9 Best Crypto Exchanges for Day Trading in 2023

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.

• Whether you’re a complete beginner or experienced trader, the copy trading section of the eToro platform is sure to be a game-changer.
• In this guide, we review the 10 best crypto exchanges for day trading in the market right now.
• Crucially, crypto day trading is a short-term strategy that will see you hold onto a position for a few hours.
• Day traders will typically use technical analysis (TA) to create trade ideas.
• Bybit is a popular cryptocurrency exchange that’s a solid option for crypto day traders.
• Kane has also written for websites such as MoneyCheck, InsideBitcoins, Blockonomi, Learnbonds, Buysharesand the Malta Association of Compliance Officers.

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.

Read our guide to learn how to start day trading crypto

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.

• The software file will have a list of pre-defined conditions built in which the robot will follow religiously.
• When asked on how a day trader should decide which coin to trade, Greenberg emphasized careful deliberation.
• Once your trade is in profit, consider moving your stop loss to break even or trailing it with the market.
• Bitfinex is a cryptocurrency that was founded in 2012 and is one of the most popular choices among advanced traders.

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.

OKX – One of the best exchanges for crypto day 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.

• A trader must know all the ins and outs of the market and bitcoin or any other cryptocurrency to become a successful day trader.
• Traders using YouHodler’s platform can customize their levels of risk and profit, giving them more control over their trading strategy.
• The other day trading cryptocurrency strategy often used is chart analysis.
• If successful trading firms and hedge funds started sharing their high-frequency trading strategies with individual investors, those strategies wouldn’t work anymore.
• Crypto trading bots are designed to increase profits and reduce losses and risk.
• Interactive Brokers has a great reputation in the global investment and trading industry.

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.

Choosing a crypto day trading strategy

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.

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• You can also trade crypto-to-crypto pairs – such as BTC/XRP and ETH/BTC.
• From this platform, you can search the performance of different traders using filters such as risk management and markets traded.
• Identifying setups is relatively simple when using the 3 EMAs – which also help with stop-loss positioning and precision executions.

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.

Crypto Day Trading Strategies to Use

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.

• Technical indicators aren’t always right, so to fine-tune our day trading strategy, we’ve added a few more conditions.
• For example, in February 2018, a cryptocurrency called E-Coin increased in value by more than 4000% in just 24 hours, only to fall straight back down to where it started.
• Enjoy the highest earning rates in the market with top performing trading strategies.
• EToro also stands out as the best crypto day trading platform because it offers passive investment tools in its user interface.

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.

Bitcoin Price Prediction: Forecasting the Future and Past of Bitcoin’s 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, best crypto trading bot 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!

• Once you have opened an account with an exchange, it is time to deposit some funds.
• You will also have access to stock trading markets, as well as options and ETFs.
• From leverage options to copy trading and customer support, these day trading platforms offer varied services that cater to different trading styles.
• These coins usually have high liquidity, which means there are a lot of people buying and selling them.
• If volume drops, it’s best to close a portion of your position and lock in some profits.

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.

Best Crypto Day Trading Platform 2021 List

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.

• Then, the expert team at Haru takes care of the trading for you, using a combination of the best strategies for trading crypto.
• Day trading can be a highly profitable strategy, but there are a few things to consider before starting.
• In particular, Kane is skilled at explaining complex financial subjects in a user-friendly manner.
• Ultimately, this will enable you to capitalize on the opportunities offered by the rapidly evolving crypto market.

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 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.

#3 Trading beyond what you can afford to lose

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 addition, the prices of coins and tokens can fluctuate rapidly – sometimes within minutes or seconds – making it highly unpredictable.
• Apart from having an intuitive crypto trading platform, you will need a lot of nerves and a winning game plan to succeed.
• Copy trading is a strategy in which you find a profitable trader and simply have their trades copied onto your own account in real-time.
• By instituting specific trading logic, High-frequency trading can be combined with many other strategies.
• You will pay 3.99% to buy a crypto asset direct with your debit card – which is expensive.
• Before doing any other research, make sure that the crypto you’re planning to go for has low fees.

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.

Step 1.   Choose the best crypto exchange for 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.

• On top of that, you’ll need to pay to have your bot updated as the market changes.
• Here’s what to know and where to utilize day trading strategies in 2023.
• That being said, your potential for profit increases as your investment increases.
• If your budget is tight and the price is a big factor for you, then Bullish Bears may suit you.
• If the range or level is compromised and volume continues to flow into the market, look to execute your breakout trade.

Taking all of the above into account – below you will find reviews of the 10 best crypto day trading 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.