BNB -1.99%
$598.94
BTC -3.46%
$67,810.67
DOGE -4.84%
$0.16
ETH -2.89%
$3,825.94
PEPE -4.78%
$0.000015
XRP -2.17%
$0.52
SHIB 0.39%
$0.000025
SOL -3.22%
$166.42
$DOGEVERSE
presale is live

8 Best Cryptos to Day Trade in May 2024

Kane Pepi
Kane Pepi | Verified by Medb Kiely-Cuddy
Last updated: | 24 min read

Crypto is one of the best markets for day trading. Billions of dollars worth of crypto is traded daily, meaning high volumes, strong liquidity, and plenty of volatility. But what is the best crypto to day trade in May 2024?

In this guide, we explore the most suitable cryptocurrencies for beginners and experienced pros alike. We also explain how to get started with crypto day trading and what factors to consider when choosing a platform.

Summary: Best Crypto to Day Trade


Coin Market Cap 24 Hour Price Change
Bitcoin $1.37 trillion +0.77%%
Ethereum $458 billion +0.65%%
Solana $79.2 billion +2.55%%
Chainlink $9.76 billion +8.33%%
BNB $90.3 billion +0.16%%
Dogecoin $24.0 billion +0.36%%
XRP $29.1 billion +0.60%%
dogwifhat $3.04 billion +12.07%%

What Is Crypto Day Trading?


Crypto day trading is buying and selling cryptocurrencies within a single day to profit from price changes. Traders use technical analysis, market news, and price volatility to make rapid decisions and capitalize on small price fluctuations.

For example, a trader might buy Bitcoin at $60,000 and sell at $62,000 later that day, making a 3.33% profit. This way to make money with cryptocurrency contrasts with long-term investing, where assets are held for months or years.

Volatility creates opportunity for profit. However, it also means day trading is high-risk. Most new traders lose money due to poor risk management. In fact, at least 80% fail in the first year. Successful traders often have over 10 years of experience and a deep understanding of the markets.

In summary, crypto day trading involves rapid buying and selling of cryptocurrencies within a day to profit from short-term price movements. It can be lucrative, but is risky and requires significant experience and knowledge.

Best Crypto for Day Trading Reviewed – A Closer Look

We’ll now take a closer look at the day trading crypto markets listed above. Key factors to discuss include market capitalization, trading volumes, price performance, and volatility.

1. Bitcoin (BTC) — Best for High-Volume Trading

Bitcoin is the best crypto for high-volume trading due to its lower volatility and high liquidity. Compared to smaller cryptocurrencies, Bitcoin has more stable price movements, making high-volume trading necessary for significant profits. It offers tight spreads and minimal slippage, crucial for day trading.

  • Price as of May 28, 2024: $69,274.75
  • Market Cap: $1.37 trillion
  • All-time high: $73,628.40
  • Price change last 24 hours: +0.77%
  • Bitcoin price has decreased in the last week with a change of -2.05%

Why Bitcoin made it onto our list:

Bitcoin is the de facto crypto of choice. It’s the original crypto and the largest by valuation. To offer some insight, Bitcoin has a market capitalization of $1.37 trillion — meaning it’s worth more than most S&P 500 companies. Over $32 billion worth of Bitcoin was traded in the last 24 hours.

Bitcoin is listed on most crypto exchanges, allowing you to secure the lowest fees and the tightest spreads. These factors are crucial when day trading crypto. In addition, Bitcoin benefits from significant liquidity. This ensures day traders can easily enter and exit positions without having capital tied up.

In addition to being the best for high-volume trading, Bitcoin is the best crypto to trade for beginners. It’s still volatile when compared to traditional assets, but much less than other cryptocurrencies. Most day traders opt for the BTC/USD pair, although BTC/USDT works the same.

Pros

  • High liquidity ensures quick transactions
  • Stable price movements aid trend prediction
  • Tight spreads reduce trading costs
  • Widely available on major exchanges
  • Established market position supports reliability

Cons

  • Lower volatility limits short-term gains
  • High competition from numerous traders

Day Trade BTC

2. Ethereum (ETH) — Best for High Activity

Ethereum is the best for high activity due to its frequent and volatile price movements. Compared to Bitcoin, Ethereum often has higher intraday volatility, providing more trading opportunities. Its active ecosystem includes DeFi and NFTs, which contribute to significant daily trading volumes.

