When choosing the best crypto exchange for day trading, finding the right platform and broker that is fast, reliable, cost-effective, and has excellent customer service and charting tools is crucial.

To help you choose the best crypto exchange for day trading, the experts at Business 2 Community have evaluated a wide range of platforms.

Best Day Trading Crypto Exchanges List

To day trade crypto today, you will need to open an account with a top-rated platform on the list below.

  1. Coinbase – Top Crypto Day Trading Site for Beginners
  2. KrakenTrade Over 220 Cryptos with this Secure Crypto Exchange
  3. Bitstamp – Popular Day Trading Platform Offering 50+ Cryptos
  4. Crypto.com – One of the Best Crypto Exchanges for Day Trading
  5. Webull – One of the Best Apps for Day Trading Crypto
  6. Binance – Day Trading Crypto Platform With Low Commissions

Best Crypto Exchange for Day Trading Reviewed

Crypto day trading is one way you can make money with cryptocurrency. The criteria we look for when reviewing the best day trading crypto platforms include low fees and commissions, lots of supported markets, and access to the best crypto tools and features.

And, of course, we only consider day trading crypto providers that offer a safe and secure environment. Considering this, the best day trading crypto platforms for 2024 are discussed below.

1. Coinbase – Top Crypto Day Trading Site for Beginners

It goes without saying that day-trading crypto and making consistent profits is no easy feat. As such, Coinbase might be the best platform for your skillset if you’re starting in this space. Coinbase has been offering crypto trading services since 2012, has a beginner-friendly platform that needs a few dollars to start, and opening an account takes minutes to open.

Moreover, if you don’t have any crypto to fund your trading endeavors, Coinbase offers multiple payment methods that allow you to easily deposit US dollars, including debit/credit card and PayPal purchases at a few 3.99% and ACH at 1.49%. Deposits under $200 are charged extra.

Once your Coinbase account is funded with $200 or more, you can access 50+ cryptocurrencies.

coinbase platform screenshot

Every crypto asset available at Coinbase is traded against the USD spot market. Regarding trading commissions, Coinbase is the priciest day-trading crypto site on our list, charging 1.49% per slide. This means you must make at least 2.98% in profit per trade, as the commission is charged when entering and exiting the market. 

Coinbase is user-friendly for beginners, while Coinbase Pro offers more advanced tools and markets for experienced investors. Coinbase Pro has a maker/taker pricing structure similar to Crypto.com, resulting in lower fees.

Coinbase also offers a top crypto app for iOS and Android and one of the best crypto wallets.

Cryptoassets are a highly volatile unregulated investment product.

2. Kraken – Trade Over 220 Cryptos with this Secure Crypto Exchange 

Kraken is a popular cryptocurrency exchange that lets users trade more than 220 tokens. This platform supports instant buying/selling opportunities, allows trades to access margin trading, and applies leverage on their trades. 

After creating an account in a few minutes, Kraken allows users to buy/sell cryptos and stablecoins, with a fee of 1.5% on cryptos and 0.9% on stablecoins. Through Kraken Pro, users can trade cryptos starting at only 0.40% per transaction. 

kraken

Kraken supports margin trading with fees starting at 0.04% for every 4-hour period. Up to 5x leverage is available, and professional traders can access even higher leverage. Keep in mind that leverage trading is highly risky, so only engage in this feature if you have a high-risk tolerance.

One of the most secure platforms, Kraken has never faced a major security breach or hacking. The platform received the CS050 Award, given to projects demonstrating outstanding thought leadership in security. 

Cryptoassets are a highly volatile unregulated investment product.

Bitstamp logoBitstamp is highly regarded and among the best centralized crypto exchanges. The platform caters to over 4 million customers worldwide and offers over 50 cryptocurrencies for users to trade.

You can invest as little as 0.5% per trade in cryptocurrency, with a minimum position size of only $10 for USD-denominated assets. The minimum trade amount for BTC-denominated assets is only 0.0002 BTC, making Bitstamp ideal for day traders.

Bitstamp day trading

Traders who exceed $10,000 per month in trading volume will see their fees drop to only 0.25% per trade. In terms of account funding, Bitstamp allows you to deposit ACH with no deposit fees. ACH withdrawals are free, but credit/debit card purchases incur a 5% fee.

The Bitstamp trading experience is exceptional, as users can trade via their browser or the mobile app, both suited to day traders, although Bitstamp’s ‘Tradeview’ platform is tailored more towards experienced investors. This platform features in-depth order book information, several technical indicators, and advanced order types – making it ideal if you’re looking to day trade crypto.

Cryptoassets are a highly volatile unregulated investment product. 

