One of the hardest parts about cryptocurrency trading is knowing when you should be trading and when you should be sitting in cash. Understanding what a high-quality setup is a key to knowing when you should be trading or not. To find the best setups in cryptos, you need to find cryptocurrencies with volume, range, and an obvious trend. 99% of cryptocurrencies are not worth physical and mental capital. Here are key characteristics of the best cryptocurrencies to trade and how to find them.
How I Find The Best Cryptos To Trade
How I find cryptocurrencies to trade is very simple. I use a scanner from Tradingview that shows me the biggest gainers and losers on the day. You can see the exact scanner I use in this video:
No matter what kind of asset you are trading, you need to have a big enough range to give you something worth capitalizing on. As swing and day traders we need cryptos that have the potential to give us big percentage returns in a short period of time.
There is no edge trading a cryptocurrency stuck in a range. You need a clear trend to join in order to have conviction behind the capital you are putting to risk. An obvious trend would be defined as a clear series of higher highs and lows, or lower highs and lows.
Now is a great time to be trading cryptos, with Bitcoin and most altcoins in strong uptrends. Dips and flushes should be viewed as buying opportunities. This is one of the best periods to be trading cryptos since 2017.
You need to be trading liquid cryptocurrencies. If you are trading something too illiquid, you risk taking a much bigger than intended loss due to slippage. You do not want to be trading a market that can be moved a huge amount by just one order. There are many very illiquid cryptocurrency investments out there so you should not look to trade any cryptocurrency that is trading less than $1,000,000 worth of volume every 24 hours.
Start Banking on Cryptocurrencies
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