10 Day Trading Rules for Crypto Day Traders

This article will explore the day trading rules for crypto day traders.

You are involved in high-speed trading and risk as a cryptocurrency day trader. The trading hours are growing shorter.

At the time of writing, each market’s trading period is only 10 minutes. You must be alert and agile, or you may find yourself losing out to speedier traders with lower risk exposure.

This post will provide you with ten guidelines for profitable crypto day trading.

Day Trading Rules for Crypto Day Traders
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How to Day Trade Cryptocurrency

Buying and selling digital currencies on an internet exchange on the same day is known as cryptocurrency day trading.

This trading style is typically performed by experienced traders who are familiar with the market and understand how to profit from market swings.

When day trading cryptocurrencies, there are a few things to remember. To begin, selecting a trustworthy exchange with cheap costs and an easy-to-use interface is critical.

Second, you should place a stop-loss order, which is an order to sell your currency if it hits a particular price.

This will help you reduce losses if the market takes a dramatic turn. Finally, it is critical to set reasonable goals and avoid attempting to generate too much money too fast. Mastering day trading requires time and practice.

If you’re new to day trading, start with a small amount of money and gradually expand your position size as you gain experience.

Remember that bitcoin day trading is a high-risk undertaking with no promises of success. However, if you do your homework, keep focused, and start small, you may be well to becoming a great day trader.

10 Day Trading Rules for Crypto Day Traders

  1. Establish and stick to a daily trading objective.
  2. Only invest money that you can afford to lose.
  3. Be aware of the dangers associated with day trading.
  4. Create and stick to a plan.
  5. Don’t overextend yourself.
  6. Make use of stop-loss orders
  7. Do not pursue after losses.
  8. Be patient.
  9. Maintain your discipline.
  10. Profit wherever possible.

5 Best Platforms for Crypto Day Traders

Below are the 5 best platforms for crypto day traders:

#1. Bitstamp 

The best day trading bitcoin platform is Bitstamp. Bitstamp, a crypto-trading platform created in 2011, is a household name.

More than 4 million people use the site daily, and they may trade over 50 different cryptocurrencies on it.

Low costs are essential when selecting a day trading crypto platform, and Bitstamp satisfies this condition.

For USD-denominated assets, you can spend as little as 0.5 percent every transaction, with a minimum position size of only $10.

Due to the low minimum trade size of 0.0002 BTC for BTC-denominated assets, Bitstamp is an ideal platform for day traders.

Traders with more than $10,000 in monthly trading activity would have their costs reduced to 0.25 percent per trade.

account funding, Bitstamp accepts ACH deposits with no fees, and withdrawals are similarly free via ACH.

However, you may buy crypto instantaneously with a credit or debit card, which is subject to a 5% transaction charge.

#2. eToro 

eToro review eToro provides the ideal blend of rules, cheap fees, user-friendliness, and a wide range of trading marketplaces.

This day trading platform hosts over 40+ spot trading marketplaces, all pegged to the US dollar.

Everything from Bitcoin, XRP, and Dogecoin to Shiba Inu, Ethereum, Celo, and AAVE is included.

Furthermore, digital assets may be traded against fiat currencies like the euro and the British pound.

Day traders will also appreciate eToro’s support for dozens of crypto-cross pairings. This contains pairs like ETH/BTC, EOS/XLM, and BTC/XLM.

Regardless of the team, you choose to trade with, eToro uses a spread-only pricing approach, implying that you will need to pay the difference between the bid and ask price of your selected cryptocurrency. In terms of costs, this makes eToro one of the finest day trading crypto platforms.

Another advantage of using eToro as your primary crypto day trading platform is that you may purchase bitcoin for as little as $10.

Furthermore, the lowest amount required to get started is $10, so people on a tight budget are accommodated.

We also appreciate eToro since it has no fees for deposits and withdrawals on USD accounts.

This includes not just payments through domestic bank transfer and ACH, but also debit/credit cards, Paypal, WebMoney, Neteller, and other methods.

#3. Webull 

Day traders are increasingly seeking for organizations that offer both an online platform and a mobile application.

This method ensures you are never more than a mouse click away from the digital currency markets.

Regarding suppliers, Webull provides one of the most acceptable crypto applications for day trading in 2022.

The app, available for iOS and Android, links to your primary Webull account and allows you to move between the two as needed.

Although the Webull app is user-friendly and appropriate for beginners, it also has features that will appeal to experienced traders.

This contains technical indicators, real-time prices, and even customizable charts. Webull supports a small number of cryptocurrencies in terms of supported marketplaces, and this covers Bitcoin, Ethereum, Cardano, Shiba Inu, Dogecoin, and numerous other cryptocurrencies. The Webull app may also trade stocks, ETFs, and stock options.

Every trading market covered by Webull is available for a 0% commission. This implies that, like eToro, you will need to cover the spread when trading cryptocurrency here.

