Etoro Overall Best Broker To Swing Trade Crypto
eToro prides itself as a leading broker that makes swing trading convenient for beginners. The platform provides a copy trading tool that allows you to get started in the cryptocurrency markets seamlessly. With this tool, you can identify leading traders and copy their open positions like-for-like. This way, you can make profits from swing trading without having prior knowledge of this marketplace.
Furthermore, eToro allows you to make payments using different options including debit/credit cards, e-wallets, and wire transfers. You can get started with the broker by depositing a minimum of $200 in your account. But more importantly, you can start swing trading crypto for as little as $25 per position. With this cost-effective structure, the broker serves more than 20 million users across many cryptocurrency markets.
Since youre swing trading, you may enter the market in different ways based on your desired strategy. For instance, if youre swing trading for a few days or weeks, you can buy crypto tokens and hold them until you decide to exit the market. On the flip side, if youre swing trading a position for less than 24 hours, your best bet is to utilize CFDs. This will allow you to trade with leverage and gain access to short-selling facilities
First Of All Do You Know What Crypto Swing Trading Is
A lot of people are confused about the different types of swing trading. Then again a lot of people dont even know that there are different types of swing trading.
And some people confuse swing trading with day trading. You hear it all the time, especially on mainstream media, where the talking heads, who dont usually know much about what theyre talking about, end up calling swing trading day trading. Thats not good because it creates confusion.
Day trading is traditionally referencing the trading in and out of positions within a day, and then by the end of the day, youre done . Swing Trading means that most of the time you are holding positions overnight for a couple few days or more.
Now lets clarify that holding on to a position for the sake of a period of time is a style of trading, but in swing trading, you are usually trading the momentum off of price charts based off of interpreting price action from the price charts.
So therefore, your swing trade could technically be in and out in a day in that you stop out for a loss. But a successful swing trade will last at least two to three days.
Yet you also have micro swing trading which trades on bars that are less than the day bars like 120 minute bars, 60 minute bars 30 minute bars, etc. And for that style of trading, you could be in and out more quickly than trading the day bars.
Using Good Crypto To Find Your Exchange
How can you find the best market and the best cryptocurrency exchange for your favorite altcoins?
When opening the Good Crypto application, you can explore the never-ending list of cryptocurrencies in the Prices section. When opening a market, you find a list of exchanges providing this cryptocurrency. Do you wish to trade for BTC or another currency like EUR or ETH? Press the tab, and youll see where to find a market, as well as an asset price and trade volume of each market updated in real time.
If you have created your cryptocurrency exchange account, you can link it to Good Crypto and trade instantly from your phone. If you havent created an account on one of the top cryptocurrency exchanges yet, you can do so via Good Crypto. By doing this you secure a decent discount on trading commission for yourself. Go to Settings -> Exchanges -> A desired crypto exchange -> Create an account on Thats it. Fast and simple.
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How To Trade Ethereum: Step By Step Beginners Guide
If youve always desired to learn to trade Ethereum but have no idea where to start, this guide is perfect for you. We are going to focus on the basics of Ethereum trading what it is, ways to trade it, how to read price charts, analysis methods, common trading errors and how to avoid them, and more.
Chart Patterns And Trendlines
As mentioned above chart patterns and trendlines have a very important role in determining important levels in swing trading. Trendline by definition is a line drawn between local lows in uptrend and between highs in down trend. Trendlines help to find support and resistance levels and also could be used as stop loss and take profit levels.
Several trendlines can create various shapes called chart patterns. The most common chart patterns are flags, triangles, head-and-shoulders.
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Which Types Of Securities Are Best
While a swing trader can enjoy success in any number of securities, the best candidates tend to be large-cap stocks, which are among the most actively traded stocks on the major exchanges. In an active market, these stocks will often swing between broadly defined high and low points, and the swing trader will ride the wave in one direction for a couple of days or weeks and then switch to the opposite side of the trade when the stock reverses direction. Swing trades are also viable in actively traded commodities and forex markets.
Take Partial Profits Into Strength
Cryptos are volatile. Usually when the trend, they dont move straight up, or straight down. There is nothing worse being up nicely on a position, and then having it reverse on you and turn into a loser. To prevent this from happening, sell some of your coins when you are up on your positions. This will allow you to realize some profit, but still in a position to capture a bigger move if it continues to trend. Learn more about my favorite trading strategies I use for cryptos here.
Best Swing Trading Books
There are few books based specifically on swing trading, but they do exist and equally importantly, some of the best trading books apply to all trading, including swing trading:
- Mastering The Trade . Nothing beats experience, and John F Carter provides insights as a genuine swing trader. Learn from his experience via this excellent book.
