How To Pick Crypto For Day Trading? A Complete Review

Lately, the crypto market has seen a meteoric rise. Its pronounced volatility and ample liquidity make it an attractive arena for short-term trades.

Novices are eager to grasp the intricacies of crypto trading strategies and regulations.

If your sights are set on day trading crypto, you’ve come to the right spot. This guide will cover all you need to know about day trading cryptocurrencies in the current year.

How to pick crypto for day trading?

To engage in crypto day trading, select coins with substantial volatility and liquidity. Monitor the Money Flow Index (MFI) on a 5-minute chart, waiting for it to hit 100.

When the daily MFI reaches 100 and the subsequent candle shows bullish momentum, consider buying. This strategy involves exploring various techniques, software tools, and trading strategies.

Additionally, we offer insights on selecting the right approach for you, including an analysis of the top crypto brokers of 2021.

How to pick crypto for day trading
Image source (Crypto News)

Best Cryptocurrencies for Day Trading

Newcomers and expert traders equally choose cryptocurrencies that are well-suited to crypto day trading. Especially in recent years, the crypto market has boomed in digital currencies all over the world. Politicians, artists, and common students who are looking to spend a lot of money on trendy cryptocurrencies are one of the intended audiences.

The concept of predicting crypto rates and commodities well for a single day or a few hours is referred to as crypto day trading. It enables making revenue from crypto day trading in a digital wallet. For this, traders forecast a short-term price action of the key coins mentioned below:

1. Bitcoin Crypto for Day Trading

Bitcoin, with its global success, is poised to dominate crypto day trading in 2021, thanks to its widespread adoption by businesses worldwide.

With a fixed supply of 21 million units and no mining possibility, it’s an ideal choice for day traders.

Enterprises universally utilize Bitcoin for currency transfers and digital wallet transactions, drawn to its volatility and high demand in the market.

2. Ethereum

Ethereum, after Bitcoin, is a top choice for day trading. It’s a popular blockchain platform enabling token creation and DApps.

In 2021, crypto day trading gained popularity due to its unpredictability, liquidity, and volatility. Fast trades make it easy, offering high profit potential quickly.

3. Binance Coin

Binance Coin is the 4th crypto in the cryptocurrency world. With its trading platform, it is named as Binance Exchange for cryptocurrencies all around the world.

Binance Coin is preferred by investors because it was launched on its exchange platform and has a significant trading volume.

As a result of this feature, there is a high demand among traders for crypto day trading via a digital wallet.

4. Ripple

Ripple was among the most lucrative coins since it uses low and is speedier than Bitcoin.

This commodity is considerably cheaper than normal of the cryptocurrencies in the digital wallet for crypto day trading.

It can be employed as a gateway to speed things up transactions and trans coordination.

5. Tron

Tron’s high volatility makes it a top choice for crypto day trading in 2021. It aims to swiftly remove various digital barriers.

Known as the fastest blockchain, it sees high trading volumes and predicts short-term price changes effectively.

Read more: What is a Crypto Faucet?

5 Powerful Day Trading plans To Pick Crypto

You may trade and generate income with cryptos in a lot of formats. One of these trades daily. You will be capable of creating a regular number of dollars per day if you invest in day trading.

1. Open An Account

Pick either you want to buy the coin or if you expect its price will change. You should have an account if you’re going to use cryptocurrencies.

2. Get A Digital Wallet

You can open wallets that provide you huge bitcoin wallets, profits through Quantum AI, coinbase, among others. Remember, that it is possible to lose money. Your capital is at risk during day trading because it is still trading.

3. Prefer The Overbought And Overbought Range

You should give importance to oversold and overbought levels if you’re trading. Overbought implies that investors’ needs are fulfilled. At the same time, commodities will be off, whereas oversold predicts the negative.

