5 Best Crypto Exchange for Day Trading in 2024

Looking for the best crypto exchange for day trading in 2024? Check out our top 5 picks for the best crypto exchange platforms to maximize your profits.

Crypto day trading entails purchasing and selling crypto assets in just one trading day. The idea is to make money from the price changes of these digital assets.

Crypto day trading tactics could differ greatly according to whether they rely on the news or technical research, a distinction important for traders searching for the best crypto for day trading.

A lot of investors who day trade do it as their primary source of revenue, as opposed to working a typical 9-to-5. Anyone may become a cryptocurrency day trader, but success requires analytical abilities, in-depth knowledge of trading patterns and tactics, and an ability to regularly watch market fluctuations.

Crypto day traders must have advanced competency. Choose an approach that corresponds with your trading goal, as others may not work at all. In addition, a solid understanding of managing risks is essential for an effective approach implementation.

What is Crypto Exchange for Day Trading?

Crypto day trading is a crypto trading method in which traders start and close positions in a single day to profit from volatile markets and price swings.

The goal of crypto day trading is to profit from modest price swings in the cryptocurrency market by purchasing low and selling high, or shorting high and cover at lower levels.

Crypto day traders employ a variety of technical analysis techniques, such as chart patterns, trading signals, and indicators, to make sound decisions.

Effective traders frequently limit losses by employing focused risk management tactics, such as correct position sizing and stop-loss orders.

Best Exchange for Crypto Day Trading in 2024

If you are on the search for the best cryptocurrency exchanges for day trading, we have done the study for you. This section will explain how to find the best platform for day trading.

1. Coinbase

Coinbase is a cryptocurrency exchange established in the United States that focuses on day trading. It is also licensed and compliant in multiple jurisdictions, making it a secure and legal option for day trading cryptocurrency.

It offers a variety of products and services to suit diverse user needs, including Coinbase Pro, Coinbase Wallet, and Coinbase Prime. It allows users to purchase and trade more than 240 cryptocurrencies using fiat currency.

You can also store your cryptocurrency in Coinbase's cold storage, which is very secure and protected.

Coinbase Pro offers cheaper costs, additional trading pairs, and analytical tools. It also enables limit and stop-limit orders, which may help manage risk in volatile markets, an advanced trading feature appreciated by advanced traders.

The software provides the best charting interface, displaying current order books, transaction history, and market depth for dozens of markets.

2. Binance

Binance is ideal for day trading because of its huge volume of more than 10 billion per day. It offers over 350 coins to trade, including Bitcoin, Ethereum, Binance Coin, and others.

The platform provides minimal costs, a rapid trading engine, and a high level of market liquidity. Binance can process up to 1.4 million orders per second.

This allows you to engage in trade with no price slippage and rapid order matching. It also offers a variety of services for crypto day traders, including margin trading, futures, options, and leveraged tokens, making it a choice for day traders looking for advanced trading features.

3. GMX

GMX provides derivatives contracts with no expiration dates. In contrast to controlled exchanges (CEXes), GMX works without intermediaries. All trades are made easier by smart contracts, which eliminates the possibility of fraud or manipulation.

GMX allows traders to trade perpetual swaps of leading cryptocurrencies with up to 50x leverage from their digital wallets using Arbitrum and Avalanche, presenting a choice for day traders looking for advanced trading features.

It includes an easy-to-use interface that allows traders to open positions using a simple swap interface. Traders can effortlessly move from any approved asset to the position of their choice. GMX also provides a dashboard that displays the user's balance, and trades.

4. MEXC

This is a platform known for its range of trading options, and becomes a prime spot to find an exchange fit for both newbies and advanced traders.

MEXC is the cheapest way to day trade cryptocurrency, with no spot costs and 0% maker and 0.02% taker futures expenses. It is a centralized cryptocurrency exchange founded in 2018 and situated in Seychelles. It is also an established cryptocurrency exchange that does not require KYC.

It provides quick and secure trading for over 2100 digital assets across various fields such as DeFi, GameFi, AI, and the world of Metaverse, offering a range of trading opportunities for users interested in emerging technologies.

The exchange allows futures trading of USDT-M and Coin-M contracts with leverage of up to 200 times. Day traders can enter continuous and quarterly contracts for a variety of coins.

Sophisticated order types, such as stop-loss and limit orders, as well as risk-management methods, are also offered. It also facilitates cryptocurrency clone trading.

MEXC also provides API interaction with third-party platforms like as Cryptohopper, 3Commas, and others. These spot and futures market apps allow you to simply organize your crypto day trading techniques.