- Come Into My Trading Room . This is one of those books that is not about swing trading per se, but it introduces some fundamental trading principles that every trader should apply including swing traders.
- Trade Your Way To Financial Freedom . Again, not about swing trading specifically but about managing risk, and viewing your whole trading activity through the perspective of managed risk. This guidance is particularly important for shorter term, high frequency trade styles, such as trading swings.
Crypto Swing Trading Faq
What are the differences between scalping and Crypto swing trading?
Scalping and day trading styles involve making several trades in a single day, based on technical analysis and advanced trading systems. Crypto scalpers and day traders focus on making small profits multiple times a day, while swing traders are more organized and may hold onto their positions for several weeks or months.
Therefore, the main difference is the Time Frame, so swing trading may be for you if youre patient enough. On the other hand, if you enjoy the trade rush and have a crypto bot, scalping can be your best choice.
What indicators or tools do crypto swing traders use?
Swing traders rely on a variety of technical indicators to find trading opportunities. They watch for crucial support and resistance levels, move averages, momentum indicators, and other specialized tools.
Crypto swing traders seek to identify and capitalize on market direction. Swing traders often look for patterns like head-and-shoulders and cup-and-handle or other technical patterns to help improve their trading strategies.
Which crypto coins are best suited for swing trading?
While working as a cryptocurrency trader, you can enjoy success in any number of coins. The best blockchain assets are those that are among the top performers on CoinMarketCap.
A swing trader can succeed in many cryptocurrencies, but the best candidates tend to have active trading volume across major crypto exchanges.
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How To Swing Trade Using A Bitcoin Trading Bot
How Forex Live. Swing V Btcmines at are related reading me. Key to accomplished trader to right exit Swing commonly used beginner Share video 17. How To Swing trade bitcoin. Today I go over how to preform swing trade on Binance. Swing method to swing one larger same swing positional going to trade every you’re to money roughly gain relative just to wait coin together Bitcoin to figure end coins trade Robinhood exceptions maintenance, 5.
Trading Essentials: The Right Tools To Support Your Day Trading Strategies In Crypto
Before exploring every aspect of cryptocurrency trading, its important that you approach the markets with a plan. The difference between a successful beginner in trading and a losing trader is your cryptocurrency trading strategy. Consider reading our Portfolio Management article, and decide the size of your investments carefully.
Proper cryptocurrency trading strategies are based on a set of rules that you consistently respect. This is the key to a profitable, long-term trading system. Lets touch on a few important subjects of what was described in the Portfolio Management article.
To start, you decide the total amount of money you want to invest.Secondly, you decide if you want to be an active trader, a passive investor, or both.Once you have decided this, you can start going into depth, and learn about how to create the best trading strategies.
Listing out a few important elements of a successful cryptocurrency strategy:
- Create a plan that pre-decides the size of your total investment
- Use liquid exchanges, and understand liquidity
- Diversify your investments
- Enter markets with the Dollar-Cost Averaging method
- Understand basic technical analysis indicators
- Trade with proper risk management, following the 1% risk rule
- Use Good Crypto, the only tool you need for tracking your portfolio performance and perform successful trades with risk management
Well continue covering the most important cryptocurrency tools, along with the best crypto trading app on the market.
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Benefits Of Crypto Swing Trading
The distinction of swing trading is a vast topic as it has many different influences from many different trading strategies. All of these trading strategies are unique and have their respective risk profiles.
Swing trading can be an excellent way for market players to improve their technical analysis skills further while also paying more attention to the fundamentals of trading.
Many successful swing traders are known to use a Bollinger Band strategy as a tool to help them enter and exit positions. Of course, for a swing trader to succeed in his strategy, he will have a remarkable ability to determine the markets current trend and place his positions according to this trend.
It is a good note for a swing trader to place a short position to hold it for an extended period in a market that is clearly on the rise.
The general theme here is that the goal of traders should be to increase their chances of success while limiting or eliminating risk.
The swing traders worst enemy is a sideways or active market. Sideways price action will stop a swing trader in its tracks, as there is no dominant trend from which to disconnect.
What Indicators To Use For Crypto Swing Trading
When it comes to swing trading, traders usually use trend following indicators. Since most of the swing trades wont last longer than two weeks time frames are important too. In most cases swing traders use charts varying from 1 hour to 1 day.
There is nothing exceptional with indicators used for swing trading. Oftenly they are the same as used for other trading styles. Indicators such as moving averages, MACD, Bollinger Bands and others are common in swing traders arsenal.
