Best Broker for Daytrading Cryptocurrency
When you want to start crypto daytading choosing the right day trading broker is one of the most important points. Among other things, you should pay attention to the spread and commissions that even low priced brokers offer. As a daytrader you want to aim for an approximate minimum number of transactions every day – the cheaper this is, the better. For this purpose you should compare all the emerging expenses between the possible broker options. The brokers listed below offer leading competitive spreads and trading fees. This makes their trading accounts particularly attractive to day traders.

- Bitcoin, Altcoin Derivatives
- Margin Trading
- BTC
- USDT
- no minimum
- $80 Bonus
10% Fee Discount Pro:
- No KYC
- Free demo account
- Unknown CEO
- Not for US traders

- Bitcoin, Altcoin Derivatives
- Margin Trading
- Bitcoin Futures
- Crypto Spot Market Exchanges
- BTC
- Altcoins
- Fiat Money
- no minimum
Certain withdrawal fees Pro:
- Highly trusted
- Low fees
- 80+ altcoins
- Hacked in 2019
- Complicated instruments

- Bitcoin, Altcoin
- Derivatives
- Margin Trading
- Fiat Money, BTC
- no minimum
- Regulated and highly secure
- Demo accounts
- No minimum deposit
- More products could be available
- Low crypto leverage

- Bitcoin, Altcoin Derivatives
- Margin Trading
- Bitcoin Futures
- BTC, ETH, EOS, XRP
- no minimum
- $10 Welcome Bonus
- Advanced order types
- $50 Welcome Bonus
- Highly transparent
- Not for US traders

- Bitcoin, Altcoin Derivatives
- Margin Trading
- BTC
- 0.001 BTC
- 50% Welcome Bonus
- No KYC
- Great customer support
- Not for US traders

- Bitcoin, Altcoin Derivatives
- Margin Trading
- BTC
- Altcoins
- Fiat Money
- no minimum
Certain fiat transfer fees Pro:
- Best Mobile App
- Anonymous accounts
- No trading fees
- High swap rates
- Low transparency

- Bitcoin, Altcoin Derivatives
- Margin Trading
- Bitcoin Futures
- BTC
- $1 minimum
10% Fee Discount Pro:
- High leverage
- Highest liquidity
- Market leader
- Mandatory KYC
- Not for US traders

- Bitcoin, Altcoin Purchase
- Margin Trading
- P2P exchange
- Bitcoin Futures
- Crypto Spot Market Exchanges
- BTC
- Altcoins
- Fiat Money
- no minimum
Spot: Maker -0.005% -0.1% | Taker 0.025% - 0.1% Pro:
- High Security
- Many altcoins
- BTC Futures
- Occasional outages
- Relatively low volume

- Bitcoin, Altcoin Derivatives
- Margin Trading
- Crypto Spot Market Exchanges
- BTC
- Altcoins
- no minimum
Certain withdrawal fees Pro:
- Altcoin margin trading
- Unique BTMX rewards system
- Only 10x leverage
- Not for US traders

