DAY TRADING OR SWING TRADING WHICH ONE IS THE BEST OPTION? — The Second Angle (2024)

Cryptocurrencies are the new way of carrying out financial operations from visit a digital HomePage; the fact that Fiat currencies have been hit by severe crises and economic factors that influence their valuation, cryptocurrencies can be the solution to inflation.

As the months go by, more and more users join the various digital currency exchange platforms, managing to position cryptocurrencies as a digital financial instrument that, over time, works to generate unexpected profits.

Investors are taking cryptocurrency trading as a lifestyle, but it is essential to know the market and the various factors that modify it to achieve this goal.

Cryptocurrencies are financial resources mobilized strictly attached to the market feelings because they are susceptible to the approval or disapproval of their users and future investors.

There is no doubt that the volatility of these digital currencies causes some uncertainty in investors since they do not have a backing that makes them even more reliable.

What does cryptocurrency trading mean?

The Trading of cryptocurrencies refers to the negotiation carried out by users through various platforms known as brokers or Exchanges, speculating on the positive or negative values that digital currencies possess in a certain period.

The usual way to carry out this operation is through CFDs or Contracts for Difference. Investors predict the price of a cryptocurrency betting on its rise or fall, obtaining benefits from any trends.

Another way of Trading with digital currencies is when purchases and sales of cryptocurrencies are made in a particular market that is offered and demanded.

Operation of the crypto market before Trading

As we already know, the active crypto market is completely decentralized, which means that it is neither controlled nor manipulated by third parties, such as banks or government entities.

This market works under the Blockchain platform, and to make investments in this digital market, it is necessary to have an account in an Exchange and have a digital wallet.

Although this type of digital asset is managed through the Blockchain, it opens up the possibilities for thousands of people to make investments and purchase and sale negotiations to obtain benefits.

Unlike the traditional financial market and the currencies that constitute cryptocurrencies, they need to be added to the Blockchain to be registered and loaded into a particular electronic wallet.

Once this operation is certified by all the public network users, the mining process is generated, which will issue the payment of the profits, and in turn, the tokens that have been mined will be created.

Top 3 Cryptocurrency Trading Techniques

Each user and investor has strategies to market and operate with cryptocurrencies, so a preliminary analysis of the digital financial market is essential before Trading.

The current trading options are Day Trading, Scalping, and Swing Trading.

• Day Trading or Intraday Trading

This type of Trading is based on carrying out operations with cryptocurrencies where the price of the same is speculated during the development of the financial day of a day.

Investors who consider this strategy make investments that cover periods that can range from 30 minutes to several hours a day.

Day traders usually take about five investment opportunities in the day in which they hope to obtain good profits, not to become millionaires, but to cover expenses and be able to lead a quiet life.

This type of Trading uses Technical analysis as a type of analysis to invest.

• Swing Trading

This type of Trading is used more by professional investors, who carry out operations that exceed four hours for each position; these investments aim to obtain a more significant profit over time.

With these increased periods, they manage to benefit from profitability and a reduction in commission costs.

• Scalping

The investment periods used by traders who develop scalping as an investment method are usually from 1 to 5 minutes, making them have relatively constant market entries and exits.

This type of Trading usually uses leverage since users typically make up to 40 operations in a day, generating high levels of stress and mixed emotions.

In Trading, it’s emotional intelligence; it’s learning to manage your emotions in a way that does not affect your investments.

Conclusion

The strategies that we can choose depend relatively on the investment levels that we are willing to negotiate, so it is convenient to analyze the various techniques available to invest intelligently.

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