Crypto trading – dynamic buying and selling of cryptocurrencies, has captured the attention of a global audience. People engage in crypto trading for various reasons, drawn by the potential for profit, market volatility, and the earning opportunities that exist in decentralized financial systems.
When it comes to trading digital assets, especially institutional trading, where companies invest vast amounts of money, it is essential to adhere to a plan – strategy. In this article, we will compare the most popular approaches in crypto trading: day trading vs scalping and swing trading.
Scalp Day Trading and Other Popular Strategies
Let us consider the most used approaches in trading:
- Day trading involves the swift buying and selling of digital currencies within the same day. Traders jump on short-term price movements, making multiple trades in one day.
- Swing in trading is a more measured approach, extending the trading horizon beyond a single day. Traders hold onto positions for days to weeks, aiming to catch the “swings” in prices within broader trends. It’s a less hectic strategy that allows traders to ride out short to medium-term market trends. Comparing swing trading vs day trading for beginners, we’d rather recommend starting with swing.
- Scalping is a lightning-fast strategy where traders swiftly aim for small profits from tiny price changes. Trades happen in a blink, sometimes within minutes, requiring precise timing and rapid decision-making.
Is Swing Trading Better Than Day Trading?
In fact, swing trading is better for beginners. To compare the mentioned strategies, we’ll put their main features in a table below.
Table: Comparison of scalp trading vs day trading and swing trading
|
Strategy |
Timeframe |
Objective |
Frequency |
Risk |
| Day trading | Opening and closing positions within a single trading day | Capitalizing on short-term price movements, exploiting intraday volatility | Multiple trades in a day | Requires close monitoring, as positions are not held overnight |
| Swing trading | Holds positions for several days to weeks, capitalizing on short to medium-term trends | Capturing price “swings” within a broader trend.
|
Fewer trades compared to day trading, allowing for a more relaxed approach | Positions are held longer, requiring a tolerance for overnight market fluctuations. |
| Scalping | Extremely short-term, rapid buying and selling to capture small price differences
|
Earning from minor price fluctuations, often relying on high-frequency trades | Numerous trades in a day, sometimes within minutes. | Requires precise timing and execution, with minimal exposure to market volatility |
Conclusion
Each approach in crypto trading caters to different risk appetites, time commitments, and market preferences. Traders choose based on their preferences and the level of involvement they seek in the crypto market. If you are a beginner trader, it is advisable to start with swing trading or long-term investments. Choose some promising coin from crypto listing on trusted platforms and buy, spending just a small part of your budget, which will not cause you problems in the case you lose them. Then track the project and coin’s behavior, wait for the bull run, and receive a profit when the coin price grows.
Robert J. Smith is still early into his career as tech reporter but has already had his work published in many major publications including JoyStiq and Android Authority. In regards to academics, Robert earned a degree in business from Fordham University. Robert has passion for emerging technology and covers upcoming products and breakthroughs in science and tech.