4. Take Benefit From A High Trading Volume

Scalpers win by taking advantage of rising trade volume. Swing traders may quit a transaction multiple minutes after placing it. and they should usually quit before any instability or shift. You can day trade as a scalper before something comes to pass.

5. Arbitrage Strategy

Arbitrage is a strategy that a day trader can use. Such an approach implies getting currency in one market and trading it for a higher price from another. Anybody can establish a trading system.

Traders in the crypto market do have a profile on the marketplace in which they are trading. To start an opportunity for profit, register accounts on sites where you expect the same commodity will trade at significant price ranges.

Five Steps To Pick Crypto For Day Trading

The target of crypto day trading is to spot market opportunities that will allow you to make good cash. For day trading sounds to you, go get started with the following step-by-step guidelines about how to daily trade crypto:

Step-1: Pick coins with a higher value and liquidity

As said before, the first most critical decision you must make is to pick currencies with extreme volatility and liquidity. Unless you’re not day trading Bitcoin. One of the most liquid coins on the marketplace. However, you should prefer altcoins, hunt for coins with high volatility and liquidity and volatility.

Here are well over 1600 currencies available on the market, with more on the way. You can limit down your choices by upholding the top coins. Day trading minor coins can be a very lucrative venture, but it brings a lot of risks. Please note that market rates can collapse just as suddenly as they can climb.

Step-2: Just Use The Money Flow Index Indicator On The 5-Minute Chart

The Money Flow Index is the only graphical tool used in this day trading strategy. This indicator is being used to monitor the smart money’s behavior.

Moreover, it determines whether institutions are planning to purchase cryptos. The MFI indicator’s recommended settings are 3 periods.

Step-3: Stay Updated On The Money Flow Index Till It Hits 100

When MFI hits 100, big sharks enter the market. Smart money leaves traces in trading volumes detectable by MFI. Chart patterns aren’t always reliable, so additional criteria are used for day trading.

Focus on crypto equity issues after the first two MFI 100 scores, with stable prices. Falling prices after these indicate a bad day. Find the best Bitcoin buying point and meet technical requirements.

Step-4: Buy If The MFI Is Equal To 100 And The Next Candle Is Bullish

Just wait for the third MFI score to go over 100. It doesn’t have to be the 3rd time; any MFI at 100 works. If you can’t catch the third 100 reading, pick the next one after all criteria are met.

Also, make sure the candlestick is bullish when MFI hits 100. The candle should close at its highest point with small wicks. This leads to the next big decision in crypto day trading: setting stop losses or taking profits.

Step-5: Place Your Protective Stop Loss Well Below Day’s Lower

In the first 60 minutes once you open the trade, take profit. A most simple point to set your safe stop loss is below the day’s lowest. If it goes below it, it leads to a change in market attitude, and it’s advisable to quit the bet. This might simply be the onset of a reversing day.

When it comes to our exit plan, we’re more versatile. The only condition you must take is to take profits within the first hour after your trade has been completed. If you hold the transaction running for more than an hour, you’ll have a lower performance level. Certainly, that’s just what the data of our demo account indicated.


Can I trade cryptos now?

Yes, day trading crypto commodities is viable and beneficial in certain situations, especially due to the market’s volatility.

Do I need $25,000 to trade crypto today?

Yes, individuals making 4 or more day trades in 5 days must maintain a minimum balance of $25,000 in their cash account to continue highly leveraged day trades.

The Final Thought

By adhering to the principles outlined in the day trading crypto manual, you can effectively engage in the buying and selling of Bitcoin and alternative cryptocurrencies. This approach offers the potential for daily earnings and profit accumulation. Before embarking on a journey into crypto day trading, it’s imperative to equip yourself with comprehensive knowledge.

This strategy could serve as a valuable asset in enhancing your cryptocurrency portfolio. Given the notable fluctuations within the cryptocurrency realm, engaging in live day trading activities can offer a straightforward avenue for potential gains. The inherent high volatility of this market presents favorable conditions for day trading, positioning you for potential success.

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