However some indicators occur more often among swing traders than day traders or scalpers. It is important for swing traders to find local tops and bottoms. But since they capitalize on longer trades it is important to find trends that could possibly last for at least several days. In this case crypto swing traders rely more on trend indicators rather than oscillators while opening positions.
So, indicators like moving averages, MACD helps to enter the market. Also, trend lines, fibonacci retracement levels can be used.
For exit points swing traders tend to use reversal indicators or oscillators. So, in this case relative strength index , stochastic and others are used.
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Is Swing Trading Cryptocurrency Legal
It depends on the jurisdiction you reside in and the asset types you trade. However, there are no specific legal limitations aimed at swing trading.
In the U.S., day trading stocks require a minimum account balance of $25,000, but there is no such requirement for swing traders. Still, a swing trader would need $10,000 or more to generate a sizable profit. When it comes to forex pairs and cryptocurrencies, anything higher than $500 should work for beginners. Again, these are not legal requirements.
In the case of cryptocurrencies, you should make sure that trading them is legal in your country. Some jurisdictions, including Bolivia, Algeria, or Macedonia, have banned Bitcoin and altcoins.
Swing Trading Cryptocurrency The Main Advantages
- 1.) You are not under pressure to keep chasing pips all over the place and staring at your computer screen all day long. Health experts will easily tell you that staying on a computer screen for so many hours in a day is bad for the eyes.
- 2.) The structure of swing trading means that you only need to take a few trades within a monthly cycle. This allows you to pick out the best possible opportunities and not allow the gambling mindset to take over.
- 3.) You are able to chase high reward trades. Acceptable risk-reward ratios should be a minimum of 1:3, allowing you to target making 3 pips for every 1 pip you risk. Swing trades can give you this leverage, as will be seen in the example we give in the article.
- 4.) Swing trading is less time consuming and leaves you with precious time to do other important things in life.
- 5.) Most importantly, swing trading levels out the risks associated with the intense volatility of the cryptocurrency market.
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Using The Exponential Moving Average
A swing trading academy will run you through alerts, gaps, pivot points and technical indicators. But perhaps one of the main principles they will walk you through is the exponential moving average .
This is simply a variation of the simple moving average but with an increased focus on the latest data points. Used correctly it can help you identify trend signals as well as entry and exit points much faster than a simple moving average can. Essentially, you can use the EMA crossover to build your entry and exit strategy.
Swing Trading Crypto: 10 Must
Swing trading crypto is one of the best ways to capitalize on moves in the crypto markets. Price movements and trends in the cryptocurrency markets will often take multiple days to develop. Swing trading uptrending coins is one of the best ways to make big returns in a short period of time.
However, if you dont know these 10 rules you will rarely be able to capitalize in the crypto markets. Most crypto traders fail because they dont have a defined process or rules that allow them to consistently profit from trading cryptos. Here are 10 must-follow rules for swing trading crypto successfully:
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Why Choose Swing Trading Cryptocurrency
Well, as you will have gathered from other guides, the greater the price shift, the more profit you are going to make. Unfortunately, the intraday price shift is often small.
That is why day traders choose to do margin trading. Increasing the volume of trade helps to magnify the smaller intraday price changes in order to increase profits or losses if things go wrong.
The big price range and shift does not mean you will always profit. The significant changes can cause you huge losses if they take a direction you did not anticipate. That is why you have to make use of trade instruments and watch the price trends closely.
You need to watch the market all the time to be able to make the right call when trading. Furthermore, you must base all your trading action on the best swing trading practices and not your emotions.
Advantages And Disadvantages Of Swing Trading
Many swing traders assess trades on a risk/reward basis. By analyzing the chart of an asset they determine where they will enter, where they will place a stop loss, and then anticipate where they can get out with a profit. If they are risking $1 per share on a setup that could reasonably produce a $3 gain, that is a favorable risk/reward ratio. On the other hand, risking $1 only to make $0.75 isn’t quite as favorable.
Swing traders primarily use technical analysis, due to the short-term nature of the trades. That said, fundamental analysis can be used to enhance the analysis. For example, if a swing trader sees a bullish setup in a stock, they may want to verify that the fundamentals of the asset look favorable or are improving also.
Swing traders will often look for opportunities on the daily charts and may watch 1-hour or 15-minute charts to find a precise entry, stop loss, and take-profit levels.
Trade positions are subject to overnight and weekend market risk.
Abrupt market reversals can result in substantial losses.
Swing traders often miss longer-term trends in favor of short-term market moves.
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