In this article, we will be going through crypto volatility and understand all about the most volatile cryptocurrency for day trading.
Volatility is a major term associated with cryptocurrency and tokens in the digital finance world. This is simply what can be used to define the unstable nature of coins, no matter what kind of token this is.
Volatility is the variation of cryptos price in a particular time frame. This means that the switch up or down of the price of a specific token within a certain time is the volatility of such token.
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What Is Crypto Volatility?
Crypto Volatility, as already explained, is the swift change in the price of a coin or token in the coin market over a particular period.
Many factors affect a coin and lead to increased volatility of such a coin. These factors include:
Large Investment:
When a token gets a vast investment, whether, from an individual or group of people, the token sees a huge price spike over time. This generally causes volatility on the part of this coin.
The exit of Whales on a Coin:
Whales are major and high stake investors in a particular coin. These whales make significant investments in a token and buy off a large chunk of the total supply of this token.
A recent example of this is the Whale investor of the Shiba Inu coin, who bought 13% of the total supply of the Shiba Inu token and is now a billionaire as a result of this.
When a major whale like the above example pulls out or liquidates its assets, the token witnesses major volatility in price and other aspects as this exit of a whale causes a ripple effect.
How to Check For Crypto Volatility
Crypto traders need to understand the process of checking for the volatility of a particular token. This will help them make the best decision for any token and maximize profit and get more funds through their investment.
Checking for the volatility of a particular token can be a challenging task but one which can be handed with attentiveness to some basic details in the crypto market.
- To check for volatility, users can identify the number of holders and the increase in the number of investors, as this affects the crypto price at a particular time.
- Another way to calculate the volatility of a token is to check the percentage surge of the coin on top platforms like CoinMarketCap, as this also affects the volatility of a particular token.
- To check volatility, it is also important to note the coin’s strength in the coin market at that particular time, as this determines the spike in the price of the coin or its dip in the coin market.
How to pick a crypto coin for day trading
The first decision one must make to pick coins with high volatility and liquidity. If you’re not day trading Bitcoin, the most liquid coin available, and you like altcoins, look for coins with high liquidity and volatility.
Top 10 Most Volatile Cryptocurrency for Day Trading On Binance
Here are the top 10 most volatile cryptos for day trading on the Binance crypto trading and exchange platform:
#1. Ethereum (ETH)
After Bitcoin, Ethereum has been in use for three years and is the second most traded currency. ERC-20 is a decentralized platform, currency, and token.
Ethereum enables programmers to create D.A.s and smart contracts (DApps). These attributes encourage transaction privacy and deter fraud and downtime.
Ethereum claims that anything can be codified, decentralized, secure, and exchanged using their platform. The market value of the platform is $21.4 billion, and each coin is worth $207.95.
#2. Ripple (XRP)
Ripple is a global decentralized payment system backed by central banks. Ripple provides users all over the world with fast, secure payments.
The platform was founded in 2012 in order to facilitate real-time cross-border bank transfers.
Ripple’s XRP, unlike Ethereum, Bitcoin, and Litecoin, cannot be mined. Ripple believes that distributing value brings out the best in both people and businesses.
They want to distribute XRP to those who offer rigid payment methods so that they can enjoy faster, safer international payments. Ripple has a $21 billion market cap and a coin price of $0.524308.
#3. Bitcoin (BTC)
Bitcoin, the first cryptocurrency, was created in 2009 and dominated all others. Review of the Bitcoin Revolution The coin has a market capitalization of $110 billion and is the most traded worldwide.
Volatile currencies enable traders to profit from price increases. Many traders prefer Bitcoin trading due to its volatility.
Bitcoin’s volatility is influenced by technology, news, and other factors. When triggers occur, coin prices fluctuate, benefiting traders. Keep an eye out for both positive and negative blockchain developments to avoid entering or exiting the market too soon or too late.
#4. Stellar (XLM)
Stellar (CRYPTO: XLM) is a decentralized open-source payment network. It makes use of blockchain technology to allow users to transfer funds quickly and cheaply.