4. Crypto.com – Best Crypto Exchange for Day Trading Diverse Markets

crypto.com logo

Next up on our list of the best crypto exchanges for day trading is Crypto.com, a platform popular with traders of all skill sets and budgets. You will have access to over 250+ cryptocurrencies covering large and mid-capitalized projects. In terms of fees, Crypto.com operates a maker/taker pricing structure, which is particularly useful for day traders.

For those unaware, market makers provide crypto exchanges with liquidity and are offered more attractive commissions. As a newbie crypto day trader, you will be defined as a market taker. Therefore, you will pay a maximum commission of 0.4% per slide. You can, however, benefit from even lower commissions if you trade larger amounts. For instance, if you trade over $50,000 in 30 days, your commission is reduced to 0.15% per slide.

crypto.com review

Moreover, further fee reductions are in place for those holding CRO tokens – digital asset-backed by Crypto.com. Another thing we like about Crypto.com is that the platform makes it easy to get capital into and out of the exchange. For instance, if you cannot deposit funds via crypto, the platform supports debit and credit card purchases. Bank transfers are also supported. Additionally, you might even consider applying for the Crypto.com debit card.

In doing so, you can instantly withdraw your day trading crypto profits via an ATM. Another aspect of Crypto.com that might interest you is that the platform offers leveraged financial products. Not only does this include the option to day trade crypto with leverage of up to 10x, but you’ll also have access to perpetual futures. And finally, if you’re looking for a day trading crypto site that offers advanced tools and charting features – Crypto.com has you covered.

Cryptoassets are a highly volatile unregulated investment product.

5. Webull – One of the Best Apps for Day Trading Crypto  

webull logoMany crypto day traders now look for providers that offer both an online platform and a mobile app. This approach will ensure you are never more than a click away from the digital currency markets. Webull’s crypto app is available on iOS and Android and connects to your main Webull account – you can switch between the two as you wish.

Although the Webull app is user-friendly and suitable for newbies, it also has features that will appeal to advanced traders. This includes access to technical indicators, live pricing fees, and customizable charts. Webull supports trading of cryptocurrencies like Bitcoin, Ethereum, Cardano, Shiba Inu, Dogecoin, as well as equities, ETFs, and stock options.

webull day crypto trading exchange website

All trading markets that Webull offers are commission-free, meaning that you’ll only need to cover the spread when trading crypto. At Webull, the spread starts at 1% 0.75%. Additionally, if you use domestic wire to deposit or withdraw funds at Webull, you’ll be charged $8 and $25 respectively, but ACH transactions are free of charge.

Webull’s crypto trading platform doesn’t require a minimum deposit, and you can trade crypto for just $1 on both the website and mobile app. This means that Webull is perfectly suited for day-trading crypto newbies. In terms of safety, Webull is regulated by the SEC and registered by FINRA. Moreover, millions of US traders are registered with Webull – so the platform has a great reputation.  

Cryptoassets are a highly volatile unregulated investment product.

6. Binance – Day Trading Crypto Platform With Low Commissions  

binance logo

For low fees in crypto day trading, choose Binance. With a commission rate of just 0.10% per transaction since 2017, Binance offers a reduced rate for larger trading volumes and a 25% discount for paying in BNB.

You can access 60 cryptocurrencies on the Binance website if you’re based in the US. All other nationalities have access to over 1,000 markets. Either way, you can easily deposit funds into your Binance account with fiat money. US clients, for example, can deposit funds via ACH, domestic bank wire, or a debit/credit card. Crypto deposits are also supported. Once your account is funded, you can choose between the classic or advanced Binance platform.  

binance day trading exchange website

The classic platform is suited for those just starting their day trading crypto journey. On the other hand, if you seek highly sophisticated trading features, customizable charts, technical indicators, and drawing tools, the advanced platform will appeal. Moreover, if you’re based outside the US or UK, Binance offers a wide range of crypto derivatives and the ability to trade digital currencies with leverage. 

For instance, when trading BTC/USDT, you can apply leverage of up to 10x. This means that a trading position of $100 can be boosted to $1,000. You can also trade crypto futures and options across many markets.

Regarding safety, we should note that Binance is not regulated in any country it operates. The platform does offer top-rated security tools, though – such as two-factor authentication. The platform also has a fund in place should the unlikely happen and Binance be hacked.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

What is Crypto Day Trading?

Day trading crypto is completely different than a long-term buy-and-hold strategy. Experienced day traders rarely hold positions for more than a few hours. It is trading crypto assets within a day and making a profit from the price movements of these digital assets.

And depending on the markets, you might even find that day traders open and close a position within a space of just a few minutes.

