Best Crypto Exchanges for Day Trading with Lowest Fees

The goal of cryptocurrency day trading is to make money by purchasing and selling cryptocurrencies. To be successful, you will need the best crypto exchange for day trading. Because of the volatility of the cryptocurrency market, the price of a crypto asset can alter at any time.

To trade cryptocurrencies, you must be a member of a crypto day trading & exchange platform that accepts those currencies. It should be fully equipped with everything you need to effectively complete these transactions, including trustworthy security measures.

Whether you are a novice or a seasoned trader, this list of the top cryptocurrency exchanges for day trading can assist you in locating the best platform for your specific needs.

7 Best Crypto Exchange for Day Trading

Finding the best crypto exchange for day trading is difficult. There are many options available. That's why we created a crypto exchange list of the best platforms so that it's easy for you to choose.

Coinbase

Suitable For: Investors who want a solid all-around platform for buying, storing, and selling cryptocurrencies.

Benefits

• Extensive cryptocurrency selection
• Simple and advanced trading
• Earn free crypto
• Educational content
• Top-rated mobile app
• Crypto Bounties
• Offers Coinbase debit card

Coinbase has a lot of different cryptocurrencies, a simple user interface, and helpful learning resources. Additionally, it offers sophisticated trading instruments for more experienced bitcoin investors.

With well over 150 coins available for trade, Coinbase boasts one of the largest cryptocurrency selections. The majority of the industry leaders, including Cardano (ADA), Ethereum, and Bitcoin, are available on Coinbase. It also has almost all other kinds of cryptocurrencies, such as serious projects, meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB), and smaller tokens.

As one of the safest exchanges, Coinbase will keep your cryptocurrency secure. Over 98% of client money is kept in cold storage. These resources are kept on non-internet-connected devices. Because of the increased protection against hackers, this is the preferred technique for safe cryptocurrency storage. If you want a site with lots of educational resources and are new to cryptocurrencies.

Binance

Suitable For: Advanced cryptocurrency traders

Benefits

• Low fees
• Supports 300+ cryptocurrencies, 50+ fiat currencies
• Wide range of cryptocurrencies
• Advanced trading tools
• Several ways to deposit money
• Crypto-to-crypto or fiat-to-crypto trading

Binance is one of the biggest cryptocurrency exchanges. For seasoned investors, it provides minimal costs, access to hundreds of cryptocurrencies, and cutting-edge features. However, clients in the United States cannot use Binance.

One of the lowest market rates is offered by Binance. Although there will be a small surcharge for US consumers on Binance.US. Even so, it still charges less than other leading platforms. Depending on trade volume and Binance Coin balance, the maker/taker fee structure utilized by Binance has varying rates (BNB). Larger trade volumes often come with lower fees.

A few of Binance's security features include address whitelisting, device management, two-factor authentication (2FA) through SMS or the Google Authenticator app, device access control, and address 2FA. The Binance.US platform also provides FDIC insurance for all US dollar accounts.

Bitstamp

Suitable For: Crypto investors who want to keep trading fees to a minimum

Benefits

• Competitive trading fees
• Easy to use
• Advanced platform available
• Highly rated mobile app
• Solid cryptocurrency selection
• Earn rewards with crypto staking

Bitstamp is undoubtedly one of the best crypto platforms for day trading. It is a great option for investors who are fee-conscious because of its reasonable commissions, which are lower than those of many competitors. Its fee structure is uncomplicated. Your 30-day trading volume determines your trading commissions.

For users with less than $10,000 in trading activity over the previous 30 days, the highest trading cost on Bitstamp is merely 0.50%. Users that trade larger amounts each month see a significant reduction in fees. That is on par with or less expensive than what other well-known exchanges charge.

You can quickly learn how to purchase and sell cryptocurrencies on its simple interface. Bitstamp provides Tradeview, an active trading platform, in addition to its standard platform. The fact that Bitstamp's trading fees remain the same whether you use its standard platform or Tradeview is one of its nicer features. A high-quality mobile app is a bonus. You can use it to check your portfolio and place transactions whenever you want.

Bitstamp allows you to trade over 60 different cryptocurrencies. Although some exchanges provide more, Bitstamp's roster ought to be more than enough to satisfy the requirements of the majority of investors.

Crypto.com

Suitable For: Investors looking to buy altcoins and other new crypto assets before they go mainstream

Benefits

• 250+ cryptocurrencies, 20+ fiat assets
• No fees to send crypto to other users through a mobile app
• Low account minimum
• Transparent, competitive fees with discounts available
• Crypto Visa card offers up to 5% cash back

Services including trading, investing, staking, wallets, NFTs, and others are available on Crypto.com. People with a sizable investment in Crypto.com can take advantage of discounts, more than 250 different currencies, and low fees on this exchange (CRO). Due to its ecosystem of cryptocurrency-related products, it is a good option for people who want to do a lot with their money.

