In this article, we will cover day trading and list the best crypto trading exchanges for a day trading strategy.
- A crypto day trading strategy requires low trading fees, low slippage, narrow spread, great automation, and analytical tools.
- Bybit, Binance, BTCC, and Kraken are great exchanges for crypto day trading strategies.
Day Trading Crypto Exchanges
In the table below, we have summarized some of the best crypto day trading exchanges. BTCC and Kraken are available for US traders.
- Trading
- Day Trading
- SignUp
What different Crypto trading strategies are there?
➤There are several different crypto trading strategies you can try to master.
➤You have a better chance to become a more profitable trader if you focus on just some of them, the ones you consider most suited for you. Here’s a quick list:
- Day trading
- For arbitrage trading, see Binance arbitrage trading bots
- Swing Trading
- HODL
- Trend trading
- Scalping: see the best crypto scalping trading bots
- Hedging
This article only covers crypto day trading, but you can read more about these strategies in our articles, the best crypto exchanges for swing trading, and the best crypto trading exchanges for scalping trading strategies.
What is cryptocurrency day trading?
➤Cryptocurrency day trading is an extremely short-term trading strategy.
It means that you hold the asset for seconds, minutes or hours. The term “day trading” comes from the fact that you complete the buy and sell orders within a day.
The characteristics of a day trading strategy are that it mainly relies on technical analysis and traders are usually satisfied with a small profit on each trade.
A day trader may also be known as a high-frequency trader.
How can I be a better crypto day trader?
➤You need to pick a strategy and keep improving the strategy in an iteration manner. Your strategy will never be fully accomplished since the market is always dynamic.
Day trading is about making quick decisions based on various, primarily technical indicators.
You also need to know how to handle technical tools, especially stop loss, since it will make it much easier for you not to suffer heavy losses when there are fast movements in the market.
Of course, to be a successful trader, you need to master risk management.
A common mistake a crypto beginner trader often makes is that they can’t take a loss. They don’t want to sell a loss, so they keep the cryptocurrency or other asset and maybe even put more money into it to lower their average purchase price.
Another mistake traders make is that they don’t handle risk appropriately in their trading accounts.
To be a better crypto trader, you must handle risk, know how to use crypto trading tools, minimize mistakes, and maximize profits.
Are there any good courses for cryptocurrency trading for beginners?
➤Yes, there are good courses. In our article about crypto trading courses, we review the best online education.
However, remember that you will never be a good trader solely because of the courses you undertook. You need to go out there, start trading and practice like in sports.
Is there any good software for Bitcoin and Altcoin day trading?
➤Most day traders use software, but the kind depends on the trader.
Some use software for algorithm trading, others for signals. Some utilize advanced charting tools. More than a few programs are helpful for Bitcoin (BTC) and Altcoin trading.
Free crypto trading bots and Algorithm trading
Several crypto exchanges now offers simple interfaces to create free crypto trading bots. They decide on entry and exit points by their particular algorithm, calculated mathematically.
Crypto charting tools
Tradingview is the most used crypto charting tool nowadays. It provides traders with most indicators, oscillators, and other calculations necessary for professional traders to make an educated decision and even compare their strategy with other users.
However, noteworthy alternatives, like Coinalyze, offer an in-depth statistical view of the top cryptocurrencies.
Crypto Trading Signals
Trading signals can be found even on social media if a trader knows who to follow. On the other hand, some apps and websites, such as Crypto Leaks, are developed to gather and distribute signals to users but mostly have to be paid for.
There are also apps like Blockfolio, which send signals by the user’s portfolio free of charge.
How do you pay tax on crypto day trading?
If you do crypto day trading, you will probably have a lot of transactions to report to your tax authorities.
However, there are some excellent crypto tax software you definitely should use.
In the table below, you can see the two best crypto trading software and their pricing range.
- Company
- Price/Year
- Buy
Summary – Which is the best day trading platform for cryptocurrency?
In this article, we went deep into cryptocurrency day trading. However, every trader has their preferences, so you should take this as a guide to form your own decision around day trading and whether to do it for yourself.
This kind of trading strategy, especially in the highly volatile and unpredictable cryptocurrency market, is a risky business. You should, therefore, learn as much as you can before feeling confident to base your existence on it.
Trade responsibly, and always look to educate yourself before plowing in lots of money.
