Why Low Spreads is perfect for Crypto Day Traders
There are several ways to gauge a reputable crypto broker.
Some will look at the quality of customer care, liquidity, fees, and the number of pairs supported.
Ideally, the more pairs available, the more there are opportunities to exploit and profit from.
However, for day traders, an exchange's spread matters.
Day traders often open and close a position, never holding the same overnight. Therefore, funding rates won't apply.
The difference is, day traders will jump in and out of a trade, basically scalping, opening up hundreds of positions every month.
As such, the bill could be big if spreads are high.
What's more, a bigger spread means delayed profitability since prices must first rise to cover the spread—digging the position out of the red zone—before hitting take profit.
For this reason, fee-sensitive crypto day traders always look at reliable exchanges like CryptoAltum because of their industry-low spreads.
Besides high leverage of up to 500X, CryptoAltum's spread on the BTC/USD pair is guaranteed at $3 for every standard lot.
Therefore, depending on how timed the trade is, a day trader will be in green quickly without racking up huge bills at the end of every trading session.