Over the past few years, cryptocurrency has acquired quite a name across the globe. 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 has projected cryptocurrencies as a feasible alternative to fiat currencies.
Another reason why cryptocurrencies 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 cryptocurrencies for day-trading. So without much ado, let’s take a look at cryptocurrencies that have the potential to become the fastest growing cryptocurrencies 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 several 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 Cryptocurrencies For Day Trading?
Three factors determine the price movement in cryptocurrencies. These are – volatility, volume, and current activity of a coin. In order to determine 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 cryptocurrency. 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 cryptocurrency market would want to bet his money on an asset with upward price volatility. Doing this will ensure that when the asset spikes, you will generate a good profit.
The volume of a cryptocurrency is responsible for determining what kind of activity is happening around it. Volume determines if enough people are buying or selling that cryptocurrency. A higher trading volume indicates that more people are buying and vice versa. Higher volume also makes technical indicators more reliable and reduces the chances of unexpected spikes or dips in prices.
3. 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 the crypto, keeping track of conversations they engage around social media, and watching for any new discussions about cryptocurrency might prove beneficial. This will help you to determine the next cryptocurrency that will explode in India.
Best Cryptocurrencies For Day Trading in India
This brings us to the important part of the discussion. Let’s take a look at the potential crypto assets.
Ethereum is the most popular altcoin in the market. The demand for Ethereum never tends to cease, which is reflected by its exciting price growth in 2021. This is the ruler of the smart contracts and dApps market in the cryptosphere that grew by an astonishing 425% in price the previous year.
Not only this, Ethereum offers good volatility and provides a great opportunity to attain considerable profit quickly. Interestingly, Ethereum stands at the edge of a drastic change in 2022, with the blockchain set to adopt the ETH-2 protocol this year. This is already fueling the volatility of Ethereum in the market owing to cluelessness in the industry regarding the reaction to this adoption. All the more reasons to zero in on Ethereum when looking for cryptocurrencies for day trading!
MATIC is one of the most promising cryptocurrencies of this year. It 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 2022 and even beyond that. In late January 2022, the coin was slowly plummeting.
And this is what makes it a potential fastest-growing cryptocurrency in India! The buzz around Polygon, MATIC’s blockchain, is growing in the wake of Ethereum’s forthcoming 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 became a mainstream cryptocurrency 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 as an ‘Ethereum-killer’ because of its fast transactions and low cost.
This extremely dynamic history makes it a worthy part of the best cryptocurrencies 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 cryptocurrencies to pay for NFT transactions. All this is further boosting Solana’s volatility, making it an excellent cryptocurrency for day trading in India.
#4 Ripple (XRP)
Currently priced at ₹61.89, Ripple is a cheap investment when compared to its other counterparts. Although the coin started dropping in price in 2021, 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 predict that Ripple will continue to plummet in the coming months. This is because of the SEC lawsuit against Ripple and its founders. Rightfully, in the market, it is the investor’s sentiment that determines the price of an asset. The same goes for cryptocurrencies as well. And it is not in Ripple’s support as of yet.
However, experts suggest that things will change by mid-2022. The Ripple team is looking cheerful with their stance against the SEC, and this is already influencing market sentiment. Let’s not forget new agreements with leading banks are the main drivers of Ripple’s cost. For example, in August 2021, India’s largest bank HDFC Bank Limited joined RippleNet. And the banking sector is rallying behind the asset. Ripple might be one of the next potential cryptocurrencies to explode in India.
#5 Binance Coin (BNB)
Binance coin has become the third-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 cryptocurrency, 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 Cryptocurrencies 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 cryptocurrency 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, select the amount and the crypto you would like to invest in. That’s it! It would be best if you read all the policies given on the platform carefully. 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 cryptocurrencies 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 that 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.
Can I Invest In Cryptocurrency?
Yes, with exchanges like WazirX, you may invest in cryptocurrency in India. To begin, go to the WazirX website and register. After that, you will receive a verification email. The link received by verification mail will only be available for a few seconds, so make sure you click it as quickly as possible. This will successfully verify your email address. The following step is to set up security, so choose the best solution for you. After you’ve set up the security, you’ll be given the option of continuing with or without completing the KYC process.
What Is The Safest Cryptocurrency To Invest In?
Bitcoin has had the highest market capitalization, has been around the longest, has the most experienced development team, and has enormous network impact and brand recognition. As a result, while trading cryptocurrencies, the rate of return on Bitcoin is commonly used as a benchmark. However, the risks associated with cryptocurrencies remain, and the safest cryptocurrency for you depends on your analysis.
Is Cryptocurrency Safe To Invest In?
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.
What Are The Best Cryptocurrencies To Invest In?
The best cryptocurrencies to invest in would be the ones you study and analyze in detail. Some of the most popular cryptocurrencies include Bitcoin, Ethereum, and many altcoins such as Tron, Ripple, Litecoin, etc.
Is Mining Cryptocurrency Legal?
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.
Is Ethereum Safe To Invest?
The Bitcoin market is unquestionably more volatile than the stock market. This may not be the market for you if you are incredibly risk-averse. Ethereum, on the other hand, may be a terrific investment for you if you’re a diamond-handed investor who won’t lose sight of short-term losses. Ethereum is a relatively safe investment as it is also based on blockchain.
