Summary of the Best Exchanges for Day Trading
What is bitcoin day trading?
One must be aware and familiar with all the aspects of bitcoin trading before entering day trading. Day trading can be done using financial leverage, but it can be both profitable and unprofitable, hence one must be familiar with all the aspects before getting started with it. Day trading involves many brokers and exchanges that will help you trade easily. There are two major ways that will help you today trade within a day. The two ways include:
1. CFD trading
If you are a trader and doesn’t want to get involved in the technical side of the blockchain, then CFD is a right option for you. With CFD you can buy and sell bitcoins just like bitcoin exchange, but with an advantage of not waiting for the confirmation from the blockchain, which is time-consuming. In day trading, consumption of a lot of time wouldn’t be efficient. CFD is much better compared to normal buying and selling of bitcoins.
2. Trading on regular bitcoin exchanges
The second option is for those who want to retain the bitcoins with them and trade them directly via bitcoin exchanges. There are many platforms that involve bitcoin exchanges, but these platforms charge some fee for the transactions. It is better if all the sites are checked and compared before starting to trade (which we have done). Here you should look out for high fees as they can quickly add up and eat up your profits.
There are some platforms that offer extra features along as low fees for using them (which is perfect for day trading). Here is a list of the best sites for bitcoin exchange which you can consider for day trading.
Top 5 Best Exchange for Day Trading 2018
BitMEX offers to trade bitcoin and other cryptocurrencies. You can trade and deposit funds here and gain profit in bitcoin. The company was founded in the year 2014 of November. The financial professionals of this site have an experience of more than 40 years. This site accepts and carries out its transactions only with bitcoins and no other currency. Future contracts and swaps are the two major types of trading offered by this site.
This site doesn’t have any fee for bitcoin deposit and withdrawal. There is only one type of account for all the users and there is no room for any special accounts. It has a simple interface, but users who are new to this platform might find it hard to use initially. The security level of this site is very high. It offers a rebate of 0.025% as maker fees and applies maker-taker trading fees.
Having a user base of over 2,000,000 customers, CEX.IO offers trading cryptocurrency against several fiat options – USD, EUR, GBP, RUB. CEX.IO serves two purposes:
1) traditional cryptocurrency exchange service – it allows buying and selling cryptocurrency for fiat instantly;
2) advanced cryptocurrency trading platform – users are able to place market and limit orders, engage in margin trading (up to 1:3 leverage) and use API solutions for automated trading.
CEX.IO is easy to start with. Registering on the platform is straightforward and doesn’t require much time. However, to use CEX.IO to the full, customers must be verified. The exchange supports deposits and withdrawals via credit cards or bank transfers. The deposits can be made in any fiat currency as it is then converted to the one available on the platform automatically.
When it comes to trading fees, they vary with a monthly trade volume for all pairs. According to the CEX.IO fee schedule, traders are charged 0%-0.25%. For the market makers the fee is set in the range of 0%-0.16%, and for the takers, it is 0.1%-0.25%. Margin trading fees differ and include an open fee (0.2%), rollover fee (0.01%) and close fee (0%).
As for the API solutions for automated trading, CEX.IO offers several options with full trading functionality – REST API, WebSocket API, FIX API. They suit both individuals and institutions.
To manage trades and track the market data, customers can also use a mobile app developed by CEX.IO.
Whaleclub serves thousands of traders every day. It accepts and processes its transactions only with the digital currency. It offers low spreads with zero transaction fee to its customers. There is no fee involved to deposit bitcoin and account activity, but yes, it charges some fees during withdrawal. It follows a bid and ask policy. The withdrawals are carried out in an hour after a request is made. It is carried out manually most of the times for security purpose. This site supports order book trading. As the site offers margin trading, the trading involved here is bit specific. It offers an easy user interface and is fast comparatively.
Bitfinex offers spot trading for all the major cryptocurrencies. It offers easy and high liquidity with Bitcoin. It offers margin trading and allows a leverage of 3.3x for trading by obtaining funding from the peer to peer margin funding platform. By providing funding to traders who are wishing to trade with leverage, margin funding market provides a way to earn a profit on bitcoin and other cryptocurrencies. Users can borrow the desired amount of fund at the rate and duration of their choice by entering the order.
This exchange offers a lot of order types for traders, which is very helpful for day traders. It even accepts and deals with fiat currencies. It involves maker-taker fees with 0.1% and 0.2% of fee respectively. The user interface is simple and suitable for beginners as well. It offers customized user interface which is a unique feature. This site provides advanced security measures.
Binance supports various cryptocurrencies. It offers two types of bitcoin exchange that is, basic and advanced. Based on the user’s preference, these two options show little and detailed information about trading. The data in the chart can be modified between “candlestick” and “depth” based on user’s choice of viewing.
This exchange offers free deposits and works on 0.1% trading fee. It offers high liquidity. Beginners might find it difficult to work with this site, as the interface is quite complex. The website doesn’t lag which is an advantage for day traders.
Cryptopia offers various types of cryptocurrencies. It allows users to sell anything around the world in exchange for the cryptocurrency. The trading fee is 0.20% of the total amount of bitcoins. It doesn’t charge any fee for deposits. A new feature called “arbitrage” is used, which compares the bid and ask price or the price difference from other markets for you. This site provides you information about the market disparity with a few clicks.
The demand for bitcoin is increasing and hence the desire to earn profit from bitcoin is also increasing. The above-mentioned sites help both newbies and experienced professional to earn profits with day trading. One has to be familiar with all the aspects of bitcoin trading before jumping into it in order to avoid hindrance during trading.