- Bitcoin, Altcoin Derivatives
- Margin Trading
- Crypto Spot Market Exchanges
- BTC, Altcoins
- Fiat Money
- $20 minimum
Spot: Maker 0.1% | Taker 0.2%
Certain transfer fees Pro:
- Highly trusted
- Amazing trading interface
- Advanced order types
- Hacked in 2016
- Demanding verification
Learn Crypto Daytrading on the Best Broker for Cryptocurrency
As a trading beginner you probably wonder what exactly a successful daytrader does to make money by trading. But have you ever wondered what the daily routine of a professional daytrader looks like?
It must be considered that every successful day trader had to go this way at some point. He had to acquire the necessary knowledge - and usually at his own expense.
If you want to become a real daytrader, but are still at the beginning of this learning process, this article is the ideal starting point for you. And even advanced traders can take valuable knowledge about an efficient trading day and the right preparation with them. In this article we will answer the following questions:
- What is crypto Daytrading?
- How does day trading work?
- Which characteristics does a professional daytrader need?
- Which day trading strategies are there?
- What role do technical analysis and indicators play in day trading?
Finally we will give you an insight into the life of a professional daytrader. So let's get started!
What is Cryptocurrency Daytrading?
Day trading is the buying and selling of assets, whereby the positions are closed the same day. While these trades take place in any instruments, currency pairs, indices and cryptocurrencies are particularly suitable for this purpose.
To be successful as a daytrader, you need to know the markets you trade on like the back of your hand. But this alone does not guarantee your success. Especially when there is a lot of volatility in the prices during day trading, extensive knowledge about the behavior of the markets is a demanding discipline. Crypto day traders use the ups and downs of prices to make profits in particularly liquid cryptocurrencies.
What are the Advantages of Crypto Day Trading?
An important argument of many bitcoin and altcoin day traders are the swap costs. These arise when a position is held overnight. By using a day trading strategy, these costs can be avoided when trading leveraged products and warrants.
You can find the swap rates either in the product description of your broker, on his website or directly in the trading platform. In relation to the profit and loss amounts when trading Forex, Cryptocurrency & CFDs, the swap costs are minimal: usually only a few cents or Euros per day. However, with longer holding periods of a few weeks or months, even these supposedly low costs can be significant.
Daytrader save themselves this kind of financing costs.
Furthermore, day traders do not only do themselves a favor by saving costs. Their trading activities also provide increased volatility and liquidity in the Forex & CFD markets.
How does Cryptocurrency Daytrading work?
In practice, crypto day trading has only little similarity with what is described in various media as day trading. It is certainly not a surefire way to get rich in no time at all. When you start trading, you will realize this very quickly. The supposedly fastest way to become a successful daytrader is to be regarded as controversial, because here no two opinions are alike. However, all traders and analysts agree that it is a risky business, which you should only enter if you know the market and its risks.
The Characteristics of a professional Bitcoin Daytrader
Adequate Seed Capital
Professional crypto traders must have an adequate day trading starting capital, which leads to a good risk/reward ratio through appropriate money management. Even if Bitcoin day traders see more turnover than various traders of other strategies, they should still take care to keep their trading volume within a controlled range.
Good Knowledge of the Markets
A sound understanding of how markets function and their key factors is of significant importance. An experienced crypocurrency daytrader monitors various technical and fundamental indicators to capture market movements before they occur on the chart.
One of the most important ways to understand how markets work is to examine a variety of fundamental strategies that have proven themselves in the markets over a long period of time. This will deepen your understanding of the markets and at the same time teach you how to react to certain market events in order to use them to your advantage.
Strict Discipline
Discipline is important in many areas of everyday life, but if you neglect it in day trading, it can quickly lead to big losses.
Without adequate trading discipline, continuous success in day trading is virtually impossible. You need to be able to monitor prices during certain periods of time without getting carried away with impulsive decisions. This step is harder than it sounds in theory and separates the wheat from the chaff in trading. Sometimes it is very difficult to observe profitable market movements that you have predicted but not executed. However, sometimes it is better to miss an opportunity than to guarantee a loss.
How many Times a Day do you trade in Day Trading?
Before we address this question, we would like to stress once again how important it is to set up a day trading plan. This plan contains your day trading strategies, which you should always stick to. Below are some rules that you should follow regarding the best time for day trading:
- The opening of the markets on Monday is not suitable for day trading. This is due to the lack of liquidity, which can lead to sudden, unforeseen movements.
- The opening of the London Stock Exchange is well suited for day trading.
- Breakout trading is day trading when the price has reached a new high or low.
- The first pullback after a high is well suited for buying. The first rally after a low is well suited for selling.
- The last opening hour of the London Stock Exchange often says the most about how strong a trend really is. If a market has strong consecutive closing prices, the trend usually continues.
- The probability that an uptrend will end is high if there is an upswing the following morning, followed by a weak closing price.
- On holidays or Fridays you should not trade at the end of the trading session.
- Do not trade if the market has moved between 20 and 30 pips during the day.
- Sometimes it can be more profitable not to open a position.
- The first hour of a trading day should set the frame for the rest of the day.
How often you trade during the day depends largely on your day trading strategy. Let's assume that thanks to your strategy you make profits in 60% of the cases. If you do not stick to your strategy, you are more likely to miss winning trades than losing ones. Therefore always stick to your strategy.
Crypto Daytrading Broker for Beginners
The first steps on the way to a profitable daytrader are relatively easy. We recommend beginners to practice daytrading with virtual money in a demo account first, to get familiar with the trading software, the markets and possible strategy approaches.
Not doing this phase directly with real money can save you a lot of "learning money", and thanks to the absolutely realistic trading conditions in a demo account, this type of practice is really practical. In addition, you should take advantage of free extensive educational offerings on certain broker websites, including videos or even live webinars, training series and articles, to ensure that you continue your education.