5. Prime XBT

PrimeXBT is a day trading platform for a variety of assets, including cryptocurrencies, FX, commodities, and indices. TradingView powers the platform, which includes over 50 indicators for trading as well as a variety of charting and analysis tools.

You may trade and handle orders from charts, as well as implement your investment strategy using various order types, a functionality that appeals to those looking to become a crypto trader with a sophisticated approach. The technology also provides rapid and secure delivery of orders and managing risks.

The Exchange provides high leverage of up to 1:200 for certain crypto assets, allowing traders to increase their risk and possible gains. PrimeXBT Turbo, which is designed for traders who trade short-term, is another day trading feature.

PrimeXBT Turbo allows users to forecast the price fluctuation of an asset over a given time interval, ranging from 30 seconds to 5 minutes.

Users can choose between alternatives such as "Up" or "Down" and place bets on the price trend. If they are correct, they might make up to 90% profit in seconds.

Read also

How to Pick the Best Crypto Exchange for Day Trading?

There are numerous factors to consider while selecting the best cryptocurrency exchange for day trading. When choosing the best crypto exchanges for day trading, you should consider the following factors:

1. Slippage for Crypto Day Trading

Low slippage is essential for all cryptocurrency investors, but especially for day traders looking to profit from short-term market moves. Always go for cryptocurrency exchanges with low slippage and good liquidity so that your deals go as planned.

2. Automation tools for Trading Strategies

Since trading takes time, several cryptocurrency exchanges provide automation tools, appealing to advanced traders, to help you execute your trading plan more efficiently.

These crypto exchanges offer a plethora of automation tools, including bots, limit and stop orders, and leverage, to make crypto day trading simpler and more time-consuming.

3. Fees of Trading Platform

If you trade several times each day, the costs will build up quickly. Day traders require an exchange that has cheap fees. Choose exchanges with ordinary to lower-than-average costs, as well as exchanges that offer discounted prices based on the volume of trade.

4. Availability of Cryptocurrencies

Not all exchanges support every coin, and some feature less-than-reputable projects. Go for exchanges that offer a diverse range of cryptocurrencies and strive to identify fraudulent ventures.

5. Security of Crypto Asset

Security should always be a key consideration when selecting a cryptocurrency exchange, and day traders are no exception. You want an exchange that you can trust that has a proven record of security.

6. Location of Crypto Trading Exchange

Not all crypto exchanges run globally, and the United States, in particular, has been increasingly hostile to crypto exchanges due to a perplexing regulatory landscape.

You must check that you are using your exchange in your region and complete the appropriate KYC authentication to deposit and withdraw funds conveniently since crypto deposits are generally free.

How to Get Started with Crypto Day Trading

Day trading profits aren't ensured and you may lose everything you invested. As a result, before you start trading, learn about technical analysis, managing risks, and trading psychology.

Before putting your money at risk, practice on demo accounts to establish a reliable trading technique.

There is no fixed method to get started with cryptocurrency day trading, however here are some tips:

1. Understanding the market

While cryptocurrency is volatile, there are trends that may be identified by understanding investor behavior, making it a popular crypto for those who can analyze these patterns. A solid comprehension of cryptocurrency charts and technical analysis will lead to greater success than relying on gut feeling.

2. Know your best exchanges for day trading

There are numerous cryptocurrency exchanges to choose from, but not all are created equal. Crypto day traders should look for an exchange that allows them to effectively execute their approach.

In general, you should look for high liquidity, little slippage, reasonable costs, and a variety of automation tools to make implementing your strategy simple.

3. Create a trading strategy

Successful cryptocurrency day traders don't simply guess what will happen and anticipate the best. They have organized tactics for each market circumstance, including a strong exit strategy when it comes time to collect winnings.

4. Practice with a demo account

Many exchanges provide paper trading alternatives. This is a synthetic market in which you can test a trading strategy with fictitious capital before deploying it in the real market. This can help you adjust your plan for increased performance and profits.

5. Begin small

Don't dive in recklessly. It's always a good idea to start with a modest portion of your total cash to see how you do, rather than losing all because your approach failed.

Choosing the Right Crypto for Day Trading

Bitcoin (BTC) is widely regarded as the greatest coin for day trading, making it a popular choice for day traders, although there is no clear best cryptocurrency to trade daily. The perfect pick is greatly influenced by your trading style, tolerance for risk, and market conditions.

Day trading relies on price movement, so look for more volatile currencies. Popular volatile options include Bitcoin (BTC), Ethereum (ETH), and Cardano (ADA).

