Cryptocurrencies present a rare opportunity for prospective investors to achieve incredible returns. Did you know that if you bought Bitcoin in March 2020 and sold it the following year in March 2021, you would have made a 10x profit? You could have put in $1,000 in March and cashed out with $10,000 the following year. Dogecoin had a 2.5x price increase in about a week at the end of February 2024. If you had put $1,000 into Doge on February 24, you could have cashed out about $2,500 on March 4. These are a couple of real-world examples of the quick profits crypto can make. Which crypto to buy for a quick profit? 5thScape could be a real contender for a cryptocurrency that could turn a quick profit. It has significant and robust financial backing and sells at a deep discount compared to its estimated list price.
Here's what you need to know about cryptocurrencies with significant upside potential and some strategies for trading them. Whether you're new to crypto or an experienced buyer looking for something new to hold (or HODL), this list is something you will want to take advantage of right now. Let's dive right into the details!
The Top 5 List of Promising Cryptocurrencies
Let's get into the details of this crucial question without further ado. Please note that nobody can predict the future, and buying anything, including crypto, always carries the risk of loss.
Please remember to invest smartly in different crypto projects. Only invest money you can afford to lose and be wary of scams and the lure of "meme coins." Look at a coin's backing: technology, investment, prospective use cases, and real-world usage (not just what influencers online say). These will give you a clue as to whether a coin is a scam or if it could potentially become a new major player in the market.
At PlasBit, we believe most firmly in Bitcoin. It has proven resilient and has shown its utility within global commerce. Please refrain from construing the list below as guidance or advice. We're including it to show some up-and-coming coins, including some that are solving interesting problems.
With that all said, here's the top five list.
1. 5thScape (5SCAPE)
With over $2.5 million in presale funding, the 5thScape token is looking like it could be a winner.
The idea behind this token is straightforward -you can buy and spend it in the metaverse. Think of this as the token that will unlock premium metaverse experiences, like games, add-ons, movies, etc. It aims to build an ecosystem with hyper-realistic games, VR hardware, and some passive income opportunities (staking). If 5thScape succeeds, it could be the underpinning for a whole new class of experiences.
Presale tokens are heavily discounted compared with the intended listing price. Depending on this token's activity after launch, it could have a massive potential for a quick profit.
2. 99Bitcoins (99BTC)
99BTC is a learn-to-earn token associated with the established crypto education platform 99Bitcoins. You'll earn these tokens when you engage with educational content on the platform.
What's so unique about this token? For starters, it has generated a lot of interest. It has exceeded $1 million in presale funding and has high APY staking rewards.
Plus, it's innovative. Investors are drawn to this unique concept because it could spawn other tokens. The idea that you can earn something of value for learning is an intriguing concept that can expand beyond just 99BTC. It's easy to imagine a workplace offering a token like this. You could encourage employee training rates by providing a token that you could redeem at the company gift shop.
We expect this token to be a big success, and it could be the crypto to get for a quick profit.
3. Binance Coin (BNB)
Binance Coin (BNB, for short) is the native cryptocurrency of the Binance exchange, the world's largest cryptocurrency exchange by trading volume. Initially launched as an ERC-20 token on the Ethereum blockchain, BNB migrated to its own Binance Chain and later to the Binance Smart Chain (BSC), expanding its utility and use cases.
BNB can provide opportunities for quick profits due to its multiple uses and the dynamic nature of the Binance ecosystem. Traders can use BNB to pay for trading fees on the Binance exchange and receive discounts. Naturally, this incentivizes use and increases demand - which is very smart of the Binance team. BNB is also the fuel for the Binance Smart Chain, a blockchain platform for decentralized applications and smart contracts. The growth of the BSC ecosystem, with its popular dApps and DeFi projects, can drive demand for BNB, leading to potential price appreciation.
Furthermore, Binance is even more intelligent. They regularly conduct coin burns, reducing the total supply of BNB and potentially increasing its value. These factors, combined with the overall volatility of the cryptocurrency market, can create opportunities for traders to profit from short-term price fluctuations in BNB.
Combined with some of the trading strategies discussed below, the Binance coin has a significant potential to turn a quick profit.
4. Dogecoin (DOGE)
Created in 2013 as a joke and "meme" coin, Doge has attracted quite a following. That following is undoubtedly partially attributable to its adorable Shiba Inu dog mascot. Another reason Doge has a huge following is its social media hype and celebrity endorsements. Who doesn't remember the days when Elon Musk said he'd go all in on Doge?
Due to its high volatility and strong community support, Dogecoin can turn a quick profit for an astute trader. Its price can fluctuate significantly within short periods, creating opportunities for traders to buy at low prices and sell high. The solid online community surrounding Dogecoin, often called the "Doge Army," can generate hype and FOMO (fear of missing out) sentiment, leading to rapid price increases. Additionally, endorsements from all those influential figures can trigger sudden price surges. If Elon says on X that he loves Doge, expect the price to surge in the minutes and hours after.
It's important to note that Dogecoin's speculative nature and lack of well-defined utility can make it a high-risk investment. However, Doge appears to be here to stay, and many people have made quick profits with this memecoin.
