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10 best short-term crypto investments for UK investors

best short-term crypto investments

Short-term crypto investments offer unique opportunities and challenges.

Knowing which short-term crypto to buy requires a lot of research. As an investor, you want to ensure that your money goes into a coin that will bring the most return while minimising your risk.

While the crypto market is known for its volatility, there are still some short-term crypto investments that UK investors can consider.

We looked at 8,845 active cryptocurrencies to pick the 10 best short-term crypto investments for UK users. 

Best short-term crypto investments for UK investors

Here are the top short-term crypto investments you may consider adding to your portfolio today:

1. Uniswap (UNI)

Uniswap is a decentralised cryptocurrency exchange that pioneered the automated market maker (AMM) model. This removes the need for order books and allows direct token swapping on-chain without intermediaries.

In March 2023, Uniswap hit a record daily trading volume of $11.84 billion as users flocked to trade stablecoins during market instability1. This demonstrates Uniswap’s resilience as a key crypto infrastructure, even in chaotic markets.

Uniswap trading chart.

UNI is up 32% in the past month (as of December 2023). With growth potential and proven capacity to handle large trading volumes, Uniswap is a top short-term crypto pick.

2. Bitcoin (BTC)

Bitcoin is the largest cryptocurrency with unparalleled liquidity, making it easy to enter and exit positions swiftly. This is critical for short-term trading strategies like day trading.

Its high volatility also presents opportunities for short-term gains. For instance, positive developments regarding a spot Bitcoin ETF in the US sent Bitcoin up 11% in the past month (as of December 2023).

Bitcoin trading chart.

However, Bitcoin’s volatility requires precise timing of trades to avoid losses from sudden price swings.

Overall, Bitcoin’s liquidity and volatility make it a prime short-term crypto investment.

3. Ethereum (ETH)

As the second-largest cryptocurrency, Ethereum rivals Bitcoin’s liquidity. It facilitates decentralised applications ranging from decentralised finance to NFT marketplaces, underpinning a thriving ecosystem.

The recent Bitcoin bull run has not extended substantially to Ethereum, meaning ETH may have more room for growth in the near future.

Ethereum price chart.

Recent news like Santander allowing trading of ETH for high-net-worth clients and BlackRock registering an “Ethereum Trust” product indicate Ethereum is gaining legitimacy in institutional finance2.

With its liquidity and expanding real-world adoption, Ethereum is a top short-term crypto buy.

Learn how to buy Ethereum with our comprehensive guide.

4. Solana (SOL)

Solana gained an impressive 116% in the last month (as of December 2023) due to various network upgrades and integrations.

Trading volume also hit record highs in November 2023, indicating growing usage. The total value locked in Solana DeFi protocols has similarly increased from $215 million to over $1 billion in 2023.

Solana price chart.

Solana has outperformed most major crypto assets recently. With rapid development still underway, it remains a solid short-term crypto investment bet.

5. XRP (XRP)

XRP offers some of the fastest and cheapest crypto transactions, making it ideal for active short-term traders who value speed.

Recent positive developments like Ripple’s growing partnerships (e.g. National Bank of Georgia) and regulatory clarity (recognised by Dubai Financial Services Authority) have catalysed an XRP price surge.

In the past week alone, XRP has gained 26% against the US dollar (as of December 2023). With acceleration in usage and price, XRP presents a top short-term crypto opportunity.

XRP price chart.

Learn how to buy XRP with our comprehensive guide.

6. Binance Coin (BNB)

As the native token of leading crypto exchange Binance, BNB is widely used by traders globally to get discounts on trading fees.

This results in exceptional liquidity for rapid order execution.

Binance Coin also has a token-burning program designed to reduce supply over time. The latest quarterly burn in October 2023 destroyed $454 million worth of BNB, putting deflationary pressure on the remaining supply.

Binance Coin price chart.

With its extensive utility and shrinking supply, BNB is a go-to pick for short-term crypto investing.

7. Shiba Inu (SHIB)

Memecoin Shiba Inu (SHIB) is well known for the “Dogecoin killer” moniker. Its price is heavily reliant on hype and social media traction.

Elon Musk especially holds immense influence over SHIB’s price, evident from a 300% surge simply from Musk tweeting about his new Shiba Inu dog.

Shiba Inu price chart.