Crucially, the overarching concept with crypto day trading is that you will look to take advantage of short-term market trends. This means that you will specifically target small profit margins – but on a much more frequent basis.

Before moving on, let’s look at a super-basic example of a crypto day trading position:

  • You think that Bitcoin will increase in value against the US dollars, so you trade the pair BTC/USD
  • You decide to risk $500 on this trade
  • Several hours after opening your position, BTC/USD has since increased by 7%
  • You close your trade with a profit of $35.

This is the case even if the trader believes that Bitcoin is likely to continue rising in value for the next few days. And therefore, as a day trader, you need to be disciplined.

Alternatively, if you’re looking for a more passive approach to crypto day trading, you might want to check out our guide on the best trading robots for 2024.

Pairs 

One of the first things you will need to learn when day trading crypto is that digital currencies are bought and sold in pairs. For example, at Bitstamp, the platform allows you to trade fiat-to-crypto and crypto-cross pairs.

  • Fiat-to-crypto pairs will contain one digital asset (e.g. XRP) alongside a fiat currency (e.g. USD). These pairs are easier to day trade, the value of the respective pair can be quantified in your preferred currency.
  • Crypto-cross pairs, on the other hand, contain two digital assets. For instance, in day trading ETH/EOS, you are looking to speculate on whether Ethereum will rise or fall against EOS.

As a newbie, it’s best to avoid crypto-cross pairs, as no fiat benchmark allows you to assess the value of your position easily.

Crypto Day Trading Orders

In addition to pairs, crypto day trading requires you to understand orders.

The most important orders to be aware of when day trading crypto is as follows:

  • Buy orders are used to enter the market, while sell orders allow you to exit a position. If you engage in short-selling, this is reversed. For instance, if you short-sell BTC/USD, you would enter with a sell order and close the trade with a buy order.
  • Limit orders allow you to specify the price when your trade is opened. You can use a market order if you want the trade placed instantly at the next best available price.
  • Consider setting a stop-loss order to ensure you do not lose too much money.
  • To lock in your profit targets automatically, you can do this via a take-profit order.

We should note that not all-day trading crypto sites offer the order types outlined above. As such, this is another factor you must consider when choosing the best crypto platform for day trading.

Crypto Day Trading Rules

In the traditional investment scene, US-based traders must follow the pattern of day trader rule. You are considered a day trader if you place four or more trades within five days.

As such, you must have a capital balance of at least $25,000. It goes without saying that this makes day trading out of reach for many.

However, the good news is that cryptocurrencies do not fall under the remit of the pattern day trading rule. And as such, you can day trade crypto with any amount you choose.

With that said, if you decide to trade crypto with leverage and use an SEC-regulated platform for this purpose, you will still need to meet the minimum margin balance requirement of $2,000.

What is the Best Crypto for Day Trading?

One of the best things about day trading crypto is that there are no restrictions on which digital currencies you can target. After all, you only want to keep positions open for hours or minutes, so your goal is to profit from short-term trends.

With that said, some digital currencies are better for day trading than others – especially those that benefit from high levels of liquidity.

Moreover, crypto traders will often seek pairs that attract higher levels of volatility – as this presents plenty of profit-making opportunities throughout the day.

If you’re still unsure which cryptocurrencies are the best to day trade for your investment objectives – consider the five digital assets discussed below.

1. Bitcoin

If you are starting in crypto day trading, you may also wish to stick with buying Bitcoin until you get more comfortable. Depending on your chosen platform, this might be traded at BTC/USD or BTC/USDT. Either way, both pairs allow you to day trade the future value of Bitcoin against the US dollar. bitcoin price chart 4th of December 2023

Importantly, Bitcoin carries the largest liquidity and trading volume than any other digital currency. And as such, you will benefit from tighter spreads. Moreover, although Bitcoin is still volatile, you will likely find that pricing spikes are not as parabolic as other digital assets.

2. Ethereum

Like Bitcoin, Ethereum is a large-cap cryptocurrency that benefits from large levels of volume and liquidity. As the world’s second-largest cryptocurrency in market capitalization, you’ll have no issues finding a suitable platform to trade.

ethereum pric chart 4th of December 2023

To give you an idea of pricing action over the prior 12 months, Ethereum carries a 52-week high of $4,900 and a low of $1,300. With a spread of over 110%, this volatility means that Ethereum is a great crypto to day trade. Moreover, Ethereum can be traded against the US dollar and hundreds of alternative digital assets.

3. Dogecoin

Dogecoin was one of the hottest cryptocurrencies in the first half of 2021, with gains of over 10,000% witnessed in just months. However, after hitting highs of $0.74 per token, Dogecoin has since entered a bearish cycle, and in December 2023, a price of $0.08873.

