Best Crypto Exchanges for Day Trading and Bitcoin Arbitrage – If you are reading this article then you might be looking to try your hand at Crypto Trading and finding Crypto Arbitrage opportunities.
So, you want to be a cryptocurrency trader, right? Before we begin our trading journey, it is critical to recognize that day-trading crypto might Not be for everyone! In fact, it’s estimated that 95% of all day traders and investors fail at some point. So, think twice before pursuing this as a career.
So, assuming we haven’t scared you away and yet you still want to try your hand at trading, you’ll have to know how you can do it. Right? Top best exchanges for day trading Bitcoin and other cryptocurrencies are listed below.
What is Bitcoin Day Trading?
Bitcoin Day trading is a relatively short-term trading strategy, which can range from a few seconds to a few hours of owning an item. The concept is to liquidate your crypto asset before the closing of the day in the hopes of making a modest but rapid profit. The fundamental concept is that you seek ways to make a fast buck. Long-term trading is when you intend to keep a coin for a longer period of time.
Crypto Day Trading Strategies
There are several ways for day trading, but the two most common strategies are centered around speculation and chart analysis.
Speculative Cryptocurrency Trading
Speculation occurs when a trader feels a price will rise or fall as a result of a certain occurrence. For example, suppose you’re planning to buy Bitcoin when you saw a favorable news report. There is no assurance that the price will rise, but you predict that it will be based on your experience.
Chart Analysis Crypto Trading
Another popular day trading bitcoin method is chart analysis. That’s where traders analyze the price action of a certain cryptocurrency and attempt to predict which direction it will go based on previous price movements. When studying charts, you can see how the price changes every few seconds, minutes, or hours.
How to Start Crypto or Bitcoin Day Trading?
Here are some of the helpful tips to get you started on your day trading journey with cryptocurrencies.
- Find a decent trade opportunity. A cryptocurrency exchange allows you to purchase and sell coins 24 hours a day, seven days a week. It is critical to consider what type of cryptocurrency you want to invest in. If you want today to trade full-time, you should choose an exchange with a large number of different pairings available.
- It is also critical to select an exchange with a high level of liquidity. This ensures that you are always paired with either a buyer or seller; otherwise, you may be unable to finish your deal whenever the price is decreasing! You can also consider using a bitcoin mixer before transferring your cryptocurrencies to an exchange.
- It is now time to deposit dollars into your exchange account once you have created one. Several crypto exchanges don’t really accept deposits made with a debit/credit card or a bank account, although others do.
- You should also evaluate how much money you intend to put. Remember that cryptocurrency markets are quite unpredictable, so there is always the possibility of losing your entire investment. Begin with lesser quantities.
- Take a little time to learn about the many elements just on the trading screen. Understanding how these tools function is critical because it will help you to determine whenever there is a good likelihood that a coin will rise or fall. However, there really is no certainty that your predictions will be correct, so always be prepared to quit a trade when things go wrong!
Best Exchanges for Bitcoin Cryptocurrency Day Trading and Arbitrage
Here we discuss the top-performing cryptocurrency day trading platforms. These platforms provide good opportunities for BTC and crypto arbitrage.
Binance is primarily concerned with crypto-crypto trading, and if you want to trade Bitcoin, you may do it using altcoins or USDT, which is just a virtual version of USD.
Binance offers over 100 cryptocurrency pairs for trading. Binance’s pricing structure is also distinctive. They claim to have a 0.1 percent trading charge, which is already far lower than other competitors. If you pay your trading charge in BNB, you can further decrease your fee.
Account verification is not required for Level 1 users, who can withdraw up to 2 BTC each day. If you want to withdraw more, you must upload a picture ID and wait for manual clearance. It has two interface types: basic and sophisticated. Depending on your utility, these two options display less or more information to traders.
However, because the UI is fairly sophisticated, newbies may struggle to use this site. The website does not lag, which is beneficial for day traders.
Bitfinex allows you to trade cryptocurrencies against a variety of fiat currencies, including USD, EUR, and GBP.
If you are a non-US sophisticated trader or seeking to trade huge quantities, Bitfinex is an excellent choice. However, if you are new to cryptocurrencies and want to buy your initial coins, Bitfinex is not the place to go.
The absence of simple deposit methods, along with the complex interface, will undoubtedly take time to understand, increasing the likelihood of expensive blunders. Newcomers should stay with a basic exchange that accepts a range of common payment methods.
If, on the other hand, you’re a seasoned cryptocurrency trader, Bitfinex is likely to have all you’ll need and more. It is an excellent trading platform due to its high cryptocurrency liquidity and additional features such as margin financing, leverage, and numerous order types.
Whenever it comes to commission fees, they vary depending on the monthly transaction volume for all pairings. Traders are charged 0 percent -0.25 percent as per the Bitfinex fee schedule. The charge for market makers is set at 0 percent -0.16 percent, while the cost for takers is set at 0.1 percent -0.25 percent.
Margin trading costs vary to include an open charge (0.2 percent), a rollover fee (0.01 percent), and a closing fee (0.01 percent) (0 percent ).
When purchasing bitcoins on Bitfinex, you must acquire a minimum of 0.01 BTC and a maximum of 10 BTC. The restrictions for selling bitcoin remain the same. You may withdraw an infinite quantity of bitcoin, which means you can transfer as much BTC as you like to your receiver.
The smallest amount that may be sent is 0.01 BTC. The software also promises to support credit card withdrawals.
BitMEX is a peer-to-peer bitcoin and crypto derivatives trading platform that provides leveraged contracts. It is one of the world’s largest and most commonly utilised margin trading platforms.