  • Price as of May 28, 2024: $3,847.28
  • Market Cap: $458 billion
  • All-time high: $4,867.17
  • Price change last 24 hours: +0.65%
  • Ethereum price has increased in the last week with a change of +5.36%

Why Ethereum made it onto our list:

Ethereum has a mega-cap valuation of $458 billion and high trading activity. This means its price volatility is lower than most other coins, but larger than Bitcoin’s, providing more opportunities for day traders. More than $27 billion worth of Ethereum has been traded in the past 24 hours.

Ethereum tends to do well during altcoin season, considering that thousands of projects operate on its network, since investors need ETH to buy ERC-20 tokens. Ethereum trades on all major exchanges. While most traders opt for the ETH/USD pair, crypto-crosses are also worth considering. For example, you can trade ETH against BTC, SOL, and BNB.

Pros

  • High intraday volatility creates opportunities
  • Active ecosystem boosts trading volume
  • Frequent price movements enable profits
  • Listed on all major exchanges

Cons

  • Higher fees compared to some cryptos
  • Frequent network congestion during peaks

Day Trade ETH

3. Solana (SOL) — Best for Speed and Low Transaction Costs

Solana excels in speed and low transaction costs due to its high-performance blockchain. It can process over 65,000 transactions per second with minimal fees, often costing less than $0.01. This enhances trading efficiency — traders benefit from reduced latency and lower costs, allowing for more frequent trades and better profit margins.

  • Price as of May 28, 2024: $169.60
  • Market Cap: $79.2 billion
  • All-time high: $259.52
  • Price change last 24 hours: +2.55%
  • Solana price has decreased in the last week with a change of -8.83%

Why Solana made it onto our list:

Solana is one of the best-performing cryptocurrencies, having increased by over 750% in the prior year. The network has benefited from the Solana meme coin craze, where the likes of dogwifhat, Myro, BOOK OF MEMES, and Bonk have seen unprecedented growth. Long-term traders have enjoyed a prosperous 2024, with Solana outperforming most large-cap cryptocurrencies.

However, there are also opportunities for short-term plays with Solana often witnessing high volatility. With a market cap of $79.2 billion, there are no issues with liquidity. More than $4 billion worth of Solana was traded in the prior day, giving Solana a volume/market capitalization ratio of just over 5%.

Pros

  • Extremely fast transaction processing speed
  • Very low transaction fees per trade
  • Significant liquidity ensures easy trading
  • Frequent volatility offers trading opportunities

Cons

  • Network outages during high activity

Day Trade SOL

4. Chainlink (LINK) — Best for Oracle-Based Trading

Chainlink is the best for oracle-based trading due to its reliable decentralized oracle network. It connects smart contracts with real-world data, ensuring accurate and timely information. Traders benefit from precise data feeds, reducing risks in automated trading strategies, which become more responsive to external events and market conditions.

  • Price as of May 28, 2024: $18.45
  • Market Cap: $9.76 billion
  • All-time high: $52.89
  • Price change last 24 hours: +8.33%
  • Chainlink price has increased in the last week with a change of +6.50%

Why Chainlink made it onto our list:

Chainlink helps decentralized applications obtain reliable, real-time data from outside of the blockchain ecosystem. Its native token, LINK, has real-world use cases, making it a staple asset for many crypto investors. It’s an established crypto with a market capitalization of $9.76 billion. Chainlink isn’t as volatile as other mid-range tokens, making it a good option for day traders with a lower risk tolerance.

This token trades on the best crypto exchanges. More than $510 million worth of LINK has changed hands in the prior day. This amounts to 5.21% of Chainlink’s valuation. Chainlink also trades on leading derivatives platforms. This invites short-selling and leverage. MEXC, for instance, offers 200x leverage of LINK/USDT perpetuals.

