In day trading, we buy and sell digital currencies like Bitcoin when the market stays open. That means you will typically begin a position to close it with a little profit a few hours or even minutes later. Due to its volatility, which offers many opportunities for traders to profit if they can correctly guess the direction the price action is going more often than not, bitcoin is one of the asset markets that are best suitable for day trading.
But what kind of crypto exchange or platform do you need to conduct smooth day trading bitcoin? In this guide, we analyse the top crypto day trading platforms available today along with some important details on the operation of this investing market. So, let’s talk about the top platforms for day trading Bitcoin.
Best Crypto Platforms for Day Trading
A trading platform must possess two key characteristics to be qualified and useful for day trading.
First and foremost, it must be dependable and quick-performing to execute orders promptly, especially during extremely heavy trading volume when the profit potential is greatest.
Second, it should offer a variety of sophisticated order types and technical indicators that support risk management techniques and market analysis, enabling traders to follow a strategy and establish precise entry and exit locations, among other things.
A margin trading platform is the best choice for day trading Bitcoin as long as we achieve these two requirements. That is because margin trading enables both long and short positions, allowing traders to profit from both market rallies and drops.
One approach to earning money with cryptocurrencies is through bitcoin day trading. When evaluating the top crypto day trading platforms, we consider several factors, such as low trading fees and commissions, several supported markets, and the availability of investment tools and features.
Naturally, we only consider day-trading crypto companies that give a secure setting. Considering this, we have covered the finest cryptocurrency day trading platforms for 2022 in the sections below.
Capital.com
Another well-known cryptocurrency day trading platform that is great for novice traders is Capital.com. Capital.com offers high protection and safety of your funds as it is authorised and controlled by the FCA and CySEC. Moreover, on a user-friendly web-based trading platform, you can trade all instruments completely commission-free.
The platform is user-friendly but includes many other functions, like news, sentiment indicators, and technical analysis tools. Alternatively, you can register a free account with no deposit or withdrawal fees and open a sample account to test the day trading cryptocurrency offering.
eToro
eToro provides the perfect balancing act between rules, reasonable costs, user-friendliness, and various trading markets. As a result, one may find more than 40 spot trading markets on this day trading platform. In addition, a copy trading feature on eToro enables you to mimic the positions of an experienced investor.
That covers everything from Shiba Inu, Ethereum, Celo, and AAVE to Bitcoin, XRP, and Dogecoin. Additionally, you can swap digital assets for other fiat currencies like the British pound and the euro. It is one of the top cryptocurrency exchanges for duplicate trading. In actuality, it is the exchange’s specialisation.
Bitstamp
Bitstamp is the top choice when it comes to cryptocurrency day trading platforms. Bitstamp is well-known in the cryptocurrency trading community as it came into existence in the early years of crypto. Over 50 different cryptocurrencies are available for consumers to trade on the site, which serves over 4 million customers globally.
Low costs are among the most important criteria when selecting a day trading crypto platform, and Bitstamp unquestionably fits this need.
Users can choose to trade using their browser or the mobile app, which makes the Bitstamp trading experience exceptional. Although Bitstamp’s Tradeview tool is geared more toward seasoned investors, both are appropriate for day traders.
This platform is well-suitable if you want to day trade cryptocurrency because it offers detailed order book information, several technical indicators, and complex order types.
Robinhood
A broker with a US presence named Robinhood competes with Coinbase. It is one of the best platforms for day trading Bitcoin. But Robinhood has a straightforward service to offer: commission-free trading! In addition, you get access to tens of thousands of markets with Robinhood, including significant cryptocurrencies like Bitcoin and Ethereum.
Additionally supported are bank transfers. You may even want to think about applying for the Crypto.com debit card.
By doing this, you can use an ATM to immediately withdraw your day trading cryptocurrency gains. The fact that Crypto.com provides leveraged financial solutions is another part of the website that may be of interest to you.
Is Day Trading Crypto Worth It?
Cryptocurrency day trading can be profitable if properly educated and utilising the right platform. But the risk is also involved. And there is a fair amount of winning and losing, just like any other trading or investing.
Using the greatest trading platform and broker with the best costs will increase your chances of success. For instance, you can trade cryptocurrencies with eToro commission-free, putting more money in your pocket.
You may converse with and learn from other cryptocurrency traders on eToro, the biggest social trading platform in the world, and establish a strong network and community to help you when trading.
The new crypto exchange XBO is also set to join the space. XBO is launching soon. You can become part of it by signing up for the early process. You can also take benefits of its loyalty program.
Crypto Day Trading Strategies
Traders employ a range of cryptocurrency day trading, scalping, and swing trading strategies. Let’s examine each of these in detail.
Technical Analysis
For cryptocurrency day traders, technical analysis strategies are quite popular. Finding market turning points that a trader can take advantage of involves studying chart patterns and technical indicators.
A few common chart patterns are flag patterns, breakouts from consolidation, ascending and descending triangles, and others. In addition, the RSI, MACD, and Stochastic Oscillator are well-known technical indicators.
Beginner traders typically use technical indicators to alert them to probable overbought and oversold market circumstances. When the market goes through overselling, it can be a good time to purchase and vice versa.
Fundamental Analysis
The study of macroeconomics and statistics on supply and demand is known as fundamental analysis. Fundamental analysis for cryptocurrencies typically takes the form of new blockchain upgrades or commercial applications for the coin that could boost demand.
The majority of day traders would combine technical analysis with fundamental analysis. The fundamentals and the timing by the technicals give the narrative of the trading.
Copy Trading
A brand-new approach to trading the market is currently catching the financial world by storm and is growing exponentially. As the name suggests, finding the successful trader and copying their transactions onto your account in real-time.
With more than 20 million members, eToro is the biggest copy trading site in the world. With filters like risk management and markets traded, you may use this tool to look up the performance of many traders.
Bottom Line
The practice of day trading on the cryptocurrency market is gaining popularity. Due to the asset class’s high volatility, traders are switching from trading equities and commodities to cryptocurrencies. We hope the list of the best platforms for day trading Bitcoin gives you some ideas on what will work best for you.
Thankfully, less of a trader’s cash is needed, and if the trader is wise enough, he can take advantage of it. It is especially true when day trading Bitcoin, as little losses may easily be offset by the boosted profits of profitable leveraged transactions.
