Best exchanges for day trading
We tested numerous crypto exchanges on trading fees, order types, liquidity depth, and real-time execution speeds to see which could handle high-volume, rapid trades. Our analysis also factored in charting tools and immediate withdrawal capabilities. Binance, Kraken, and KuCoin excel in tight spreads, swift order execution, and robust analytics. Each supports a broad range of crypto assets.
Binance
Best crypto day trading platform for high volume and liquidity
Binance is the largest exchange by trading volume globally, offering extensive liquidity and low fees, which are vital for day traders. Crypto day traders in the US can rely on Binance.us.
– Pros & Cons
Pros
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High liquidity for major trading pairs like BTC/USDT and ETH/USDT
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Low trading fees starting at 0.1% for maker/taker transactions
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Fast and reliable order execution
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Comprehensive security measures including cold storage
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24/7 customer support
Cons
– Why our experts picked it
Binance’s significant trading volume and liquidity make it perfect for executing large orders swiftly. Its strong security measures provide added confidence for users.
ByBit
Best platform to day trade crypto for high leverage and derivatives
ByBit stands out for offering crypto derivatives and high leverage options, ideal for traders aiming to maximize profits.
– Pros & Cons
Pros
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High leverage up to 100x
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User-friendly interface with advanced features
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Low fees, sometimes even negative for makers
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Strong liquidity for derivative products
Cons
– Why our experts picked it
ByBit’s high leverage and robust derivatives market make it ideal for those pursuing high-risk, high-reward trading strategies.
Coinbase
Best platform to day trade crypto for user-friendly interface
Coinbase Advanced is designed for experienced traders, providing a straightforward platform with low fees.
– Pros & Cons
Pros
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Intuitive interface suitable for newcomers
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Lower fees on Coinbase Advanced
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High liquidity and trusted platform
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Widely available
Cons
– Why our experts picked it
Coinbase’s solid reputation and ease of use make it an excellent starting point for day traders, particularly in regulated environments.
Crypto.com
Best crypto day trading platform for DeFi integration
Crypto.com offers a wide range of services and seamlessly integrates with DeFi, providing a comprehensive trading experience.
– Why our experts picked it
Crypto.com’s broad range of services and easy interface means it’s a versatile choice for day traders.
Kraken
Best crypto day trading platform for security
Kraken, established in 2011, is one of the most secure exchanges, offering low fees and high liquidity.
– Pros & Cons
Pros
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User-friendly for beginners, with advanced tools for seasoned traders
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Low fees, particularly on Kraken Pro
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High liquidity and reliable performance
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Strong security measures
Cons
– Why our experts picked it
Kraken’s reliability, low fees, and extensive tools make it a top choice for all trading levels.
KuCoin
Best crypto exchange for day trading for a wide variety of coins
KuCoin provides a vast selection of coins and advanced trading features, catering to diverse trading strategies.
– Why our experts picked it
KuCoin’s extensive cryptocurrency selection and low fees are ideal for diversifying trading strategies.
MexC
Best crypto day trading platform for low fees
MexC offers very low fees and strong privacy features, appealing to cost-conscious traders.
– Pros & Cons
Pros
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Extremely low trading fees
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No KYC required for trading
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User-friendly with advanced charting tools
Cons
– Why our experts picked it
MexC’s low fees and privacy features make it unique, offering great value for cost-conscious traders.
OKX
Best crypto exchange for day trading for advanced charting
OKX is known for its advanced charting tools and is a great option for non-US traders.
– Pros & Cons
Pros
Cons
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Not available in the US
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Limited fiat channels
– Why our experts picked it
OKX’s integration with TradingView and advanced trading tools make it a strong choice for sophisticated traders.
Phemex
Best crypto exchange for day trading with comprehensive tools
Phemex provides a full range of trading options and excellent customer support, ideal for serious traders.
– Pros & Cons
Pros
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Advanced trading tools
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High leverage available
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Strong customer support
Cons
– Why our experts picked it
Phemex’s extensive trading features and robust support infrastructure make it a top choice for dedicated day traders.
Pionex
Best crypto exchange for day trading with automated trades
Pionex is known for its built-in trading bots, making it ideal for automated trading strategies.
– Pros & Cons
Pros
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Integrated trading bots
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Low fees
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Easy to use
Cons
– Why our experts picked it
Pionex’s automated trading capabilities are perfect for traders who want to leverage technology to enhance their strategies.
What is day trading?
Day trading involves purchasing and selling crypto within a single day to profit from short-term price movements. Traders focus on small price fluctuations and typically do not hold positions overnight.
Successful day trading requires a deep understanding of technical analysis, market trends, and effective trading strategies, as well as a thorough understanding of the tax consequences of crypto activity.
Schedule a FREE crypto tax consultation
Why does liquidity matter for day trading?
For any crypto day trader, liquidity is as crucial as the current price of a given asset. Liquidity impacts whether you can trade crypto without significantly affecting its market price. Imagine you hold a large position in a cryptocurrency. It may seem valuable on paper, but selling it can be challenging if the market lacks liquidity.
For instance, holding a significant amount of a lesser-traded cryptocurrency might mean that selling it quickly could take days or even weeks without causing a noticeable price drop. If other traders notice a large sell-off, they may start short-selling, further driving down the price. Consequently, what seemed like a $25,000 position could realistically only net you $22,000 after the market reacts to your sale.
In contrast, trading a cryptocurrency with high liquidity means there’s a substantial number of buyers and sellers at any given time. This high liquidity ensures that you can sell your position quickly and with minimal impact on the market price. For example, in a liquid market, a large sell order might only lower the average selling price slightly, from $25 to $24.50.
Ultimately, liquidity allows day traders to swiftly and efficiently enter and exit positions without causing significant market fluctuations. It ensures that trades can be executed at desired prices, maintaining stability and minimizing losses due to market impact.
How to choose an exchange for crypto day trading
When selecting an exchange for crypto day trading, consider the following factors:
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User interface: Look for an intuitive and user-friendly platform with advanced charting tools.
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Reputation: Choose a platform with a strong reputation and reliability within the crypto community.
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Fees: Opt for exchanges with low trading fees to maximize your profits.
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Security: Ensure the exchange has robust security measures to protect your assets.
How is crypto day trading taxed?
In the US and many other countries, profits from crypto day trading are subject to capital gains tax. Short-term gains from assets held for under a year are generally subject to higher tax rates than long-term gains. Whether you day trade professionally or as a hobbyist can also impact your tax bill.
Keeping accurate records or using crypto tax software like ours at TokenTax can help ensure compliance with tax regulations. When in doubt, contact a crypto tax professional for clarity and to develop a crypto tax plan suitable to your circumstances.
Learn more about tax rates for cryptocurrency in our crypto tax guide.