5. Ethereum (ETH)
Last but not least, Ethereum can potentially turn a quick profit. Most people are familiar with Ethereum; however, do not let familiarity make you believe that you cannot make money off this coin. Not every coin with the potential for a quick profit must be obscure!
Ethereum's transition to a more energy-efficient proof-of-stake (PoS) consensus mechanism, known as "The Merge," has reduced its environmental impact and improved scalability, making it more attractive to investors. These events and press releases can result in rapid price movements that drive the cryptocurrency higher.
It's a well-known technology with enough volatility to make a quick profit. Furthermore, the constant enhancements make this crypto a good investment overall - even if it may not turn a profit immediately.
The Risks Associated with Trading Crypto
It should be self-evident that crypto is a fantastic investment for a quick profit. While the cryptocurrencies above are some of the best to invest in, trading cryptocurrencies involves risks. Here are a couple of those risks that all traders should know.
1. Lack of Regulation
For better or for worse, the crypto market is still largely unregulated. As such, prices can swing dramatically, and there aren't many rules against schemes like pump-and-dump, which would be illegal in stocks. Having these dramatic price swings is how you make a quick profit, but it also means it's possible to make a quick loss. Furthermore, unlike stock markets and other asset classes, crypto is available 24/7. If you have an open position, it could look completely different when you wake up the following day.
The lack of regulatory oversight means there are a lot of scams out there. You can combat this by using registered exchanges, like PlasBit, to have the utmost confidence that your investments are safe.
2. Cybersecurity Threats
Hackers and scammers can steal funds using malware, phishing attacks, and fake exchanges. Again, you can reduce most of these risks using a registered crypto exchange, but you cannot eliminate them entirely. Digital currencies can sometimes have the same problems of hacking and other issues that other forms of tech, like your laptop or phone, can have.
Additionally, always ensure you use verified sites and apps when sending or receiving digital currencies, even if you are not trading them. For example, PlasBit is a registered company in Poland that receives regulation and a license to perform activities in the field of virtual currencies from the Polish Ministry of Finance. Do not download random apps and wallets. Consider a hardware wallet if you use multiple currencies and have a lot of money in storage. These wallets are cryptographically secure and inexpensive, especially compared with the danger of hacking an online account.
What Are the Most Popular Crypto Trading Strategies?
Now that you've learned which crypto to buy for a quick profit, it's time to know some of the best crypto trading strategies. There are five strategies you'll want to know in particular.
1. Day Trading
The easiest way to start with crypto is to start day trading. The idea behind day trading is that you limit the duration of your trades to short intervals (i.e., within the same day). This method prevents you from losing too much and makes it easier to predict price movements. After all, forecasting the next few hours is more manageable than predicting the next month.
With day trading, the goal is to make small gains on numerous trades throughout the day. Typically, day traders rely on traditional price signals that you could use on any asset class. Moving averages, the relative strength index (RSI), MACD, trading volumes, support and resistance levels, and more are all indicators from the stock world that can work with cryptocurrencies.
While a discussion of all these indicators is outside the scope of this post, the best way to get started with this type of trading is to learn about the signals and then look at those signals on some of the cryptocurrencies above. Use historical charts to understand what each signal has implied in the past and see if some more reliable signals can help you forecast short-term movements in crypto prices.
You'll also need to consider the exchange you use if you're looking to day trade. The best crypto exchange for day trading may differ from the best exchange for buying and holding. It's worthwhile to look at an exchange's fees and policies to ensure that it is suitable for this type of trading (i.e., lower spreads, fewer trading fees, and so forth).
2. Scalping
Scalping is another prevalent crypto trading strategy. This method lets traders make small profits within minutes. Sometimes, these crypto trading strategies let traders make these profits within seconds!
The concept is quite simple: scalping, as the name implies, means looking for ways to take just the tip of a price movement's potential profits, but in a consistent and repeatable way.
To illustrate the idea behind this strategy, consider a cryptocurrency trading between $100 and $101, but it was doing so in a very repeatable way. Every five minutes, the buying pressure alone would get the currency up to $101, and then the volume would taper off, allowing the currency to fall back to $100 five minutes later. A crypto scalper would use this knowledge to keep buying at $100 and selling at $101. On a $1,000 order, that might only be a $10 profit, but if you can consistently do this in a repeatable way, that would be $60 an hour in this hypothetical scenario. After five hours of trading in a single day, you'd get a 30% ROI.
Talk about making a quick profit!
Scalping isn't just range trading, though, as other strategies are "scalping" strategies under the hood. For example, looking at the bid-ask spread is how some scalpers will go in for a quick profit. When you see pressure building up from the bidding side, you can capitalize on that quick movement upwards and sell your crypto before too many people notice that upswing. Some people can engage in arbitrage, another form of scalping, where a crypto asset may be higher in one market and lower in another. If that happens, they can buy the asset at a lower cost and immediately flip it to the higher market.
This strategy works best with specific cryptocurrencies and requires an in-depth look at each currency to evaluate its potential. You should study indicators like moving averages, the relative strength index, and more to see if you can find a repeatable pattern in one of the cryptocurrencies above!
