Binance, considered to be one of the largest cryptocurrency exchanges globally, offers a plethora of trading options to its users. However, the question arises regarding day trading – can Binance be trusted?
In this article, we’ll delve deeper into Binance’s functionalities and analyze its features to help you ascertain if it’s the optimal choice to fulfill your day trading prerequisites.
Binance – Is It Good For Trading?
Binance, the cryptocurrency exchange consistently outpaces billions of dollars in daily trading volume, stands out among the world’s largest cryptocurrency exchanges.
Compared to other exchanges, its ease of use and minimal fees have contributed to its widespread popularity amongst traders. Moreover, traders can access a broad range of cryptocurrencies, a significant plus.
Binance boasts an array of tools and features for day traders that may be advantageous in carrying out transactions rapidly and effectively.
These tools and features, accessible here, include more advanced order types such as limit and stop-limit orders and margin trading, which leverages up to 125x. Additionally, Binance offers traders access to various charting and analysis tools to make informed decisions regarding when to enter and exit trades.
Not only is Binance well-known for its trading capabilities, and it takes strict security measures such as multi-factor authentication and cold storage for its customers’ funds.
Additionally, the exchange boasts high liquidity, ensuring buyers and sellers are generally available for most cryptocurrencies. This feature is especially crucial for day traders who wish to complete deals quickly.
Despite Binance’s impressive features, is Binance good for day trading day trading? Well, it is a high-risk activity, and a trader’s level of expertise and self-control ultimately determine their success. Although Binance provides a platform and tools for day trading, it is the responsibility of the trader to conduct their research and analysis, manage their emotions, and take the necessary precautions to mitigate risk. While day trading on Binance may be lucrative, traders should always be mindful of the potential hazards and take appropriate measures to safeguard their investments.
Top Cryptocurrency Exchanges for Day Trading
Binance
Binance is a popular cryptocurrency exchange platform that is widely considered to be one of the most prominent destinations for day traders around the world.
Due to its spot and derivatives markets, which have the highest trading volume and liquidity, the platform is ideal for short-term trading to capitalize on price movements.
What sets Binance apart from its competitors is the wide variety of markets with strong liquidity it provides. It now supports 391 different currencies and offers over 1,664 trading pairings among those coins.
The derivatives market is supported by Binance Futures, which provides 198 trading pairs and claims a trading volume of $40 billion, roughly twice that of its closest competitor. As a cryptocurrency exchange, Binance Futures offers continuous liquidity, so traders on Binance do not have to choose specific times to trade.
In addition, day trading is an attractive option on Binance due to its low transaction fees. Day traders can convert between digital currencies on the spot market with a maximum cost of 0.1% per transaction the exchange charges.
Fees for high-volume day traders may be lowered to as low as 0.0200% and 0.0400%, respectively, for makers and takers of trades. For example, a day trader with a 30-day volume of more than 5 million and 100 BNB tokens is eligible to reduce their fee to 0.08% / 0.1%.
Day traders have many options, but one of their top choices is Binance due to its sophisticated trading and charting interface. Day traders can find trading opportunities on lower timeframes and overlay various technical charting indicators such as RSI, MACD, and moving averages as they are equipped with charts from TradingView and a powerful matching engine.
In addition, the order input window offers a variety of order types, such as limit, market, and stop-limit orders. It also offers risk management orders, such as one-cancel-the-other, which are not often available on other rival exchanges.
Binance is an excellent option for day traders because its fees are among the lowest in the industry, it has a substantial amount of liquidity, and it has a cutting-edge trading terminal. While on the go, you can easily place and monitor short-term trades thanks to the mobile app’s convenient functionality.
However, the exchange offer that Binance provides for the US market is restricted because Binance.US only offers spot trading for a limited number of cryptocurrencies and does not provide margin trading.
ByBit
Bybit, a derivatives platform that now offers a spot exchange, caters to traders seeking to speculate on cryptocurrency assets. Within a short span of time, Bybit has achieved astronomical growth in popularity, boasting a global membership of over three million.
It is currently the third-largest leverage platform and one of the world’s biggest derivatives exchanges, with over $8 billion worth of contracts transacted in the last 24 hours alone. Moreover, traders who want an all-in-one solution for day trading frequently select Bybit’s spot exchange as their platform of choice.
The derivatives market at Bybit provides customers access to more than one hundred trading pairs, making it an excellent option for day traders. Additionally, Bybit is one of the finest crypto margin exchanges due to its diverse range of markets that may be employed to safeguard a portfolio from price fluctuations.
The variety of derivatives products available is extensive and includes:
- Leveraged tokens.
- USDT perpetual, inverse perpetual, and inverse future contracts.
- USDC perpetual, USDC options.
- USDC futures.
