Best Crypto Exchange for Day Trading 2021
Making Crypto Simple
Are you caught up in the cryptocurrency buzz too? Do you feel an adrenaline rush every time you open your digital wallet or check the latest market trends and discover your target coin is experiencing a bullish run?
What makes the cryptocurrency market so enticing is exactly this air of uncertainty, speculation, and unpredictability. In a volatile market, you could risk losing a lot of money, but what keeps traders going is the excitement of capitalizing on a sudden price movement instead.
Crypto traders who act upon and make a profit out of these day-to-day movements are known as day traders. If you’re new to this, our warm advice is to familiarize yourself with the niche and learn the ropes in detail before making any irrational move that could cost you a fortune.
Tip: To start out, find the perfect exchange for your needs using our best Australian cryptocurrency exchange comparison.
In what follows, we’ll briefly explain the basics of day trading and the main risks associated with it, and review the ten best cryptocurrency exchanges for day trading. Let’s get weaving!
|Exchange Website||Rating||Currencies||Available Cryptocurrencies||Fees||Our Review||Visit Site|
|5/5||42+ Currencies||100+ Cryptocurrencies||0.1%||Binance Review||Visit Site|
|4/5||USD & Others||50+ Cryptocurrencies||0.26%||Kraken Review||Visit Site|
|3.5/5||USD & Others||190+ Cryptocurrencies||0.2%||Bittrex Review||Visit Site|
|3/5||Crypto Only||21+ Cryptocurrencies||0.075%||BitMEX Review||Visit Site|
|3/5||USD & Others||100+ Cryptocurrencies||0.2%||Bitfinex Review||Visit Site|
|2.5/5||EUR & Others||90+ Cryptocurrencies||Daily Fees||eToro Review||Visit Site|
|2.5/5||USD||30+ Cryptocurrencies||Varies||Coinbase Review||Visit Site|
|2/5||USD & EUR||6+ Cryptocurrencies||0.5%||Bitstamp Review||Visit Site|
|2/5||30+ Currencies||200+ Cryptocurrencies||0.15%||OKEx Review||Visit Site|
|2/5||Crypto Only||5+ Cryptocurrencies||0.05%||PrimeXBT Review||Visit Site|
The Best Crypto Day Trading Platforms – Reviews 2021
1. Binance Exchange
Binance is an unquestioned champion in the crypto industry since day one. Despite the challenging start and the problems with local regulators, once the company relocated to Malta, an island that has made a name for itself as a crypto-friendly environment for newly-founded businesses, Binance has been smashing the daily trading volume charts.
In order to satisfy such a large order influx, Binance must enjoy high liquidity as well. This makes it the perfect choice for day trading as it both provides a range of different altcoins (more than a hundred!) and straightforward fiat gateways to withdraw your coins quickly and easily.
On Binance, you can withdraw your crypto assets for a very competitive fee by paying between $1 and $15 worth of the same cryptocurrency. The same goes for fiat withdrawals with up to 14 supported fiat currencies. The withdrawn assets should reflect in your wallet address balance in 5-10 minutes.
As your trade volume progresses, Binance starts rewarding your account with fee discounts. If you purchase Binance Coin (BNB), you get yet another discount when using these coins to pay the fees. When trading assets, you only need to pay a 0.1% flat trading fee which is significantly cheaper than the one offered by other crypto platforms.
Finally, what’s a crypto exchange without a responsive customer support team and a robust security system? Luckily, Binance is a real show-stealer in these two departments, too.
2. Kraken Exchange
Kraken is a well-established cryptocurrency exchange operating from the United States. Compared to Binance, this platform is definitely leaning towards a more experienced day trading clientele (we’re talking institutional investors here).
Why so? Well, for one thing, the platform has higher trading fees for makers and takers (0.2%), so it only pays off if you’re trading larger volumes. Otherwise, Kraken is every day trader’s dream! It has more than 50 digital assets on offer, numerous fiat deposit and withdrawal options, as well as advanced trading features like staking, OTC trading, margin, and futures (with 50x leverage).