Dogecoin price chart 4th of December 2023

With that said, if you’re looking to follow market trends and day trade crypto based on volatility and hype, Dogecoin is well worth considering for this strategy. This is because speculation often dictates its value – especially when Elon Musk tweets about the digital currency.

4. BNB 

If you’re an upside investor wishing to day trade undervalued tokens, BNB is another crypto asset worth focusing on. The digital currency is backed by the Binance exchange and is now firmly a top-5 crypto asset in market capitalization.

BNB price chart 4th of december 2023

BNB Coin hit highs of almost $700 in late 2021 but dropped today at $230. As such, this allows you to day-trade this cryptocurrency at bargain prices.

How to Pick Crypto for Day Trading?

Several core metrics make certain digital currency pairs better for crypto day trading than others.

1. Volume and Liquidity  

The most important things to consider when deciding which day to target trading crypto pairs are volume and liquidity.

Volume refers to the amount of trading activity that a specific pair attracts over a certain period, usually on a 24-hour basis. Liquidity, however, refers to the capital available in a particular market.

Naturally, the more volume that a pair attracts, the greater the level of liquidity it offers. That will make it easier to enter and exit positions at suitable prices. For instance, trading large-cap cryptocurrencies like Bitcoin, Ethereum, Cardano, or BNB will ensure that you never struggle to find a buyer when you eventually decide to cash out. This means that market spreads will be more competitive, and you won’t need to accept an unfavorable price to exit your position.

On the other hand, when you target smaller-cap cryptocurrencies, you will find that trading volumes are much lower. In turn, this results in low levels of liquidity.

And, a direct consequence of this is that you might find it difficult to find a suitable buyer when you decide to close your day trading position.

If this is the case, you might need to accept a much lower price to cash out – which in many cases, can wipe out your profits on the respective position.

2. Volatility  

The next metric to consider when choosing the best crypto to day trade is how volatile the respective pair is. It goes without saying that compared to traditional stock markets, cryptocurrencies are much more volatile.

The general rule of thumb in this respect is that the smaller the market capitalization, the more volatile the cryptocurrency.

It doesn’t take much trading activity to result in a wild pricing swing.

For example:

  • In the 24 hours before writing, Bitcoin has hit a high of $38,359 and a low of $36,488 – as per CoinMarketCap. This translates into a volatility spread of just under 5%.
  • At the other end of the spectrum, Anchor Protocol has hit a 24-hour high and low of $3.04 and $2.38, respectively. This amounts to a much wider volatility spread of nearly 25%.

Whether or not you should target markets with enhanced volatility levels will ultimately depend on your experience in the day trading crypto space.

That is to say, experienced traders will seek volatility, as wild pricing swings permit frequent opportunities to enter and exit profitable positions. On the other hand, if you’re a complete novice, you might want to start with less volatile crypto markets.

3. Tight Spreads  

Finding digital currency markets that offer tight spreads is super-important in the crypto day trading arena. The spread refers to the percentage difference between the bid and ask price of the crypto pair you are trading.

And, to make a profit when day trading crypto, you need to make gains greater than the spread. For instance, if the spread on BTC/USD amounts to 0.75%, your position needs to grow by at least this amount to make a profit.

day trade bitcoin strategy

The spread that you are charged will be determined not only by your chosen crypto trading platform but also by the specific digital asset itself.

Usually, if you’re trading highly liquid pairs like BTC/USD or ETH/USD, you will benefit from tighter spreads. But, if trading less liquid markets with low daily volumes, a wide spread will make it challenging to enter and exit a trade with gains.

4. New Projects    

Some of the most profitable day trading positions are associated with newly launched cryptocurrencies.

This is because – just like a stock IPO, oftentimes, a digital currency will be at its most favorable price after it first launches onto an exchange. And as such, keeping an eye on upcoming exchange listings can be a great way to enter profitable day trading positions.

5. Announcements and Developments 

Another great way to find the best crypto markets to day trade is to watch project announcements.

  • For example, if you come across a cryptocurrency that has just had its Binance exchange listing application approved, history suggests that the digital asset in question will experience a rapid upward pricing swing.
  • And by getting your day trading order in as early as possible, offers an attractive upside potential over a short period.

On the other side, negative news developments can result in a digital currency losing value – and quickly.

For instance, when it was announced that the Binance exchange was hacked for over $40 million in May 2021, the value of BNB took a major hammering.

To have profited from this downfall, you could have placed a short-selling selling order with your day trading platform.

Crypto Day Trading Strategies

The only way to make consistent gains when day trading crypto is to have some strategies in place. Not only in targeting profitable positions but protecting your capital through risk-management practices.

