Back to main

Can You Day Trade Crypto?

Table of Contents

Cryptocurrencies can be day traded, like any other financial instrument. In fact, crypto offers more opportunities for day trading than traditional markets since it’s generally more volatile and prone to large intra-day price movements.

In this article, we are going to examine the intricacies of crypto day trading from what crypto assets to trade to which trading platforms to use.

Key highlights:

  • Cryptocurrencies offer more day trading opportunities than traditional markets due to their higher volatility and frequent price changes.
  • Access to a reliable crypto exchange with high liquidity and low fees is crucial for effective day trading.
  • Employing technical analysis tools like charting software and indicators is advisable to anticipate market movements and enhance trading outcomes.
  • Selecting cryptocurrencies with high liquidity, trading volume, and market depth is essential for successful day trading.

Can you day trade crypto?

Yes, you can day trade crypto. Day trading involves buying and selling financial instruments within the same day, or even multiple times over the course of a day, taking advantage of small price moves. In the context of cryptocurrencies, this can mean trading various digital currencies like Bitcoin, Ethereum, or altcoins on various exchanges.

The crypto market is known for its extreme volatility, which can present more opportunities for day trading compared to traditional markets. However, this same volatility increases the risks associated with trading, requiring traders to be well-informed and quick on their feet.

Crypto day trading essentials

If you want to start day trading cryptocurrencies, there are a couple of things that you should take care of first. Having access to a crypto exchange is a must since that is where you’re going to conduct your day trading. Using technical analysis tools or automated trading software is optional but strongly advised if you want to maximize your day trading returns.

Crypto exchange

Selecting a good cryptocurrency exchange is crucial if you want to engage in high-frequency crypto trading. There are a couple of characteristics that you should consider when choosing a crypto exchange, including high liquidity, wide availability of trading pairs, and low fees.

Binance is arguably the best choice for crypto day traders, followed by KuCoin and Kraken. Each of them has its strengths and weaknesses. Binance has the highest liquidity of them all but doesn’t really have as many listed cryptocurrencies as KuCoin. Kraken, on the other hand, is considered one of the safest exchanges, but its fees are higher than Binance’s and KuCoin’s.

Overall, you can’t really go wrong with either of the top crypto exchanges, but you should be aware of the differences between them.

Kucoin is one of the best cryptocurrency exchanges that allows you to buy, sell, and trade Bitcoin, Ethereum, and 700+ altcoins. Sign-up now and get $700 welcome bonus.

Sign-Up Now

Technical analysis

Day trading is strongly correlated with studying short-term market trends. This means that most day traders don’t really pay as much attention to fundamental and big-picture trends but rather focus on line trading patterns. 

It’s hard to argue against the point that technical analysis is essential in day trading. Tools such as charting software (TradingView is a great free choice, for example) and indicators like moving averages, RSI, and MACD can help traders predict future market movements based on historical price actions. We suggest you check out our candlestick cheat sheet to learn about common chart patterns and what they represent.

If you are unsure where to start, you might seek guidance from experienced traders who share their entry and exit prices and other types of crypto signals.

Read more: Candlestick Patterns Cheat Sheet

(Optional) Automated trading software

While regular order types featured on most crypto exchanges will be sufficient for most traders, those who want to employ more advanced and complex trading strategies will likely want to check out various trading software tools. 

Automated trading tools, often referred to as trading bots, allow users to execute cryptocurrency trading strategies on behalf of users. They are designed to analyze market conditions, monitor price movements, and place trades based on predefined rules and algorithms.

Read more: Best Crypto Trading Bots

What are the best cryptos to day trade?

Important factors for choosing a day-trading cryptocurrency include high liquidity, substantial trading volume, and market depth. There is no silver bullet when it comes to selecting the best day trading crypto coins. However, it’s generally accepted that there are certain properties that make a cryptocurrency a good digital asset for day trade, including high volatility, liquidity, trading volume, ample market depth, and exchange availability.

Some of the best day-trading cryptos are Bitcoin, Ethereum, XRP, Solana, BNB, and Dogecoin. Most of them are highly liquid, have a large market capitalization, are listed on most crypto exchanges, and are prone to volatile daily sessions.

Read more: Best Cryptos to Day Trade: Analyzing Top Day Trading Coins


Can you day trade crypto on Robinhood?

Yes, you can day trade crypto on Robinhood. The platform promises the lowest fees out of all major crypto trading platforms, including Coinbase, Kraken, and Binance, which is very important when day trading. However, the selection of cryptocurrencies is somewhat limited, as Robinhood supports only about 30 different digital currencies.

Can you day trade crypto on Binance?

Yes, you can use Binance to day trade. In fact, Binance might be one of the best options out there, thanks to its deep liquidity, extensive selection of trading pairs, and the ability to lower trading fees for high-volume traders via the VIP program and the BNB coin.

Can you day trade on Coinbase?

Coinbase is perhaps not the best-suited exchange for day traders, but that doesn’t mean that it can’t be used for day trading. Coinbase has somewhat high fees, and its default interface is a bit simplistic. If you want to day trade on Coinbase, we recommend that you change the interface to “Pro” mode, which has more options than the default one.

Can you day trade crypto on can be used for day trading. It lists more than a hundred cryptocurrencies and regularly ranks as one of the largest exchanges in terms of daily trading volume.

The bottom line

Day trading crypto can be rewarding, but it requires knowledge, the right tools, and a disciplined approach to manage the inherent risks. Before diving into day trading, it’s essential to research thoroughly and possibly practice with a simulation tool or a small amount of capital.

If you want to try your hand at day trading in traditional markets in addition to crypto, you might want to check our list of the best algorithmic trading platforms, which are a great start for forex, CFD, and other common day trading instruments.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Read on CoinCodex Investment Disclaimer