Uncovering new opportunities in the crypto markets often seems like the best way to make a buck, but the trading opportunities in crypto are definitely not limited to the latest 1,000x moonshot.
Intraday volatility characterizes the crypto markets, which provides day traders with almost endless opportunities for gains. However, some cryptocurrencies are better suited to day trading than others.
This article will explore the key considerations to make when choosing which cryptocurrencies are best for day trading, as well as highlight the 6 cryptocurrencies that are best for day trading right now.
The 6 Best Cryptos for Day Trading
How to Select the Best Cryptos for Day Trading
Crypto markets are inherently volatile — a characteristic that brings both risk and reward. Day trading cryptocurrencies allows investors to take full advantage of this volatility to make a profit from intra-day swings.
That said, there are many thousands of cryptocurrencies on the market, so it’s not always easy finding the best coins to day trade. Selecting the best cryptocurrencies for day trading involves careful consideration of several important factors:
- Market Liquidity: Choose cryptocurrencies with high trading volume and liquidity, ensuring that you can enter and exit trades easily without too much slippage
- Volatility: Look for cryptocurrencies with sufficient price volatility, which provides opportunities for quick price movements and potential profits on lower time frames
- Technical Analysis: Using charts, indicators, and patterns, identify key trends with specific tokens, including support and resistance levels and potential entry and exit points for trades
What are the Best Cryptos for Day Trading?
The best cryptocurrencies to day trade offer consistent market structure and predictable volatility on lower time frames. Usually, mid-to-large cap coins are the most likely assets to have these characteristics, and they also benefit from deep liquidity pools. This section will further anlayze the 6 best cryptocurrencies to day trade.
1. Solana (SOL)
Solana (SOL) is a blockchain platform designed to support fast and scalable decentralized applications. It aims to address core scalability issues faced by many blockchain networks, such as slow transaction speeds and high feeds, by employing a unique combination of consensus mechanisms: Proof of History (PoH) and Proof of Stake (PoS).
SOL has been in a consistent uptrend since the beginning of 2023, climbing more than +1800% at the time of writing from its 2023 open price to place itself firmly into the top 5 cryptocurrencies by market cap. As one of Web3’s leading cryptocurrencies, SOL is available on all major exchanges and has deep liquidity pools for low-slippage trading.
Standout features for SOL day trading:
- High daily trading volume
- Deep liquidity on major exchanges
- Significant volatility on all time frames
2. Bittensor (TAO)
Bittensor (TAO) is a decentralized artificial intelligence (AI) network that aims to create a market for AI models and services. Being integrated with blockchain at its core, TAO is specifically designed to facilitate the exchange and utilization of AI algorithms in a secure, transparent, and decentralized manner.
TAO has been one of the crypto market’s main outperformers during the recent bull run which has seen the total crypto market cap climb by +150% in approximately 6 months. In the same time frame, TAO has risen 10x to hit its current market price of $536.
Standout features for TAO day trading
- Mid-cap cryptocurrency with deep liquidity
- Significant daily trading volume
- Consistent market structure on lower time frames
3. Aptos (APT)
Aptos (APT) is a relatively new layer-1 blockchain that was launched in 2022 to deliver enterprise-grade performance potential in a network of decentralized applications. It was founded by former employees of Meta and aims to be a highly scalable and upgradeable blockchain platform.
Since it first launched, Aptos has been characterized by its consistent market structure on all time frames. This can help day traders to minimize the downside risks while still benefitting from the upside that APT’s innate volatility can provide, as its consistent market structure provides reliable entry and exit points for new trades.
Standout features for APT day trading:
- Deep liquidity pools
- Available on all major exchanges
- Consistent market structure
4. Pepe (PEPE)
Pepe (PEPE) is a meme coin that launched in April 2023, representing the popular “Pepe the Frog” meme that has become synonymous with internet culture and the crypto community. As an ERC-20 token built on the Ethereum blockchain, PEPE skyrocketed into the spotlight due to a rapid period of price appreciation that saw it hit a $1 billion market cap just 2 weeks after launch.
Since then, PEPE has been listed on all major exchanges and is consistently among the highest-trending coins in terms of daily trading volume. As a meme coin, PEPE can also be extremely volatile, which can provide endless short-term opportunities for day traders.
Standout features for PEPE day trading:
- Deep liquidity pools
- Available on all major exchanges
- High volatility
5. Bitcoin (BTC)
Bitcoin (BTC) is a decentralized digital currency that was created in 2009 by an anonymous entity known as Satoshi Nakamoto. Bitcoin operates as a distributed ledger that records all transactions across a network of computers, and it is widely recognized as the first cryptocurrency in the world.
As the largest cryptocurrency, with a market cap of $1.4 trillion at the time of writing, Bitcoin is available on every major crypto exchange and has well-developed market making processes for traders. While its volatility is reduced when compared with smaller-cap coins, it has a consistent market structure on all time frames and offers instant, low-slippage settlements for market orders.
Standout features for BTC day trading:
- Deep liquidity
- Available on all major exchanges
- Consistent market structure
6. Ethereum (ETH)
Ethereum (ETH) is a decentralized blockchain platform that is fully Turing complete, offering programmers the ability to create custom smart contracts for the distributed ledger. Ethereum opened the door for the development of decentralized applications and custom crypto assets, which provided the foundation for Web3 as we know it today.
As the second-largest cryptocurrency by market cap, ETH is available on every major crypto exchange and has deep liquidity pools for traders. While its volatility is lower compared to less-developed markets, ETH represents a strong option for day traders due to its predictable market structure and reliable levels of volume.
Standout features for ETH day trading:
- High daily trading volume
- Deep liquidity pools
- Available on all major exchanges
The Bottom Line
Crypto markets are filled with opportunities for traders and investors of all kinds. As a brand-new financial technology, crypto market movements are driven by speculation which helps to deliver highly volatile conditions. For day traders, this can be a boon.
Finding the best cryptocurrencies to day trade relies on tried-and-tested principles such as liquidity levels, availability of market-making, and of course, the intraday volatility of the coin in question. That said, here’s a recap of the top 3 best coins to day trade right now:
- Solana (SOL)
- Bittensor (TAO)
- Aptos (APT)
If you want to stay up to date with the latest trends in the crypto market, we recommend you take a look at our list of the best crypto to buy right now.
