Do you frequently hear mentions of Bitcoin, Ethereum, or Dogecoin? Even if the cryptocurrency market has fallen off a cliff this year, there is still a persistent frenzy surrounding this still-young commodity, and everyone wants in on the action. Crypto traders may now select from the top cryptocurrency exchanges listed below and begin day trading right now. But before that, what is crypto day trading?
What is crypto day trading?
Today's traders are getting better at quickly entering and leaving the market, and the volatility of coin prices has been quite advantageous to them.
With the cryptocurrency day trading strategy, a position is taken and sold on the same trading day. It is sometimes called "intraday trading," which means that the trades are started and finished on the same day.
Profiting from minute changes in the market is the sole purpose of day trading cryptocurrency. Due to the volatility of cryptocurrencies, day trading in the market may be highly lucrative. By comparison, a 10% increase in value within a single day is uncommon for a typical stock or even a commodity. Jumps like these are common in the cryptocurrency world.
Like other cryptocurrency trading methods, day trading involves more than just speculation.
Why do crypto day trading?
Making money is the main motivation for day trading cryptocurrencies. As cryptocurrency values are more erratic than those of any other asset class, traders who are familiar with the market can take advantage of this.
The cryptocurrency market may be profitable for you if you can understand patterns and have a sound day trading strategy for cryptocurrencies.
Another benefit of day trading cryptocurrency is that it provides the potential for short-term gains. You may day trade and make money from the market in such a short amount of time as opposed to purchasing, holding, or taking long holdings.
Nowadays, consumers who choose providers who offer both an internet platform and a mobile app often engage in crypto day trading. You may make sure that the digital currency markets are never more than a click away from you by employing this method. In addition, we found that Webull has one of the best suppliers for day trading cryptocurrencies in 2022.
The app is accessible on both iOS and Android and is linked to your main Webull account. You are free to switch between the two at any time.
The Webull app is user-friendly and appropriate for beginners, but it also has many features that will interest experienced traders. This covers live price charges, access to technical indicators, and even customizable charts.
Webull offers a small selection of cryptocurrencies in terms of supported markets. The Webull app also lets you trade stocks, exchange-traded funds, and stock options.
Every trading market that Webull supports is available for 0% commission. This indicates that all you will need to do to trade cryptocurrency here is pay the spread. Having said that, Webull's spreads for trading cryptocurrencies are greater at 1%.
Moreover, Webull charges $8 and $25 in transaction fees when you deposit and withdraw money via a domestic wire. ACH transactions, on the other hand, are cost-free.
In terms of pricing, Binance stands out as the best crypto day trading platform. This is because, since the platform's launch in 2017, Binance has had a headline commission rate of 0.10% per slide.
Also, if you trade larger amounts during the month, this fee is reduced. Furthermore, there is a 25% commission reduction for clients that use BNB to pay their costs.
Americans may access 60 different cryptocurrencies on the Binance website. All other ethnicities are welcome at the thousand markets. In any case, adding fiat money to your Binance account is straightforward.
Customers from the US can, for instance, deposit funds via an ACH transfer, a local bank wire, a debit card, or a credit card. Cryptographic deposits are additionally supported. After funding your account, you may choose between the straightforward and complex Binance platforms.
For people who are just starting their day trading cryptocurrency career, the traditional platform is best. On the other hand, the advanced platform will appeal to you if you need more complex trading capabilities, customizable charts, technical indicators, and drawing tools.
Furthermore, Binance provides a broad selection of cryptocurrency derivatives if you are situated outside of the US or the UK. This includes the capability of using leverage while trading digital currency.
For instance, you may use a leverage of up to 10x while trading BTC/USDT. This implies that a $100 trading position can be increased to $1,000. There are several places where you can buy cryptocurrency futures and options.
We should be aware that Binance is not subject to regulation in any of the nations where it conducts business.
Yet, the platform does include top-notch security capabilities, such as two-factor authentication. Also, the platform has money set aside in case something unusual occurs and Binance is compromised.
It should go without saying that day trading crypto and making a consistent income are challenging challenges. So, if you're just getting started in this field, Coinbase can be the best platform for your skill set.
In short, Coinbase has been letting people buy and sell bitcoins since 2012, and most of its users are newbies. This is due to the fact that setting up an account only takes a few minutes and a small sum of money to get going.
Also, if you don't have any cryptocurrencies on hand to support your trading activity, Coinbase has a number of payment alternatives that make it straightforward to deposit US dollars. This applies to transactions completed using a debit or credit card, Paypal, a few 3.99%, and 1.49% for ACH.
