Best Crypto Exchanges for Day Trading
Unless you have been living under a rock lately, you have probably heard of cryptocurrency. Investors can trade Bitcoin and other cryptocurrencies on crypto exchanges, just like they would with stocks and securities. If you want to get into crypto trading, it’s important to pick the right exchange.
So today, the team here at Smart Billions will talk about the best crypto exchanges for day trading in the U.S. We will cover the best cryptocurrency exchanges for beginners and experienced traders. We will also discuss which features to look for when picking crypto exchanges for day trading.
If you know anything about crypto, you have likely heard of the crypto exchange Binance before. Binance is our go-to cryptocurrency exchange for beginner traders due to its high daily trading volumes, a large number of supported currencies, and relative ease of use. Binance also holds its own proprietary currency Binance Coin (BNB), which runs off Ethereum’s blockchain technology.
One of the best features of Binance and one of the reasons they make our top spot is their low trading fees. A typical trading fee structure on Binance comes in as low as 0.1%, one of the lowest trading fees currently on the crypto market. You can use the proprietary Binance currency to pay trading fees, lowering the barrier to entry. Binance also accepts over 40 fiat currencies for fees and transactions.
Binance also scores very high due to its great customer support. You can call their support team 24/7 via phone or contact them via the Binance smartphone app. The Binance mobile app maintains all the functionality of the desktop client in an accessible and easy-to-operate format for trading cryptocurrency on the go.
Overall, Binance is an excellent choice for crypto traders of all stripes, especially those who love spot trading. The breadth of options and simple navigation make trading intuitive and straightforward.
Over 42 currencies
Another popular trading exchange, Kraken, got its start back in 2011. It has since made a name for itself thanks to its diverse crypto trading platform. Kraken supports over 50 different crypto assets, as well as OTC trading, margin trading, staking, and more. You can get up to 50x leverage on crypto derivatives, which have incredibly high liquidity.
Kraken does have higher fees than the typical crypto brokerage and charges 0.2% per maker/taker. These maker fees / taker fees are relatively high when trading in low volumes, but Kraken lowers that fee to 0.1% for higher trading volumes. So Kraken is probably a better choice if you want to trade high amounts quickly.
Kraken also has cryptowatch, a tool that lets you analyze your portfolio and keep track of currency performance. The visualizations are great for beginners and experienced traders alike, and you can use the app on iOS and Android devices.
Kraken works best for more experienced traders who might want to try margin trading or options/futures. The higher fees lend themselves to high trading volumes, and customers in Single Euro Payment Areas (SEPA) are exempt from fees.
CAD, USD, GBP & EUR
0.9% to 1.5% fee
If you want to diversify your crypto portfolio, Bittrex makes a good place to start. The platform supports over 190 digital assets, so you can have your pick of the best. Bittrex also has an effective user-friendly interface, making day trading simple and intuitive.
Bittrex also deserves a nod for its tight security systems. Accounts remain protected with advanced encryption protocols and two-factor authentication options. These security features let you access Bittrex no matter where you are on the globe.
Bittrex does have relatively high trading fees at 0.25% per trade. However, the large number of supported currencies allows for high daily trading volumes. The high fees mean you need to make at least a 0.5% profit on your trading activity to break even, so plan your trading strategy accordingly.
Lastly, Bittrex has a 100 BTC withdrawal limit per day for verified accounts that underwent KYC process, while unverified accounts have a 3 BTC daily withdrawal limit. Overall, Bittrex is best for high-volume traders looking to diversify their portfolios and maximize gains. The high trading fees are a negative feature, but the large buyer’s market provides several trading options.
0.35% standard fee
Operating out of Seychelles, Bitmex originally rose to prominence for allowing virtually anonymous trading. Bitmex has since tightened its verification requirements but offers some of the best margin trading of any crypto platform. Bitmex offers up to 100x leverage on all trades, making it a good platform for professional day traders that have experience managing large sums.
Bitmex supports seven cryptocurrencies—relatively few compared to most other crypto exchanges like Gemini, Forex.com, or Robinhood. However, Bitmex focuses almost exclusively on derivatives trading like futures and margins. Bitmex takes advantage of Seychelles’ rather lax trading laws to allow high-stakes derivative trading.
Bitmex trading fees start at 0.05%, but trading fees differ depending on the specific currency. All trades actually involve BTC, though you can exchange altcoins. They notably do not accept any types of fiat currencies, so you need to have some crypto already to create an account.