For short-term traders who actively track news and social media, hype-driven swings presents day trading opportunities to profit from high volatility. But high risks apply, so caution is necessary.

8. ApeCoin (APE)

ApeCoin (APE) is the governance and utility token of the trendy Bored Ape Yacht Club NFT collection. Its integration into compelling Web3 brands gives APE various use cases that enhance liquidity.

ApeCoin price chart.

As part of a top NFT ecosystem, APE is susceptible to price fluctuations from NFT and crypto market news. It also frequently fluctuates between a few cents and a couple of dollars daily, suitable for active short-term traders.

For its relevance in the NFT domain and trading volatility, ApeCoin joins our list.

9. Litecoin (LTC)

Litecoin has historically been a testbed for innovations later adopted by Bitcoin, like SegWit. Technically, Litecoin enables faster and cheaper transactions than Bitcoin, with an 84 million total supply (4x of Bitcoin’s).

Litecoin price chart.

Reports indicate LTC has had strong social/trading traction recently. Plus, unlike other major crypto assets, Litecoin has not recently been targeted as a security by US regulators.

With exciting developments on the horizon, LTC appears set for further short-term upside.

10. Toncoin (TON)

Toncoin powers the Telegram messenger’s integrations like digital wallets and micropayments. Leveraging Telegram’s vast existing user base strengthens Toncoin’s utility and adoption.

For example, Telegram founder Pavel Durov recently announced new giveaways on Telegram channels funded by over $200,000 worth of purchased Toncoins3. Such integrations showcase Toncoin’s expanding relevance amid Telegram’s 800+ million users.

Toncoin price chart.

The number of Toncoin accounts has boomed 250% in the past year. Toncoin’s deepening ties with Telegram make it a speculative but prospective short-term crypto buy.

Factors to consider before investing in short-term cryptos

While the assets listed above may be suitable for short-term speculation, proper due diligence remains critical.

Be sure to consider factors like:

Market volatility

High volatility is crucial for generating short-term profits. Check recent price charts to assess if prospective crypto investments see reasonable daily price swings. High liquidity is also a must.

Fundamental analysis

Study project roadmaps, developer activity, partnerships, etc. to gauge if the cryptocurrency has solid fundamentals beyond pure speculation. Investing solely based on hype is extremely risky.

Technical analysis

Utilise indicators like moving averages, oscillators, volume, and chart patterns to identify strategic entry and exit points for trades. Don’t just randomly buy and sell.

Risk management

Crypto investing carries high risk. Don’t overexpose yourself. Set stop losses on trades and limit position sizes to what you can comfortably afford to lose.

Tips for successful short-term crypto investments

Aside from picking promising crypto assets, making consistently successful short-term investments requires robust trading habits.

Consider the following:

Stay informed

Closely monitor social channels, news sites, forums, etc. related to your holdings. Be ready to take action around breaking developments or trend reversals

Set realistic goals

Don’t get greedy looking for 100x gains from a single trade. Be strategic and target modest ROIs per trade like 5-10%. These accumulate over time.

Utilise stop-loss orders

Make use of stop losses to minimise downside. This will automatically exit positions once prices fall below your acceptable threshold for losses.

Diversify your portfolio

Don’t put all your eggs in one basket. Spread capital across at least 5-10 promising crypto assets to mitigate risk exposure to any single investment.

Manage risk

Invest based on a proper risk management plan that accounts for your lifestyle, expenses, and financial situations. Don’t just blindly trade based on FOMO.

Final thoughts

UK investors have an abundance of options for investing in cryptocurrencies with a short-term horizon in mind.

As outlined above, the ten highlighted coins collectively offer advantages like good liquidity, proven technical robustness, and exciting developments that translate into price volatility advantageous for short-term gains.

Sources:

  1. https://www.bsc.news/post/uniswap-surges-to-new-heights-record-breaking-11-84-billion-in-daily-volume ↩︎
  2. https://cointelegraph.com/news/santander-offers-bitcoin-eth-trading-swiss-account-holders-report ↩︎
  3. https://coinmarketcap.com/community/articles/654a3aa51e3df42123b1534a/ ↩︎

Don’t invest unless you’re prepared to lose all the money you invest. When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in. Tax treatment depends on your individual circumstances and may be subject to future change. The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice.

Tobi started his writing career in 2017, focusing on teaching beginners about crypto.

He has bylines for top-tier investment publications like Investopedia and Investing.com.

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