Deposits of less than $200 may incur extra fees. Nonetheless, you'll have access to more than 50 of the most well-known cryptocurrencies once your Coinbase account is full.
Every single cryptocurrency asset is traded using Coinbase against the current USD market. There is a lot of liquidity and competitive spreads here. The most expensive day-trading crypto website on our list is Coinbase, which costs 1.49% for each slide. You must make at least 2.98% of each trade in profits since the fee is charged when you enter and leave the market.
Even though traders with little to no experience often use the site, Coinbase Pro was made for more experienced traders. Although, in order to deliver its whole range of sophisticated crypto investing services on a single platform, Coinbase announced in June 2022 that it would be retiring Coinbase Pro and replacing it with Coinbase Advanced Trading.
Coinbase Pro users have to move platforms and transfer assets in order to access all of Coinbase's products due to the inclusion of additional features, such as staking and the Coinbase Card, to Coinbase.com and the Coinbase app. In order to make room for the business's new Advanced Trading platform, Coinbase Pro will close in order to give its expert clients a more simplified crypto investment experience.
This covers emerging markets like cryptocurrency cross-pairs as well as more advanced tools and charting features.
Moreover, Coinbase Pro uses the same maker/taker pricing model as Crypto.com, which results in lower prices. For iOS and Android users, Coinbase offers mobile trading apps in addition to a secure bitcoin wallet.
Crypto.com is the next site on our list of the top day trading crypto sites. Traders of all experience levels and financial levels enjoy using this platform, which debuted in 2016.
You will have access to more than 250 cryptocurrencies in total, including a wonderful mix of well-capitalized big and midsized projects. The maker-taker pricing structure used by Crypto.com for fees is very helpful for day traders.
For those who don't know, market makers provide cryptocurrency exchanges liquidity, and as a result, they get more desirable commissions. You will be categorized as a "market taker" as a novice cryptocurrency day trader.
And as a result, you will pay a maximum fee per slide of 0.4%. But if you trade more, you might be able to get commissions that are much cheaper. For instance, your commission is reduced to 0.15% per slide if you trade more than $50,000 in a 30-day period.
Owners of CRO tokens, the Crypto.com-backed digital asset, can also enjoy additional cost savings. We also appreciate that Crypto.com's technology makes it simple to transfer money into and out of the exchange.
For instance, the site offers debit and credit card purchases if you are unable to deposit money using cryptocurrency. Furthermore, bank transfers are supported. You may even want to think about applying for a Crypto.com debit card.
By doing this, you may use an ATM to immediately withdraw your day trading cryptocurrency gains. The fact that Crypto.com provides leveraged financial solutions is another part of the website that may be of interest to you.
This not only gives you the chance to trade cryptocurrencies day-to-day with leverage of up to 10x, but it also gives you access to perpetual futures. Finally, Crypto.com has you covered if you're seeking a day trading cryptocurrency website with sophisticated tools and charting features.
In our opinion, Bitstamp is the ideal cryptocurrency trading platform for day trading. Given that it was established in 2011, Bitstamp has a good standing among bitcoin traders.
Customers may trade almost 50 different cryptocurrencies on the website, which has over 4 million users worldwide.
Pricing is one of the most important things to think about when choosing a crypto trading platform for day trading, and Bitstamp meets this need. For assets denominated in USD, the minimum position size is a mere $10, and you may start investing in cryptocurrencies at 0.5% per trade.
The greatest platform for day traders is Bitstamp since BTC-denominated assets may be traded for as little as 0.0002 BTC.
Traders whose monthly trading volume exceeds $10,000 will only pay 0.25% per trade-in. When it comes to financing your account, Bitstamp enables ACH deposits with no deposit fees.
Although you may choose to buy cryptocurrency quickly with a credit or debit card if you choose, withdrawals are also free via ACH. Nevertheless, there is a 5% transaction charge associated with this.
Users may choose to trade using their browser or the mobile app, which makes the Bitstamp trading experience excellent.
Although Bitstamp's "Trade View" tool is geared more toward seasoned investors, both are appropriate for day traders. This platform is perfect if you want to day trade cryptocurrency since it offers detailed order book information, a number of technical indicators, and complex order types.
Read more: best crypto ETF.
A very well-liked strategy for making money with crypto tokens is crypto day trading. However, it takes extensive study and close attention to your trading plan and portfolio.
That’s why it is crucial to make an informed decision about day trading.