21 Apr Best Cryptocurrencies For Day Trading In India (2022)
Over the past few years, cryptocurrency has acquired quite a name across the globe. From the Twitter feed of Elon Musk to the Facebook wall of your high-school best friend, crypto has made an appearance everywhere. And why not? The inclusion of Bitcoin as a legal tender in El Salvador has projected cryptocurrencies as a feasible alternative to fiat currencies.
Another reason why cryptocurrencies are growing in popularity is owing to their highly volatile nature. Volatility makes cryptos an exciting short-term investment alternative. In fact, in the expanding crypto market in India, many traders are shifting to cryptocurrencies for day-trading. So without much ado, let’s take a look at cryptocurrencies that have the potential to become the fastest growing cryptocurrencies in India. But before that, let’s brush up on crucial jargon to sharpen your crypto and trading acumen.
What is Day Trading?
Day trading is a trading practice where a trader sells a financial instrument on the same day it was bought. This strategy is used in the stock market as well. There are several techniques used to bag profit in day trading called intraday strategies. They help in earning profit in a volatile market. The traders involved in day trading are called speculators.
Even though it is considered a fairly lucrative career, day trading can be pretty challenging at first. It is often considered an equivalent to gambling owing to its risk potential. However, there is nothing to worry about. All you need to have is good knowledge of assets, some objectivity, self-discipline, and a little luck on the side to season the best of deals. It’s simply leveraging volatility to your advantage!
How To Pick Cryptocurrencies For Day Trading?
Three factors determine the price movement in cryptocurrencies. These are – volatility, volume, and current activity of a coin. In order to determine good cryptos for day trading and to learn how to pick cryptos for day trading, you need to take these three into account.
This refers to the daily fluctuations in the price of a cryptocurrency. One thing that must be kept in mind is that crypto is an extremely volatile market in general. Hence, you can expect a rate anywhere from 10% to 50%—the higher the volatility, the greater the profit. However, one should be mindful that this also means greater risk involved in investment.
A trader wanting to enter the cryptocurrency market would want to bet his money on an asset with upward price volatility. Doing this will ensure that when the asset spikes, you will generate a good profit.
The volume of a cryptocurrency is responsible for determining what kind of activity is happening around it. Volume determines if enough people are buying or selling that cryptocurrency. A higher trading volume indicates that more people are buying and vice versa. Higher volume also makes technical indicators more reliable and reduces the chances of unexpected spikes or dips in prices.
3. Current News
Crypto is deeply influenced by the discussions that happen around it. And sometimes, even by discussions that have nothing to do with it. Take, for instance, the price hike of SHIB coins when Elon Musk tweeted about his desire to own a Shibu pup. To be successful with crypto investments, you must be on your toes. Reading up on the founders of the crypto, keeping track of conversations they engage around social media, and watching for any new discussions about cryptocurrency might prove beneficial. This will help you to determine the next cryptocurrency that will explode in India.
Best Cryptocurrencies For Day Trading in India
This brings us to the important part of the discussion. Let’s take a look at the potential crypto assets.
Ethereum is the most popular altcoin in the market. The demand for Ethereum never tends to cease, which is reflected by its exciting price growth in 2021. This is the ruler of the smart contracts and dApps market in the cryptosphere that grew by an astonishing 425% in price the previous year.
Not only this, Ethereum offers good volatility and provides a great opportunity to attain considerable profit quickly. Interestingly, Ethereum stands at the edge of a drastic change in 2022, with the blockchain set to adopt the ETH-2 protocol this year. This is already fueling the volatility of Ethereum in the market owing to cluelessness in the industry regarding the reaction to this adoption. All the more reasons to zero in on Ethereum when looking for cryptocurrencies for day trading!
MATIC is one of the most promising cryptocurrencies of this year. It saw a major jump in its price, from $0.01 on 1 January 2021 to a level of $2.9 in late 2021! Now, why is MATIC such a lucrative choice for day trading? Several forecasting services have predicted a bullish view on MATIC for 2022 and even beyond that. In late January 2022, the coin was slowly plummeting.
And this is what makes it a potential fastest-growing cryptocurrency in India! The buzz around Polygon, MATIC’s blockchain, is growing in the wake of Ethereum’s forthcoming upgrade. The coin will subsequently grow when the bearish run weathers away. Visit WazirX to buy MATIC to enhance your day trading position.
#3 Solana (SOL)
Solana became a mainstream cryptocurrency in 2021. The crypto grew to the position of 5th largest crypto asset by market capitalization, with Solana growing 11,000% in price in the year! This crypto is often termed as an ‘Ethereum-killer’ because of its fast transactions and low cost.
This extremely dynamic history makes it a worthy part of the best cryptocurrencies for day trading available. And here’s why. The Solana ecosystem is growing every day, with new projects joining the blockchain. Solana is one of the most sought cryptocurrencies to pay for NFT transactions. All this is further boosting Solana’s volatility, making it an excellent cryptocurrency for day trading in India.
#4 Ripple (XRP)
Currently priced at ₹61.89, Ripple is a cheap investment when compared to its other counterparts. Although the coin started dropping in price in 2021, all is not bad for this once cherished crypto asset. The market looks bearish for Ripple, but this might just be a momentary setback for it.
Industry experts predict that Ripple will continue to plummet in the coming months. This is because of the SEC lawsuit against Ripple and its founders. Rightfully, in the market, it is the investor’s sentiment that determines the price of an asset. The same goes for cryptocurrencies as well. And it is not in Ripple’s support as of yet.
However, experts suggest that things will change by mid-2022. The Ripple team is looking cheerful with their stance against the SEC, and this is already influencing market sentiment. Let’s not forget new agreements with leading banks are the main drivers of Ripple’s cost. For example, in August 2021, India’s largest bank HDFC Bank Limited joined RippleNet. And the banking sector is rallying behind the asset. Ripple might be one of the next potential cryptocurrencies to explode in India.
#5 Binance Coin (BNB)
Binance coin has become the third-largest coin on the market and is supported by the largest crypto exchange available – Binance. With the dominating presence of Binance in the Global crypto market, Binance coin is rather a safe investment for day trading. And here’s why.
Binance is vesting a lot in the growing NFT industry in terms of gaming and farming. The exchange offers platforms where you can take part in the trading of any product part of the pan-crypto industry. This is an indicator that demand for BNB will be on the rise.
To make a successful investment with this cryptocurrency, you need to be mindful of the news regarding its associated crypto exchange news. This is because any move by the exchange would significantly impact the price of the coin. Interestingly, the coin shows more volatility than Ethereum.
How to Invest In The Best Cryptocurrencies For Day Trading In India?
Now that you know where to invest, one question that still needs to be answered is how to.
India still lacks the presence of an established structure for cryptocurrency trading. This is where crypto exchanges come to your rescue. Several exchanges have a user-friendly interface to get you started. One of these is WazirX. All you need to do is create an account, complete your KYC, deposit funds, select the amount and the crypto you would like to invest in. That’s it! It would be best if you read all the policies given on the platform carefully. Do make sure that you’re equipped with all the documentation it might ask for.
And then, all you have to do is to make your investments. It’s never been this easy before!
With the knowledge of the best cryptocurrencies for day trading in India, you can choose the ones you want to trade with based on your budget and risk. There is no cap on money that you can make in a day trading crypto. However, you need to pledge considerable capital at stake to make more significant gains. This is where you need to use your objectivity and determine whether the crypto of your choice is worth it or not. The crypto industry is growing and prospering. All you need to do is to study the trends and invest based on faith.
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