As there are thousands of coins and tokens, it is difficult for a new crypto day trader to find the right coins. Many day traders wonder which cryptocurrencies are the best for day trading.
It is not difficult at all. Always determine how much risk you are willing to take and use a trading strategy. Day trading cryptocurrency can offer many opportunities for some, but if you don’t do it right, the losses can add up. In this article, we will discuss which cryptocurrencies are the best for day trading in the UAE.
Crypto day trading explained
We have known day trading for longer than crypto. It is a term that is often used and also very easy for everyone, but what exactly is it? Understanding it is not as difficult as implementing it.
Day trading crypto is buying a certain crypto coin for a lower price than you sell it for. An example is that you buy a certain crypto coin for $1,000 in the morning and sell this cryptocurrency for $1,200 in the evening. So in one day, you have taken $200 profit. The special thing about day trading crypto is that cryptocurrency exchanges never close. This means that it is always possible to place a buy or sell order.
With a traditional stock exchange, all information becomes available before the exchange opens. This is not the case with crypto trading. Cryptocurrency price fluctuations are very high. This means that when negative news comes out, the price shoots down. When the news is positive, the price immediately jumps.
You can make a lot of profit by day trading in the crypto markets if you trade the right coins. Let’s find out what the best cryptos to day trade in the United Arab Emirates are.
Lucky Block is a new and emerging crypto lotteries platform built on the Binance Smart Chain. Blockchain technology makes it possible to conduct draws as fair as possible. Lucky Block is one of the best cryptos to day trade because the price increases all the time. When the token was released, its price went up by over 1000% within a few days.
Lucky Block has received a lot of attention. Its Telegram group has over 18,000 members. Lucky Block is often mentioned on other social media channels such as Reddit and Twitter. Renowned media such as The Herald and The Economic Times of India also wrote about Lucky Block. If you’re looking to day trade crypto, Lucky Block might be your best bet.
Tether – USDT
Tether or USDT is one of the best day trading cryptos for a good reason. Tether is a so-called ‘Stablecoin’, with a value of around $1. This means its value won’t change much and always will be around this $1. The fact that Tether always stays around a dollar, makes it a good coin for scalpers.
One can scalp with Tether and buy once it’s $0,99 and sell when it’s $1,01. Cryptocurrency exchanges do not charge overnight fees. If Tethers value doesn’t increase, day traders just keep the Tether an extra day. Because Tether is a stablecoin, you won’t lose your investment if the rest of the crypto market goes down.
Ethereum – The Alternative to Bitcoin
Ethereum is pretty much the alternative to Bitcoin. It has its own blockchain, where users can deploy Dapps and smart contracts. Ethereum’s value has been rising from $10 to over $4,000 in three years and people expect it to go even higher. Ethereum is one of the most volatile cryptocurrencies, which makes it ideal for day trading.
Binance Coin – The Safest Stablecoin
Binance Coin is the native coin of Binance Exchange. Binance is the world’s largest cryptocurrency exchange. Binance Coin is a ‘stablecoin’, which means it is a digital currency backed by the US dollar. The coin has approval from the New York State Department of Financial Services. This makes it an even safer stablecoin than Tether.
A lot of cryptocurrency traders transfer value to each other with BUSD. The result of this is a high demand for the token amongst traders. Binance Coin is a good coin to day trade because of its price stability and large liquidity.
Ripple – XRP
Ripple’s XRP is one of the most famous cryptocurrencies but works very differently. The Ripple network does not use the blockchain mining concept. Instead, it deploys a unique distributed consensus mechanism across a network of servers. This keeps XRP decentralized, while also being a lot faster and more reliable than most competitors.
A lot of banks are partnering with Ripple Labs as they see the token’s potential. An XRP still costs less than a US dollar, so it’s a cheap crypto. XRP is unmineable, so if you’re looking to day trade an eco-friendly coin, XRP might be your best option. Another good reason to day trade XRP is the fact that its price isn’t as volatile as other cryptos.
Where to day trade crypto?
The best places to day trade cryptos are eToro, Binance, and Coinbase. There are a lot of other cryptocurrency exchanges, but those are not as safe and reliable as these. The three exchanges we recommend have the lowest fees and the highest amount of users.
- eToro – The best cryptocurrency exchange for day traders
- Binance – World’s largest cryptocurrency exchange by amount of users and transactions
- Coinbase – The cryptocurrency exchange with the lowest fees and commissions
01. eToro – The best cryptocurrency exchange for day traders
eToro is one of the best and most trusted cryptocurrency exchanges worldwide. At the time of writing it has over 23 million users and allows day traders to trade over 200 different cryptos. eToro is under regulatory supervision by the CySEC, FCA, and ASIC.
Apart from cryptocurrencies, users can also trade over 2,000 stocks on eToro. For people without trading experience, there is the possibility to trade with a demo. This is a perfect way to learn how day trading works.
02. Binance – World’s #1 cryptocurrency exchange
Binance is the largest cryptocurrency exchange in the world. The exchange offers hundreds of different cryptocurrencies to trade as well as NFTs. Traders can choose to trade with or without margin, stake their coins to earn interest, or buy and sell NFTs. The crypto day trading possibilities on Binance are endless. The trading platform has a lot of features, so you might be a bit overwhelmed the first time you use it.
Start day trading crypto on Binance
03. Coinbase – The cryptocurrency exchange with the lowest fees
Coinbase is the cryptocurrency exchange with the lowest fees. It’s also a user-friendly platform, so ideal for new crypto day traders. Coinbase has both a Coinbase and a Coinbase Pro app. The pro version contains advanced features for experienced day traders. The ‘basic’ version has everything beginner day traders need. It is possible to buy crypto with cash on Coinbase, which is one of the reasons it is so popular around the globe.
How to buy the best cryptos for day trading on eToro
Getting started as a cryptocurrency trader on eToro consists of three easy steps: you create an account, deposit funds and select the crypto you want to day trade. To do this, you navigate to the eToro website, click the ‘join now’ button, fill in your details, and hit ‘sign up’. After that, you choose your preferred payment method to fund your account.
You can fund your eToro account by either credit card, bank transfer, or by using e-wallets like PayPal or Neteller. Once you have funded your account, you click on the crypto you want to buy and specify how much you want to invest.
The best crypto to day trade in UAE – Bottom Line
Now that you know which crypto the best is to day trade in the UAE, it’s time to get started. We recommend creating an eToro account, as it is an easy-to-use platform for all kinds of traders. eToro also has all the 5 cryptos we’ve talked about in this article.
Business24-7 aims to help those interested in cryptocurrency make safe and informed investing decisions. We are dedicated to offering our readers unbiased reviews of leading cryptocurrency exchanges for traders at all levels. Cryptocurrency exchanges are included in our reviews if they are safe, liquid, regulated by proper authority, or decentralized.
All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.
- 1 Crypto day trading explained
- 2 Lucky Block
- 3 Tether – USDT
- 4 Ethereum – The Alternative to Bitcoin
- 5 Binance Coin – The Safest Stablecoin
- 6 Ripple – XRP
- 7 Where to day trade crypto?
- 8 How to buy the best cryptos for day trading on eToro
- 9 The best crypto to day trade in UAE – Bottom Line