Also, ensure that the coin you choose has enough trading volume and tight spreads to allow for speedy entry and exit without drastically affecting the price.

Due to their distinct characteristics, several cryptocurrencies are especially appropriate for day trading. For example, Bitcoin is an excellent option for this form of trading because it was the first cryptocurrency and has worldwide notoriety, liquidity, and volatility.

This enables dealers to do transactions throughout the year, across multiple time zones, catering to a range of trading preferences. Ethereum is also a popular choice among day traders due to its continuous demand, significant market position, and transition from Proof-of-Work to Proof-of-Stake consensus models.

Some cryptocurrencies that have gained popularity among people specializing in day trading involve:

Binance Coin: Recognized as a solid alternative for daily trades, owing to its endorsement by Binance the world's biggest crypto exchange which provides both fluctuation ability and comparative consistency.

Ripple (XRP): is popular among day traders due to its low cost relative to peers and quick transaction processing times, which may often be as little as seconds.

Solana(SOL): is praised for its scalability and processing speed. It is capable of processing around 65,000 transactions per second, making it one of the fastest blockchains for conducting trading operations.

These particular digital currencies provide potential opportunities for those engaged in intra-day trades in the crypto market.

Day traders can effectively leverage knowledge about the characteristics of these digital assets, allowing them to make informed decisions regarding the most favorable cryptographic tokens for intraday trading activity.

The Best Crypto Day Trading Strategies to Consider

In this section, we will discuss the best crypto trading strategies that come with fewer risks, low trading fees, and spot trading fees. You can also learn how to day trade with cryptocurrencies by watching this YouTube video.

1. High-Frequency Trading

This is most commonly performed by utilizing bots to detect slight changes in cryptocurrency values and create several small profits in a short amount of time through automated trading.

High-frequency traders seek to increase trade execution velocity while lowering transaction costs, to profit from minor price changes between deals.

Due to its algorithmic intricacy and the need for cutting-edge technology setups, HFT is best suited for traders with a solid understanding of these procedures.

The success rate in high-frequency trading can reach astounding heights if trading algorithms are painstakingly crafted and fine-tuned per changing market conditions.

Risk management strategies include using limit orders to reduce slippage, distributing assets strategically across trades, and implementing technical protections to protect against market swings.

2. Scalping Method

This is a short-term strategy based on increasing trade volume, often utilized by those aiming to become a crypto trader focused on maximizing their 30-day trading volume. Day traders join the market when volume begins to rise and exit when volume declines.

Scalping is a trading strategy that focuses on capturing modest profit margins from price changes that occur quickly. To be effective, traders have to execute trades quickly and precisely.

Watch the market for opportunities that could lead to gains.
Possess a deep understanding of the optimum periods to realize earnings or reduce losses.
Maintain rigorous discipline.

Acquiring mastery of these skills is essential for successful scalp trading, especially for advanced traders looking to maximize their 30-day trading volume. Scalpers prefer liquid markets because they allow for lightning-fast transactions when entering and leaving positions.

Arbitrage Trading Method

This is a method that includes buying an asset on one exchange and then trading it on another to profit from price differences between platforms.

Arbitrage stands out as an effective method for maximizing risk-adjusted profits in cryptocurrency day trading. Arbitrage trading includes profiting from price differences between different exchanges.

In cryptocurrency, there are two basic techniques to arbitrage which are cross-exchange, which involves many platforms, and intra-exchange, which occurs within a single platform's numerous goods.

High-frequency trading bots can considerably help arbitrage traders by completing trades fast across many exchanges to catch price differences.

However, in order to completely optimize returns in arbitrage trading, transaction costs must be kept to a minimum, as trading fees might reduce prospective gains.

As a result, successful arbitrage trading necessitates an in-depth analysis of the costs involved, as well as a systematic strategy to control these costs while maximizing the possibility for profitable transactions.

Swing Trading Method

Swing trading is a tactical balance between the rapid-fire method of day trading and the longer-term strategy of position trading in the cryptocurrency market.

This strategy capitalizes on swings in market volatility across periods ranging from a few days to many weeks, using a variety of basic and technical indicators to make trades. Swing traders differ from position traders in that they seek short-term gains over days or weeks instead of months.

Swing traders may enter into a long trade after a cryptocurrency's price surges past resistance levels, holding on to that position until signals indicate an oncoming trend reversal.

This type of trading necessitates quick decisions and daily active participation, which can create significant hurdles and complexity barriers that are frequently particularly difficult for people new to navigating the complexities of market activity.