New users of Crypto.com will pay 0.4% without CRO staking on trades with a monthly trading volume under $25,000. Although not the lowest on the market, the trading charges are a touch lower than those of several significant rivals. As stake size grows, rates decrease. The pricing at Crypto.com is fair because there are no additional per-trade fees.

Whitelisting and multi-factor authentication (MFA) are just two of the security measures that Crypto.com uses to safeguard user accounts. Naturally, creating secure passwords for your accounts and adhering to other online security precautions will help keep them safe. If your account is compromised, you most likely won't be able to recover any lost cryptocurrency. since cryptocurrency transactions are irreversible.

Kraken

Suitable For: Beginner, Intermediate-level traders

Benefits

• 110+ cryptocurrencies available
• Air-gapped cold storage
• Precise API Key permission control, SSL encryption
• High deposit and withdrawal limits

One of the most reputable exchanges available is Kraken, where many early Bitcoin adopters currently work. Although the platform's parent firm was established back in 2011, the exchange has never experienced a significant security breach.

Cryptowatch, a trading terminal offered by Kraken, monitors and produces data on more than 2,000 cryptocurrency markets. Using the free service, traders may create price alerts and track market patterns across a variety of platforms. By adding one credit for each alert, investors can improve this service and receive alerts more quickly.

Live chat, phone, and email are always to contact Kraken support at all times. You might like Kraken or Kraken Pro depending on your bitcoin and active market trading experience. There is a platform available for everyone, from novices to specialists, in either situation. Beginners should begin on the primary Kraken platform. With a verified account, you can easily purchase cryptocurrency using a linked bank account, and it's just as simple to sell bitcoin or exchange it for other currencies.

Webull

Suitable For: Intermediate investors, Active traders, Options traders, and Cryptocurrency traders.

Benefits

• Strong mobile app with an excellent user interface
• No minimum deposit or platform fees
• Paper trading available
• Offers two free stocks to new account holders
• Access to traditional IRAs, Roth IRAs, and rollover IRAs

Today, a lot of cryptocurrency day traders opt for vendors who give both an online platform and a mobile app. By using this strategy, you can make sure that the digital currency markets are never more than a click away from you. Additionally, we discovered that Webull has one of the top day trading cryptocurrency apps in 2022 in terms of providers. The app links to your primary Webull account and is available on both iOS and Android. You can go back and forth between the two as you, please.

The Webull app has features that appeal to experienced traders in addition to being user-friendly and appropriate for beginners. This covers live price charges, access to technical indicators, and even customizable charts. Webull has a limited selection of cryptocurrencies in terms of the markets it supports. Bitcoin, Ethereum, Cardano, Shiba Inu, Dogecoin, Litecoin, and several other cryptocurrencies are examples of this. The Webull app also lets you trade stocks, exchange-traded funds, and stock options.

Webull does not impose trading commissions on stocks and exchange-traded funds, similar to the great majority of online brokerage platforms today (ETFs). There aren't any monthly maintenance fees or fines for inactivity either.

Robinhood

Suitable For: Mobile users, Individual taxable accounts, and Margin accounts.

Benefits

• Solid cash management account
• Extensive fractional share trading
• Very good usability and well-designed app
• $0 commissions

Investors can trade in the market with ease thanks to a very straightforward, intuitive trading experience. The slick mobile app design shows that Robinhood prioritizes mobile, even though it has a web-based platform as well. Robinhood uses its expertise as a mobile service provider to benefit traders looking for easy-to-use features. The platform Robinhood has no trading commissions or fees. Many brokers were compelled to lower or remove their trading costs to compete as a result of their creative industry challenge.

The trading of fractional shares and direct access to cryptocurrencies enable investors to diversify their portfolios. Purchases of fractional shares can be made for as low as one dollar. Dividends from stocks or ETFs are automatically reinvested under the dividend reinvestment program (DRIP) (provided the positions support fractional shares). Trading platforms with direct crypto access make it simple to buy and sell various coins.

Traders can manage their money more effectively thanks to reliable cash management features and recurring investment functionality. Users of an inventive cash card can invest in rewards they receive from purchases. Users of cash sweep accounts can earn up to 1.5% in interest.

What is Crypto Day Trading?

The practice of purchasing and selling cryptocurrencies on the same trading day is known as crypto day trading. With many day traders refusing to hold holdings overnight, day trading is a tactic used to profit from price changes in the market.

All about Day Trading on Best Crypto Platforms

Crypto Day trading is a type of trading strategy. You can use any best crypto sites for day trading. They make it easier for you. It entails buying and selling opportunities on the same day. It necessitates extensive experience and in-depth market knowledge.