Users can purchase and sell contracts involving cryptocurrencies (not the real coins) up to 100 times using margin trading. This implies that Bitcoin deposits and withdrawals are the sole options. It is an excellent platform for bitcoin digital traders wanting to enhance their BTC holdings through market trading.
BitMEX employs bank-like security procedures to provide the greatest level of protection for client assets held just on trading exchange. Multiple levels of security have been introduced, including multi-sig withdrawals and 2 Factor Authentication (2FA). This implies that in order to properly log in, confirm withdrawals, and update account data, users must give several verification methods, such as a password and a unique mobile device number.
BitMEX provides leveraged products in the following currencies: BTC, ETH, XRP, TRX, ADA, LTC, etc. The degree of leverage varies depending on the product.
BitMEX does not accept fiat currency deposits. It is simply a cryptocurrency exchange. This means that new cryptocurrency investors will need to buy Bitcoin first and then deposit BTC into the platform. To do so, locate a spot market exchange in your nation that allows deposits of fiat money.
Because the BitMEX exchange operates on a maker-taker model, trading costs vary depending on the kind of order (for example, futures or contracts) and the digital coin. Users who place standard futures BTC orders will receive a modest bonus, as BitMEX refunds the maker trader 0.025 percent and charges the taker 0.075 percent. More information on how makers and takers function may be found in our article.
There are no fees for deposits or withdrawals. For withdrawals, a tiny Bitcoin Network fee will be levied that is decided by the blockchain rather than BitMEX.
Bittrex is among the earliest crypto exchanges still in operation today, having been founded in 2014 and ever since then assisting traders and investors in satisfying their desire for trading a wide range of pairings and assets.
Trading on Bittrex is only possible when a user has completed verification, which comprises of uploading photos of an identification document as well as giving basic personal information. The platform’s performance has improved in the last year and a half, with fewer orders failing to execute and higher systems uptime.
For our trust score, we concluded that Bittrex certainly empowers its customers and provides them with a variety of ways to protect their accounts, including whitelisting IP addresses as well as withdrawal addresses, a waiting period before allowing attackers to withdraw funds, and, of course, 2FA, but we have a few concerns about their regulatory situation.
To summarise, Bittrex, as one of the largest and oldest exchanges, is undoubtedly in a transitional era. It’s a reputable exchange to trade on, and it offers many benefits to traders who are prepared to deal with the limited number of features and relatively high trading fees, but changes to the exchange, platform, or legal structure are likely in the near future, so it’s worth keeping an eye on this exchange.
Poloniex is no longer as popular as it once was, but it still provides a high level of service when it comes to trading bitcoin and altcoins. It has the lowest prices in the market and just requires your email address upon registration because identity verification is completely optional.
Poloniex is a controlled cryptocurrency exchange that caters to both professional and inexperienced cryptocurrency traders. It provides a variety of crypto marketplaces, complex trade kinds, margin trading, and crypto financing, making it a comfortable location for traders of various backgrounds.
With the new leadership at helm, the Poloniex crypto exchange changed course and abandoned mandatory AML/KYC checks, providing an opportunity to trade on Poloniex without verification once more. Furthermore, the site added new features and withdrew trading access for US users, implying that it had abandoned the aim of becoming a fully regulated exchange.
Poloniex is a prominent digital currency exchange that offers some of the cheapest trading and withdrawal fees in the market. Poloniex’s trading fee structure is clear. The charge you pay for each trade is determined by whether you are the taker or maker of the transaction, and also your 30-day trading volume.
Poloniex does not charge any fees for bitcoin deposits or withdrawals. Even though no fiat money may be deposited, withdrawn, or purchased on the platform, fiat-pegged stable coins can be used in your trades. Users will be charged for withdrawals, but the amount is determined by the network of each cryptocurrency getting traded.
Poloniex, on the other hand, remains unregulated, so be cautious and avoid leaving substantial sums of crypto assets just on exchange for extended periods of time. The platform is a good starting place for both new and seasoned traders due to its simple design. It only takes a few minutes to sign up and begin trading, so take advantage of it.
CEX.IO, which was founded in 2013, claims to be one of the first crypto platforms to enable fiat-to-crypto transactions (swapping crypto assets for fiat money such as USD or EUR) via card payments and bank transfers.
CEX.IO allows traders to buy cryptocurrencies instantly with credit or debit cards, and you may fill your account using bank or cryptocurrency transactions.
Not only does the marketplace give instant buy/sell transaction choices (only for credit and debit card transactions) and crypto trading, and it also offers a CEX.IO Prime platform for companies. Traders can also benefit from margin trading, staking incentives, and other features.
For all trading pairs, CEX.IO levies a maker/taker transaction fee depending on your 30-day trading volume. Maker costs are applied to orders that cannot be executed promptly due to a lack of matching orders. Taker fees, on the other hand, are charged for orders that quickly pair with the other orders, rendering them immediately marketable.
CEX.IO provides two alternatives for companies, professional traders, and enterprise clients, in addition to the CEX.IO Group-sponsored Prime platform: CEX.IO Aggregator and CEX.IO Direct.
Our Summary of the Best Bitcoin Day Trading Exchanges
As you may have observed, there are several stages to do before beginning your trading profession. In fact, this should take a long period before you can properly trade. If you really want to accomplish things right, you must start small and work your way up.
What are the risks of Cryptocurrency Day Trading?
Government regulations, crypto volatility, exchange hacks, hidden transaction fees, margin trading and personal inexperience are some of the major risks of day trading cryptocurrencies.