3 Tools to Master Crypto Day Trading and Always Stay Ahead of the Competition

Day trading cryptocurrencies can be a tricky beast. Crypto markets never close so there isn’t really a definitive end of the day, but the idea is the same as day trading other asset classes like stocks. You trade throughout the day and close any positions before going to sleep or calling it quits.

With day trading the key to staying ahead of the competition is having access to the right data and being able to quickly gain insights from that data. In this article I will be going over 3 tools that you can leverage to stay informed and make the right decisions while day trading cryptocurrencies and other digital assets. There are many resources online for how to use candlestick charts and indicators such as MACD, RSI and Bollinger Bands in your trading strategy so I will be focusing on more unique tools that can give you an edge over other traders.

Order Book Superiority

Order Book Superiority is something that isn’t common in the world of crypto, but it can be a powerful tool to quickly assess which direction other traders and trading bots think the market may be moving by analyzing the current state of the order book. Coygo Terminal, a multi-exchange crypto trading app, provides a great view of Order Book Superiority so I will be using that in the examples below.

Order Book Superiority in CoygoOrder Book Superiority in Coygo

Order Book Superiority in Coygo Terminal takes all open bids (buy orders) and asks (sell orders) within 5% of the last traded price, and calculates both the sum of orders as well as the total number of orders. Sum gives us how much overall value is waiting to be bought or sold in open orders, and count lets us know how many buy and sell orders there are. Green is used for all bid (buy) numbers, and red is used for all ask (sell) numbers. The bar graph below let’s us quickly visualize the difference between total sum of bids vs asks, with the percentage difference below it. In the screenshot above, we see “Order book superiority: Bids Diff: 21.64%”. This tells us that there is more money in open buy orders than open sell orders within 5% of the last price.

Actionable insights

Trade Analysis

Now let’s look at another tool provided by Coygo Terminal: Trade Analysis. If order book superiority is looking at the future with open orders, Trade Analysis looks at the past with recent public trade activity. View trades as they occur in real-time and analyze recent trade activity on any exchange or market that Coygo supports. Compare recent buy vs. sell order count, and buy vs. sell cumulative sums on any market.

Trade Analysis in Coygo TerminalTrade Analysis in Coygo Terminal

On the left we see an area chart of the cumulative buy vs sell sum over time, with the high and low price for each interval overlaid with green and red lines. Above we see a bar chart comparing the total buy and sell sum. On the right we have a similar display, but this is for the cumulative buy vs sell count.

Actionable insights

Arbitrage Scanner

Arbitrage trading is a common strategy for day traders, regardless of which asset class they’re trading. If done right it can guarantee a quick profit, but tracking down the profitable spreads and acting on them quickly is key to success.

Finding spreads (differences in prices) across exchanges requires monitoring a number of exchanges simultaneously and doing the math to determine which is the biggest spread. Doing this manually can be a tedious and slow task, in reality this isn’t feasible. For that reason it’s always best to use a tool that can help quickly find and assess arbitrage spreads as they can change very quickly. Again Coygo Terminal provides a great solution for quick arbitrage scanning, so I will use that for my example.

Coygo Terminal’s arbitrage scannerCoygo Terminal’s arbitrage scanner

As seen above, with Coygo Terminal’s real-time arbitrage scanner you can monitor prices and spreads in real-time across multiple trade pairs an exchanges. The largest spreads are highlighted with darker colors. Profiting from arbitrage requires quick thinking and action, with Coygo Terminal you can find arbitrage spreads, submit trades to multiple exchanges in parallel, and transfer between exchanges all from the same interface.

Pre-configure arbitrage orders to submit trades as quickly as possible

Worried about slippage or speed of submitting arbitrage orders? Capitalizing on arbitrage spreads is all about speed, as they may only exist for less than a couple of seconds. Coygo Terminal has three options to help maximize profit without incurring slippage and submit orders as quickly as possible. These can be seen in the GIF above:

For example, you can set your order configurations to enable Largest w/o slippage and Set max amount with a max of $200 worth. Your order amounts will be updated in real-time whenever the order books update, so when you a profitable spread appears you can simply click “Submit buy & sell orders” and submit them as quickly as possible without ever having to waste time manually configure the orders yourself.

Arbitrage slippage detectionArbitrage slippage detection

Actionable insights

Good luck!

As you can see having access to real-time data and being able to quickly gain insights from data sources such as order books, trade history, and price tickers can give you a big advantage over other traders and help you make the most informed decisions while developing your day trading strategy. Everyone has their own trading style and goals, but regardless of those goals data is always key to success.