Overall, Bitmex is best suited for advanced traders who have a lot of experience with high trading volumes. Derivatives, by nature, are highly volatile, so Bitmex represents a risky platform with much potential for reward.
Does not support fiat directly
We’ll get the big issue out of the way quickly: Bitfinex has gotten in trouble with the government before and has had a number of security issues in the past, so be wary. That being said, Bitfinex has managed good returns for investors, despite hiccups in the past.
Bitfinex has low trading fees, starting at 0.1% and 0.2% for different currencies. The more you trade, the lower the fees become. And trading you can do—they currently support over 100 currencies and four fiat currencies (USD, EUR, JPY, and GBP). Bitfinex frequently ranks in the top exchanges for liquidity and volume, so it makes a good choice for fast-paced trading.
Bitfinex also has a fully customizable API you can design yourself. It might be a bit tricky to get used to the interface, but it’s incredibly intuitive once you get the hang of it. You can set up pricing charts for your favorite cryptos or keep a news feed for updates.
Overall, the reception to Bitfinex is mixed. They have an excellent performance record, but past scandals and security issues may be a major turn-off for investors. For what it’s worth, Bitfinex has stepped up security verification significantly in the past few years. If you do pick Bitfinex, we recommend keeping your funds primarily in a private wallet.
AUD, EUR and GBP
Etoro got its start as a regular securities trading platform but has since pivoted to allowing crypto trading. The exchange has long been a favorite among the trading community for its reliable infrastructure and accessibility.
Currently, eToro allows 16 different trading currencies, all of which have higher than average liquidity. Unlike many other platforms, eToro lets you trade crypto/commodity crosses, such as gold or crude. The wide range of trading pairs makes eToro great for diversifying your investments.
You can buy cryptocurrency starting at $10, which is another perk to choosing eToro for your crypto day trading platform. You can also deposit $10 to get started. This means that even those with tight budgets, you are covered. We like eToro because it offers zero-fee withdrawals and deposits on U.S. Dollars (USD) balances. This includes payments via domestic bank account wire transfer, ACH and debit/credit cards.
Arguably, eToro’s greatest feature is that they give traders the option to emulate trading strategies from successful investors on the platform. New users can try out copying trades with a $100,000 simulated account so that they can experiment before committing financially. If you do well enough with trading, you can start sharing your trading strategies and get a small commission.
Overall, we rank eToro very highly thanks to its great track record and unique trading features. The trade copying makes an exceptional option for new traders, and even experienced traders can pick up tips from looking at other investors’ strategies. On a side note, if you’re also interested in ETFs, eToro is for you!
EUR, GBP & USD
Another extremely popular platform, Coinbase is a U.S.-based exchange that features high liquidity and a number of lesser-known currencies. Coinbase currently accepts over 50 coins, including well-known staples such as BTC, XRP, and ETH, as well as more obscure currencies like ZRX and XLM. Coinbase is also available in over 100 countries worldwide, though some features have regional limits.
Coinbase has two types of accounts: basic and PRO. The basic account allows for day trading and sending/receiving currencies. In addition, the basic account has daily limits for trade that differ depending on your location.
With Coinbase PRO, you get unlimited trading and over 250 supported currencies. PRO accounts can also perform stop orders, force orders, and limit orders, in addition to basic trading. Lastly, the PRO account comes with charting tools to keep track of performance and trading pairs.
Coinbase keeps up to 98% of all currency in offline wallets, ensuring excellent security and liquidity. These security measures seem to work, too, as Coinbase has never had crypto stolen from investors through a hack.
CAD, USD, GBP, EUR
Based in Luxembourg, Bitstamp Exchange boasts excellent security measures and great customer service. Bitstamp uses a Nasdaq-sourced engine to time trades, providing “unmatched order execution,” according to the creators. Bitstamp has been around since 2011, so they have stood the test of time so far.
However, Bitstamp is definitely not for casual day trading. Starting fees for trading are 0.5%, nearly double the typical crypto exchange. Higher trading volumes incur progressively lower trading fees, all the way to 0%. Unfortunately, they do not offer margin trading and only allow two currencies for staking.
Bitstamp also offers a highly customizable API interface, so you can design your account layout exactly how you’d like. However, you need to know exactly what you’re looking for to make the analytics trading tools worthwhile.
Bitstamp’s trading platform is unique in that users can trade from their mobile or browser. Both platforms are suitable for day traders. Bitstamp’s Tradeview platform, however, is more suited for experienced investors. This platform offers detailed order book information, technical indicators, advanced order types, and is ideal for day traders who are looking to trade crypto.
