The 8 Best Crypto Exchanges for Day Trading in Australia 2023 – Finder

This post was originally published on this site

{“menuItems”:[{“label”:”Finding the best crypto exchange for day trading”,”anchorName”:”#finding-the-best-crypto-exchange-for-day-trading”},{“label”:”The best crypto exchanges for day trading in Australia for 2023″,”anchorName”:”#best”},{“label”:”1. Kraken: Best for USD markets”,”anchorName”:”#kraken”},{“label”:”2. Binance: Best crypto exchange for advanced day trading”,”anchorName”:”#binance”},{“label”:”3. eToro: Best crypto day trading platform for copy trading”,”anchorName”:”#etoro”},{“label”:”4. Bybit: Best app for day trading crypto”,”anchorName”:”#bybit”},{“label”:”5. Coinstash: Best exchange for day trading altcoins”,”anchorName”:”#coinstash”},{“label”:”6. OKX: Best platform for on-chain day trading”,”anchorName”:”#okx”},{“label”:”7. Coinbase: Best day trading platform for regulatory compliance”,”anchorName”:”#coinbase”},{“label”:”8. KuCoin: Highly commended”,”anchorName”:”#kucoin”},{“label”:”Compare cryptocurrency exchanges you can use in Australia”,”anchorName”:”#fees”},{“label”:”Key factors to consider in crypto exchanges for day trading”,”anchorName”:”#key-factors-to-consider-in-crypto-exchanges-for-day-trading”},{“label”:”Risks of day trading on a crypto exchange”,”anchorName”:”#risks-of-day-trading-on-a-crypto-exchange”},{“label”:”FAQs”,”anchorName”:”#faqs”}]}

Finding the best crypto exchange for day trading

To help you find the best day trading platform for crypto, I used research from Finder’s 2023 cryptocurrency trading platform awards.

I built on this by conducting fresh research that focused on features specific to day trading and expanded the list of exchanges we considered.

As a crypto trader of 6 years, I also leveraged my own experience with trading platforms to inform these picks.

Keep in mind that these picks are suggestions and that the exchange that is best for you will depend on your individual needs. There are other products on the market not included in these picks.

1. Kraken: Best for USD markets

2. Binance: Best crypto exchange for advanced day trading

3. eToro: Best crypto day trading platform for copy trading

4. Bybit: Best app for day trading crypto

5. Coinstash: Best exchange for day trading altcoins

6. OKX: Best platform for on-chain day trading

7. Coinbase: Best day trading platform for regulatory compliance

8. KuCoin: Highly commended

Compare cryptocurrency exchanges you can use in Australia

As a day trader, spot fees are going to be important to you.

The following table compares the standard maker-taker fees before any discounts are applied (such as those for high-volume trading).

This table includes the exchanges we reviewed above, plus some others that didn’t make our list.

Key factors to consider in crypto exchanges for day trading

• Low fees: As day trading involves making a large number of trades, it’s important that the exchange has low maker and taker fees.
• Strong liquidity and volume: An exchange with strong liquidity ensures your orders will be executed with minimal slippage, which is essential for efficient day trading.
• Order types and automation: A good day trading platform will have automation tools such as a variety of order types, in-built trading bots or the ability to connect to external software using an API.
• Available cryptocurrencies: Whether the number of assets available is important will really come down to you and your individual strategy. Some people only want to trade major coins like BTC and ETH, while others like to focus on small-cap tokens with a lot of volatility.
• Leverage and margin: Trading with leverage may be essential to certain trading day trading strategies. However, none of the major crypto exchanges based in Australia are able to offer margin to Australian users due to legal restrictions. So you may have to adjust your strategy accordingly if you want to trade on an exchange registered in Australia with AUSTRAC as a Digital Currency Exchange.
• Charting tools. Most day traders are going to want an exchange that has in-built charting tools similar to TradingView, a view of the order book and depth as well as up-to-the-second buy and sell history.
• Security and reputation: A good reputation with a solid track record for security is essential, as you will need to be able to trust leaving your funds on exchange for extended periods of time.
• Regulation: You should strongly consider using an exchange that is registered with a regulator like AUSTRAC and subject to local laws and regulations.

