Summary of the Best Exchanges for Day Trading
Cryptocurrency is still in its infancy. It first entered the tech scene as an idealistic notion: taking control away from big banks and governments and returning it to the people. This would be accomplished by the creation of digital currency that could be secured via cryptographic methods and spent, peer-to-peer, without third-parties either taking a cut or tracking transactions. That was the original vision for cryptocurrency, as laid out by the earliest so-called cypherpunks and the still-mysterious Bitcoin founder Satoshi Nakamoto.
Bitcoin millionaires cropped up almost overnight as the coin surged in value, multiplying by many thousand percentage points over the course of just a few years.
This, then, was the new normal for cryptocurrency. Its ties to the once vilified financial sector increased, and today, there is a large contingent of professionals and semiprofessionals who make money shuttling value from coin to coin or even by reaping large profits from the arbitrage between different exchanges.
The explosion of available exchanges — and information — has somewhat returned crypto to its democratic roots. Now, with a little research, a little know-how, and a lot of courage, virtually anyone can try his or her hand as a day trader in the cryptocurrency arena. Day Trading is nothing more than the process of buying or selling an asset — be it a security, stock, precious metal, or cryptocurrency. The entire name of the game can be summed up as buy low, sell high.
The object of day trading is to get into the market, take a position, keep a close eye on that position, and then exit at a profit. Some bots, or automated computer programs that do your trading for you, can produce a flurry of trades in just a few seconds. It should also be noted that some so-called day traders maintain some positions for weeks or even months, depending on certain security goals.
That sounds simple enough. That said, day traders can have several different ways of approaching that goal. The two broadest categories into which one can divide day traders are speculators and technical analysts. Speculators do exactly that. They try to find outside market influences that seem to indicate a cryptocurrency will either suddenly gain or suddenly lose value.
The best example of this is the newshound, who carefully watches the cryptocurrency wires for news about hacks, big coin tech developments, major adoptions, and other potential market movers. The second category is more concerned with the internal workings of the market rather than outside pressures.
This kind of day trader relies on financial charts to get a feel for where the price was in the recent past and where it might be heading next. The science of reading charts, or technical analysis, can be — indeed, is — fairly involved.
Think of the confusing squiggly lines, bars, and candles on your average financial chart as a road map. If you know how to read it, you can say with a pretty fair degree of certainty where those lines will be going next. Despite the meteoric rise of some cryptocurrencies and the relative ease of the day trading process, day trading is not a get-rich-quick scheme.
Even the best day traders rely on making small amounts of money over a relatively large number of trades. In many ways, day trading resembles gambling, albeit with slightly better odds. This is more important than it sounds. Different exchanges offer different coin pairings, fee structures, minimum trade amounts, and more. Pay close attention to those fee structures. If your trading style is likely to consist of very large volumes with very little profit made on each individual trade, those profits can quickly disappear into fees.
More importantly, however, it gives you options in terms of cryptocurrency availability, fees, and liquidity. Take a look at our guide to the best exchanges for trading crypto , we have also written in-depth reviews of most exchanges so look here to find the one you wish to use. Just in case, however — most centralized exchanges require some sort of identifying information, such as an email address, and may ask you for further identification for security purposes.
Decentralized exchanges are largely anonymous. The trade-off is that centralized exchanges function more like traditional stock exchanges, and they have in-built security systems and relatively high liquidity. Decentralized exchanges may lack ready liquidity, and every trade should be approached with a caveat emptor attitude, but your trades can be conducted in near-total privacy. This involves individual coins, any relevant news, any relevant technical analysis, and more.
Most importantly, however, you need to set some ground rules for yourself. One of the hard-and-fast rules in day trading involves never risking more than 1 percent of your total bankroll, or available investment money, on a single trade. This can be a tough one to practice. Say you see a trade that seems like a sure thing. Day trading is a numbers game, ultimately. If you play long enough, you will definitely miss some grand opportunities. A second important factor when considering strategy is your stop-loss limits.
These are your exit strategies. Most exchanges allow you to set a stop loss that will automatically exit a trade at a given price level. A related concept is the limit sell order, which automatically closes a trade when your coin reaches a certain higher price. Some may be free, and some may be part of a service. We advise caution here.
Moreover, different bots suit different trading styles, and they can and do make significant mistakes. To become a successful trader, you are going to have to know about Technical Analysis — that is the ability to read and analyze the charts using a number of methods and techniques. Knowing these will allow you identify trends and make predictions about price action. We employ a number of Analysts who create price charts here on Blockonomi. Take a look at their posts which will help you start to recognize the patterns yourself.
So, when do you jump back out? You should always factor in fees when deciding when to exit a trade. After all, if your profit disappears entirely into trading fees, did you make a profit at all? Individual comfort is also something to consider. How small is too small for you? Sooner or later, the question of taxes is going to come up.
A loose rule, however, is that day trading is going to be governed entirely by short-term capital gains rules. These can be high — as much as 40 percent. So, in addition to your expected profit loss from exchange fees, you need to take on your expected tax burden. Basically, any coin-to-coin trade or coin-to-fiat trade is a taxable event. A tax professional can help you select software to keep track of your trades to make tax filing simpler, and the professional may even be able to help you decide what your acceptable level of profit should be before you pull the trigger and create a taxable event.
