Investing in bitcoin has been popular and widely debated for years now. The interest in bitcoin is huge because it can be a great way to earn money. To generate money from your bitcoin investments, trading is an effective way.
Trading always comes with a risk. There’s always a possibility you’re going to lose part of your invested capital. To minimize these risks, you should use the best bitcoin trading strategies and know how to master them. Two of the most well-known strategies are day trading and swing trading, but which of them is the best?
This is one of the most popular strategies for trading bitcoin. The reason is probably it’s fast-paced and the profits can be generated over the day. Day trading basically is just like any other kind of trading, you buy when the price is low and sell when the price is high. The main difference from traditional trading is that you never have any open cases overnight, your trades are being made within a day.
Day trading is easy to begin with and is a perfect option if you are a bit restless. You don’t have to wait and see if your investments were right or wrong, this method gives you fast results. Because you always sell your investments in the evening, you also will be able to sleep peacefully.
A huge majority of the trading strategies require some smartness and thinking, so does day trading. The problem with day trading is there often is no time to think. You have to act quickly and base a lot of your decisions on your gut.
Just like in day trading, swing trading is a fast-paced method to earn money from bitcoin. However, in swing trading you most often have cases open overnight. You can make trades over days, weeks, or even months. In swing trading, your aim is to catch the price “swing” that plays out over a longer time.
In swing trading, you don’t have to be as active as in day trading. You most often can take some time to think about your upcoming decisions. Because you have your cases open for a longer time, the prices have more time to change which can generate a bigger profit.
However, the larger amount of time can also mean prices have more time to change for the worse. Therefore, swing trading is mostly an alternative for people interested in taking larger risks.
Which Strategy is the Best?
So, which of these two strategies is the best? The answer is none. Or both. Swing trading and day trading both have pros speaking in their favor, they can both generate large profits. But they also have cons that lower them down, you can lose part of your investments.
Which of these two strategies you should choose is based on what kind of person you are. If you’re looking for an adrenaline rush, maybe day trading is the right choice for you. If you want to be able to think over your decisions more, maybe swing trading is the best strategy for you.