Economy
A Comprehensive Guide to Finding the Best Crypto for Day Trading in 2023
Cryptocurrencies have quickly transitioned from a niche investment option to a mainstream trading asset. As they continue to gain traction, there arises a pressing need for suitable platforms to facilitate day trading of these digital currencies. This article from Traders Union experts evaluates some leading platforms, spotlighting their benefits and limitations for potential day traders. Additionally, it outlines the best crypto for day trading.
Is Day Trading Cryptocurrencies legit?
Day trading of cryptocurrencies is sanctioned in numerous nations. Typically, countries that recognize and endorse cryptocurrency trading, such as the USA, Canada, Australia, and the UK, also permit cryptocurrency day trading. In these jurisdictions, individuals can partake in cryptocurrency transactions, including day trading, provided they adhere to the associated regulations and settle any relevant taxes.
Nonetheless, while day trading of cryptocurrencies is lawful, TU experts argue that it’s vital to understand that it carries considerable risks. Such trading can yield substantial profits but can also result in notable losses.
Is Engaging in Crypto Day Trading Advisable?
When pondering the feasibility of day trading cryptocurrencies, one is essentially questioning the potential profitability of such an endeavor. The response is clear: it is indeed possible to profit from day trading in the crypto realm, largely due to its inherent volatility, which seasoned and informed traders can capitalize on. However, as with any trading activity, there’s an inherent risk attached. Thus, potential traders should recognize that profitability is not assured. Success in this arena requires dedication, time investment, and a strategic approach.
To excel in cryptocurrency day trading, Traders Union analysts stress that one needs a blend of adept technical analysis skills, a keen sense of how particular news impacts the market, and a sound judgment. For those committed to mastering the craft, day trading in cryptocurrencies can be lucrative. But as with any investment avenue, it has its distinct set of pros and cons. And it’s essential to be cognizant of the fact that high rewards often come with high risks.
Identifying the Premier Crypto Exchanges for Day Trading
For someone keen on day trading cryptocurrencies, three pivotal factors stand out when selecting an exchange: the type of derivative it supports, the associated trading fees, and the diversity of altcoins on offer.
- Trading Fees
Trading fees can quickly accumulate, especially for day traders who execute numerous transactions within a day. Some exchanges levy a fixed fee per transaction, while others charge a percentage of the trade’s value. Costs associated with software or data access can also impact the trader’s profitability. Additionally, liquidity – the speed and ease with which assets can be bought or sold without significantly affecting their price – remains paramount. Moreover, given the vast amounts they handle, day traders should never compromise on security.
- Supported Derivatives
The right exchange for day trading must support a range of derivatives. These financial instruments derive their value from underlying assets. Day traders often utilize derivatives to speculate on the future movements of these assets. Taking both long and short positions, they can profit regardless of market direction. Hence, exchanges offering diverse derivatives such as futures, options, and swaps, coupled with competitive spreads and minimal fees, are often the most appealing.
- Supported Altcoins
Beyond the dominant players like Bitcoin, there’s a vast realm of altcoins with lower market capitalizations but immense potential. An exchange that supports a broad spectrum of these altcoins offers traders the flexibility to capitalize on emerging trends. Moreover, such exchanges usually offer better liquidity, crucial for quick trade execution without significant price slippage.
Deciphering the Ideal Cryptocurrency for Day Trading
According to experts at TU, liquidity remains the cornerstone of day trading. It defines how seamlessly an asset can be transacted without drastic price shifts. In the crypto sphere, Bitcoin, Ethereum, and some major futures contracts often top the list due to their high liquidity. However, while these might be popular choices, several factors, including volatility, volume, platform availability, team reputation, and media coverage, must guide a trader’s choice.
Conclusion
When assessing the best cryptocurrencies for day trading, Traders Union experts emphasize that one must look for assets with high trading volumes, listings on major exchanges, and solid liquidity. Popular contenders often include Bitcoin, Ethereum, Litecoin, and Ripple. Nevertheless, every trader should undertake comprehensive research and analysis before embarking on their trading journey.
By Adedapo Adesanya
The duo of MRS Oil and FrieslandCampina Wamco Nigeria Plc weakened the NASD Over-the-Counter (OTC) Securities Exchange by 0.68 per cent on Friday, June 5.
MRS Plc lost N19.00 during the session to sell at N171.00 per share compared with Thursday’s value of N190.00 per share, and FrieslandCampina Wamco Nigeria Plc depreciated by N8.70 to finish at N181.68 per unit compared with the preceding session’s N190.38 per unit.
As a result, the market capitalisation further lost N22.59 billion to close at N2.607 trillion versus the N2.630 trillion it ended a day earlier, and the NASD Unlisted Security Index (NSI) dropped 37.76 points to settle at 4,358.32 points, in contrast to the previous day’s 4,396.08 points.
The alternative stock market closed the last trading day of this week with a price gainer, Central Securities Clearing System (CSCS) Plc, which gained 6 Kobo to quote at N78.40 per share compared with the preceding session’s N78.34 per share. However, it could not prevent the market from going down at the close of business.