3. Swing Trading
Swing trading is another trading method for cryptocurrencies. It can sometimes feel like scalping, but swing traders typically set their sights on longer time horizons and more extensive ranges.
Swing trading is best explained with an example. Suppose you are looking at a cryptocurrency that typically has price movements between about $10 and $20. It may have been moving up and down between $10 and $20 for the past 3-4 months. Every few days, some people would manage to push it up to $20, and then eventually, the price would settle back down to $10, where there would be more interest in it again, and the cost would go back up.
A swing trader would look at this historical pattern and aim to capitalize on it. Unlike scalping, precision is less critical here. A trader might get in at $13 and wait a few days for it to reach $18.
If you do that with $1,300, you would make $500 within days. When looking at which crypto to buy for a quick profit, if you can find a crypto that makes these types of consistent price movements, you can usually find the ability to make some quick and easy money.
The disadvantage of swing trading is, of course, that the trend may stop. You may buy in at $13, and it might go down to $6. As with any investment, there is that risk of loss.
Still, even with this downside, swing trading is a popular method for crypto traders because many crypto assets, including even Bitcoin, tend to trade within bounds. They may not be minute or hour-level bounds necessary for scalping, but many currencies will bounce between lower and upper levels over a week or a month. Identifying a crypto trading at the bottom support level could be an easy way to profit.
4. Event-Driven Trading
Crypto is often the subject of various news articles and events. There might be news articles extolling the virtues of crypto, or sometimes, the inverse happens where crypto gets caught up in a destructive news cycle. If you have good timing and a particular cryptocurrency is presently in the news for either a good or bad reason, you can sometimes leverage that coverage to make a quick profit.
Other events drive cryptocurrencies, too. For example, Bitcoin has a concept called "halving." Bitcoin halving is a pre-programmed event in the Bitcoin network that occurs approximately every four years. It involves cutting the block reward miners receive in half for verifying transactions and adding them to the blockchain. This mechanism is fundamental to Bitcoin's monetary policy. It controls inflation and ensures the cryptocurrency's scarcity. By reducing the rate at which new Bitcoins come into circulation, halving events put downward pressure on the supply while potentially increasing demand.
Historically, Bitcoin halvings have seen significant price increases in the months and years following the event. This effect is attributable to several factors, including reduced supply growth, increased media attention and public interest, and the psychological impact of scarcity on investors. However, it's important to note that Bitcoin's price is not just this single event but a confluence of factors, including market sentiment, regulatory developments, and macroeconomic trends. While halvings can act as a catalyst for price appreciation, they do not guarantee it.
That said, this is an example of an event unique to crypto that could result in an upward price movement. If you were to ask, "which crypto to buy for a quick profit?" and a Bitcoin halving event was around the corner, that could be a viable option. Our PlasBit accounts make it easy to trade those occurrences. Events in crypto needn't be solely news articles and public sentiment; instead, since these are digital currencies with complex algorithms, they can also be technological events.
5. Dollar-Cost Averaging
I know what you're thinking - there are better ways to turn a quick profit than dollar-cost averaging. By its very nature, it's intended to take advantage of long-term price appreciation while avoiding the need to time the market. However, it's worthwhile discussing because sometimes you can use dollar-cost averaging (DCA, for short) in a more immediate term.
Consider the following example. Suppose you buy 100 units of crypto for $15. It goes up to $16 before falling to $13. You decide to buy another 100 units at $13. You've paid $2,800 for 200 units; your average cost is $14. Further, suppose that crypto rises to the $15 level. You can now sell your $2,800 for $3,000, turning a $200 profit.
If you hadn't taken advantage of dollar-cost averaging, your original $15 investment would have been worth the same. However, because you bought in at a slightly lower rate, you could sell the entire block for a profit.
The point here is simple: if you are engaging in one of the strategies above, consider keeping some reserve funds to engage in DCA. You could even take advantage of the upside. Suppose you invest just before a Bitcoin halving event, and the currency moves upward. You could buy more to take advantage of that while reducing the risk of your pre-halving purchase.
Dollar-cost averaging is typically a longer-term strategy, but you can still leverage DCA if you consider engaging in shorter-term investment horizons. DCA gives you some wiggle room to make your initial investment pay off.
There Are Numerous Cryptocurrencies to Trade
Crypto continues to be in a strong position, and people continuously find new, innovative ways to launch and enhance various currencies. Each of these new cryptocurrencies can be a winner, though it is essential to remember that any type of investment - including holding crypto - carries a risk of loss. Additionally, please remember that past performance is no guarantee of future returns. Just because a currency did well in the past or had a 5x spike a week ago doesn't mean it will have a similar spike later.
At PlasBit, we believe in financial freedom. We offer all the tools necessary to buy, sell, and profit from cryptocurrency. Our cards let you spend your crypto anywhere in the world, our wallet enables you to hold numerous cryptocurrencies safely and securely, and the exchange allows you to buy crypto and sell it at competitive rates. If you want to employ one of the trading methods listed above, our platform is the best place to do it!