USD, EUR and GBP
OKEx is another crypto platform that sells itself on low fees and an extensive list of supported currencies. Trading fees on OKEx start at 0.1% and allow up to 200 different cryptocurrencies and 500 trading pairs. The catch is that non-VIP users have to have a certain amount of funds held in OKB, the platform’s proprietary utility token.
Despite this caveat, OKEx allows derivative trading and has high liquidity compared to other exchanges. The platform supports over 20 million users from 200 countries, meaning plenty of options for trading.
OKEx also offers special promotions for new users, such as free crypto when you fund your account. You can use the OKEx app on iOS and Android devices to easily trade throughout the day.
As far as security, OKEx has never been hacked, but they had issues with relocation and account freezes in the past. The current leadership has implemented new protocols to prevent such account freezes in the future, though the nature of these new protocols remains unclear.
So we recommend approaching OKEx with a bit of caution. The platform has performed well in the past and has plenty of options for trading. So as long as you stay on top of your crypto security, you should be fine.
USD, EUR, GBP, AUD, BRL, CAD, JPY, NGN, PHP, RYB, TRY, ZAR, and more.
8 main coins but 100+ trading pairs
This platform was launched in 2016 and is very popular among traders of all skill levels and budgets. You will have access over 250+ cryptocurrency, covering a wide range of large- and medium-capitalized projects. Crypto.com has a maker/taker pricing system, which is especially useful for day traders.
Market makers are cryptocurrency exchanges that offer liquidity. As such, they can be offered higher commissions. You will be a market taker as a crypto day trader. You will be charged a maximum of 0.4% per slide. However, you can still benefit from lower commissions if your trades exceed $50,000. If you trade more than $50,000 within a 30-day period, your commission will be reduced to 0.1% per slide.
Further fee reductions will be available for holders of CRO tokens, which are the digital asset-backed Crypto.com. We also like Crypto.com‘s ease-of-use platform for capital transfers. The platform also supports credit and debit card purchases, so even if crypto funds are not available, you can still deposit them. You can also make bank transfers. You might also consider applying for the Crypto.com card.
You can withdraw your crypto profits instantly via an ATM by doing this. Crypto.com also offers leveraged financial products that may be of interest to you. You can also day trade crypto with leverage up to 10x and have access to perpetual options. Crypto.com is the best day trading site for crypto. It offers advanced trading charting tools and charts.
21 fiat currencies
0.04% to 0.4
Last but not least on our list is Prime XBT, a relatively new exchange. PrimeXBT, like Bitmex, operates out of Seychelles and has established a good reputation for its liquidity providers and excellent contract-for-difference (CDF) systems. PrimeXBT has only been around for a few years but has managed to reach an average trading volume of over $500 million.
PrimeXBT currently accepts over 50 digital currencies and offers up to 1,000x leverage on select trading pairs. Fees start as low as 0.05%, but they can vary depending on the currency and time. Specifically, fees tend to go up overnight, which shouldn’t be a huge issue for day traders.
PrimeXBT also has a spotless security record. This is partially because they are a new exchange, but they boast an impressive number of security features, including:
- Two-factor authentication
- Address whitelisting
- Offline cold storage
- Encrypted SSL certificate
- Cryptographic hashing for all persona information
- Cloud architecture for DDoS prevention
- Regular IT audits and security assessments
No security system is 100% unbreakable, but PrimeXBT is clearly making a great effort to protect crypto investors. We highly recommend checking out PrimeXBT if you are interested in high-volume leverage trading and excellent security.
AUD, GBP, EUR, NZD, CHF, USD
How To Pick the Right Crypto Exchange for Day Trading
Before picking a platform for crypto trading, make sure to consider the following features:
One of the main things you should look for includes the number of supported currencies on the platform. Most people want to trade in more options than Bitcoin. Most platforms are compatible with other popular currencies, such as Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Tether (USDT), Dogecoin (DOGE), Cardano, (ADA), Ripple (XRP), etc. Some platforms operate with a handful of currencies, but others may have hundreds.
Multiple supported currencies typically make a good idea as you don’t have to put all your investments into one currency. The main drawback is that it might be difficult to trade relatively unpopular currencies due to fewer buyers.
Modern crypto platforms offer a range of payment options to fund your investment account. All platforms will allow wire transfers, but more platforms now extend payment methods to include options such as credit cards, debit cards, and digital wallets like PayPal. Be sure to check what kinds of fiat currencies the platform accepts as well.
