Looking to make some money from investing in crypto? This digest talks about the best crypto exchanges for day trading crypto. The crypto industry is big and has a wide variety of projects with different utilities, each presenting a unique way to exploit the profitability of crypto. You could earn passively by staking tokens and receiving periodic interests, or actively by trading digital assets.
Crypto trading proves to be a very lucrative investment option for many seeking financial freedom. The crypto market is made up of over 10,000 crypto-tokens built on different blockchains. The price volatility of cryptocurrency makes it a favorite among traders. Crypto has much more trading volume than the forex markets, characterized by the exchange of fiat currency. This high volatility enables people to make huge financial returns on small capital investments.
Furthermore, unlike the forex market which closes on weekends and holidays, and stocks which are only open during business hours, the crypto market works around the clock, giving traders ample opportunity to turn profits.
This article reviews the top five crypto exchanges now: their features, perks, and downsides.
5 Best Exchanges to Day Trade Crypto
Crypto exchanges make it possible for the average user to seamlessly trade cryptocurrencies by providing the necessary services on an intuitive user interface. If you were to carry out this exchange on your own, it would be quite cumbersome. In return, crypto exchanges charge a fraction of your purchases for the troubles. Let’s consider some of the leading crypto exchanges in no order.
1. Binance US
Binance is the world’s largest cryptocurrency exchange in terms of trading volume and was founded in 2017 by Changpeng Zhao. Binance US is the United States version of the exchange and app. It offers over 100 plus cryptos for trading, extremely low trading fees, and excellent security.
Besides providing good security for digital assets held using Binance wallets, the developers show concern for the welfare of traders’ experience by taking extra measures to protect their investment.You can get started on Binance US here.
Pros
- Great looking interface on desktop & mobile
- Beginner friendly
- Low trading fees
Cons
- Fewer crypto-to-crypto currency pairs than global Binance site
2. Uphold
Next on our list is Uphold, a crypto service provider which makes a wide catalog of financial instruments and services available to users. People can trade over 100 different cryptocurrencies through Uphold. Â
Uphold scores some points for its fee structure transparency. It shares the same fee structure common to most crypto exchanges with some slight differences. Uphold doesn’t make deductions on transactional activities like deposits, market maker fees, and commissions. The platform turns profits from spreads, charging users slightly higher than the true market price on orders. However, they are still a great exchange for day trading crypto. You can get started on Uphold here.
Pros
- Available in more than 180 different countries
- Transactions sent between Uphold users are completely free
- Huge list of cryptos available
Cons
- Fees are unclear in certain buy and sell spreads
3. Crypto.com
Crypto.com is a leading decentralized crypto exchange that offers the transfer of a wide range of crypto assets, alongside other blockchain-related products, and services. This DEX is famous for pioneering crypto-linked Visa cards.
Crypto.com allows users to enjoy passive income by staking tokens. They distribute a 14.5% interest to crypto holders who leave their assets locked in for a specific period. With transition fees as low as 0.5%, day traders can keep nearly all their profits. The charges get even lower as liquidity improves and for holders of the platform’s custom token, CRO. You can get started on Crypto.com here.
Pros
- Wide list of crypto available
- Low trading fees
- Staking available
Cons
- Lack of educational resources
4. Coinbase
Coinbase is another top contender in this category with a strong presence in the United States. Users can buy, sell, and store nearly 100 cryptocurrencies through this exchange. Coinbase stands out from competitors in terms of security. The crypto exchange ensures users’ wallets, protecting them from the loss of funds supposing the platform gets compromised. And so, this exchange is a good option for day traders who prioritize security. Users can open a trading account for as low as $2.
It is also a suitable alternative for beginners to crypto trading. The Coinbase team helps newcomers learn about trading cryptocurrency by providing educational material via video series and quizzes to test understanding. The Coinbase app has two versions. The first and initial one provides the simple service of buying cryptocurrency using USD. Coinbase Pro, the second counterpart, offers advanced trading features such as charting functions, place market, limit, and stop orders. You can get started on Coinbase here.
Pros
- Over 100 plus cryptos available
- Lots of educational resources
- Staking available
Cons
- High fees
5. Robinhood
Robinhood is the first zero-fee discount brokerage that allows users to buy and sell various financial instruments such as stocks and crypto without commission fees.
At the time, the platform shook the industry by introducing brokerage services without commission in return. Over time, competitors started adjusting their transaction fee structure to catch up. However, Robinhood stayed ahead by transitioning to a full-service brokerage, integrating asset management into the mix. Besides carrying out trade orders, this platform provides a team of experts that offer financial advice to investors. People who would like professional assistance in their trading career should go for Robinhood. You can get started on Robinhood here.
Pros
- No trading fees
- Can also trade stocks
- App is very user friendly
Cons
- Small crypto selection
Benefits of Day Trading Crypto
Crypto trading is characterized by the exchange of one token for another which is expected to relatively appreciate in the future. The crypto community categorizes traders according to how long they hold on to a position. To this end, there are two major trading styles: day trading and swinging.
Day trading is the most common crypto trading method adopted by retail traders. In day trading, people execute orders and take profits within one day. Several trading styles exist under the tent of day trading such as scalping, high-frequency trading (HFT), and range trading. Traders that use the scalping technique are called scalpers. They enter and exit trades within five minutes. Scalpers target only a few pips: around three to ten.
On the contrary, swing traders hold positions for longer than a day. A swing trade can span between a few days, weeks, or even a month. The duration of the trade depends on the trader’s target and market analysis. Swing traders usually execute trades based on price prediction in the four-hour and daily timeframe. Swing trading is most common among financial institutions with massive capital.
Day trading dominates the community of retail investors since it suits the smaller scale crypto trading. Day traders could care less about fundamentals. They are in the business of making quick profits and price actions usually have a delayed reaction to the news. The trade volume of crypto makes it very appealing to day traders, which count on the rapid movement of price within a short time.
Final Thoughts
From the shortlist of exchanges given in this piece, Binance.US definitely comes out on top. With the combination of the lowest transaction fees, the broadest range of trading options, and advanced charting features; day trading with Binance.US promises to be an enjoyable experience.