The payments network does not favor any particular national currency; instead, it has its own native cryptocurrency, Stellar Lumens.
#5. Bitcoin Cash (BCH)
Bitcoin Cash is a cryptocurrency that is a Bitcoin fork. Bitcoin Cash is a cryptocurrency that was created in 2017. Bitcoin Cash was further divided into 2 cryptocurrencies in November 2018: Bitcoin Cash and Bitcoin SV.
#6. Solana (SOL)
Solana (CRYPTO: SOL) is a blockchain platform known for its efficiency and speed. SOL tokens are the company’s native cryptocurrency, and they are used to pay transaction fees.
Solana has grown to become one of the world’s largest cryptocurrencies since its inception in 2017.
#7. Dogecoin (DOGE)
Dogecoin (DOGE) is a cryptocurrency that is based on the popular “doge” Internet meme and features a Shiba Inu as its logo.
Billy Markus of Portland, Oregon, and Jackson Palmer of Sydney, Australia, created the open-source digital currency, which forked from Litecoin in December 2013.
Dogecoin’s creators envisioned it as a fun, lighthearted cryptocurrency that would appeal to people outside of the core Bitcoin audience because it was based on a dog meme.
Tesla CEO Elon Musk stated on several occasions on social media that Dogecoin is his favorite cryptocurrency.
#8. Litecoin (LTC)
One of the first cryptocurrencies, launched in 2011. The money was created by Charlie Lee, a Google and MIT graduate. On a global open-source network, LTC uses “script,” a password key generation tool.
Because Litecoin generates blocks faster than Bitcoin, transaction processing is more efficient. Litecoin is widely accepted by retailers worldwide, has a market value of $2.9 billion, and its coins are currently selling for $50.56.
#9. Shiba Inu (SHIB)
Shiba Inu token is a decentralized cryptocurrency created by an anonymous person or group known as “Ryoshi” in August 2020. Shiba Inu is an Ethereum-based altcoin that is similar to Dogecoin and features the Shiba Inu hunting dog as its mascot.
#10. Ethereum Classic (ETC)
Ethereum Classic is a fork of Ethereum (ETH) that began in July 2016. Its primary function/aim is as a smart contract network capable of hosting and supporting decentralized applications (DApps). ETC is its native token.
Since its inception, Ethereum Classic has attempted to distinguish itself from Ethereum, with the two networks’ technical roadmaps diverging further and further apart over time.
After a major hacking event resulted in the theft of 3.6 million ETH, Ethereum Classic set out to preserve the integrity of the existing Ethereum blockchain.
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Conclusion
Volatility is a term that Day traders of cryptocurrency need to understand before trading some cryptos and tokens. This will help them make the best decision on which coins they can use for Day trading.
What are your thoughts on the most volatile cryptocurrency for day trading on the Binance platform? Share your views and opinion in the comment section.
FAQS
Is Binance coin good for day trading?
Binance coin has grown to become the 3rd-largest coin on the market and is supported by Binance, the largest crypto exchange available. Binance coin is a safe investment for day trading due to Binance’s dominance in the global crypto market.
Which crypto can go 1000x?
Litecoin and Matic Are Saturated Cryptocurrencies, but Bitgert has a 1000x potential.
Which crypto has the most volatility?
Ethereum, the second largest cryptocurrency by market capitalization after Bitcoin, is the most volatile cryptocurrency at the start of 2022.
Do you need 25k to day trade crypto?
However, FINRA does not regulate cryptocurrency. When it comes to cryptocurrency, one can absolutely day trade with less than $25,000 in their portfolio to begin or in the long term.
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About Author
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Christopher is a highly skilled writer who possesses a deep understanding of the interplay between financial markets and technology. His goal in writing is to deliver expert analysis through written content that is easy for readers to comprehend.
With a keen interest in cryptocurrencies and the blockchain industry, he has been among the earliest contributors to the Coin Decimal Crypto Blog.
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