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 among 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 the amount of users and transactions
- Coinbase – The cryptocurrency exchange with the lowest fees and commissions
1. eToro – The best cryptocurrency exchange for day traders
Min Deposit: $50
Assets available: 4.8
Leveraged and speculative product. Not suitable for all investors. You should consider whether you can afford to take the high risk of losing your money. Capital is at risk.
2. Binance – World’s #1 cryptocurrency exchange
3. Coinbase – The cryptocurrency exchange with the lowest fees
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.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
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