Day trading is exactly what it sounds like – entering. Selling it for $105 a few hours later. Example: Buying Bitcoin at $30,000 and selling it at $35,000 two weeks later. Swing traders, on the other hand, hold trades for several days or weeks. Example: Imagine buying a stock at $100 in the morning. Instead of quick moves, they aim to catch larger price swings in the market. Exiting trades within the same day. You don’t hold positions overnight, which means you avoid the risk of unexpected news affecting your trade while you sleep. That’s a successful day trade!

Qadir Ak is the founder of Coinpedia. Think of trading styles like different sports. He has previous trading experience. So, you want to become a trader? Maybe you’ve seen people making quick profits in the market, or you just love the thrill of watching price movements. Mustafa has been writing about Blockchain. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space. Some require fast reflexes, like boxing, while others demand patience and endurance, like marathon running. Crypto since many years. Whatever your reason, one of the first things you need to figure out is your trading style.

Do you have the whole day to trade? Try day trading or scalping. Enjoy researching long-term trends? Can you handle fast price swings? 5. The Best Trading Style for Beginners: What’s Better? Prefer steady gains with less stress? Swing or position trading might be better. Example: Let’s say you research a stock, find it undervalued, and buy it. Only have a few hours a week? Before committing, practice your chosen style with a demo account. If you’re just starting out, swing trading is often the best choice. Do you love fast decision-making? Position trading is for you. Consider day trading or scalping. Position trading makes sense.

One simple strategy is a trend following, where traders identify and capitalize on sustained price movements in a particular direction. Swing trading involves holding cryptocurrency positions for a short to medium term, aiming to profit from price swings within an established trend. Day trading requires active monitoring and quick decision-making, making it more suitable for experienced traders. Yes, fundamental analysis can help you evaluate the long-term potential of a cryptocurrency, complementing your trading decisions. Consider your risk tolerance, time commitment, market knowledge, and preferred trading style when selecting a strategy. Yes, some platforms offer leveraged trading, which allows you to trade with borrowed funds, amplifying potential gains or losses. Avoid emotional trading, overtrading, not using stop-loss orders, and failing to diversify your portfolio.