Spot trading fees on Bybit begin at 0.1%, decreasing to a lower rate based on the total trading volume for the month, comparable to Binance. For makers and takers of orders, the transaction costs for trading perpetual contracts and futures are 0.01% and 0.06%, respectively.
Bybit’s costs are very low compared to those of other exchanges in the industry, making it an excellent choice for high-frequency crypto traders looking for value for their money.
Bybit’s user experience is top-of-the-line, offering an innovative, cutting-edge, and user-friendly trading terminal also available on the company’s mobile app for Android and iOS devices.
A diverse range of day trading strategies can take advantage of crypto markets’ available trading tools, indicators, and chart patterns. These elements can be layered on top of one another.
Users have access to various order types, including “limit order,” “market order,” and “conditional order.” These order types provide flexibility and control by utilizing price-based triggers.
Additionally, users can manage the length of each order by using triggers such as “Good Until Cancelled,” “Immediate or Cancel,” and “Kill or Fill.”
Of note is that Bybit’s sophisticated ordering system allows day traders to set up take-profit and stop-loss orders with just one click from the order confirmation box, along with different order types and time in force for each transaction.
Bybit stands out from the competition because Binance Futures does not offer this feature. Additionally, numerous chart modes allow day traders to monitor charts on the same screen. Moreover, there are bright and dark settings, both of which can have a significant impact.
Bybit’s system availability of 99.99% provides a considerable competitive advantage in terms of performance compared to rival exchanges. Traders who place large pending orders on small timeframes require access to a day trading platform that is robust and dependable in all market conditions. This reduces the risk of system overload.
Bybit generally does not impose significant constraints on short-term traders and offers access to trading tools and features that are among the best in the world. In addition to having minimal trading costs and high liquidity, the exchange provides a user-friendly interface for spot trading and leverage day trading.
Kraken
Kraken, a licensed cryptocurrency trading platform based in the United States, provides exceptional service for day traders based in the US. With over 9 million customers in 190 countries, Kraken is the go-to platform for crypto day traders looking for the best exchange.
What sets Kraken apart from its competitors are its unique features, such as providing leverage trading for qualified traders and a crypto-staking platform that enables users to earn passive profits.
Kraken offers over one hundred digital assets that users can trade, making it easy for new and experienced traders to use its platform.
The interface is designed to be user-friendly, making it a perfect choice for inexperienced traders yet sophisticated enough for seasoned professionals. Even with a minimum deposit requirement of just $10, Kraken’s user-friendly approach to trading makes it a perfect choice for all levels of traders.
Among the best options for a day, trader is Kraken, thanks to its stable pricing and substantial liquidity. While its trading volumes are not as high as those of other international exchanges listed in this comparison, Kraken ranks second to Coinbase regarding US trading volumes on its spot market.
It is more affordable than Coinbase, supporting 151 different cryptocurrencies and allowing trading against over 500 marketplaces. It is an ideal choice for day traders living in the United States.
Kraken’s fees are also significantly lower than those charged by Coinbase and Coinbase Pro. Its starting fees for makers and takers are 0.16% and 0.26%, respectively, much lower than Coinbase Pro’s 0.6% and 0.4%. By using Kraken instead of Coinbase, frequent traders can save significant transaction fees.
Although margin trading is available to users based in other countries, retail day traders in the United States must meet specific eligibility requirements.
Nonetheless, Kraken is a reliable alternative for day trading cryptocurrencies in the US and elsewhere, thanks to its low trading costs and stable platform. US-based day traders searching for a reputable cryptocurrency trading platform should seriously consider Kraken.
Coinbase
Coinbase, the quintessential dependable and secure trading platform for cryptocurrency, offers newcomers in day trading an alternative that is perfect for their experience level.
Its user-friendly layout and mobile app make it an ideal venue for novices to learn how to trade in the cryptocurrency markets. It is accessible in over one hundred countries, making it a viable alternative for anyone looking to create an account.
San Francisco-based Coinbase is widely regarded as one of the leading platforms for day trading cryptocurrency exchanges in the United States. The exchange is easy to join, and a vast selection of payment options are available for a range of fiat currencies, including US Dollars, British Pounds, Euros, and Australian Dollars.
However, be aware that the fees associated with using credit and debit cards are relatively high, coming in at 3.99% across most regions.
Coinbase Pro, the premium platform, offers over 250 cryptocurrencies, each of which may be exchanged against multiple fiat currencies. However, compared to other exchanges, a significantly smaller selection of crypto-assets is available for trading.
Despite this, Coinbase maintains high liquidity on its key pairings, such as BTC/USD and ETH/USD, only being surpassed by Binance. Day traders must have a purpose-built charting and trading exchange for reliability and performance since day traders fulfill orders on lower time frames.
