9 Best Crypto Exchanges for Day Trading in 2023

The main idea is that when day trading, you look for opportunities to make a quick profit. If you are planning on holding on to a cryptocurrency for longer, this is called long-term trading. Let’s take a quick look at an example of two cryptocurrency day trades. When people talk about trading, they are referring to buying and selling an asset with the aim of making a profit. For example, in real-world stock exchanges, people trade all kinds of things. Day traders aim to profit from these price movements, but they must also be aware of the potential risks of losing money very quickly.

• In some cases, those big movers will systematically manipulate the price of a coin up and down to profit from a range.
• It’s one of the leading derivatives exchanges designed for those who want to trade with leverage using futures contracts.
• Crypto day trading is a high-risk strategy involving the frequent purchase and sale of cryptos in the pursuit of short-term profit.
• The obvious place to hide your protective stop loss is below the low of the day.
• Asset liquidity is a measure of how easily an asset can be converted into cash without affecting its price.

EToro is the world’s largest social trading and copy trading platform. You can view the performance of other cryptocurrency traders and have their exact trades copied onto your own account. However, crypto day trading is an even higher-risk, high reward activity. With an effective trading strategy, you can be on your way to crypto riches in no time!

Bot trading

Built in 2007, this broker has become popular for its versatility and flexibility. EToro is also fully regulated by several top-tier financial institutions. One reason crypto trading and mining are popular in Texas is due to the fact energy is cheap and abundant with relaxed commercial laws.

• For day traders, the sale of any crypto held for less than a year is taxed as marginal income.
• Resistance levels do the opposite and show a lack of demand but a large supply.
• Best for its active community, Investors Underground offers a multi-range of interpersonal collaboration.
• Trade setups are frequent, especially on lower time frames, so you’ll never be on the sidelines long when trading pullbacks.

Luckily, this doesn’t happen often because of the kind of options the pool uses are all very short-term and far-out-of-the-money. Flynt Finance is an innovative new high-risk high-reward passive staking platform with 3 unique high-yielding pools, each with its own automated trading strategy. Flynt prides itself on its security and works with industry-leading custodians BitGo and FireBlocks to secure user funds. It also uses sophisticated multi-signature wallet infrastructure and multi-layer cold wallets. In contrast to what most new traders think, trading is not just about strategies, but the system itself also contributes greatly to becoming a successful trader.

Fast Lane Traders

Most traders are guided by the fear of missing out syndrome while day trading crypto. Avoiding FOMO can be very hard given cryptocurrencies are speculative assets. As a day trader, you should be ready to engage trading bot with many different digital assets, as that’s the optimal way to make a profit. Cryptocurrencies like Bitcoin, Ethereum, Binance Coin, Fantom, and many others can all be great for cryptocurrency trading.

• You can also trade Bitcoin against the euro, pound sterling, and Australian dollar.
• Successful day traders will have a deep understanding of the market and a good chunk of experience.
• Technically, you can start day trading with any amount of cryptocurrency.
• Even the Governor of Texas, Greg Abbott, has been vocal in his support for cryptocurrency and the state has even recognised blockchain and cryptos in its commercial law.
• You choose a time and day to make your deposits and then only invest in crypto at those times.

You can also trade crypto-to-crypto pairs – such as BTC/XRP and ETH/BTC. These crypto CFD derivatives are available to most eToro clients – unless you are from the US, UK, or Hong Kong. Nevertheless, when it comes to fees, eToro is a 100% commission-free crypto day trading website. This means that you can enter and exit the market as often as you like without being charged any fees.

Mistakes to avoid while day trading

Taking all of the above into account – below you will find reviews of the 10 best – platforms in the market right now. There are hundreds of crypto platforms and Bitcoin exchanges that allow you to buy, sell, and trade digital assets online. On top of licensing, you also need to consider what crypto markets the platform offers, fees and commissions, trading tools, and supported payment types. In this article, we will show you the 7 best crypto exchanges for day trading, focusing on the most important aspects such as low fees, liquidity and features for advanced traders. Its standout feature, copy-trading, empowers users to replicate the trading strategies of successful traders.

Coins marked as Class A have the lowest trading fees, while the fees are higher for trading Class B and Class C coins. Generally speaking, Class A coins are established projects with a significant market cap, while Class B and Class C coins are usually low market cap projects. It’s equally important to have basic trading skills and knowledge to carry out fundamental and technical analysis, as this could help avoid being misled by fake signals.

KuCoin – An exchange for altcoin traders

Right now, any coin with a market cap lower than $1 billion is considered small cap. Some small-cap coins with good trading volume include SiaCoin (SIA), Basic Attention Token (BAT) and Fusion (FSN). The Chicago Mercantile Exchange (CME) offers options on Bitcoin futures, opening up a wealth of volatility strategies for traders. Volatility trades are ideally directionless, meaning there is a possibility of making money whether Bitcoin goes up or down. Scalpers may exit a trade seconds after entering, and many use automated bots to increase the frequency of their trading cycles. Ideally, scalpers want to exit a trade before any news item or short-term fluctuation has a chance to change the market’s sentiment on a coin.

• The first choice isn’t always the best choice when figuring out where to conduct crypto trading.
• The bigger the swings during the day, the more liquidity and opportunities for short-term traders.
• We only like day trading cryptocurrencies when all the conditions align in our favor.
• A suitable way to determine whether a crypto asset is good for day trading is to analyze its trading volume and liquidity.
• This makes it an excellent platform for those wishing to try out the tools and services before making a real investment.