Range Trading

This is a method that uses chart indicators to predict when an asset becomes overpriced or oversold and then sold or bought at the optimal time.

A range trading strategy involves identifying a cryptocurrency's projected short-term price corridor and trading within it. Traders seek to enter positions near the support level at the lower limit of their defined range and exit near resistance levels at its higher edge.

They use indicators like Bollinger Bands, Volume Weighted Average Price (VWAP), and Stochastic Oscillator to assess trade value, negotiate market volatility, and find optimal times to enter or exit deals.

Fibonacci retracement tools provide useful insights into potential zones of support and resistance, allowing traders to make educated choices about where inside the price range to commence or terminate market transactions.

The Risk Involved in Crypto Day Trading

Crypto day trading can be rewarding, but the dangers are high. The Bitcoin market's basic volatility is a major source of concern, yet it remains the best crypto for day trading due to its liquidity and market depth. Prices can fluctuate dramatically in short periods.

Liquidity risk in crypto trading occurs when attempting to enter or exit deals may unintentionally alter market pricing. This is particularly true for smaller-cap cryptocurrencies or ones that are not as widely traded.

There are several risks associated with bitcoin trading.

The frequency of frauds and fraudulent activities, such as investment in fictional enterprises, as well as theft aimed at digital wallets and exchanges.
Risks associated with regulatory changes can have a significant impact on both the valuation and legal status of cryptocurrency assets.
Selecting an unsuitable broker for your trading needs may result in security risks, asset liquidity challenges, and possibly fund custody issues.

To succeed in day trading in this unpredictable terrain, you must recognize and mitigate the risks related to the bitcoin markets.

Being aware of these problems enables traders to develop sound risk management strategies required for securely navigating the tumultuous currents of crypto day trading.

The Role of Financial Institutions in Crypto Trading

Financial institutions play an important role in the Bitcoin trading environment. As they get more involved in cryptocurrency transactions, these organizations confront potential and regulatory challenges.

When converting cryptocurrencies to fiat currency, there is a risk of accidentally injecting criminal money into the banking system. To address this issue, financial institutions have turned to blockchain technology to track transactions and ensure adherence to Know Your Customer (KYC) policies.

They have also improved their anti-money laundering (AML) protocols to identify better and assess the risks involved with trading cryptocurrency.

The provision of banking services to companies that provide cryptocurrency-related services is decided by thorough reviews of what they do, whom they serve, and the projected account activity that will occur thanks to them.

Artificial intelligence (AI) has been applied to crypto trading processes not only to improve security but also to ensure that activities comply with various regulations.

An understanding of how financial institutions interact with the cryptocurrency market can inform traders about compliance issues that can impact their trading decisions in this arena.

Conclusion

Choosing the finest cryptocurrency exchanges for day trading is critical, and numerous crypto day platforms for trading will stand out for their distinct features and capabilities. For crypto day traders desiring the most cost-effective solution, these exchanges stand out as the go-to pick because of their low costs and strong liquidity.

To preserve your capital and increase gains in crypto day trading, you must use risk management tactics. It is recommended that traders limit their investments to what they are willing to lose, as this protects against financial problems given the volatile character of cryptocurrency markets.

Moving cryptocurrencies to cold storage solutions like Ledger and Trezor helps protect digital assets from hazards such as exchange hacking.

FAQs

Can you daytrade on Binance?

To start day trading cryptocurrencies, you'll need to choose a reliable and secure crypto exchange. Ensure that the exchange offers a diverse choice of cryptocurrencies, competitive trading fees, and strong security measures. Coinbase, Kraken, and Binance are some of the most prominent cryptocurrency exchanges.

How do you identify cryptocurrency for day trading?

Begin by identifying cryptocurrencies with strong liquidity and low spreads. High liquidity guarantees that deals are executed quickly, while narrow spreads result in lower costs per trade. The key to scalping is speed and accuracy. Set specific entry and exit points for each trade and adhere to them.

How does crypto-day trading work?

Crypto day trading entails purchasing and selling crypto assets on a single trading day. The idea is to profit from the price changes of these virtual assets. Crypto day trading tactics can vary greatly depending on whether they are based on news or technical analysis.

What exchange is best for day trading crypto?

Binance is a prominent site among the finest crypto exchanges for day trading, offering over 500 cryptocurrencies and operating in over 180 countries. It boasts minimal costs, low latency, high liquidity, and an easy-to-use interface, making it ideal for day trading.

Table of contest

5 Best Crypto Exchange for Day Trading in 2024

Continue Reading with Premium Access!