Disclaimer: As it’s a matter of money, and I am not your financial advisor (NFA). So keep in mind that this article is informational-based and includes the best possible information that I use to pick the right cryptocurrency for myself.
You can easily use this information to find the best coin for your day trading.
Here is another thing, my friend. You should never ask anyone which coin is best for day trading, but you should always do your own research (DYOR) to find the best cryptocurrency for your day trading.
And I am sharing every secret that you must keep in mind before starting your research.
Let’s get started now.
How to select a coin for day trading?
After two huge dumps, I have realized that it’s essential to come into day trading.
The most significant two benefits of day trading are,
- You always have some money in Fiat (and not having it is a mistake)
- You are never at a loss in your long term investments (because you can always buy the dips)
Isn’t it true?
If you are already in crypto for a long, you will agree with it, and if you are a beginner, you might have a different approach.
No matter how you have realized that you should come in day trading, the most challenging thing is finding the best coins for day trading.
You can’t do that easily without research.
So now the question is, how to research and find the best coins for day trading?
Here is the answer.
First of all, you should decide how much profit you want to take from your investments. If it’s a get-rich-quick scheme, you need to find the most volatile cryptocurrencies, and if you believe that small safe returns are enough, you should go for the most stable coins (say, top 20 cryptocurrencies).
Hold, it’s not over yet.
Whatever your choice is, you would surely go for less volatile coins. Still, there is a lot to do to pick the right crypto for day trading.
Here are the most important things to research while finding the perfect coins for your day trading.
Look at the history chart
This is the first most significant thing in your research.
It’s what you should never miss seeing if you are coming to crypto trading.
Many websites record coin data to see charts, but the popular ones are CoinMarketCap and Coin Gecko.
Yet you should try to explore the charts at the best possible positions, even on multiple exchanges.
Because maybe, the sites you are looking at might not have listed the coin earlier, when fishy things happened.
Well, here is how to see the chart for the primary analysis.
If you see any quick growth (unnatural growth) of any coin, never pick that coin for either long-term or short-term investments.
There could only be one reason for taking that coin, but discussing that reason might take much time, and you really don’t need to learn that here.
So, if you find a coin that’s so hot that it’s going up and up, if you could take profit from a cryptocurrency for a while, that’s awesome; otherwise, just leave it.
Here is the biggest example I can ever give you anyone.
Here is the price graph of Dogecoin.
If you don’t already know, you should let me tell you a couple of things about Dogecoin that might help you better understand my point.
Elon Musk owns a huge portion of Dogecoin. You may say he is the largest holder of Dogecoin. He plans to use it for (at least one of his) projects. And he is working on it.
Hey, isn’t that so much bullish?
Then can you see why Dogecoin went down even after a huge growth?
Many will say, Elon Musk said, it’s a hustle.
Nope, that’s not the reason.
If any coin went high due to hype, it would come down to touch bottom; that’s why Dogecoin also came back.
I predicted it even when no one could believe it, but that happened with doge.
But I still believe it will go back to see ATH one day. (I am not predicting anything here; I am telling the pattern. And I don’t get into it for my prediction. I don’t own any, and I would never own any of it).
So, here is the summary, even if Elon Musk is behind any project, if it goes high, it will come down. And you should wait for that moment to pick it for you.
Hey, I learned it after making many, many mistakes, and I am telling you because I don’t want you to lose anything, not even a single penny.
Here is another thing to see.
Check if something fishy happened with the coin
On Coinmarketcap, if you click on the Market Cap section, you will see how capital is flowing in the coin.
If the graph of the price and the Market cap is different, some fishy happened with the coin.
Here is a famous coin, TLM, and see the difference between both graphs.
Market Cap chart
The price chart says, as it was at 7 dollars and came back to cents. The Market Cap says no, this was not the case. Isn’t this terrible? People must have lost huge money here.
So this coin must not be your thing for any reason. If something happens once, it can happen again.
Basically, it happens with the increase in circulating supply of any coin, and this huge change is worth questioning. That’s why it should not be your coin.
Understand the cryptocurrency pretty well
Once you got some stable coins that have never been in q quick growth, or (at least) they have met their bottom, the next big thing is to explore the coin well.
What’s the coin’s purpose, what are they doing, and the roadmap?
Are they working as they said?
And many, many other things.
Get all the information that you can learn from anywhere. Why? How? When? Each and everything.
Because all this will make your mind clear, and if someday, your trade goes too low, you won’t need to sell it. You will leave it for a while.
Is that clear?
Explore the community
If a coin has a strong community, it will never let it down. Even if it’s down, it will come back hard.
As I said in the open letter for crypto beginners, coins follow patterns; if it’s necessary for the completion of the pattern to come down, no one can stop it, not even Elon Musk. But once the pattern is complete, it will be back.
And if the community is ready to sell at any point, maybe, their purchase price, or even sold most of it even at a loss, hey, stay away, man! Just don’t see anything else in the coin.
This can literally ruin you.
Never go for newer coins for day trading
Even if you ask me, what is the
Even if you ask me, what is the most volatile crypto for day trading? I would still not suggest not to go for newer coins.
If it’s a long-term investment, then it can be your choice.
For day trading, never go for them.
Find support and resistances
Once you are done with all that stuff, now the next biggest step is to find resistances and supports of your coins.
It’s not a hard thing. You can easily do it within 30 minutes.
Open your coin’s charts on each lever.
15m, 30m, 1H, 4H, 1day, and 1week.
You will notice that all the candles stop moving somewhere. That level is support and resistance.
Here is the 4H chart of the BNB coin.
Well, as everything has crashed today, that’s why I couldn’t find the best graphs to give you a clear view. But definitely, you can do that.
Look at the chart. Around 591, most of the candles stopped.
If the coin is going up, it’s resistance; if it’s coming down, it is support level.
Once the coin breaks this, it’s going to the next zone.
You should find all the supports and resistances on each level to understand how long you can keep Stop Loss (SL).
Or from where it will indeed move.
Please, learn candles before you give it a shot
I don’t know who you are, from where you are reading this, but one thing I am sure, you have your real genuine hard-earned money that you want to put in to make more money.
And I do care about your money.
Look, it won’t take more than an hour or a couple of hours to understand the basic level candles.
Learning those candles will give you an idea of where the market is going.
Love your money, and don’t put it at risk.
You should never invest when the candles say the coin is down.
I made this mistake two days ago; I forgot to check candles on day level; it was a downtrend. And one of my trades pissed me off.
You can still make mistakes, but that’s fine. One trade can go wrong; at least four others should not be.
Never put all money in one trade, and never invest more than 50% of what you have in your wallet.
Follow your coins
This is the last important thing to keep in your knowledge.
If you are trading on some cryptocurrencies, follow them in the best possible positions. At least on Twitter and Reddit.
Twitter and Reddit have bold people who would speak against coins if something fishy happened.
For instance, I hold a coin, and I plan to sell it in December 2022 or 2025, depending on the circumstances. I don’t have plans to sell it, no matter how low it goes.
But I still speak against that coin on Twitter if the team does anything bad.
I hope all the stuff will make your day trading easy. And if it does, and you start making money on crypto, please, come back for a while, and leave a comment to let me know if I could help you. It would make me happy if you could find the best coin for your day trading.