Swing Trading Crypto: Everything You Need to Know

Swing trading captures short-term cryptocurrency price movements or swings. Cryptocurrencies are known for their volatility, and swing trading takes advantage of these swings by entering and exiting trades at the extremes. 

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The average day trader might bring in $116,895 per year according to Zippia, but did you know that while the average swing trader’s take-home is much less than that, they can still surpass a day trader’s salary thanks to the commissions? The thing is, swing trading isn’t meant for traders starting out. It’s meant for highly skilled technical and analytics thinkers to make a consistent profit.

Implementing those same strategies can be just as profitable, if not more, for swing traders that focus on cryptocurrency. Learning swing trading crypto strategies can amount to significant short-term profits versus other tactics that may take longer to bring in profits.

Playing the field based on the momentum that trade can gain within smaller time periods is the point of swing trading, but it can be tough navigating the market if you aren’t sure what techniques work best for you.

Cryptocurrency is a very volatile asset class and compared to day trading in the crypto market, basing your trading plans on market swings makes for greater potential. To learn more about swing trading crypto and how to succeed in doing it, keep reading.

What is Swing Trading?

Swing trading is a cryptocurrency trading strategy that is used to capture short-term cryptocurrency price movements or swings. The cryptocurrency market is known for its volatility, and swing trading aims to take advantage of these price swings by entering and exiting trades at the extremes of the cryptocurrency price swings.

This cryptocurrency trading strategy can be used on any timeframe but is most commonly used on the 4-hour and daily timeframe. Cryptocurrency traders who use this strategy will typically use technical indicators to identify cryptocurrency price swing highs and lows. These highs and lows will be used to enter and exit trades, respectively. Swing trading can be an effective cryptocurrency trading strategy for both day traders and longer-term cryptocurrency traders.

You can automate crypto trading with Haru Invest

Enjoy the highest earning rates in the market with top performing trading strategies.

You can automate crypto trading with Haru Invest

Enjoy the highest earning rates in the market with top performing trading strategies.

Swing trading is a speculative and risk-managed trading style. It’s a type of investment strategy where the investor holds their position for usually a day or more (more often, one to two weeks). However, you can also hold your position on the trade for longer periods but in swing trading, this usually won’t go longer than a few months.

The price moves for these types of trades are usually expected and the greatest cryptocurrency options in swing trading are those with the highest market capitalization. This is why swing traders are able to turn a profit so quickly. The hope is that a single trade can earn you enough profit to significantly boost your returns.

The main time frames to consider for the best time frame for swing trading crypto would be by following the rule of ratios. For swing trading, this would mean four-hour charts would work the best, and most swing traders operate this way.

Usually, the four-hour chart is for identifying trends.

Day Trading vs. Swing Trading

Cryptocurrency investors have two main options when it comes to trading: day trading and swing trading. Both styles have their own advantages and disadvantages, so it’s important to understand the difference before deciding which one is right for you.

Day trading involves buying and selling cryptocurrency in rapid succession in order to take advantage of short-term price fluctuations. This can be a lucrative strategy, but it requires a significant amount of time and effort to stay on top of the market. Swing trading, on the other hand, involves holding cryptocurrency for longer periods of time in order to profit from larger price swings.

This strategy is less hands-on than day trading, but it also tends to be riskier. Ultimately, the best trading strategy is the one that fits your goals and personality.

At least 95% of day traders lost money and it can be hard to master for even the most experienced trader.

For swing trading, traders will usually use technical analysis to navigate the market when finding opportunities. The idea is to hold trades for a day or even weeks and settle for shorter-term gains.

Advantages and Disadvantages of Swing Trading

Like with anything, swing trading does have its downfalls, although the pros significantly outweigh the cons. A few of them are;


  • Management of your capital gains is flexible and scalable
  • Takes less time compared to day trading specifically
  • High reliability on technical analysis strategy
  • Shorter time frame commitments


  • High chance for loss accumulation
  • Potential price gaps
  • Accurately tracing or timing the market is harder

How do swing traders make money: Best Strategies

With bitcoin swing trading strategies for example, some of the best options are to identify and provide support for resistance triggers. Fibonacci retracements are also often successful. In addition, there are a variety of other approaches that can be tailored to swing trading crypto.