Day trading has the potential to generate both large profits and large losses. A conservative trading strategy is highly recommended for everyone, particularly the beginner. There are exchange fees to be paid, and the tax man will ultimately come knocking for his share. If the game seems too hectic, or the work outweighs the rewards, consider a different strategy, such as long-term holding or becoming involved with a professionally traded fund that you can invest in much as you would a common mutual fund.
No Spam, ever. All content on Blockonomi. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. Hey Oliver, great informative article for beginners! You rightly said that day trading is NOT a get-rich-quick scheme and most of the new crypto day traders will lose money initially. For those who are beginner, shorting basically means that you predict that the price of the crypto is going to fall.
You make money when it actually does fall. This way, even if you are predicting a bullish run on the crypto, having some investment in shorting will minimize your loses in case the price falls and goes against your predictions. Your email address will not be published. Notify me of follow-up comments by email. Notify me of new posts by email. Contents 1 What is Day Trading? You should consider whether you can afford to take the high risk of losing your money.
Related Articles. Show comments Hide comments. One Comment Tarun Jain December 13, at am. Leave a reply Cancel reply Your email address will not be published. Next What is Market Cap in Cryptocurrency? Guide to Market Cap vs. Coin Price.
5 Best Pure Cryptocurrency & Altcoin Exchanges
Welcome to the new wave of crypto traders. The good news? The even better news? Bet are big fans of Binance here at Blockonomi and recently added them to our Best Exchanges for Beginners roundup. Once you get the hang of these interfaces though, the advanced set-up has a lot of great perks. For one, it allows you to conduct historical and projective technical analyses on given cryptocoins at your leisure.
Cryptocurrency Day Trading
Want to learn how to day trade cryptocurrency and make a profit? BTC 6. How can you make such killer returns when holders from two years ago have seen x gains? The only one-size-fits-all approach is a safe one. Worry about the more advanced trading methods later when you get comfortable. Many types of people get involved in day trading Bitcoin and other cryptocurrencies. The most common faces in these markets are Forex traders, online poker players and stock investors. Wall Street is also embracing the industry now too.
View this post on Instagram
* Coinbase Noncustodial Wallet Adds BTC Support and Plans to Add More Assets Coinbase has announced support for bitcoin core (BTC) in the company’s noncustodial wallet. The wallet was originally originally dedicated to ethereum (ETH), ethereum classic (ETC), ERC721 and ERC20 tokens. The San Francisco based company plans to add more currencies to the wallet in the near future. More in: https://news.bitcoin.com/coinbase-noncustodial-wallet-adds-btc-support-and-plans-to-add-more-assets/?utm_source=OneSignal%20Push&utm_medium=notification&utm_campaign=Push%20Notifications #Cryptotraders #cryptocurrencynews #cryptocurrency #cryptoexchange #cryptocoins #cryptotrading #cryptotokens #cryptomining #crypto #bitcoin #ethereum #ripple #coinbase #ارزرمزنگاری #ارزهای_دیجیتال #ارزرمزنگار #ارزدیجیتال #رمزارز #کریپتو #کریپتوکارنسی #صرافی_آنلاین #صرافی_دیجیتال #صرافی_کوین_بیس #بیتکوین #اتریوم
Pricing Details per Exchange
Welcome to the new wave of crypto traders. The good news? The even better xryptocurrency We are big fans of Binance here at Blockonomi and recently added them to our Best Exchanges for Beginners roundup. Once you get the hang of these interfaces though, the advanced set-up has a lot of great perks.
For one, it allows you to conduct historical and projective tgade analyses on given cryptocoins at your leisure. As far as verification levels go, Binance is straightforward. Pretty fair. Another cool perk? KuCoin confirms your crypto deposits super fast.
Traders can get to trading right away! Another advantage that KuCoin has over other exchanges? We recommend you take a look at our detailed review of this platform before trading on BitMex. Only cool point worth highlighting is the fact that Coinbase is going to begin launching support for Bitcoin Cash BCH starting on January 1st, As far as buying crypto on Coinbase, you have two different payment options.
The easier and more straightforward option is using a credit card. All that will bes is Coinbase sending your bank account two best exchanges to day trade cryptocurrency. In being a Cryptocurrenct. That means Coinbase has to hold itself to higher safety cyrptocurrency in every best exchanges to day trade cryptocurrency compared to typical exchanges.
Keep that in mind before you sign up. The exchange was founded dqy the tech venture capitalist Winklevoss twins back in as an outlet for providing U. Signing up for Gemini is very easy, which is great. One cool benefit of the exchange?
No deposit besg withdrawal fees. The only fee bsst have to contend with is a cry;tocurrency fee. This fee is. Bittrex is another U. It must be noted that the exchange currently does not offer any dah of fiat-to-crypto pairs, e. Bitstamp is a Luxembourg-based crypto exchange that caters to European hrade.
