The investment timeframe is one of the criteria by which investments are differentiated. In addition to long-term investing, which is more popular with conservative investors, there's a more aggressive and time-consuming style: short-term investing. In this article, we'll talk about short-term investments in the crypto market, the unique features of doing so and the question, "What is the best cryptocurrency to invest in today for the short term?".

What is short-term investing?

Short-term investments are investments in assets that are intended to be sold after a relatively short period of time. For a young and volatile cryptocurrency market, this period is usually no longer than 1 year and often less than 6 months.

How to invest in crypto for the short term

In the cryptocurrency market, short-term investments are usually made with the aim of generating quick profits. The possibility of making a good profit quickly and then freeing up finances for the next investment project is what makes short-term cryptocurrency investments popular.

Of course, there are also downsides to such investments:

• You need to constantly monitor the market, which is time-consuming.
• If things don't go according to plan and you don't get rid of the asset in time to break even, you will either have to liquidate the asset at a loss or be stuck with it indefinitely.
• Given the above, short-term investing tends to be more stressful and emotionally draining.

The basic rules for short-term cryptocurrency investing are the same as those for long-term investing:

1. Remember that cryptocurrencies are a high-risk investment. Don't invest more than you can afford to lose.
2. Always do your own research and study the cryptocurrencies you plan to invest in.
3. Emotions are your enemy. Keep a cool head, and don't give in to fear or excitement.

However, short-term investing is closer to trading than long-term investing, which adds to the rules that need to be taken into account:

• Set a clear target for your investment: at what price will you sell the cryptocurrency you have invested in?
• Never neglect risk management. Diversify your investments and use Stop-loss orders.

But how do you determine which cryptocurrency is the best one to invest in now for the short term? This is where technical analysis can come in handy. The shorter the term of your crypto investment is, the less useful fundamental analysis is, and the more important technical analysis becomes. So, if you want to invest successfully in crypto for the short term, you will have to master it. Fortunately, there are now many ways to learn technical analysis, ranging from books and articles to private lessons.

The best crypto to invest in today for the short term

Which cryptocurrency is best for short-term investment? The answer to this question is changing along with the situation in the crypto market. As of mid-October 2022, the crypto market has been moving sideways for quite some time following a significant fall. There is a good chance that the current situation is not yet the end of a bearish trend. Short-term investments during a bearish trend are generally a bad idea, but signs of an approaching trend reversal allow you to start planning for them.

Bitcoin

Bitcoin, which drives the entire crypto market, is currently moving sideways. The likelihood of a move out of the current price range is increasing every day. The most likely scenario at the moment is that the price will fall to levels of $17,000 and even $14,000, after which the trend will change to bullish. A less likely scenario is that the price will rise to between $24,200 and $24,700, after which the price will return to the current range and continue the sideways movement for some time. In the case of the first scenario, Bitcoin would make a good short-term investment.

BTC statistics (as of 14/10/22)

Ethereum

Ethereum generally follows Bitcoin. It has room to fall further, and the $1,000 level is not that unattainable. In any case, the price of Ethereum is attractive now, and with a possible drop to $1,000, it will become even more attractive for short-term investing. If the $1,000 support level is broken, the next strong support level is $900.

ETH statistics (as of 14/10/22)

BNB

BNB is a special asset, and the particular thing about it is that it's required by traders on Binance, the world's largest cryptocurrency exchange, to pay fees, and BNB is now very close to the buy zone. It makes sense to keep an eye on this promising asset if you are looking for a short-term investment.

BNB statistics (as of 14/10/22)

Ocean

The price of the Ocean Protocol token has been moving in a downward wedge for some time. If there's a trend change in the crypto market, it is highly probable this wedge will break upwards. But note that since the token has recently established a new all-time low, it should be seen as a particularly risky investment.

OCEAN statistics (as of 14/10/22)

Cardano

The Cardano price has just bounced back from a strong resistance level. Should the market trend change, it stands a good chance of bouncing back to $0.75 or higher.

ADA statistics (as of 14/10/22)

Polkadot

This is another asset with great potential. If the trend changes, the realistic selling target is $14.00. However, the price has recently broken a strong support level, which is worth bearing in mind. If the bearish trend continues, the price is quite likely to fall to the support level at $4.60.

DOT statistics (as of 14/10/22)