Risks of day trading on a crypto exchange

• Lack of consumer protection. While crypto exchanges are increasingly regulated in Australia and may be registered with AUSTRAC, they are still lacking a lot of consumer protections such as mandatory insurance or strict rules about how user assets are managed.
• Regulatory uncertainty: Crypto exchanges operate under the risk of regulatory intervention or restrictions on their operations. Such developments could affect trading conditions, liquidity, and even the availability of the platform itself, should it be fined by a local government.
• Overwhelming for beginners: While some exchanges offer advanced trading tools, complex order types, and a plethora of charting options, these can be overwhelming for beginners or less tech-savvy traders. You should spend time learning before you start trading and consider using a demo mode before risking real funds.
• Liquidity risk: There may not be enough buyers or sellers at a given time to execute your trade. This can prevent you from selling your coins when you want, or force you to sell them at a discounted price, both of which can negatively impact your profitability.
• Access to leverage. Leverage is important for many day traders, however, it is not suitable for beginners. Consider using a demo account and spending time studying day trading before committing real funds.
• Frozen accounts. Crypto exchanges freezing deposits and withdrawals can happen without warning. If your account is frozen, you will not be allowed to remove your funds until the exchange approves or denies your request. Precautionary measures such as only holding a trading balance on an exchange are recommended.
• Cybersecurity breaches. Hacks and scams are, unfortunately, commonplace in the crypto space. Exchange-related security breaches and targeted phishing scams remain a major concern for exchanges and their customers.
• Not your keys. “Not your keys, not your crypto” is a common industry saying and refers to holding your digital assets in a wallet that another person or company controls, such as on an exchange. By storing cryptos on an exchange rather than in a non-custodial wallet, you’re relinquishing full ownership of those assets and putting trust in a third party – which some may see as contradictory to the decentralised philosophy of crypto.

FAQs

• 
  What exchange is best for day trading crypto?
  
  

  Binance is the best overall exchange for day trading based on Finder’s analysis.

  But keep in mind that the best exchange for day trading crypto depends on a variety of factors, including your experience, trading goals, and specific needs.

  A good crypto exchange for day trading should have a good reputation and track record with security, a user-friendly interface, high liquidity, a wide range of cryptocurrencies to trade, and low transaction fees.

  It should also provide advanced trading features such as stop loss, limit orders, and charting.

  Also, consider its customer support rating on platforms like Trustpilot.

  While you can use a cryptocurrency exchange located anywhere in the world, consider one based locally and registered with a government regulator like AUSTRAC.

• 
  What is the cheapest platform for day trading crypto?
  
  

  KuCoin, Binance, CoinJar Exchange and Luno have the lowest spot market fees starting at 0.01%, based on our research at the time of writing.

  However, keep in mind that other fees may apply.

  You also need to consider any deposit fees or withdrawal fees. These are typically highest on exchanges that only accept AUD deposits via credit or debit card, so look for one that accepts deposits via bank transfer or PayID.

  Your trading costs will also depend on trade volume, market volatility, the specific cryptocurrency being traded, and the type of trading strategy employed.

  Additionally, different platforms have varying fee structures which may reduce your fees. It’s crucial for traders to thoroughly research and compare the fee structures of different platforms to determine which is the most cost-effective for their specific trading needs and strategies.

• 
  Can you make $100 a day trading crypto?
  
  

  Yes, it is possible to make $100 a day trading crypto.

  However, it’s important to note that achieving consistent profits in crypto trading requires a deep understanding of market trends, technical analysis, and a well-thought-out trading strategy.

  The volatility of the cryptocurrency market can lead to significant profits, but it also comes with high risks and the risk of significant losses.

  Therefore, while it’s possible to make $100 or more per day, it’s equally possible to lose that amount or more.
  It is always recommended to only invest what you can afford to lose and to thoroughly research before getting involved in crypto trading.