Keep in mind that exchanges may have different fees for different payment methods. For example, many exchanges charge an extra fee for debit or credit cards compared to wire transfers.
Unfortunately, crypto still has some major security concerns. Many platforms have reported security breaches in the past few years. Unlike traditional banks and trading platforms, the federal government does not insure crypto accounts and platforms. So if someone steals your crypto wallet address and gets into your account, you probably won’t get reimbursed for any lost funds.
So it’s imperative to pick a platform that has excellent security features. Things like two-factor authentication, encrypted wallet addresses, and offline cold storage are good features to look for. At the end of the day, it falls on the individual to keep their wallet code and password secure.
Fees are another important consideration as they can affect your overall investment returns. Most platforms have transaction fees and withdrawal fees, but some may also charge extra fees for different payment/deposit methods. Most platforms also have a regular service fee, which comes out to a percentage of your total assets. For example, Binance charges a 0.01% daily management fee.
Other fees to look out for include borrowing or liquidation fees. Exchanges that allow margin trading typically incur an extra fee for leverage, in addition to interest on any borrowed currencies.
Liquidity is important because it determines how easy a user can trade during the day. Exchanges with high daily trading volumes tend to also have high liquidity because currencies frequently change hands throughout the day. High trading volumes also tend to reduce price volatility, so there is less risk that your currencies will drastically lose value quickly.
Keep in mind that liquidity for currencies may be different. For example, Bitcoin will typically have higher liquidity than something like Litecoin because Bitcoin changes hands more. Also, try to find platforms that will “lock in” your price, so you pay the same even if the value dips by the end of the trading day.
Last but not least is the user experience (UX). UX is incredibly important as you want a platform that is easy to navigate and execute trades. Typical UX quality-of-life features include:
- Pricing charts
- Technical indicators
- Mobile responsive design
- User anonymity
- Research databases
- News and press releases
- Live pricing updates
These kinds of features make crypto platforms easier and less confusing to use. We highly recommend that beginner traders take into account user experience design and interface before committing to a platform.
Crypto is the new frontier of investing, and many people want to get their foot in the door. If you are just starting with crypto day trading in the U.S., we highly recommend researching different platforms to find one that works for you. Your choice of the best crypto exchanges for day trading can mean the difference between success or failure with investing.
If you have any questions about our daily crypto content or are interested in working with us, feel free to contact Smart Billions online or give us a call today at (619) 407-8546 to talk to a company representative. We look forward to hearing from you!
Crypto Day Trading FAQs
Is Day Trading Legit?
Many people consider day trading as just another get-rich-quick scheme. However, it is by no means illegal or not a legitimate way of making money. Day trading provides a perfectly legitimate way to make money, even if the practice has some detractors.
Some people may get in trouble with day trading because they skirt regulations or don’t pay taxes on their gains. So as long as you obey the relevant financial laws, you shouldn’t run into any trouble.
How Risky Is Day Trading?
Day trading comes with inherent risk, especially with cryptocurrency. Cryptocurrencies can be highly volatile, so it’s possible to lose a lot of money in a single day. By the same principle, it’s also possible to make a great deal of money in a single day. Moreover, day trading takes a lot of focus and attention.
The odds are you will lose money at first while figuring things out. Once you get used to the ebb and flow of cryptocurrencies, you’ll stand a much better chance of making money.
How Much Money Do I Need To Start Day Trading?
It all depends on what your investing goals are. You can start day trading with as little as $100, but you probably won’t make much. According to FINRA, the typical full-time day trader should maintain at least $25,000 in investments at all times so they can manage risk. If you want to try out day trading, we recommend starting with some money in both crypto and traditional securities.
Which Cryptocurrency Is Best for Day Trading?
It significantly differs depending on what kind of asset you are trading (e.g., coin vs. derivative), trading volume, and trading day. If you want to focus on price stability, big cryptocurrencies, such as Bitcoin or Ethereum, make good choices because they have high liquidity and trading volumes. However, it is usually a good idea to have some money in altcoins to spread your assets around.
What Are Crypto Day Trading Robots?
A crypto-day trading robot is also an option for some traders. This can usually be done via MT4 through a piece software. A list of pre-defined conditions will be included in the software file. These will be followed by the robot. This will be used in conjunction with technical indicators or other charting tools.
A crypto trading bot has the main advantage of being able to trade in a passive manner 24 hours per day. The robot isn’t fatigued and can scan thousands of markets simultaneously in many cases. Robots are more risky than signals or copy trading because you allow the software to access your capital.