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Swing Trading vs Day Trading – What Is the Difference?

Swing trading and day trading are efficient methods for entering the crypto market. They are quite easy for beginners to pick up. But what is the difference between them? And how to choose your best fit? Read our overview that explains all about swing trading vs day trading.

Swing Trading vs Day Trading – Definitions

Are you completely new to crypto trading? No problem! Let’s start from the basics. 

Day Trading

Trading means buying and selling assets with the aim of making a profit. Trading has many different forms that vary based on their methodology, goals and strategy. The strategies are usually linked to the trader’s expectations. 

So, when does trading become day trading? This depends on the time that a trader holds an asset. Day trading means buying and selling assets within a very short timeframe. This could be anything from a few seconds to a few hours. It qualifies as long as the asset trades within the same day. Hence, having the name day trading. 

Day trading is an extensive topic and there is lots of information you can learn about it. Check out our comprehensive guide on day trading cryptocurrency.

Swing Trading

Now that we have covered day trading, let’s move on. So, what is swing trading? Swing trading means buying and selling crypto after a certain degree of movement in the charts. It is often done in stages. Swing trading might be a good fit for those who don’t want to spend hours on monitoring their trades. 

The Difference Between Swing Trading vs Day Trading

By now, you have a basic understanding of day- and swing trading. But how do they differ? We get it – the line between them seems hazy. That is because the concepts slightly overlap. 

Think of it like this – the key indicator is time. Swing trading is fast paced. Yet, trades are slightly longer than with day trading. Swing trading has a slower pace and gives traders more time to understand the process. This means more opportunities for research before executing trades. It is a popular method for traders who are just getting started. Swing trading will help you get used to a fast paced trading environment. Traders can build on their skills during this process. So, after spending some time swing trading, you can move on to day trading.

On the other hand, day trading has a faster pace. 

How to Start Trading?

Sounds clear, right? Now that you are up to date with swing trading vs day trading, you might be thinking of practice. We get that trading might seem a bit frightening at first. Luckily, there are plenty of resources you can use to learn more! Here’s our checklist of aspects to cover before diving into trades.

Trading Indicators

There is no way to look past trading indicators when discussing efficient trading. They are a great way to predict price movements on the market. Depending on your preference, you can learn all about best indicators for day trading or best indicators for swing trading.

Trading Tools

Indicators are not the only crypto tools you can use. There are more options that can affect your trading. Read more about day trading crypto tools to make an informed decision on the exchange, wallet and analysis tools you will use.

Practical Tips

After covering all of the above, you should be ready to start trading! As a last step, check out some practical tips for entering the market. If you are focusing on swing trading crypto, we have picked out the top 5 tips for you.

 

Now that you know all about swing trading vs day trading, why not put your knowledge to use? Head over to the CoinMetro crypto exchange! In case you have any questions, contact out support team.