Best short-term crypto investments for August 2024

Short-term investments involve buying assets or cryptocurrencies and selling them after a short period. This approach relies on speculation, taking advantage of minor price fluctuations to make a profit. It’s best suited for investing amounts you’re comfortable to risk. Ready? Let’s go.

Short-term crypto trading strategies

What are the main short-term trading strategies, and who are they suitable for?

Day trading

Day trading is all about buying and selling cryptocurrencies within the same day or even just a few hours. Traders aim to profit from small price movements. It’s a high-risk strategy, so keep these tips in mind: 

Stick to what you know. Trade cryptocurrencies you’re already familiar with.

Use technical indicators. They can help you spot trends and make smarter decisions.

Set stop-losses. These can help you limit your losses if things don’t go as planned.

Avoid trading when emotional. Try not to let feelings dictate your trades.

Start with a small investment that you can afford to lose.

Scalping

Scalping means quickly buying and selling cryptos to profit from tiny price changes. Scalpers make lots of trades in a day, aiming for small gains each time. Key points to remember:

Look for small price movements. Scalpers profit from minimal fluctuations in price.

Use technical indicators. Tools like RSI, MACD, and moving averages help find entry and exit points.

Manage risks carefully. Setting stop-loss orders is crucial.

Choose liquid pairs. Trading in pairs with high liquidity ensures you can execute trades quickly without big price gaps.

Swing trading

Swing trading is about catching medium-term price moves by holding your positions for a few days or weeks. It blends technical and fundamental analysis. Here’s the scoop: 

Watch the trends. Keep an eye on market patterns to pick the best times to buy or sell. Make sure your trades follow the overall direction of the market, whether it’s trending up or down. 

Set stop-losses. Protect yourself from big losses by setting stop-loss orders.

Swing trading is less stressful than day trading because you have more time to analyze the market and make careful decisions.

How to choose the best cryptocurrency to invest today for short term

To pick the best crypto for short-term gain, choose coins with high liquidity and noticeable price swings but with manageable risk. The ideal cryptocurrencies should be easy to buy and sell quickly, even in unexpected market swings, with narrow spreads and minimal slippage. 

Here’s what to consider:

• Project sector. Take some time to understand what the cryptocurrency is all about — its mission, goals, and future plans. Some projects might skyrocket quickly, but that doesn’t always mean they’ll last. Knowing the project’s sector and its goals helps you assess whether it has staying power.
• Market capitalization. Think of market cap as a way to measure how “big” a cryptocurrency is. A bigger market cap usually means it’s easier to trade without causing big price swings. Plus, it’s a good indicator of investors’ interest and trust in the coin.
• Price history. Long-term charts can show you where the price usually bounces back or runs into trouble. By seeing how the price has changed in the past and what triggered those big shifts, you’ll get a better idea of what could happen next.
• News and updates. Staying updated on the latest news is crucial. Things like new regulations, tech updates, and general news can all affect how people view the coin.

Top 4 short-term cryptos

What are the best cryptos to buy now for the short term?

Ethereum

ETH is the second most popular cryptocurrency after BTC. While Bitcoin started the whole decentralized currency movement, Ethereum advanced it by building the first decentralized economy. Its smart contracts have changed the game for cryptocurrencies, making business transactions more reliable and innovative. These smart contracts are governed by their own code and cannot be altered; any attempt to change the code results in an irreversible modification that is rejected by the blockchain.

Chainlink

LINK is a crypto token that’s part of the Chainlink network. Chainlink acts as a decentralized oracle network, bridging the gap between blockchains and real-world data so that smart contracts can access external information. The LINK token pays for oracle services and compensates data providers, keeping everything accurate and secure. Chainlink and LINK are vital for enabling smart contracts and are key to many blockchain applications, including DeFi, financial markets, and IoT.

PlayDoge

PlayDoge could be an appealing choice for investors deciding which cryptocurrency to buy now. PLAY is a BEP-20 token on the Binance blockchain, enabling faster listing on its exchange than similar crypto games on other chains after the presale ends.

Inspired by the classic Tamagotchi arcade game from the 90s, PlayDoge combines entertainment with earning potential through a Play-to-Earn model. Players can earn rewards by taking care of virtual pets and going on adventures in a mini-arcade setting.

PepeUnchained

Pepe Unchained is another meme coin currently in its presale phase, and its fundraising results are impressive. Within just a week of launching, the presale attracted over $1 million in investments, and by the time of writing, this amount had exceeded $9 million. 

The PEPU token is set to be a next-level version of the famous PEPE. The team behind Pepe Unchained has big plans to expand its ecosystem, including creating DeFi and NFT projects, launching new cryptos, and exploring AI-based apps.

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