Pros

  • Reliable decentralized oracle network
  • Precise data feeds reduce trading risks
  • Responsive to external market conditions
  • High trading volume enhances liquidity
  • Available on major trading platforms

Cons

  • Not as volatile as other tokens
  • Potentially higher fees on some platforms

Day Trade LINK

5. Binance Coin (BNB) — Best for Day Trading on Binance

Binance Coin is the native token of the Binance exchange. Using BNB for trading fees on Binance grants users a 25% discount, reducing trading costs. BNB’s high liquidity on the platform ensures quick order execution and minimal slippage. Compared to other tokens, BNB offers better integration and benefits on Binance.

  • Price as of May 28, 2024: $602.48
  • Market Cap: $90.3 billion
  • All-time high: $689.33
  • Price change last 24 hours: +0.16%
  • BNB price has increased in the last week with a change of +0.80%

Why BNB made it onto our list:

BNB offers exposure to Binance, the leading crypto exchange for volume, liquidity, and account holders. News released by mainstream media outlets can have a major impact on BNB’s value. This is ideal for crypto day traders, especially those who prefer fundamental over technical analysis.

BNB can witness enhanced volatility, but trading volumes are sufficient nonetheless. Over the past 24 hours, more than $2 billion worth of BNB has been traded. This amounts to over 2.4% of its $90.3 billion market capitalization. Unfortunately, BNB isn’t traded on some tier-one exchanges, including Coinbase and Kraken.

Pros

  • Better integration on Binance platform
  • 25% discount on Binance trading fees
  • Sufficient trading volumes support liquidity
  • High liquidity ensures quick execution

Cons

  • Not listed on some major exchanges

Day Trade BNB

6. Dogecoin (DOGE) — Best for Community-Driven Volatility

Dogecoin is best for community-driven volatility due to its active and influential online community. Social media trends often cause significant price swings, creating numerous trading opportunities. For example, in early 2021, Dogecoin’s price surged 800% in 24 hours due to coordinated community actions. Traders benefit from frequent price movements, allowing for profitable short-term trades.

  • Price as of May 28, 2024: $0.167
  • Market Cap: $24 billion
  • All-time high: $0.738
  • Price change last 24 hours: +0.36%
  • Dogecoin price has increased in the last week with a change of +2.14%

Why Dogecoin made it onto our list:

For many, Dogecoin is the best crypto to day trade. For a start, Dogecoin has a solid market capitalization of $24 billion, so there are no issues with liquidity. What’s more, over $1.7 billion worth of DOGE was day traded over the prior day. At just over 7%, this offers one of the highest volume/market capitalization ratios in the market.

Dogecoin is also a fan favorite for traders who seek high volatility. It’s considerably more volatile than other large-caps, which invites trading opportunities throughout the day. Dogecoin’s price is heavily influenced by real-world events, such as Elon Musk’s tweets and general meme coin sentiment.

Pros

  • Active community drives price volatility
  • Influenced by social media trends
  • Frequent price movements create opportunities
  • High liquidity supports large trades

Cons

  • Highly susceptible to market speculation

Day Trade DOGE

7. Ripple (XRP) — Best for News Trading

XRP is the native crypto coin of the Ripple network and the best for news trading. XRP is particularly susceptible to legal and market developments, especially concerning US regulation. Significant news events, like the SEC lawsuit, cause rapid price movements. Traders benefit from predictable volatility, allowing quick profits from news-driven price changes.

  • Price as of May 28, 2024: $0.533
  • Market Cap: $29.1 billion
  • All-time high: $3.92
  • Price change last 24 hours: +0.60%
  • XRP price has decreased in the last week with a change of -0.42%

Why XRP made it onto our list:

XRP is a top choice for crypto day trading. More than $1.6 billion worth of XRP has been traded in the prior day. Based on a valuation of $29.1 billion, this means XRP has a volume/market capitalization ratio of almost 5%.

Due to its sensitivity to regulatory updates and legal news, XRP often experiences increased volatility, which is why it’s favored by speculative day traders. For instance, XRP has monthly lows and highs of $0.4802 and $0.5689, respectively. Although many cryptocurrencies have recovered a large percentage of bear cycle losses, XRP trades 86% below its all-time high of $3.84.

