Day trading is the most popular crypto trading style that many institutional investors and individual traders use to profit from Bitcoin. Crypto markets remain open 24/7, allowing traders to maximize profits every day. Day traders acquire and exit positions at the close of the day, taking advantage of more immediate profit-making opportunities. Opening and closing several positions during the day increase the chances of profitability. Major crypto exchange platforms like bitcoin circuit app provide statistics on how Bitcoin compares to other cryptocurrencies in terms of trading volumes to help traders make informed decisions.
Several people earn huge profits from day trading, and Bitcoin is undoubtedly the crypto reserve currency that most investors and traders put their money on first. While traders also get involved with other cryptocurrencies to maximize profitability and reduce risks, Bitcoin boasts extensive trading volumes on major crypto exchanges. Nevertheless, there are various reasons why Bitcoin is the best crypto for day trading. Here’s why you should consider Bitcoin for day trading crypto.
Higher Trading Volume
Trading volume is one of the vital cryptocurrency metrics to consider when choosing the most profitable virtual currency to trade. An asset’s trading volume helps to determine its future trends. Besides, crypto exchanges and other trading platforms usually provide statistics to enable you to track an asset’s rate in the last 24 hours, a week, or even a month. That could allow you to figure out its price movements.
Although various cryptocurrencies have gained significant value in recent years, Bitcoin still tops the list. As of February 2022, Bitcoin has the highest trading volume of about $35.54 billion. Ethereum, Tether, and USD Coin trail behind with lower trading volumes. Bitcoin’s higher trading volumes indicate good support and investor confidence to push its prices higher.
However, the gap in trading volume is usually small, and the list changes constantly. So, you may want to check those changes too when day trading Bitcoin.
Liquidity is the ability of an asset to be sold for fiat or other virtual currencies. It is crucial since it provides the opportunity to open and close every position in a short duration, allowing day traders to maximize profits. Besides, assets with high liquidity guarantee fair prices. Bitcoin’s high trading volumes mean investors will establish competitive prices, giving traders favourable positions. It will also ensure prices do not swing very often, limiting traders’ risk exposure.
Better Public Perception
Cryptocurrencies are highly volatile assets with constant price fluctuations, and the public’s perceptions are the critical determinants of crypto price movements. Investor sentiments, crypto news, and events often shape public perceptions. Negative public perceptions impact uncertainty, driving asset prices lower. Alternatively, positive perceptions strengthen investor confidence, allowing an asset to gain value.
Bitcoin mainly experiences criticisms over its high volatility and regulatory pressures. However, those are industry-wide issues that other cryptocurrencies also face. Bitcoin currently enjoys a much better public perception than other virtual currencies and has the largest market cap and highest adoption rates. Bitcoin also boasts the most significant number of crypto users worldwide, indicating its stronger market position.
Bitcoin’s favourable public perception means prices will become more stable without limiting profit-making opportunities for day traders. However, stay up-to-date on the entire crypto market news and developments.
Reliable Customer Support
Even savvy day traders require help from time to time. That is why you should also choose a cryptocurrency with an active and reliable customer support team. All cryptocurrencies strive to deliver better customer support, but most have failed. Bitcoin guarantees fast and seamless customer support, exposing you to fewer risks when day trading.
Day trading Bitcoin is a great way to make quick profits with crypto. Unlike other cryptocurrencies, Bitcoin has higher trading volumes, more liquidity, and a favourable public perception.