Similarly to Binance, Kraken supports a number of fiat currencies: USD, EUR, CAD, GBP, JPY, and CHF. What you need to do is link your Kraken with your bank account for a seamless bank transfer. SEPA, FedWire, and SWIFT are possible alternatives based on your place of residence.
If you’ve already done some online trading, you know that cybercrime and online fraud are quite common in the industry. In answer to these threats, Kraken has devised a wealth of solutions such as two-factor authentication, a special Settings Lock, and Master Key to ward off any unauthorized IP addresses from making changes to your account.
3. Bittrex Exchange
Next on our list is Bittrex, a state-of-the-art cryptocurrency exchange, ideal for all kinds of traders, regardless of their level.
Bittrex is just the right platform for anyone looking to diversify their portfolio with a promising new token that they couldn’t otherwise find on any other exchange. With an amazing list of over 200 crypto assets, and adding new ones daily (sometimes as much as 3 tokens per day!), Bittrex has really captured the attention of day traders worldwide – especially once it was rebranded as Bittrex Global.
For a long time, Bittrex didn’t give in to the customers’ demands to add fiat support for crypto purchases. The thing was that Bittrex didn’t want to open up the markets without making sure it would provide the highest level of service. Recently, that level has been achieved, and Bittrex now allows customers to use their VISA debit and credit cards or deposit funds via SEPA and wire transfer.
Although more expensive than both Kraken and Binance, Bittrex’s trading fee is still an industry average with 0.25% per trade. To be eligible for larger withdrawals and fiat deposits, you need to verify your account with a KYC (Know Your Customer) check. This involves uploading both an ID and a selfie.
4. BitMEX Exchange
You might expect to find BitMEX, as an exchange with incredibly high trading volumes, a bit higher on our list as a day trading platform. However, in 2020, the US Commodity Futures Trading Commission (CFTC) and federal prosecutors found BitMEX guilty of allowing US traders to use its services although the exchange doesn’t comply with local regulatory frameworks.
This unregulated trading has been a direct result of BitMEX’s lack of KYC checks as part of the onboarding process. This way, US residents could skirt around the law and trade on BitMEX incognito. However, with the new CEO Alexander Höptner in charge, users are now subject to a mandatory detailed user verification program.
Still, for many traders, this step of the registration is both necessary and worth the trouble as they are fond of BitMEX’s services, fees, and overall user experience. The platform supports both prominent and moderately known altcoins and margin trading with up to 100x leverage on Bitcoin (through derivative contracts exclusively). You both buy and sell these contracts with BTC.
5. Bitfinex Exchange
If you know anything about Bitfinex’s troublesome history, you might find it rather odd to see it featured on our list of best crypto day trading platforms. Namely, the New York Attorney General (NYAG) made allegations against Bitfinex for a major cover-up with Tether (the company behind the most popular stablecoin, USDT, pegged to the US dollar).
Prior to that, the exchange suffered a serious hacking attack in 2016, with around $72 million worth of BTC stolen from its users. However, the transparent manner in which Bitfinex got on top of this issue definitely deserves praise. The exchange was able to reimburse the loss to all of its customers and worked diligently on strengthening its security infrastructure.
Some of its newly introduced measures include cold storage for 99.5% of the funds, keeping user funds separately from company funds, 2FA, a Keep Session Alive feature that pings the screen every ten minutes to check whether you’re still actively using the platform, IP address whitelist, email encryption, etc.
Bitfinex offers over 100 digital currencies which you can buy, sell, or trade, in exchange for crypto or fiat (USD, EUR, GBP, and JPY). The trading fees are 0.1% for makers and 0.2% for takers. On top of that, Bitfinex has a customizable API that gives you a plethora of options and tools to maximize your day trading gains.
6. eToro Exchange
eToro was offering financial services long before cryptocurrencies became a thing. This broker was founded back in 2007 and has revolutionized the way institutional investors, in particular, exchange, speculate, and trade a variety of asset classes.
