You can see different types of traders entering the cryptocurrency market today. Some want to stay in this market for a long time to see where it goes. On the other hand, some people just want to benefit from the volatility of this market. If you look at the charts of various digital coins, you will realize that they can move pretty fast in any direction. They can rise in value significantly within minutes and hours.
At the same time, they require just the same number of hours to come back down or even lower than their actual start of the day price.
So, what is the best crypto coin for short term investment? Let’s find out.
Before Choosing the Best Crypto Coin for Short Term Investment
There are some considerations you have to make before you pick a digital coin for your short-term gains.
· The Volatility of the Crypto Coin
Short-term investments should be all about volatility. The more volatile a crypto coin is the more benefit you can gain in less time. Think about it, if a cryptocurrency is moving steadily at a particular price, what will you gain from it if you invested a few hundred dollars in it? Yes, minor price movements are always happening but they will not produce profits that you expect. You cannot keep on going with small profits because that does not make you rich. If you want significant results, you have to pick a cryptocurrency that shows a lot of volatility. Of course, more volatility means more risk as well.
However, you have to prepare to take this risk because you can’t really make any money until you do that. So, when you look at the cryptocurrency market, you have to pick cryptocurrencies that have the highest volatility.
· The Value of the Crypto Coin
This is yet another important point that you have to consider before you put your hard-earned cash on the line for trading cryptocurrencies. You have to look at the value of the crypto coin before you buy or sell it for profitable gains. Why do you have to look at the value? Well, because it is the value that is going to benefit you in short-term spurts.
If cryptocurrency has a very small value, you will have to buy tons of it to make any significant profits on your trades. Even if it moves up or down by several points, you will not benefit much because of a very small value.
The only way for you to make money from such a digital coin is investing too much money. You have to buy a lot of units of the digital coin so the small profit on every coin multiplies eventually to produce a big gain. On the other hand, if you pick a digital currency with a huge value, you will benefit a lot by even the smallest movements in its price.
· The Market Sentiment
To know this particular factor, you will have to use some tools. You cannot know the market sentiment yourself. You will have to use certain tools that are designed to tell you what the market as a whole thinking about a particular digital currency. If the market has a negative sentiment, the price of the cryptocurrency will keep going down. In fact, if the developers of the cryptocurrency do not take charge, the price might keep going down until the point the cryptocurrency is not investable for traders anymore. Yes, that has happened to many digital currencies that started out really well.
The Best Cryptocurrency for Short-term Profits – Bitcoin
You just cannot take away this crown from this digital currency. Bitcoin is the first digital currency and the most popular in the world as well. It offers what most other digital coins do not offer or cannot offer even in the coming times. If you look at the metrics that we set for investing in digital coins for short-term gains, you will find out that Bitcoin meets them all. Talk about the value of the digital coin and you will not find any other in the market that has as big of a value as Bitcoin. Just to get an idea, while writing this sentence, the price of one Bitcoin is more than $9500.
Now, think about this value and try to calculate the amount of money you can make from trading Bitcoin even if the price moves just a little in a particular direction. Even the small price movements mean a lot of money when you invest your money in Bitcoin.
In short, you are going to make some huge short-term gains with this digital currency that you cannot make with any other digital coin out there. Yes, Ripple and Ethereum are other huge cryptocurrencies, but their values do not even come near the value of Bitcoin to this day.
Secondly, if you look at the volatility of Bitcoin, you can again find some great spots to make a lot of money. Yes, Bitcoin can go up or down significantly during the course of a day. That movement can be scary at times if you have a lot of money invested in this digital coin.
However, the same movement in the positive direction can turn you from an ordinary person to a millionaire as well. Bitcoin has already turned thousands of people around the world into millionaires in no time – all because of its huge value and a lot of volatility.
Last but not least, you can say that Bitcoin is not the best digital currency in terms of its consensus mechanism. Its environmental footprint might cause it a lot of problem in the coming times. Therefore, it is best that you make some money from this digital currency today.
People might have many gripes with Bitcoin for many reasons, but they cannot take away the short term opportunities that this digital currency creates. Not to mention, you have Bitcoin Cash and Bitcoin SV, and many other currencies that are like children of this digital coin. It will not be wrong to say that Bitcoin makes the cryptocurrency market run today. If you want to make a lot of money in a short time, you should not look elsewhere – Bitcoin is the answer.