Cryptocurrencies have grown in appeal over the course of time. Their volatility provides several possibilities for short-term traders to benefit. In this piece, we will look at the top seven cryptocurrencies to trade on a daily basis. We’ll go through each cryptocurrency in depth, highlighting its distinct characteristics and liquidity in the marketplace.
1. Bitcoin (BTC)
Bitcoin, founded in 2009, is the first and most well-known cryptocurrency.For its high liquidity and market size; it is a popular alternative for everyday trading. It also provides a diverse choice of trading pairs on a variety of exchanges. BTC has become known for its price volatility, which allows for short-term profits. Moreover, its impregnable security and widespread use make it more appealing to traders.
2. Ethereum (ETH)
Ethereum became available in 2015. ETH is the second-largest crypto by market capitalization behind Bitcoin. It provides a programmable blockchain platform well-known for its unique technology and community, providing developers with the ability to create decentralized apps (DApps) and smart contracts. Due to its liquidity and busy trading volume, Ethereum is perfect for day trading. Ethereum 2.0, for example, aims to enhance scalability and transaction speed, making it more lucrative.
3. Binance Coin (BNB)
It is the native cryptocurrency of Binance. BNB's popularity stems from its name attached to Binance, one of the world’s largest and most popular cryptocurrency exchanges. Discounts trading fees when using BNB as a payment type make it a
good option for daily traders. Owing to its large user base, it has a diverse range of trading pairs and strong liquidity. The most attractive feature- Frequent token burning increases the possibility of long-term value gain.
4. Ripple (XRP)
This cryptocurrency aspires to transform cross-border payments and remittances. Ripple’s collaborations with major financial institutions increase the likelihood of worldwide adoption. The liquidity and mild volatility of the currency provide everyday trading possibilities. Their proprietary consensus method (XRP Ledger) provides quick settlement and inexpensive transaction costs. But, its regulatory issues and current challenges may have an impact on XRP’s future prospects.
5. Cardano (ADA)
Cardano is a blockchain platform that prioritizes security, scalability, and long-term viability. Investors are drawn to ADA’s research-driven strategy and concentration on peer-reviewed technologies. Besides, for energy efficiency, it employs a proof-of- stake consensus mechanism (Ouroboros). Smart contract features are set to be released, opening the door to DeFi applications. Short-term trading profits are created through a growing ecosystem and relationships.
6. Litecoin (LTC)
Litecoin was launched as a lite version of Bitcoin with shorter block creation times and a new hashing algorithm (Scrypt). It is frequently referred to as the “silver” counterpart to Bitcoin’s gold. LTC is a superb currency due to its active development community and regular protocol changes. Aside from having strong liquidity, it is routinely listed on major exchanges.
7. Polkadot (DOT)
Dot is a multi-chain platform that allows multiple blockchains to communicate with one another. It intends to make decentralized apps and cross-chain communication easier. Dot also has staking and governance features, which allow DOT holders to take part in network decisions. It is regarded as a possible competitor to Ethereum, drawing both developers and investors.
Conclusion
You may improve your odds of daily trading success in the volatile world of cryptocurrencies by keeping a careful check on Bitcoin, Ethereum, Binance Coin, Ripple, and Cardano.
Yet, when it comes to everyday cryptocurrency trading, it is critical to examine elements. The seven cryptocurrencies featured in this article provide promise short-term returns. Yet, keep in mind that trading cryptocurrency has dangers. And it is critical to undertake a comprehensive risk assessment.