For now, investors can trade in U. And with API customization, investors can fine-tune how they use and facilitate their accounts. Indeed, Bitstamp was originally created to compete cryptocurtency the now-infamous Mt.
Gox exchange, so you can clearly see who won that competition! The user interface is a bit complicated and can prove slightly overwhelming for new users in the ecosystem. Coinone is the third-largest cryptocurrency exchange in South Korea. So attractive that some users swap dollars or euros into besf and then dah KRW to send remittances to family and friends. Innovative, right? While operating out of the U. This prevents the kind of devastating attacks that many exchanges can be prone to.
And after Mt. Kraken also has its servers distributed in multiple locations and uses armed guards and hi-tech verification practices to ensure these servers tto never be physically or remotely compromised. Formerly a cloud mining company, CEX. Worth noting is that CEX. One of the downsides of using this particular exchange is that its fees for purchases made through credit cards is a bit painful.
And their are other painful fees that may turn off exchanes investors. Consider how U. A cool advantage of using CEX. IO is that it allows investors to simply buy denominations of bitcoin according to preset fiat amounts.
That can simplify the buying process crryptocurrency newcomers considerably. Bithumb has the distinction of facilitating the highest amount of cryptocurrency trading volume in South Korea. Which is already saying something, since South Korea has had an explosion of volume in recent months. One crypocurrency the cooler aspects of Bithumb? The exchange lets you buy Bitcoin vouchers as gift cards that you can then give to family members, friends, and co-workers. The accessibility is why Bithumb carries over 75 percent of all bitcoin trading volume in South Korea as of late.
Bithumb was hacked in the summer ofand more than 30, users tragically had their bets best exchanges to day trade cryptocurrency emptied.
The company will need to crackdown so something like this can never happen. Poloniex is yet another U. People like different things, and Poloniex might be right for you. If you decide to sign up for Poloniex, you need to provide your nation of residence, your full name, and your email. At this point, you should have you account confirmed soon, and you can start trading. The first verification level on the exchange will let you beest as much as 2, USD per day.
Our final cryptocurrency exchange to be discussed today is HitBTC. The exchange offers all the usual trading possibilities, with other coins as well like Monero XMR. The most interesting aspect of HitBTC is that it lets users do demo trading. Instead of having to put any money on the line, you can learn the ropes of crypto trading by playing with demo crypto on the site.
Very useful for newcomers! As such, this particular exchange is a great place to start if you want to get comfortable with how trading feels like before you actually put any actual money on frade line. Exchanges have been hacked in the past. Passwords are forgotten. Rogue employees can compromise wallets. Bugs can trigger flash crashes that cause investors to lose millions of dollars. The safest thing you can do with your cryptocurrency investments is to park them offline in a hardware wallet.
The most important thing you can do is to try avoiding keeping your holdings on trading exchanges indefinitely. These exchanges are NOT designed for long-term crypto holding. At most, keep a trading stack on the exchange or exchanges of your choice so you can trade quickly if you need to.
But your trading stack should never be best exchanges to day trade cryptocurrency entire portfolio. You should get your desired trades done quickly, and then get your funds into a wallet you control. That way, if your echanges exchange experiences any catastrophic events, your hard-earned crypto trove will be safe and sound indefinitely.
No Spam. William M. Peaster is a professional writer and editor who specializes in the Bitcoin, Ethereum, and Dai beats in the cryptoeconomy. Has appeared in Blockonomi, Binance Academy, Bitsonline, and. Learning Tp. All content on Blockonomi. The opinions expressed in this Best exchanges to day trade cryptocurrency do not constitute investment advice and independent financial advice should be sought where appropriate.
I love this but have one more tip to add: You gave amazing highlights for great trading. My best trade this year was an ETH breakout trade.
Hit my target within 24 hours and had a risk-reward ratio. Thanks to Mr Tyree tyreeford gmail com who Enlighten me about Entry Points, trading, investment and how to choose them wisely. You might want to contact him. Nice work! Cryptocurrency trading, with regulated CFD brokers, is fast growing in popularity, as traders see that owning the actual digital assets can be expensive and risky. The huge volatility in cryptocurrency markets, the high incidence of online fraud.
Your blog very informative for me. I want to know more details about Margin trading cryptocurrencies. And finally, I found it. Your content helps me a lot. It would be a great an opportunity for trading market. Thanks for sharing.
How I Make $1,000s EVERY DAY Trading Crypto Coins - 3 Step Guide For 2018
Search the Blog
Bitcoin in-Bitcoin out. Smart investors build long positions when price is flat and public interest is low during the stealth phase. Customer support Start learning. I would strongly recommend you to use the Ledger Nano S or a wallet like Atomicwhere you can store a lot of different cryptos and control your private keys. Hey Harsh, i trade on binance and as of today china has banned all crypto-related exchanges. Future contracts and swaps are the two major types of trading offered by this site. If you want to actively trade altcoins with minimal slippage then for now this exchange is less than ideal. Bitcoin investors are the most likely to time their market actions with reference to weekly or even monthly charts. Scalpers seek to profit from fleeting imbalances between buyers and sellers. The security level of this site is very high.