How To Invest In Cryptocurrency Stocks?
Cryptocurrency can be purchased in two ways: through mining or exchanges. The process of confirming and adding transactions to the blockchain public ledger is known as cryptocurrency mining. Cryptocurrency exchanges are another option. Exchanges make money by charging transaction fees, but there are alternative platforms where you may communicate directly with other cryptocurrency traders.
How Safe Are Cryptocurrencies?
Cryptocurrencies can be safe, but your crypto wallets can be hacked if proper security steps are not performed.There are also dangers and uncertainties associated with investments, and we cannot declare any virtual currency investment risk-free. Buying and selling cryptocurrencies does not have to be dangerous if the trader is well-versed in the market and treats his coins with care.
Is Bitcoin And Cryptocurrency The Same Thing?
Bitcoin is a cryptocurrency that was designed to facilitate cross-border transactions, eliminate government control over transactions, and streamline the entire process without third-party intermediaries. The absence of intermediaries has resulted in a significant reduction in transaction costs. Satoshi Nakamoto, the creator of Bitcoin, created the first cryptocurrency in 2008. It began as open-source software for money transfers. Since then, plenty of cryptocurrencies have emerged, with some focusing on specific fields.
Are Cryptocurrencies A Good Investment?
Cryptocurrency has the potential to make you extremely wealthy, and the potential to cause you to lose your money. Crypto assets, like any other investment, come with many risks and potential rewards. Fundamentally, cryptocurrency is an excellent investment, particularly if you want to gain direct exposure to the demand for digital currency.
Who Invented Cryptocurrency?
Satoshi Nakamoto invented cryptocurrencies and the technology that makes them function in 2009. The presumed pseudonymous individual or persons who invented Bitcoin used this identity. In addition, Nakamoto created the first blockchain database. Even though many people have claimed to be Satoshi Nakamoto, the person’s identity remains unknown.
Are Cryptocurrencies Legal In India?
In India, cryptocurrency is legal, and anyone can buy, sell, and trade it. Because India lacks a regulatory system to regulate its operations, it is presently uncontrolled. According to the Ministry of Corporate Affairs, companies must now document their crypto trading/investments inside the financial year.
Is Pi Cryptocurrency 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.
What Is Virtual Currency?
Virtual currency is a type of uncontrolled digital currency that can only be used online. It is exclusively stored and transacted using designated software, mobile or computer applications, or unique digital wallets, and all transactions are conducted through secure, dedicated networks. Because digital currency is just currency issued by a bank in digital form, virtual currency is not the same as a digital currency. Virtual currency, unlike ordinary money, is based on a trust structure and cannot be issued by a central bank or other banking regulatory organization.
What Is The Meaning Of Crypto?
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.
Which Cryptocurrency Is Best To Invest Now?
Litecoin has an 84 million coin limit and a 12.5 LTC block reward, which is more than other cryptos. Miners will find that mining Litecoin is faster than mining any other cryptocurrency because the average time to mine a Litecoin is under two minutes. Because of its increasing popularity, Litecoin is the best of all the altcoins. At WazirX, the current price of Litecoin is ₹12,410.22.
Which Cryptocurrency Is Best To Invest In 2021?
Many altcoins are flourishing to invest in. Some cryptocurrencies with great potential are Ether, Ripple, Tron, and more. Investors are trying to diversify their portfolios and are flocking to the leading cryptocurrencies. Many growing businesses are already accepting cryptocurrency as acceptable payment methods.
Is Cryptocurrency Banned In India?
No, cryptocurrency is not banned in India. India has seen its ups and downs in the crypto sector concerning its legal status. The Reserve Bank of India (RBI) issued a circular in April 2018 advising all organizations under its jurisdiction not to trade in virtual currencies or provide services to assist anyone in dealing with or settling them. A government committee proposed outlawing all private cryptocurrencies in mid-2019, with up to ten years in prison and severe penalties for anyone dealing in digital currency. The Supreme Court overruled the RBI’s circular in March 2020, allowing banks to undertake cryptocurrency transactions from dealers and exchanges.
What Is Crypto?
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.
Is Crypto Legal In India?
Cryptocurrencies are legal in India, and anyone can purchase, sell, and exchange them. It is currently uncontrolled, as India lacks a regulatory structure to oversee its operations. Per the Ministry of Corporate Affairs, companies must now record their crypto trading/investments within the financial year. In cases where a person receiving the gains is an Indian tax resident, or the cryptocurrency is regarded as domiciled in India, cryptocurrency transactions have been taxable in India
How Many Cryptocurrencies Are There?
There are over 5000 other digital currencies available on the internet in addition to Bitcoins. The only problem is that they haven’t gotten the users’ attention. Besides Bitcoins, a few other digital currencies have gained popularity among users. It’s been more than ten years since Bitcoins were first released, and now they’ve achieved new heights thanks to their phenomenal success.
How To Invest In Cryptocurrency In India?
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.
How Cryptocurrency Works?
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.
How To Invest In Cryptocurrency?
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.
Is Cryptocurrency Legal In India?
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
What Is Cryptocurrency?
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.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn’t represent any investment advice or WazirX’s official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.