The risk of losing all your deposits is relatively high in crypto trading. Therefore, we strongly recommend that you only invest money that you are able to bear the full loss of in the worst case.
The Bitcoin CFD markets offer traders the opportunity to trade with high leverage. This multiplies your profits as well as your losses and should only be used to an appropriate extent and in consideration of your personal experience. Above all, maintain trading discipline and do not allow yourself to be tempted into impulsive and reckless speculation.
Becoming a successful daytrader requires a good understanding of charts and graphs. You must proactively adapt your day trading strategies to the current situation, while ensuring that they remain effective. This can become a tightrope act that requires some practice.
Like any type of investment, crypto trading requires proper risk management, money management and diligent execution.
Anyone can trade cryptocurrencies & CFDs, but this type of investment is not suitable for every type of investor. It requires a certain willingness to take risks and a comprehensive understanding of technical details and economic behavior.
How can you learn Daytrading?
The most effective way to learn daytrading is daily practice. Again, it is important to identify the most suitable day trading strategy for you and to include it in your daily practice. The most commonly used day trading strategies are scalping and breakout.
Scalping Strategie
The idea of scalping is to execute a large number of transactions in a very short time, each of which generates a maximum of a few percentages profit, but also keeps possible losses especially low.
This is a very attractive strategy for traders who have a lot of time on their hands.
Breakout Strategy
The breakout strategy again looks for strong market movements caused by price accumulation. These movements often occur unexpectedly or in response to press releases. The trader aims to open positions in the direction of the significant movement in order to make a significant profit from the breakout.
This strategy is especially useful if you follow economic and political events that are affecting the markets, but do not have the time to keep an eye on the chart all day. A daytrader using a breakout strategy will generally execute fewer trades than a scalping daytrader. Nevertheless, it is an excellent and proven strategy that you can also test and practice in a demo account. We will go into the strategies in more detail below.
What Cryptocurrency Day Trading Strategies are there?
Before we come to the technical part of our guide, we want to tell you some basic aspects that you should know as a daytrader:
- If you want to become a daytrader, you need to know about your risk tolerance.
- Regardless of your risk profile, you should always test your day trading strategies in a free demo account or backtesting.
- The most important instrument of a daytrader is the technical analysis.
- The most important factors of your day trading strategy are volatility and liquidity:
- The volatility of a market indicates how strong its price movements are. A certain degree of volatility is required for day trading, otherwise there are no movements to trade. This slightly limits the choice of financial instruments that are suitable for day trading. In forex trading, beginners should focus primarily on the main currency pairs, the Forex Majors.
- Unlike a long term trader, a daytrader cannot afford to ignore a movement of 10 pips. It is those 10 pips that can make the difference between a winning or losing day. Of course, such a movement has to take place first, which is more likely to happen with higher liquidity in a market.
If a market is not liquid, an order may not be executed at the desired price. Therefore some day traders only trade selected instruments - and only in selected time frames.
To minimize losses and maximize profits in return, one or more day trading strategies must be applied. Since market conditions vary from day to day, you must be able to understand and follow them. A successful daytrader usually needs to formulate a new strategy every two days or at least adapt an existing strategy to the current market conditions to remain successful.
Creativity and adaptability are qualities that can be very helpful in day trading, there are different day trading strategies. Some day traders target economically relevant news and publications, while others only trade the openings of the stock markets. Choosing the right day trading strategy is not always easy, so you should first test in a risk-free demo account which approach is most compatible with your trading habits.
Crypto Daytrading Strategy 1: Follow the Trend
For an inexperienced trader the trend following strategy is the easiest in day trading. One looks for strong movements with large volumes and follows the trend. Just like the old trader saying goes: "The trend is your friend.
Although this day trading strategy is suitable for beginners, it requires a great deal of discipline and control to find the best time to open and close positions. Day trading is sometimes described as the fastest way to make money on the stock market. However, it often goes unmentioned that it is a complicated way of trading that is not easy to learn and carries a high level of risk.
Crypto Daytrading Strategy 2: Pullback
The opposite of the trend sequence strategy has different names: Reverse Trading or Pullback Trading. This day trading strategy is not suitable for beginners, because you trade against the trend. One must therefore be able to identify a possible trend reversal in advance.
One must anticipate not only the change of direction of the course, but also their strength. This requires a lot of experience, an in-depth knowledge of the market under consideration and an experienced approach to Price Action Trading. Pivot points are a helpful indicator for the recognition of trend reversals.
Daytrading Strategy 3: Scalping
Scalping is a trading strategy that tries to "cut" many small profits out of the market by means of small price fluctuations. It is traded in small time units, seconds and minutes. Scalpers rely on many trades, so take a quantitative approach.
It is a very fast trading style and therefore it can be very exciting, but it can also be associated with increased risk. A scalper must work with a high hit rate so that he can make up for the few loss trades with the many small profits. The probably most difficult part of scalping is to close the loss trades. The scalper must not wait and hope that the market will move in his direction again.
If you want to get deeper into scalping, you should develop a sixth sense for the market:
- Which markets are currently highly volatile?
- Is there sufficient liquidity available?
- Is fast order execution guaranteed?
If you have mastered scalping, it is probably the most profitable strategy of all, regardless of which market you are in. However, you must consistently limit risk, because opportunities and risks always go hand in hand.
The best Cryptocurrency Pairs for Day Trading
- BTCUSD
- ETHBTC
- ETHUSD
- LTCBTC
- LTCUSD
- XRPBTC
- XRPUSD
- EOSBTC
- EOSUSD
The most popular cryptocurrency pairs in day trading are those that have the highest daily trading volume. Especially for beginners, it is advisable to focus on the BTC/USD pair in crypto day trading, as this currency pair sometimes has the best trading conditions and often undergoes large price movements. But also Ether (ETH) is popular among crypto daytaders, as well as Ripple (XRP) and Litecoin (LTC). Those are the few altcoins can be traded with high leverage like Bitcoin. Other altcoins can traded with way less leverage.