Coinbase’s user interface is very straightforward, unlike Binance’s. Even the more advanced Coinbase Pro platform is comparable to Binance in most of its features, but it is more streamlined and has a simpler design. The order book, which displays the market spread for each trading pair, is available to experienced traders and may be used to their advantage.
However, the trading spreads on Coinbase are slightly greater than those on Binance, especially for trades involving less popular altcoins. Consequently, day trading cryptocurrency pairings on Coinbase might result in greater spreads when contrasted with Binance.
Coinbase’s trading fees are not particularly competitive compared to other day trading exchanges. In addition to the fees associated with making payments, day traders may anticipate paying a charge that ranges from 0% to 0.4% for takers to 0.05% to 0.6% for makers.
The fees charged by Coinbase Exchange and Coinbase Pro might become more manageable depending on the price tier selected when dealing with larger sums. However, the basic fees, up to $10,000, are rather pricey.
Coinbase is an excellent choice for those just getting started in the world of cryptocurrency trading; however, it is not the most cost-efficient choice for day traders, and there are other options that are less expensive.
KuCoin
KuCoin, known as the “People’s Exchange,” has gained recognition for its reliability and safety as a trading platform. The platform offers access to over 600 different currencies, making it a favorite among day traders seeking diverse cryptocurrency assets.
KuCoin’s listing of rare coins and tokens that cannot be found on other exchanges makes it a popular choice for long-term investors.
KuCoin’s goods and services suite caters to long and short crypto trading on intraday charts. This includes futures markets, margin trading, zero-fee crypto swaps, staking incentives, and borrowing and lending services to earn income on crypto assets.
Day traders looking for ways to invest their idle assets and boost their earning potential are likely to find these aspects of KuCoin fascinating.
At present, KuCoin is the fifth-largest exchange and primarily focuses on trading pairings for alternative cryptocurrencies on the spot market. KuCoin is a viable alternative for day traders who are keeping tabs on the altcoin markets since Terra, ApeCoin, and Dogecoin are among the three most-traded cryptocurrencies on the platform.
Traders also have access to substantial liquidity for various cryptocurrencies that are gaining popularity beyond Bitcoin and Ethereum.
KuCoin’s cost structure is similar to that of Binance, with a maximum charge of 0.1% applied to both spot and futures trades. Users can lower the overall cost of trading by owning KuCoin’s native KCS token, which offers a 20% discount on both the maker and taker fees. The prices for trading between assets are on par with those of other providers.
KuCoin is an exceptional platform for day trading alternative cryptocurrencies, offering users access to various coins and pairings. However, its derivatives market’s trading volumes are still in the developmental stage, and alternatives such as Binance Futures and Bybit may be better options to consider.
KuCoin is currently unavailable in the United States, which could be a significant limitation for traders in that region.
OKX
OKX operates on cutting-edge blockchain technology and is a trustworthy platform for day trading in cryptocurrency. With 366 cryptocurrencies and 826 spot, futures, margin, and perpetual markets, it’s a popular choice among traders. Additionally, OKX offers margin and endless trading.
OKEx has a unique ability to convert stablecoins without fees or slippage, which distinguishes it from other exchanges. Liquid trading pairs for margin and derivatives trading, such as USDT, GUSD, USDP, and USDC, provide an advantage to day traders and scalpers who can easily swap collateral at any moment without incurring charges.
With TradingView charts, OKX provides a wealth of tools and features to optimize trading methods. Hundreds of different indicators and patterns can be generated and risk management orders, such as Limit, Advanced Limit (Post Only, Fill Or Kill, Immediate Or Cancel), Market, Stop Limit, Trail, Iceberg, and TWAP orders are available.
OKEx is highly competitive in terms of fees, making it an excellent choice for short-term crypto traders. Spot costs start between 0.08% and 0.10%, comparable to other popular exchanges like Binance and ByBit. For active traders, cryptocurrency futures market participation costs begin at 0.02% for makers and 0.05% for takers.
In summary, OKEx is a top-notch platform for day trading of various cryptocurrencies. With modern trading features, exposure to diverse markets, high liquidity (ranked third for derivatives), and low fees, it’s an attractive option for serious day traders.
MEXC
MEXC, or MEXC Global, is an innovative day trading platform offering numerous advanced features, considerable trading volume, and satisfactory liquidity. The platform is geared towards professional investors, offering margin trading, futures contract trading, P2P trading, automated trading bots, and copy trading.
With over 1,588 different cryptocurrencies and over 2,500 trading pairs available, MEXC is an exceptional platform for day trading. This vast range of trading pairs is ideal for those who trade altcoins daily or want to diversify their leveraged trading accounts.
The platform provides numerous possibilities for executing quick deals. Additionally, users can practice their day trading methods using a risk-free demo account.