Pros

  • Susceptible to news-driven price movements
  • Predictable volatility enhances trading opportunities
  • Potential quick profits from regulatory updates
  • High trading volume supports liquidity

Cons

  • Stalled and failed transactions during peaks

Day Trade XRP

8. Dogwifhat (WIF) — Best for Meme Coin Volatility

Launched in late 2023, dogwifhat is one of the newest cryptocurrencies to day trade. Even so, dogwifhat has a market capitalization of over $3 billion. This popular Solana meme coin continues to offer volatile trading conditions.

  • Price as of May 28, 2024: $3.38
  • Market Cap: $3.04 billion
  • All-time high: $4.80
  • Price change last 24 hours: +12.07%
  • Dogwifhat price has increased in the last week with a change of +20.67%

Why dogwifhat made it onto our list:

Dogwifhat is one of the best Solana meme coins. It offers no use cases and doesn’t have a whitepaper. Still, since being listed on CoinMarketCap in late 2023, dogwifhat has increased by over 1,600%. While it now boasts a multi-billion dollar valuation, dogwifhat is still highly volatile.

We’ve seen regular 24-hour price movements of over 20%. This shows it’s one of the most volatile cryptos for day trading, providing opportunities for day traders. More than $1.3 billion worth of WIF has been traded in the prior day. This converts to a volume/market capitalization ratio of over 46%, showing high liquidity. Dogwifhat trades on most other tier-one exchanges.

Pros

  • Extreme volatility creates trading opportunities
  • Regular 24-hour price movements over 20%
  • High liquidity ensures easy transactions
  • Popular on major tier-one exchanges

Cons

  • High risk due to extreme volatility
  • Lack of fundamental value and use cases

Our Methodology: How to Pick Crypto for Day Trading

We employed a methodology when choosing the best crypto to day trade. We considered the most important factors to day traders, such as volume, liquidity, and volatility. Let’s take a closer look at our ranking system.

High Volatility (30%)

We’ve established that cryptocurrencies are considerably more volatile than traditional trading markets, such as forex and stocks. However, depending on the crypto pair, there can be a huge disparity in volatility levels. Naturally, volatility is an important factor when day trading. After all, day traders profit from pricing swings.

However, the required volatility range will depend on your skill set and appetite for risk. For example, if you’re day trading crypto as a beginner, it could be wise to focus on the two mega-caps: Bitcoin and Ethereum. These markets are typically less volatile than other cryptocurrencies due to having larget market caps.

That said, if you’re looking to increase the risk spectrum, you might want to trade more volatile cryptocurrencies. In this instance, you might consider meme coins like Dogecoin and dogwifhat. For even more volatility, you’ll need to explore small-cap tokens. These can rise and fall sharply over a very short period of time, so are best left to experienced traders.

Level of Liquidity (25%)

Liquidity should always be considered when assessing the best cryptocurrency to day trade. Large-cap projects like Bitcoin, Ethereum, Solana, and BNB command significant liquidity on hundreds of exchanges. This means day traders can easily enter and exit positions. Even with leverage, your day trading orders are unlikely to make any impact on these cryptocurrencies.

In contrast, small-cap cryptocurrencies often have weak liquidity levels. This is often because they’re new projects, meaning there’s not enough capital flowing through the markets. This can be problematic when crypto day trading. For a start, trading low-liquid pairs means that high slippage is unavoidable.

Put simply, high slippage means your day trading order can have a substantial impact on the token price. This is more of an issue when cashing out, as you’d need to accept an unfavorable price to get your orders matched. All that said, some day traders are happy to accept high slippage, considering the best micro-cap cryptos can offer rapid returns.

Where can I check exchange trading volumes?

  • CoinMarketCap is the best place to check daily trading volumes.
  • First, search for the crypto you want to day trade.
  • Then, click on the ‘Markets’ button.
  • You’ll now see a list of exchanges sorted by the trading volume.

Exchange Listings (25%)

So far, we’ve explained the importance of volatility and liquidity when picking the best crypto to trade daily. In addition, exchange listings will also impact your ability to make money.

Consider large-cap cryptocurrencies like Bitcoin, Ethereum, Dogecoin, and Solana. These coins are listed on virtually all exchanges, whether that’s eToro, Coinbase, Binance, Kraken, or MEXC. These tier-one exchanges have millions of active traders and attract billions of dollars in daily volume. This means tier-one platforms are highly conducive for crypto day trading.

