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Over the past few years, crypto has been a hot topic worldwide. 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 in 2021 has projected cryptos as a feasible alternative to fiat currencies.
Another reason why cryptos 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 cryptos for day trading. So without much ado, let’s take a look at cryptos that have the potential to become the fastest-growing cryptos 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 various 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 Cryptos For Day Trading?
Three factors determine the price movement in cryptos. These are – a coin’s volatility, volume, and current activity. In order to choose 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 crypto. 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 crypto market would want to bet his money on an asset with upward price volatility. Doing this will ensure that you will generate a good profit when the asset spikes.
The volume of crypto is responsible for determining what kind of activity is happening around it. Volume determines if enough people are buying or selling that crypto. A higher trading volume indicates that more people are buying and vice versa. The higher volume also makes technical indicators more reliable and reduces the chances of unexpected price spikes or dips.
- 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 crypto, keeping track of conversations they engage in around social media, and watching for any new discussions about crypto might prove beneficial. This will help you to determine the next crypto that will explode in India.
Best Cryptos For Day Trading in India
This brings us to the important part of the discussion. First, let’s take a look at the potential crypto assets.
#1 Ethereum (ETH)
Ethereum is the most popular altcoin in the market. This fact is more accurate after the Merge has happened. The demand for Ethereum never tends to cease, which was reflected by its exciting price growth in 2021. This is the ruler of the smart contracts and dApps market in the crypto space that grew by an astonishing 425% in price in 2021.
Not only this, Ethereum offers good volatility and provides a great opportunity to attain considerable profit quickly. Interestingly, Ethereum underwent a drastic change in 2022; it shifted from a Proof-of-Work to a Proof-of-Stake consensus mechanism. This is already fueling the volatility of Ethereum in the market owing to cluelessness in the industry regarding the reaction to this adoption. You can always rely on Ethereum when looking for cryptos for day trading!
#2 Polygon (MATIC)
MATIC is one of the most promising cryptos of this year. Indeed, 2022 was not a great year for cryptos, but when we look back at 2021, MATIC 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 2023 and even beyond that.
And this is what makes it a potential fastest-growing crypto in India! The buzz around Polygon, MATIC’s blockchain, grew in the wake of Ethereum’s 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 gained popularity majorly 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 an ‘Ethereum-killer’ because of its fast transactions and low cost.
This extremely dynamic history makes it a worthy part of the best cryptos 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 cryptos to pay for NFT transactions. All this is further boosting Solana’s volatility, making it an excellent crypto for day trading in India.
#4 Ripple (XRP)
Currently priced at ₹35, Ripple is a cheap investment compared to its other counterparts. Although the coin price saw a drop in 2021-22, 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 predicted that the price of Ripple would continue to plummet in 2021-22. Although, it is the investor’s sentiment that determines the price of an asset. The same goes for cryptos as well. And it is not in Ripple’s support as of yet.
However, some experts suggested that things will change by mid-2022. Ripple has entered into new agreements with leading banks, which can be the main drivers of Ripple’s cost increment. For example, in August 2021, India’s largest bank HDFC Bank Limited joined RippleNet. The banking sector is rallying behind the asset. Ripple might be one of the following potential cryptos to explode in India.
#5 Binance Coin (BNB)
Binance coin has become the fourth-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 crypto, 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 Cryptos 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 crypto 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, and select the amount and the crypto you would like to invest in. That’s it! It would be best if you carefully read all the policies given on the platform. 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 cryptos 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 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.
A cryptocurrency is a digital currency that is secured by the process of cryptography, making counterfeiting and double-spending almost impossible to happen. Blockchain technology is used to produce cryptocurrencies ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are distinct in that a centralized authority does not issue them.
Crypto or a cryptocurrency is a digital currency protected by cryptography, making counterfeiting and double-spending nearly impossible. Blockchain technology is used to produce cryptocurrencies (a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are distinct in that a government does not issue them. The word "cryptocurrency" refers to the encryption methods employed to keep digital currencies and the network secure.
In India, cryptocurrencies are legal; anyone can purchase, sell, and trade cryptocurrencies. They are currently unregulated; India does not have a regulatory framework in place to regulate its functioning. According to the Ministry of Corporate Affairs (MCA), companies must now declare their crypto trading/investments during the financial year, according to the Ministry of Corporate Affairs (MCA). Cryptocurrency transactions have been taxable in India when people receiving such gains are Indian tax residents or where the crypto is considered to be domiciled in India
There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is considered the procedure of verifying and adding transactions to the blockchain public ledger. Another option is via cryptocurrency exchanges. Exchanges generate money by collecting transaction fees, but there are alternative websites where you can interact directly with other users who want to trade cryptocurrencies.
There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is the process of verifying and adding transactions between users to the blockchain public ledger. Purchasing cryptocurrency in India is a straightforward procedure where investors simply participate by registering with a crypto exchange such as WazirX. After registering for an account, citizens can trade multiple cryptocurrencies, store cryptocurrency in wallets, and more.
A cryptocurrency is a digital currency secured by encryption, due to which chances of activities such as counterfeiting and double-spending taking place get close to impossible. Cryptocurrencies get created on blockchain technology ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are unique in that they do not get issued by any central authority. The term "cryptocurrency" comes from the encryption techniques used to keep digital currencies and the network safe.
Pi Network (PI) is the newest digital token to catch the cryptocurrency community's interest, even before it has wholly debuted. Some users see it as a chance to get engaged in a cryptocurrency from the beginning and profit in the future, similar to how early Bitcoin adopters made huge profits by mining and keeping the coin. Other users have compared Pi to a worthless multi-level marketing (MLM) scheme.
Cryptocurrency investments are subject to market risks, but if sufficient security measures are not taken, trading accounts can be maliciously accessed. Investments come with risks and uncertainties, and we cannot claim that any digital currency investment is risk-free. Buying and selling cryptocurrencies can be risky even if the trader is knowledgeable about the market and treats their coins carefully.
Cryptocurrencies use cryptography technology to keep transactions and their units (tokens) secure. Cryptocurrency works via a technology called the blockchain. A blockchain is a decentralized technology that handles and records transactions across numerous computers. The security of this technology is part of its value.
Cryptocurrency mining can be time-consuming, expensive, and sporadically profitable. Mining has an appeal for many cryptocurrency enthusiasts as miners are paid directly with crypto tokens for their efforts. The legality of cryptocurrency mining is dependent on where you live. In India, there is no restriction on crypto mining.