MEXC’s ability to hedge against rapid market volatility by supplementing short-term bets with exposure to ETFs is one of the exchange’s most unique features. Users can trade over 1,000 different cryptocurrencies with leverage up to 5X. The ETF options include the Grayscale Index, the Major Crypto Index, and the DSA Index, among others.
Moreover, MEXC provides low day trading fees, with futures derivative trading starting at an essential transaction cost of just 0.02% for makers and 0.06% for takers.
MEXC’s day trading fees are among the most affordable in the industry, comparable to those of other popular platforms such as Binance, ByBit, and KuCoin.
Overall, MEXC is an excellent choice for crypto day traders due to its extensive features, many trading pairs, and affordable costs.
What Is Cryptocurrency Day Trading?
Cryptocurrency day trading is purchasing and selling digital assets in a single day to profit from short-term price fluctuations. Traders achieve this by wagering on smaller time frames and increasing their position sizes.
These day traders keep a close eye on the market, scanning for potential profit opportunities, which means they might hold their positions open for seconds, minutes, or a few hours. However, swing traders and long-term investors usually keep their positions open for days, weeks, or months.
Day trading is considered a high-risk trading method due to the rapid pace at which it occurs and is therefore not recommended for inexperienced or novice investors.
Key Considerations When Selecting a Day Trading Exchange
Choosing the right trading platform is essential for those interested in day trading cryptocurrencies. This is true not only for experienced traders but also for those new to the world of cryptocurrency. Here are some important factors to keep in mind when selecting a day trading exchange:
Markets and Trading Pairs
Day traders aim to make a profit every day. As such, selecting an exchange that offers a wide range of markets, currencies, and trading pairings is important. This may include both spot and futures markets, as well as alternative cryptocurrencies.
Volume and Liquidity
Day trading often involves large sums of money and leveraged positions, so choosing an exchange with deep liquidity is critical. This helps to reduce slippage and ensures that orders can be completed at the desired price. Checking the trading volume of a particular pair on different exchanges can help determine which exchange has the highest liquidity.
Fees
Given the high volume of transactions in a single day, it is important to minimize trading costs. This can be achieved by choosing a low-fee trading platform or offering fee reductions for certain activities, such as staking the platform’s native token.
Stable Trading Platform
Some exchanges may experience technical difficulties or downtime during periods of high market volatility. This can cause anxiety for day traders with open positions. Therefore, it is important to choose a stable exchange that is available almost 100% of the time and provides advance notice of any scheduled maintenance.
Risk-Management Orders
Although price volatility can benefit day traders, sudden price movements can lead to significant losses, especially when trading with leverage. It is, therefore, important to use an exchange that offers risk-management orders, such as stop-limit and one-cancels-the-other orders. Some exchanges also offer drag-and-drop charting capabilities, which can be useful for placing take-profit and stop-loss orders.
Responsive Mobile App
Monitoring all active positions at all times is not always feasible. Therefore, having a mobile app compatible with different devices can be beneficial. The trading app should be user-friendly, streamlined, and responsive, including depositing cryptocurrency, making orders, and monitoring open positions.
Frequently Asked Questions
Can Coinbase Provide Day Trading Options?
When it comes to day trading cryptocurrencies, Coinbase offers a highly advanced and sophisticated trading platform, combined with exceptional liquidity and remarkably competitive costs, that are among the finest in the industry. Nevertheless, there are alternative choices available that are endowed with lower costs and more leverage to achieve maximum effect from short-term price fluctuations.
Is Cryptocurrency Trading a 24/7 Affair?
The cryptocurrency market operates round the clock, seven days a week, including holidays and weekends. Traders who use an exchange can keep track of current prices at any moment and make the necessary orders. Due to its status as one of the most liquid markets in the world, day traders have an edge when they engage in this market.
The Procedure Behind Picking These Exchanges
The authors conducted a comprehensive review procedure to research and compare various cryptocurrency exchange providers. This involved opening a verified account, depositing funds, making trades, and withdrawing money from each provider to understand the customer experience fully.
Subsequently, we assessed, scored, and rated each exchange based on our unique internal evaluation criteria, and assigned an overall star rating out of a possible five points. If you want more information on the categories analyzed while comparing various day trading platforms, read through our exchange review methodology process.
Concluding Thoughts
Daily trading in the crypto market can be highly lucrative but also extremely exasperating, resulting in possible financial losses. With so many options, selecting the appropriate cryptocurrency exchange for day trading is critical. Additionally, there are numerous factors to consider.
Still, the exchanges evaluated above are among the best in the world, providing a highly advanced trading platform, a wide range of supported markets and currencies, and – perhaps most crucially – low trading costs and extensive liquidity, all of which assist in optimizing the profit potential of each trade.
Additional Resources For The Topic Of “Is Binance Good For Day Trading”
* Do You Need 25k To Day Trade Crypto
* https://www.investopedia.com/binance-vs-coinbase-5120852