To help point you in the right direction, we discuss some proven crypto day trading strategies you might want to consider below.

Strategy 1: Bankroll Management  

The first strategy to incorporate when learning how to day trade crypto is with respect to bankroll management. In its most basic form, this refers to protecting your investment capital at all costs.

  • The most tried and tested way of achieving this is to set clear restrictions on the amount of capital you can risk on a single trade.
  • For example, you might decide that no more than 2% of your balance should be risked per position.
  • This means that with a balance of $10,000 – your maximum trade size stands at $200.
  • Then, if in a few months’ time you have increased your balance to $20,000, your maximum trade size stands at $400.

In taking this approach, the theory is that you will never burn through your trading balance. After all, if you go on a run of bad form and your balance continues to decrease, as will the maximum trade size you can enter.

For example, if your balance goes from $10,000 to $5,000, the maximum amount you can risk per trade – at 2%- is reduced from $200 to $100.

Strategy 2: Stop-Loss Orders  

We briefly referred to stop-loss orders. But, considering just how important they are to your long-term day trading goals, we should elaborate on how they work.

Put simply, when you set up a day trade, you can choose a stop-loss price. This is the price that your chosen platform will automatically close the position – should the trade move against you.

For example:

  • Let’s say that you risk $1,000 on an ETH/USD buy order – meaning you think the price of the pair will increase
  • When you place the trade, ETH/USD is priced at $3,000
  • But, just in case your speculation is wrong, you set up a stop-loss order at $2,700
  • This means that should ETH/USD drop by 10%, your chosen crypto day trading platform will automatically close the position.

Crucially, when you consider just how volatile the broader crypto markets are, setting up stop-loss orders on every position is imperative. In doing so, you can take full control of your losing trades and avoid burning through your account balance.

Strategy 3: Take-Profit Orders  

In reverse to the aforementioned stop-losses, you have take-profit orders. This allows you to lock in your profit targets automatically, meaning you don’t need to sit at your device waiting for the right time to cash out.

For example:

  • Let’s say that you wish to make a day trading profit of 3% on a BNB/USD position by going long
  • When you place the trade, BNB/USD is priced at $400
  • This means that your take-profit order should be set at $412

Regardless of whether or not you see the 3% upswing, if the markets trigger it, your chosen platform will automatically close the trade on your behalf.

Strategy 4: Focus on a Small Number of Markets  

Another proven crypto day trading strategy is to focus on a small number of markets. In doing so, you will have an intimate understanding of how the respective pairs operate.

  • For example, you might find that BTC/USD attracts huge support at the $42,000 level and mass resistance at $44,000.
  • Similarly, you might find that ETH/USD typically performs well when the RSI sits above 40.

The key point here is that you stand the best chance of making consistent profits by becoming an expert in a small number of crypto markets.

Is Crypto Day Trading Profitable?

There is no surefire way to determine whether or not crypto day trading will be profitable for you. After all, there are simply too many factors at play.

At the forefront of this is whether you have the skill set to enter profitable positions consistently. That is to say, if you encounter more unsuccessful trades than winners, then invariably, you will lose money.

Another factor to consider is that the main concept of crypto day trading is that you will seek to make small but frequent gains.

If you have a small amount of trading capital at your disposal, you might find it difficult to make enough money in dollar terms for the process to be worthwhile.

  • For example, if you have a trading balance of $500 and make 2% daily, this amounts to just $10 in profit.
  • On the other hand, if you reside in a country that permits crypto CFDs, you can apply leverage to your position.
  • This means that you can amplify the value of your trade. Of course, applying leverage will also boost losing positions, so do tread with caution. 

Day Trading Crypto Taxes

Like stocks, index funds, forex, or any financial instrument, you can be certain that your country of residence has a taxation policy on crypto profits.

Other than a few exceptions, most jurisdictions will tax you through capital gains. This refers to the profit element of a trade. For example, if you place a $1,000 trade on EOS/USD and make a profit of 10%, then your capital gains amount to $100.

With that said, taxes on crypto day trading positions are complex – so you should speak with a qualified professional to assess where you stand.

Cryptoassets are a highly volatile unregulated investment product. 

Conclusion

If you’re interested in crypto day trading, this guide has covered the best crypto exchange for day trading to begin your investment journey correctly. It can be profitable for some individuals, but day trading cryptos comes with significant risks and challenges.

While it can be profitable, approach it cautiously and make informed decisions.

Frequently Asked Questions on Day Trading Crypto

Is crypto day trading worth it?

How much money do you need to start day trading crypto?

How much can you make day trading crypto?