Best Exchanges for Day Traders

Day trading on cryptocurrency exchanges can benefit traders who are looking for gaining extra profit for the turbulent movements on the cryptocurrency markets. Because of the high volatility that can be experienced on the bitcoin and altcoin markets, day trading can be a very profitable strategy for trading with cryptocurrencies.

The price fluctuations for cryptocurrencies are significantly higher compared to traditional assets There are several factors behind the huge price fluctuations which also provide a great opportunity to earn money through day trading. With a usage of financial leverage day trading can be extremely profitable to extremely unprofitable, so make sure you are familiar with the basics of cryptocurrency trading before engaging in day trading.

Cryptocurrency Day Trading

There are several brokers and exchanges on the market which are offering cryptocurrency day trading options. The two main possibility to trade cryptocurrencies intraday is CFD trading and trading in cryptocurrency assets directly.

Not all of the exchanges allow bitcoin and altcoin deposits, also many traders do not want to engage in the technical side of the blockchain technology, so for these users, CFD derivative trading offers a solution to benefit from the price changes of crypto assets. In case of a cryptocurrency CFD you can buy and sell coins just like on a cryptocurrency exchange, but without the need to wait for confirmation times on the blockchain. When engaging in day trading, quick access to funds is crucial. CFD trading however usually have wider spreads compared to the cryptocurrency exchanges.

The other common option is to trade with bitcoin and altcoins directly on exchanges. Cryptocurrency exchanges allow you to top up the trading account with bitcoin and altcoins, which is beneficial for those, who want to hold coins directly. The services offered and the fees applied can range widely among the platforms. It worth considering a couple of different aspects before signing up for a service.

As for the cost, most exchanges apply a maker-taker model for the fee schedule. The market makers can trade almost free of charges, while the price takers bear the trading fees of 0.2%-0.3%. Sometimes deposits and withdrawals are charges as well if the platform accepts funds apart from cryptocurrencies. The trading spreads are an important cost factor when choosing the right platform as the frequent buy and sell can be expensive for day trading if the spreads are wide.

Top Bitcoin Exchanges for Day Trading

Besides the trivial cost and expense aspect of choosing the best exchange for day trading, it also worth to consider the additional features an exchange can offer and the user-friendly interface of the platform.

Binance – Binance.com is a relatively new exchange platform on the market. The exchange is divided into two parts: basic and advanced. These two options show less and more information to traders depending on what is the preference.The shown charts can be changed between “Candlesticks” and “Depth” depending on what you like to look at.  As this is a BTC exclusive website, all of the coins will be paired up against BTC. Binance is not for newbie trader, but aside from the non-user-friendly interface, but their website doesn’t have any lag issues at all which is crucial for day traders who have to react fast to the market.

Cryptopia – Cryptopia is a great one-stop-shop for a wide range of cryptocurrencies. Besides being an exchange and a wallet, it is also a marketplace where you can sell and buy almost anything for bitcoins and altcoins. The idea is to offer all kind of cryptocurrency related services on one single platform. The fee structure is very straightforward, the trading fee is 0.20% of the total BTC or cryptocurrency you are paying with. Cryptopia does not charge deposits as this would come from the wallet that wants to deposit into your account. Their Arbitrage feature is probably the best idea that they came up with. You can easily compare the “Ask” and “Bid” price from four different websites at the same time. This lets you exploit the market discrepancies during the day with just a few clicks. Cryptopia was hacked and is out of business 🙁

Bitfinex – Bitfinex is one of the most popular bitcoin exchange for the US market since 2012. Beside fiat currency deposits and withdrawals, they also accept TetherUSD, which is basically fiat currencies on the BTC blockchain. They are applying a make-take fee model, where trading fees start at 0.1 percent for the maker and 0.2 for the taker. The trading platform is very sophisticated, and it offers a lot of trading options and several different advanced order types which helps the risk management side of day trading. The platform offers quick options to buy or sell digital currencies as well as to place orders, it is even suitable for those who are new to the cryptocurrency world.