Day traders try to make money off of slight changes in market volatility. Due to its intense nature and higher frequency of trades than other trading techniques, it is a demanding activity. In comparison to day trading equities or commodities, the return on the cryptocurrency market may be far more alluring. Since it's typical to observe a crypto asset spike by a significant percentage on the same day.

However, effective risk management is crucial for day trading success. Additionally, you must be adept at using technical indicators correctly. Another essential element for effective day trades is liquidity. Quick trade execution is essential, especially when closing off a position in the erratic cryptocurrency market. A higher possibility of execution is ensured by a trading pair that is more liquid.

Pros & Cons of Crypto Day Trading on Platforms

Even if you are using the best crypto day trading method, being aware of its downsides will help you be ready for any emergency. We created a list of day trading's benefits and drawbacks for that reason.

Pros

• Investors are free to define their objectives and move at their speed.
• There is no need to be concerned about overnight risk.
• You can accumulate huge potential gains and the best circumstances for using leverage.
• Deals can be profitable with only a few early-morning trades for disciplined and experienced traders, for example, leaving them with the rest of the day free.
• Since there is a lot to learn in technical and fundamental analysis for the curious and questioning mind, the learning curve may be unlimited.

Cons

• Day trading asset allocation could be too high.
• Day trading can be stressful because of the significant risks associated with unstable crypto markets.
• Day trading necessitates maintaining accurate records of all transactions, making tax compliance challenging.

Best Crypto Day Trading Platforms - Ways to Choose the Perfect One

A day trader's first step must be to select their platform. Although various platforms are available, look for the best crypto day trading platforms for your needs. Consider the following aspects when looking for the perfect trading platform:

Years in operation: The length of time an exchange has been in operation can indicate its stability and reliability.

Supported cryptocurrencies: Find out which currencies are accessible for trading. A smaller exchange with more supported cryptocurrencies and trading pairings may be better for day traders interested in altcoins.

Fees: Exchanges charge transaction fees when buyers or sellers complete a transaction. Al bitcoin exchanges charge users a transaction fee to monetize their operations. Depending on the exchange's goal, the transaction cost structure may alter, for example, charging no fee for trades exceeding $10,000 to encourage big trades.

Deposit options: Users must fund their exchange account with capital, much like a brokerage. Fewer exchanges permit credit card funding, PayPal transfers, or even gift card transfers; most exchanges only permit bank transactions and wire transfers.

Reviews from users: One of the most fruitful ways to determine which exchange to use is to visit various crypto groups and study user opinions.

Exchange liquidity: Market liquidity refers to how quickly and easily an exchange may transform one item into another without impacting the price of the original asset. The top cryptocurrency exchanges have high liquidity, which means they can purchase or sell assets quickly and with little variation between the asking price and the bid price.

Best Crypto Day Trading Strategies

Without day trading strategies, it is impossible to turn a profit, even with the best crypto platform for day trading. Having some methods in place is the only way to generate consistent profits while day trading cryptocurrencies.

Below, we examine some tried-and-true crypto day trading methods that you might want to think about as a starting point.

Strategy 1: Bankroll Management  

In crypto day trading, the simplest form of bankroll management refers to the procedure of putting all effort into safeguarding your investment capital. Limit the amount of money you are willing to risk on a single trade.

You might decide, for instance, that you wouldn't stake more than 2% of your balance on each investment. Therefore, with a $10,000 balance, your maximum trade size is $200.

Your trading balance won't ever be depleted in this manner. After all, the largest trade size you can enter will reduce as your balance drops.

The maximum amount you can risk every trade at 2%, for instance, would drop from $200 to $100 if your balance decreased from $10,000 to $5,000.

Strategy 2: Stop-Loss Orders  

You have the option of selecting a stop-loss price when you are setting up for crypto day trading. Stop loss is intended to lower a trade's potential loss. When the market price hits a certain level, it will automatically liquidate the assets.

For example:

Consider putting $1,000 at risk by placing a purchase order on ETH/USD. You believe that the pair's price will rise. The exchange rate for ETH/USD is $3,000 at the time of the trade. You nevertheless set up a stop-loss order at $2,700 in case your assumption proves to be incorrect. Therefore, your preferred cryptocurrency day trading platform will automatically close the position if ETH/USD falls by 10%.

Strategy 3: Don't Focus on Everything

Concentrating on some markets is another tried-and-true cryptocurrency day trading strategy. You will gain a thorough knowledge of how each pair functions as a result. The important thing to remember is that you have the best chance of consistently making money if you focus on just a few crypto markets and become an expert in those areas. Otherwise, you risk taking on positions without sufficient knowledge if you try to be a Jack of all crafts.