Around 2013, eToro added CFD contracts for Bitcoin, so that traders could speculate on the asset’s price and make a profit without owning the actual coin. This was eToro’s way of testing the waters before diving deeper into the cryptocurrency market in 2017 by adding support for the 16 most lucrative digital currencies.
Here’s the full list: Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Ripple (XRP), Litecoin (LTC), Stellar (XLM), Ethereum Classic (ETC), DASH, Cardano (ADA), EOS, NEO, IOTA, Tron (TRX), Zcash (ZEC), Binance Coin (BNB), and Tezos (XTZ).
eToro charges reasonable spreads on cryptocurrency orders and includes the option for fiat deposits with no additional fees on USD ones. Other fiat currency deposits incur a 0.5% conversion fee.
However, what singles eToro out from other crypto exchanges is its pioneering copy trading feature that lets new and inexperienced traders copy the strategies of other seasoned traders who receive a small commission for sharing their expertise in return. On top of that, eToro offers a demo account with $100,000 as a great and painless way to try out new strategies.
7. Coinbase Exchange
The next top pick when it comes to crypto trading is the American platform Coinbase, founded in 2012 by Brian Armstrong and Fred Ehrsam. Coinbase is available in over 100 countries across the globe and has so far been the number one choice of more than one million traders.
From day one, the main purpose of the Coinbase team has been to make crypto assets more accessible not only for companies and established investors but for small businesses, startups, and retail traders as well. Their beginner-friendly user interface is what makes Coinbase the best Bitcoin exchange (Gemini is a close second).
If you want to buy crypto, Coinbase only offers BTC, ETH, BCH, and LTC with a range of fiat payment methods at your disposal (debit cards included!). On the other hand, if you’d rather trade cryptocurrency, you can choose among 50 coins depending on your place of residence.
Conscious about the lack of altcoin accessibility, Coinbase has launched its advanced (but not less user-friendly) trading platform called Coinbase Pro. If you’re curious whether the fees are any different, the trading fee is set at 0.5% on both platforms.
New to crypto or not, it’s not an exaggeration to say that with Coinbase you get the whole package!
8. Bitstamp Exchange
If you want to get the whole nine yards out of cryptocurrency trading, you won’t go wrong by choosing the European platform Bitstamp. As a crypto veteran launched in 2011, Bitstamp’s heyday came a bit later, in 2016, when the company relocated to Luxembourg and obtained its trading license, becoming the first European exchange to do so.
That Bitstamp is worth the while has been acknowledged by a number of noted financial institutions, including but not limited to Swissquote, Crédit Agricole, and the Chicago Mercantile Exchange. What’s more, Bitstamp is recognized outside of the EU too and even has an American subsidiary, Bitstamp USA Inc., that was recently licensed by the NYSDFS.
This comes hardly as a surprise considering that Bitstamp offers top-notch security with over 98% of users’ funds kept in cold storage and account options like 2FA, withdrawal address whitelist, and – wait for it! – Ledger Vault security system to augment asset custody.
On Bitstamp, you can purchase one of the following crypto tokens: BTC, ETH, BCH, LTC, XRP, and XLM, as well as the newly added PAX, USDC, OMG, and LINK. However, the fees are slightly higher than what we’ve seen so far. Starting at 0.5% for both market makers and takers, the trading fees decrease once you hit impossibly high volumes.
9. OKEx Exchange
OKEx is the brainchild of the Chinese developer Star Xu who launched the platform in 2014. Like many Chinese exchanges, OKEx was relocated from Hong Kong to the island of Malta where crypto regulations are far looser.
If you’re considering OKEx, you should know that the exchange focuses on a more experienced clientele and corporate investors. The main upside of the platform is the outstanding number of cryptocurrencies (over 200!) and trading pairs (up to 500!).