Yesterday, the volume of securities bought and sold by investors went down by 50.0 per cent to 140,345 units from the preceding day’s 280,714 units, the value of stocks decreased by 16.5 per cent to N17.9 million from the previous session’s N21.5 million, and the number of deals carried out by market participants fell by 35.7 per cent to 27 deals from the 42 deals recorded on Thursday.
When trading activities closed for the day, Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and CSCS Plc with 64.7 million units traded for N4.4 billion.
GNI Plc also ended the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units transacted for N6.5 billion, and Resourcery Plc with 1.1 billion units valued at N415.7 million.
By Dipo Olowookere
Renewed interest in financial stocks and others lifted the Nigerian Exchange (NGX) Limited by 0.15 per cent on Friday.
Customs Street closed higher yesterday despite the 1.37 per cent loss recorded by the consumer goods sector as a result of profit-taking.
This was offset by gains in the other key sectors of the local bourse, as the insurance counter chalked up 1,14 per cent. The banking space appreciated by 0.90 per cent, the industrial goods segment grew by 0.46 per cent, and the energy sector expanded by 0.01 per cent.
Consequently, the All-Share Index (ASI) went up by 366.00 points to 242,593.31 points from 242,227.31 points, and the market capitalisation gained N235 billion to close at N155.594 trillion compared with the previous day’s N155.359 trillion.
The trio of International Energy Insurance, Abbey Mortgage Bank, and DAAR Communications improved by 10.00 per cent each yesterday to N7.26, N9.35, and N1.98, respectively, while Zichis advanced by 9.39 per cent to N32.38, with Sovereign Trust Insurance up by 8.70 per cent to N2.50.
On the flip side, Academy Press lost 9.84 per cent to quote at N8.25, University Press depreciated by 9.73 per cent to N5.10, Africa Prudential dipped by 2.63 per cent to N12.95, Chams crumbled by 2.44 per cent to N4.00, and International Breweries slipped by 1.59 per cent to N12.35.
Business Post reports that the market breadth index was positive during the session after recording 37 appreciating equities and 14 depreciating equities, implying strong investor sentiment.
Abbey Mortgage Bank led the activity chart with a turnover of 164.1 million units worth N1.5 billion, Ellah Lakes sold 76.7 million units for N767.2 million, Access Holdings transacted 44.8 million units valued at N1.1 billion, Linkage Assurance exchanged 23.0 million units worth N41.2 million, and The Initiates traded 20.2 million units for N562.1 million.
At the close of trades, market participants transacted 608.5 million units worth N32.0 billion in 53,826 deals versus the 588.5 million units valued at N27.9 billion executed in 57,352 deals in the previous session. This showed that the number of deals eased by 6.15 per cent, the volume of transactions rose by 3.40 per cent, and the value of transactions soared by 14.70 per cent.
By Adedapo Adesanya
The Naira further depreciated against the United States Dollar by N3.46 or 0.25 per cent to N1,362.21/$1 from N1,358.75/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, June 5.
However, it appreciated against the Pound Sterling in the same market window during the session by N4.47 to trade at N1,823.59/£1 compared with the previous day’s N1,828.06/£1, and gained N7.00 against the Euro to sell at N1,574.58/€1, in contrast to Thursday’s closing price of N1,581.58/€1.
For another trading session, the Nigerian Naira maintained stability against the Dollar in the parallel market and the GTBank forex counter on Friday at N1,375/$1 and N1,372/$1, respectively.
The Naira is expected to remain strong in the near term, backed by a rise in external reserves, which are nearing $50 billion, enhancing analysts’ confidence about its outlook in the second half of 2026.
Heightened global uncertainty has reduced the incentive for importers and corporates to demand FX, as cautious trade weighs on import needs. Analysts estimate a $40 billion net FX position for the year, a projection anchored in oil windfall gains.
As for the cryptocurrency market, prices remained depressed following a strong US jobs report that spurred markets to price in higher-for-longer interest rates, sending Treasury yields and the dollar up while hammering stocks, especially AI-related names. Crypto markets saw heavy leverage washouts with about $1.6 billion in positions liquidated over 24 hours.
Ethereum (ETH) gave up 4.9 per cent to trade at $1,584.68, Solana (SOL) fell by 3.3 per cent to $63.22, Bitcoin (BTC) crashed by 1.9 per cent to $61,333.23, Dogecoin (DOGE) slipped by 1.8 per cent to $0.0821, and Ripple (XRP) moderated by 1.8 per cent to $1.09.
Further, TRON (TRX) dropped 1.6 per cent to sell at $0.3197, Binance Coin (BNB) slumped by 1.0 per cent to $581.18, and Cardano (ADA) declined by 0.4 per cent to $0.1589, while the US Dollar Tether (USDT) gained 0.07 to sell at $0.9997, and US Dollar Coin (USDC) closed flat at $0.9998.
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