEO is a unique altcoin explicitly built to support smart contracts on the network. The Chinese government supported the development of NEO because they saw its value as an investment vehicle — plus, being based in China makes it easy for them to keep an eye on its overseas operations.