The signal will inform you at what price you should place the trade, as well as what stop-loss and take-profit orders to deploy. All in all, signals can be a great way to trade the crypto markets in a semi-passive manner – as all you need to do is place the suggested orders at your chosen platform. The provider also offers Coinbase Pro – which is more conducive for day trading.

You can automate crypto trading with Haru Invest

The idea is you keep a close eye out for a correction in a trend and then catch the ‘swing’ out of the correction and back into the trend. You’ll find trending prices move quickly, but corrections, on the other hand, will not. Trading crypto generally revolves around speculating on it’s price, rather than owning any of the actual coins.

• As a beginner, you want to at least know a few basics before you start crypto day trading.
• One of the standout features of OKX is its provision for engaging with DeFi projects via liquidity mining.
• While there is no ‘perfect exit’, it can be helpful to take profits incrementally.
• Remember, Trading or speculating using margin increases the size of potential losses, as well as the potential profit.

The same market condition that scares away buy-and-hold investors is the chaos that makes opportunities for day traders to make profit. Volatility and liquidity are two elements the day trader needs to actively participate in the crypto market. The first choice isn’t always the best choice when figuring out where to conduct crypto trading.

Day Trading Cryptocurrency: What is Day Trading?

Worries about a slowdown in the world’s second-largest economy have rattled markets in recent months, but data over the weekend suggested the picture is improving in China. Factory gate price deflation also moderated, with the Chinese producer-price index contracting 3% after a 4.4% decline in July. Once you’ve found the coin you want to trade on, simply click Trade to open the trading ticket. This is a far simpler way to enter the market and is a lot quicker than spending a decade mastering technical analysis patterns and keeping track of fundamental news. Capital.com is authorised and regulated by the FCA and CySEC providing strong security and safety of your funds. You can trade all of the 3,800+ instruments 100% commission-free on a very simple to use web-based trading platform.

• The platform offers advanced trading tools, including position and risk-management software, an institutional level of liquidity, and a 200x multiplier.
• However, current news can still tell you what cryptocurrency or crypto pairs will be trending and, therefore, will have active price movement in the near future.
• As the name implies, the goal of a day trader is to end any given trading day with their holdings having a higher value than they started with.
• In addition, course members can take advantage of the community by joining chat rooms which are separated between day and swing trading.
• Additionally, as Solana’s transaction fees are very low, you won’t have to worry about losing money on fees.

While the crypto market is highly liquid, highly volatile; not all cryptocurrencies are equal. Crypto day traders should look carefully at an asset’s trading volume to gauge whether it can be sold quickly and at a higher price level than purchased. According to Greenberg, a technical understanding of the technology and team behind an altcoin project gives traders a competitive edge. When asked on how a day trader should decide which coin to trade, Greenberg emphasized careful deliberation. “One common crypto strategy is to invest in the top 15 to 20 coins by market cap. But even here, I would tread with caution,” Greenberg adds. Once you’re set up on a platform, it’s time to pick what you’re interested in investing in.

Are there any restrictions for day trading cryptocurrencies?

Trade setups are frequent, especially on lower time frames, so you’ll never be on the sidelines long when trading pullbacks. Identifying setups is relatively simple when using the 3 EMAs – which also help with stop-loss positioning and precision executions. When trading pullbacks, there is no right or wrong way to take profit. The 150 EMA will typically be around the swing highs/lows, meaning that if this zone is broken down, the trend may end, and the trade setup is likely to be void.

• Short-term traders, also known as scalpers, generally operate on low timeframe charts such as the 1-minute or the 5-minute.
• While trading digital assets can be lucrative, there is a learning curve and an element of risk you need to be comfortable with.
• Like with most other exchanges, traders with higher volume enjoy lower fees on Bybit as well.
• Initially, to break even and then to the previous swing high or low – depending on whether it’s a long or short setup.

On OKX, you can trade spot markets, perpetual swaps, futures and options. Binance is considered one of the best crypto exchanges for day trading. As the largest cryptocurrency exchange on the market, based on trading volume, its high liquidity makes it highly attractive to traders. Day trading crypto refers to a trading process in the cryptocurrency market where traders enter and exit the market within a single day. Crypto day traders take advantage of short-term price movements during the day to make profits.

Best Crypto for Day Trading in 2023

It’s not uncommon for reversals to happen mid-way through trading zones. Getting wicked out means your stop loss gets hit, only for the trade to then move in your favour. To help avoid unnecessary stop-outs, you can set a slightly looser stop and adjust your risk tolerance accordingly. Make sure you don’t position your stop loss too close to the range boundaries, as you will likely get wicked out.

• CoinMarketCap is a good free resource to read and gauge the market volume of any particular coin.
• With a well laid out interface and a low minimum balance of $10 for most countries, eToro allows beginners to easily get into the market.
• Hopefully, our breakdown of the best crypto exchanges for day trading has helped you find a trading platform that will allow you to thrive as a day trader.
• However, you will need to follow the US regulators’ Pattern Day Trading Rules.
• When it comes to choosing cryptocurrencies and crypto pairs for day trading, there are a few things you need to look for.
• High-frequency trading is a technique where you take advantage of price changes that occur on the order of seconds or fractions thereof.

Because CFDs are similar to binary options, you need bit of organization that Plus500 offers. To learn more about Ezekiel’s method of trading backed by mathematical probability, you can check out his one core program. If the exchange that you want to use does not accept real-world money deposits, then you can first go to Binance – to buy some Bitcoin or Ethereum and then transfer it across. Support and resistance zones form on all timeframes and are one of the most recognisable setups due to the market’s natural behaviour to retest key levels. If you’re uncomfortable with charts as low as the 1-minute, consider moving to the 5 or 15-minute timeframes.