With that stated, whereas eToro’s crypto spreads begin at 0.75 percent, Webull’s start at 1 percent.

Furthermore, if you deposit and withdraw funds with Webull using a domestic wire, you will be charged a transaction fee of $8 and $25, respectively. ACH transactions, on the other hand, are fee-free.


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#4. Coinbase 

That day trading cryptocurrency and producing steady gains is a difficult task. As a result, if you’re just getting started in this field, Coinbase may be the perfect platform for you.

Coinbase has been providing cryptocurrency trading services since 2012, and newbies utilize its platform.

This is because you need a few bucks to start, and accounts can be opened in minutes.

Furthermore, suppose you don’t have any cryptocurrency to support your trading activities. In that case, You may quickly deposit USD into your Coinbase account using a choice of different payment options provided by Coinbase.

This covers transactions made using a debit/credit card or PayPal at a few 3.99 percent and ACH at 1.49 percent.

Deposits of less than $200 are subject to additional surcharges. Once you fill your Coinbase account, you can access over 50 prominent cryptocurrencies.

Every cryptocurrency accessible on Coinbase is traded against the USD spot market. Spreads are competitive, and liquidity levels are high.

Coinbase is the most costly day trading crypto site on our list in terms of trading costs, costing 1.49 percent per slide.

Because the fee is levied when you join and exit the market, you must make at least 2.98 percent profit per deal.

#5. Binance 

Binance is the top cryptocurrency day trading platform in terms of costs. This is because Binance has given a headline commission rate of only 0.10 percent per slide since the platform’s inception in 2017.

Furthermore, this cost is lowered if you trade more outstanding monthly sums. A 25% commission cut is also available for individuals who pay their fees in BNB.

If you live in the United States, you can access 60 cryptocurrencies via the Binance website, and over 1,000 marketplaces are open to all nationalities.

In either case, you may quickly put fiat money into your Binance account. For example, clients in the United States can deposit funds through ACH, domestic bank wire, or debit/credit card.

Cryptocurrency deposits are also accepted. After funding your account, you may pick between the traditional and sophisticated Binance platforms.

The traditional platform best suits people just beginning their day trading crypto experience.

On the other hand, the advanced platform would appeal if you want more sophisticated trading capabilities, customizable charts, technical indicators, and drawing tools.

Furthermore, whether you live outside the United States or the United Kingdom, Binance provides a large selection of crypto derivatives. This includes the capacity to use leverage to trade digital currency.


How Much Money to Start Day Trading Crypto?

It may take much longer to learn how to trade cryptocurrencies if you start with less than $500. $500 is achievable, but it will take longer to accumulate to withdraw regular gains. Because you are just risking 1% of your money, the daily returns will be minimal.

Can you Day Trade Crypto on Coinbase?

Because cryptocurrencies are recognized for their volatility when they first enter the market and their constant daily movement, they are an excellent medium for day trading. And Coinbase is the most popular platform for easy-to-use day trading for investors worldwide.

Can you Day Trade Crypto Without Penalty?

Because the crypto markets are open every day of the year, you may day trade at any time. Because cryptocurrency operates on a decentralized blockchain, there is no intermediary to levy fees or manage your funds. As a result, the taxes and costs connected with day trading are incredibly minimal.

How Many Times Can I Trade Crypto in a Day?

Because cryptocurrencies are not regulated by FINRA or the SEC like stocks and options, there is no day trading limitations.

Does Buying and Selling Crypto Count as Day Trading?

Because cryptocurrencies are not regulated by FINRA or the SEC like stocks and options, there is no day trading limitations.

How is Day Trading Crypto Taxes?

Yes, you may deduct the value of your Bitcoin, Ethereum, and other cryptocurrencies. Cryptocurrency holdings are considered “property” by the IRS, which means they are taxed like any other item you own, like stocks or gold.

How Long do you Have to Hold Crypto Before Selling?

If you keep the cryptocurrency for more than 365 days, it is taxed as long-term profits. While short-term profits are subject to standard income taxation, they are taxed at a reduced rate for long-term gains.

If you’re nearing the end of the year, consider holding off on selling your cryptocurrency until it reaches the long-term gains level.

When day trading cryptocurrencies, there are a few things to remember:

  • Always ensure that you are familiar with the exchange regulations you are dealing with.
  • Make a plan and stick to it.
  • Don’t get too worked up over your deals.
  • Be ready to seize profits when they arrive.

If you can remember these things, you’ll be well on your way to being a successful crypto day trader.

Watch the video below to know the Day Trading rules for crypto Day Traders:

About Author

Day Trading Rules for Crypto Day Traders
Lydia Alolade
I am a professional article and e-book writer with 4 years of experience, I write on well research content on cryptocurrency, stocks, loans and finances.

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