Catch the Wave

Catching the wave involves riding a swing based on on-trend positioning. Another way to look at this is by following the direction that the trade moves in. The concept is like a form of trend trading and it’s very similar to surfing, hence the name.

Buy the Pullback

When a price falls from its original peak, it’s referred to as a pullback. This concept means that it won’t move in a straight line and you can do pullback trading in any market. Traders who are buying a pullback are looking for lower entry rates.

Follow the Crowd

Following the crowd means exactly that. When a trader looks at indicators to help them gauge what others are doing is a primary example of this.

If you follow the crowd, this will mean that you are well-versed in sentiment analysis. Also, professional traders use trend lines and CoT-Style reports to help with finding out the position of other traders.

Reversal Trading

Reverse trading goes against the trend and it goes in the direction that the price trend changes to. The trade may raise or start to follow, or the opposite in this form of trading. The key is to drop your position once the reversal starts beforehand.

Technical Analysis for Swing Trading Crypto

Another common approach to swing trading crypto is to use technical analysis because it is heavily reliant on expertise in this area. This means that you will pay close attention to how easy your assets move, the volume, as well as the averages of their moves. You will also have to monitor their relative strength index.

Best Indicators for Swing Trading

When it comes to swing trading, the best indicators are those that provide the most accurate and timely information. This includes indicators that track price movements, volatility, and momentum.

  • Price indicators such as support and resistance levels can help traders identify potential reversal points.
  • Similarly, indicators that measure volatility can be used to spot when prices are reaching extremes and may be due for a pullback.
  • Finally, momentum indicators can help traders gauge the strength of a trend and determine whether it is likely to continue.

By using a combination of these indicators, swing traders can get a clear picture of the market and make informed decisions about when to enter and exit trades.

Therefore, the top swing trading indicators are:

  • Moving averages.
  • Volume.
  • Ease of movement.
  • Relative strength index (RSI)
  • Stochastic oscillator.

How to Swing Trade Bitcoin

Choosing indicators for price movements, volatility, and momentum is the first step. Once you have chosen the best indicators for you, you will need an exchange account like Haru Switch. Monitor the market and fund your account to take advantage of the best opportunities.

Is crypto swing trading profitable?

Swing trading can be profitable, but it’s a very challenging strategy given that you get more of a medium-sized time period to work with. You can use technical or fundamental analysis and decide on your asset(s). After monitoring the potential risk management of that asset, you will then follow the trade until it raises or ranges in your target area.

What is the best crypto for swing trading?

When it comes to swing trading in the cryptocurrency market, Ethereum can be a good choice. Because the market capitalization of Ethereum is very high, and it is very volatile. What makes Ethereum stand out from other cryptocurrencies is the focus on interoperability, scalability, and security.

This offers a wide range of options when it comes to potential trade opportunities and makes it easier to take advantage of price fluctuations in the market. Additionally, Ethereum puts an emphasis on transparency, so users can clearly see how their funds are being used and account for any changes that may happen due to volatility in the digital currency market. All these features make Ethereum one of the best choices for swing traders looking for a reliable and secure asset to put their money into.

What is the success rate of swing trading?

Because of its potential for earning quick profits from short-term market movements, swing trading has become increasingly popular in the financial markets. Studies suggest that swing traders tend to be profitable over the long term, although exact figures are not available. With swing trading, traders can avoid the risk of large price swings associated with more traditional methods because it focuses on smaller price movements.

When swing traders have a reasonable level of skill and knowledge, as well as proper capitalization, they may be able to achieve success rates of 50% or higher. Several technical analysts consider swing trading to be one of the most effective strategies for mitigating risk and maximizing profits.

Who Is Suitable for Swing Trading?

The most suitable would be a trader that isn’t a beginner. Swing trading is more of a complicated discipline, although it does get simpler depending on your skill level. This means someone with more strategic-based experience or specific expertise working with this type of trading form.

Best for beginners: Bitcoin DCA

Grow Your Crypto Assets, Securely

Swing trading crypto is a way to turn a fast profit in a short margin of time. It can be difficult to grasp as you start to use this type of strategy. It can also be difficult to find a platform that helps you maximize your returns and that offers focused security safeguards.

With Haru Invest, you can let experts handle your crypto. For more information about Haru Invest’s cryptocurrency accounts and to learn more about the product line, check out the homepage.

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