Apart from regular crypto trading, OKEx supports different order types such as futures, margin, derivatives, options, cross-margined perpetual swaps, spot trading, etc. It’s no wonder why OKEx is one of the best exchanges in terms of liquidity and trading volume.
The fee for traders is 0.06% if you’re a maker or 0.08% if you’re a taker. However, here’s the catch! These fees are only applicable for VIP members or holders of OKB, the platform’s native token. For “normal” users, the fees start at 0.1% for makers and 0.15% for takers.
You can download OKEx’s mobile app on your iOS or Android device for free, and stay in touch with the crypto market wherever you are.
10. PrimeXBT Exchange
The last spot on our list is reserved for PrimeXBT, a promising new broker with over 12 different liquidity providers. Launched in 2018 with offices in three different locations (Seychelles, St. Vincent, and the Grenadines), PrimeXBT has almost zero geographical restrictions, except for its unavailability in the US.
Here, you can find a whole line-up of asset groups and financial instruments. The list includes CFDs, futures, indices, forex, commodities (oil, gold, silver, gas, etc), S&P 500, NASDAQ, FTSE100, and JAPAN. Of course, PrimeXBT also supports five cryptocurrencies (BTC, ETH, XRP, LTC, and EOS) for regular or margin trading with up to 100x leverage. The only caveat is that you can only deposit BTC to start trading.
Another reason why PrimeXBT made it to our list is the surprisingly low trading fee. Although it differs among trading pairs, the average fee is 0.05%! There’s hardly a better deal for day traders on the market, be they newbies or experienced traders.
What Is Day Trading?
Even though we introduced day trading as this challenging and complex trading option, that’s only true as far as its usage goes. The concept itself can be guessed from the name.
Day trading involves buying and selling crypto assets in the course of a single day. The traders speculate on the price movement of their target asset by observing their liquidity (whether or not the asset is sellable), volatility (whether it retains or fluctuates in value), and a range of other technical or momentum indicators and candlestick charts for a more plausible analysis.
Traders also make use of popular trading strategies to maximize their gains and minimize their losses. Some widely used strategies include scalping (making profit on small price changes on the spot), range trading (defining a price range for executing orders), high-frequency trading or HFT (basing trading decisions on algorithms and trading bots), etc.
Now, some people pursue day trading as a full-time profession and operate with borrowed funds (leverage) to keep up with the market. For others, day trading could be a one-time thing only and a way to diversify their portfolio. Regardless of your plans, you still need a suitable cryptocurrency exchange with low trading fees above all.
Frequently Asked Questions
If you’re worried about day trading being illegal, read the official SEC page on day trading. The SEC explicitly states that “day trading is neither illegal nor is it unethical” but it does come with a great amount of risk. In their view, day trading might cause severe financial losses for traders who only look to “ride the momentum”. Still, it remains for you to decide whether you want to test the waters of this type of trading.
The first potential risk you should take into account with this type of trading is the volatile nature of the cryptocurrency market and the assets sold and traded there. The rule of thumb goes that you shouldn’t invest more than you can afford to lose.
Day trading is a very time-consuming and stressful process as you need to monitor market movements and price fluctuations throughout the whole day. Unlike other financial markets, the crypto one is open 24/7.
Moreover, day traders need a significant amount of capital to enter the market. That’s why a lot of them turn to margin trading as the easiest way to borrow funds but only end up in serious debts.
If you’ve reached the end of our guide and still believe that day trading is for you, you might have one burning question left: how much capital do I need to start day trading? The truth is, you’ll hear a bunch of different opinions.
It’s true that depending on the cryptocurrency exchange you’re using, you might start day trading with as little as $10 but don’t expect this to be enough to earn some money. The higher you start, the higher your returns can be.
According to FINRA and the majority of financial experts, when you day trade stocks, you would typically jump the bandwagon with $25,000 as your initial investment or at least $10,000 so as not to be under-capitalized. However, this is true for the US financial market and might be different in your country which is why we suggest you consult a financial advisor in advance.