One of the major trading types adopted by traders in recent times is called day trading. This is the result of the tremendous development in the crypto market and its volatile nature. To be a successful day trader, it is important to select a proper trading exchange before kick-starting your trading journey.
A good trading exchange should have a good user interface, high liquidity, numerous trading pairs, a chart for technical analysis, and a good customer support system, these are some of the things a trader has to put into consideration before starting day trading.
As we proceed further in the content of this article, the main things to put into consideration before starting day trading will be discussed here. Subsequently, we will be listing some of the exchanges that have some of the features mentioned above.
Some Of The Things To Put Into Consideration When Selecting An Exchange For Day Trading
- Trading Cost: Due to the many trades placed by day traders always during the day, it is essential to consider the trading fees when selecting an exchange. When you choose an exchange that has a high trading fee, it could affect your trading profits if being subtracted from trading capital. As a result, search for an exchange with less trading fee. Some big exchanges such as Binance gives a bonus to institutional day trader or less fee for the big-volume trader. Nevertheless, it is always good to consider other valuable things the exchange offers, not just the fee.
- Friendly User-Interface And Good Trading Tools: To be a profitable trader, also consider the user interface of the exchange that you are selecting. Endeavor to select the interface that you understand how trading activities are being run in, and how the trading tools such as charts, the location of take-profits, stop-loss, market order, etc are known. These help you to be a profitable trader and it enhances your trading style as well.
- Liquidity: An exchange having good liquidity, makes entry and exit into the market easy. Considering an exchange liquidity is very essential. When choosing an exchange, select an exchange with a wide range of usage as it has good liquidity and good trading volume. If you select an exchange without good liquidity, it might hurt your profits. Usually, an exchange with good liquidity allows a trader to carry out a transaction easily without delay.
- Regulatory Factor: Before selecting any exchange for your trading journey, ensure it follows all the regulatory policies of its region of operation and confirm if it has a transparent operation. A regulatory exchange provides maximum protection to your funds and helps to prevent hackers because of their anti-money laundering regulations.
- Trading Pairs: Consider an exchange that has many trading pairs. The more an exchange has many pairs, the more the trader will have many options to trade different potential coins. These pairs may include; $BTC/USDT, $ETH/USDT, $SOL/USDT, $BEL/USDT, etc. Exchanges with many trading pairs may offer you arbitrage opportunities also.
- Security: This is one of the crucial things to look into when selecting an exchange for day trading. Consider going for an exchange that has good protective measures. If an exchange has bad security measures, it exposes a trader’s funds to hackers and scammers. Investigate the exchange historical security measure as that will help you to make a good selection.
Examples Of Famous Cryptocurrency Exchanges Suitable For Day Trading
- Coinbase: This is a trading platform that is best known for its innovative properties, good security features as well as high liquidity for trading activities. Coinbase is regulated by US SEC which made traders have confidence in the platform. This exchange is composed of several features such as; several trading pairs, a simple user interface, and low reading fees for traders.
- Binance: Binance is one of the most famous and secured cryptocurrency exchanges around the globe. It also has features such as; different trading pairs, high liquidity, low fees, and a simple user interface. Binance has different trading options such as; future trading, spot, and margin trading. This provides a trader with the choice to decide the kind of trade to participate in.
- Kucoin: It has a good security protocol and is well regulated hence giving high assurance to traders which boast their confidence while trading on the platform. It is also a reliable trading platform just like Binance and Coinbase. The trading fee is relatively low, it has several trading pairs like others, and it has other advanced features.
- Bybit: Bybit is a recently developed trading exchange that is well-known and used among day traders. Due to its rapidly advanced features, it has a leverage token and many trading pairs.
Summary
Day trading is one of the recent trading systems that is adopted by crypto traders. To be a day trader, there are some things that you have to look into to protect your funds from future loss. Some of these things are; a good trading exchange that has a simple user interface, security measures, multiple trading pairs, etc.