Biggest crypto exchanges

However, this isn’t always the case with newer, small-cap tokens. For example, new cryptocurrencies often launch on decentralized exchanges (DEXs). This is because they have a limited track record, so are rarely listed by established, centralized platforms. DEXs attract small trading volumes, meaning weak liquidity and increased volatility.

In addition, DEXs aren’t the most suitable platforms for day trading. They lack advanced charting tools like technical indicators. Plus, there are no order books on decentralized exchanges, as they use the automated market maker (AMM) model. Therefore, crypto day trading is more suitable for large centralized exchanges.

Auditing and Track Record (20%)

This section is relevant to day traders who seek volatile, smaller-cap tokens. In a nutshell, the majority of token launches are scams. Anyone can create a token and list it on a decentralized exchange — no authorization or approval is needed. After listing, a common scam is to withdraw the entire liquidity pool from the exchange.

This means day traders are unable to sell their tokens, as there isn’t any liquidity left. The simple solution is to stick with tokens that have locked liquidity pools. You can check this by pasting the contract address into DexScreener. If the liquidity tab has a lock icon, this means it can’t be withdrawn.

However, the lock might only be temporary, so further checks should be made. In addition, make sure the smart contract has been audited. This reduces the risk of a rug pull, as audits ensure there aren’t any vulnerabilities in the code. An even safer option is to trade tokens that have had the smart contract renounced. This prevents the developer from changing the smart contract.

Is Crypto Good for Day Trading?

Crypto is one of the best asset classes for day traders. Here’s why:

  • 24/7 Trading: Unlike traditional financial markets, crypto is traded 24 hours per day, 7 days per week. This means no matter where you’re based, there are always day trading opportunities.
  • Large Volumes: The crypto markets attract huge trading volumes. For instance, more than $100 billion has been traded in the prior 24 hours. This ensures smooth trading conditions for day traders.
  • Volatility: The crypto markets are a lot more volatile than forex, stocks, and other traditional assets. This is ideal for day traders, as constant pricing swings mean there’s plenty of profit-making opportunities.
  • Market Diversity: There are thousands of tradable crypto pairs, ranging from mega-caps to small-caps. This means that day traders always have something to trade.
  • Low Pricing: The leading crypto exchanges offer low trading commissions. This is often just 0.1% of the position size. This is crucial, as crypto day traders often target small profit margins.

How to Start Day Trading Crypto: Step-by-Step

This section will help you get started as a crypto day trader. We explain the core steps required in simple terms. Read on to start day trading crypto in under 10 minutes.

To learn more about crypto day trading, read our guides on the best crypto courses for trading and best crypto tools for research and analysis.

1. Choose a Suitable Crypto to Day Trade

First, consider the best cryptos to day trade. If you’re a beginner, it’s best to stick with large-cap coins like Bitcoin and Ethereum.

These can be traded against USD or USDT on most exchanges. More experienced day traders might dip their toes in small-cap tokens.

2. Select a Crypto Day Trading Strategy

You’ll only make money as a day trader if you have a suitable strategy. Our suggestion is to hone in on one strategy rather than trying to master several.

how to day trade crypto

Some of the best crypto day trading strategies include:

  • Breakout Strategy: This strategy looks for key support and resistance zones. Once identified, you can enter a buy position just above the resistance level. If the chart breaks out bullish, you’ll be well positioned. Additionally, add a sell position just below the support zone. If support is broken, you’re also well positioned.
  • Fundamental Strategy: While less common in the day trading space, beginners might prefer a fundamental strategy. This means entering positions based on real-world news. Crypto developments happen throughout the day, so there’s always something to trade. For instance, if the SEC announces that it’s approved Ethereum ETFs, you can expect the price of ETH to rise.
  • Arbitrage Strategy: This is a low-risk strategy that capitalizes on price discrepancies. For instance, suppose XRP is priced at $0.60 on one exchange and $0.61 on another. You could make a risk-free return by purchasing XRP on the lower-priced exchange and then selling it on the other. However, without the assistance of AI trading bots, arbitrage trading can be challenging.
  • RSI Strategy: RSI trading is another crypto day trading strategy for beginners. This technical indicator runs from 1 to 100. It shows whether a crypto pair is overbought (over 70) or oversold (under 30). This often signals a near-term market correction, meaning you can enter risk-averse positions accordingly.