Strategy 4: Take-Profit Order

You have take-profit orders, which work the opposite of the aforementioned stop-loss orders. This allows you to lock in your profit targets automatically, meaning that you don’t need to wait on your device for the right time to cash out.

For example:

Let's imagine you want to go long on a BNB/USD trade to generate a day trading profit of 3%. The price of BNB/USD at the time of trade placement is $400.

Therefore, you should put your take-profit order at $412. Whether or whether you observe the 3% upswing, your preferred platform will immediately close the transaction on your behalf if the markets cause it.

Strategy 5: Arbitrage

Arbitrage is the practice of purchasing cryptocurrencies on one market and then reselling them on a different market for a profit. The “spread” refers to the discrepancy between an asset's buy and sell prices. Since the cryptocurrency business is mostly unregulated, anyone can start an exchange. Due to the variations in the liquidity of the assets and trading volume, this might result in significant spread disparities.

FAQ

Is Crypto Day Trading Legal?

Yes. Most nations permit day trading in cryptocurrencies. However, there is a significant degree of risk involved with day trading cryptocurrencies. Since the cryptocurrency industry is still in its infancy and values might fluctuate greatly.

How Risky Is Crypto Day Trading?

The major danger of day trading in cryptocurrencies is that investors could lose money very quickly. The value of cryptocurrencies is still erratic (especially when the broader financial markets are uncertain). They have swift, big swings.

Liquidity is a danger that day traders in cryptocurrencies also pose. There might not be sufficient buyers or sellers at a particular moment to complete your trade. This could prevent you from selling your coins when you want to or force you to sell them for less money, which would have a detrimental effect on your profitability.

How Much Of An Initial Investment Do I Need To Start Day Trading?

Since some exchanges have greater minimums than others, your necessary initial investment mostly relies on the bitcoin exchange you're utilizing. You should also consider your margin requirements. It will differ from exchange to exchange if you're using leverage.

Which Cryptocurrency is Best for Day Trading?

Any blanket declarations of “best” and “worst” are likely to go out of date in a matter of months. Because cryptocurrency's nature is volatile. There is, however, an easy way to choose. Check to see if there is a lot of trading activity and liquidity. Both of these figures should typically range from several hundred million USD to more.

What Is the Tax Rate of Crypto Day Trading?

Governments from all around the world are rushing to create regulatory frameworks for cryptocurrencies. In the United States, it is currently unclear whether cryptocurrencies are legally regarded as commodities, money, securities, or other types of property. However, the Internal Revenue Service (IRS) already counts rises in cryptocurrency value as taxable income.

Is Day-trading Crypto Worth It?

Day trading cryptocurrency is a highly profitable endeavor that can result in some impressive gains, particularly for short-term investors. As long as you have a sound day trading strategy for cryptocurrencies, there shouldn't be any issues. You can utilize tactics like bankroll management, stop-loss orders, arbitrage, take-profit order, etc. The most crucial thing to keep in mind is that concentrating on just a few crypto markets will give you the best chance of continuously making money. Become an expert in those areas. Otherwise, you run the risk of taking on roles for which you lack the necessary knowledge.

What is the Best App for Day Trading Crypto?

Binance: Best crypto day trading platform in terms of pricing having a commission rate of 0.10% per slide.

Webull: Simple to use and suitable for beginners. It includes fees for real-time price updates, technical indicator access, and even customizable charts.

Coinbase: One of the best beginner-friendly platforms. It only requires a small amount of money to get started and a few minutes to set up an account.

Crypto.com: A total of more than 250 cryptocurrencies will be available to you, including well-funded large- and medium-sized projects.

Bitstamp: You can begin investing in cryptocurrencies at 0.5% per trade.

Which is the Most Volatile Crypto for Day Trading?

Dogecoin is one of the best coins for day trading. The ability to profit from market volatility is crucial for day traders in the cryptocurrency space. Therefore crypto should change a lot during the day, and be attentive to news and updates. The price of DOGE may increase by as much as 20% in a single day. Being a day trader who has money in the coin can benefit you on such a day.

Conclusion

Crypto day trading is a high-risk tactic that frequently involves buying and selling cryptocurrencies to make quick money. Anyone interested in day trading cryptocurrency should have a clear day trading strategy, be aware of their trading location, and adhere to their entry and exit points.

You should also stay current on your preferred cryptocurrency. For this reason, we advise using a single platform that offers all available currency-related data. It is much simpler than constantly searching Google for updates. UnBlinked gathers all cryptocurrency data - Defi, DEX, and even CEX. For you, we prepare everything.

To keep track of all your previous transactions and balances, use UnBlinked's cryptocurrency portfolio tool. View a dashboard of your actual gains and losses.