3. Open Accounts on Crypto Exchanges

The next step is to open an account with one of the best crypto exchanges for day trading. First, you’ll need to ensure the exchange supports your preferred crypto. Next, it should meet some minimum requirements.

For instance, the exchange should offer a safe trading experience, plenty of volume, and low fees. This will ensure you’re day trading crypto in suitable conditions.

Some exchanges enable you to open an account with an email address only. However, it’s best to complete the Know-Your-Customer (KYC) process. This will enable you to deposit fiat money. Verified accounts also benefit from higher withdrawal limits.

4. Create a Buy or Sell Limit Order

Once you’ve opened an account and made a deposit, you can place your first day trade. Search for the crypto that you want to trade and choose between a buy or sell order:

  • Buy Order: If you believe the crypto pair will increase in value
  • Sell Order: If you believe the crypto pair will decrease in value

Next, you’ll need to choose between a market or limit order. We’d suggest a limit order if you’re day trading. This is because you can set the entry price.

  • For example, suppose you’re going long on BTC/USD, which is currently priced at $70,000.
  • However, you want to enter the market when it dips to $69,500.
  • Simply set the limit order price to $69,500.
  • If BTC/USD touches this price, the limit order will be matched by the markets.
  • If not, the limit order will remain pending.

5. Set Up Stop-Loss and Take Profit Orders

Before confirming a trade, it’s crucial to set up a stop-loss and take-profit order. While not mandatory, these orders ensure you’re trading with risk management in mind.

  • Stop-Loss Order: This determines when a losing position should be closed automatically. For instance, suppose you’re placing a buy order at $10. You don’t want to lose more than 5%, so your stop-loss should be placed at $9.50.
  • Take-Profit Order: You should also set a take-profit target. Let’s say you want to make 10%. Based on a $10 entry price, your take-profit should be set at $11.

Finally, after reviewing everything, you can place the limit, stop-loss, and take-profit orders.

Conclusion: What Are the Best Cryptos to Day Trade in May 2024?

We’ve explored the best cryptos to day trade in 2024. Beginners are best suited for large caps like Bitcoin, Ethereum, and Solana. These cryptocurrencies are less volatile and command significant liquidity.

Those with a higher appetite for risk might consider a small-cap token like Dogeverse. While Dogeverse is currently raising presale funds, it will be listed on exchanges soon. This will invite extreme volatility, which some day traders crave.

Visit Dogeverse

FAQs

What is the best crypto to trade daily?

The best crypto to day trade is Bitcoin. Other high-volume markets to consider include Ethereum, Solana, BNB, and Dogecoin.

How do you pick a crypto to day trade?

Choose a crypto that aligns with your trading strategy and risk tolerance. If you seek volatility, consider a small-cap token. If you want more stable day trading conditions, choose a large-cap like Bitcoin.

What is the most volatile crypto for day trading?

The most volatile cryptocurrencies for day trading are micro-cap tokens. These cryptocurrencies experience considerable volatility, so are only suitable for experienced day traders.

Is day trading crypto a good idea?

Crypto is ideal for day trading, considering the market’s high volume, deep liquidity, and 24/7 access. However, the crypto markets are also volatile, so ensure you have a sensible risk management strategy in place.

References

  1. Thinking of Day Trading? Know the Risks (Investor.gov — SEC)
  2. If You’re Day Trading, You Will Probably Lose Money (Business Insider)
  3. Day Trading Success Rates (Dummies)
  4. Bitcoin shows its volatility once again in steep overnight decline, now back below $70,000 (CNBC)
  5. Memecoin mania drives Solana toward all-time highs (Bloomberg)
  6. Using BNB to Pay for Fees (Binance.US)
  7. Dogecoin: Right Time to Buy Before the Next Explosive Breakout? (Investing.com)
  8. Liquidity and Volatility (Drechsler, Itamar and Moreira, Alan and Savov, Alexi)

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