How Much Do Crypto Swing Traders Make?

Trade finance

Crypto – Online trading is becoming a very popular activity these days. Because of this tendency, more and more styles are appearing and opening new opportunities to earn money online. Swing trading is one of the most popular approaches.

Swing trading might be so profitable that it can completely substitute one’s regular job. However, this doesn’t work for everyone. The income of the majority of swing traders might be lower than they could imagine. And what are the peculiarities and prospects of this method on the cryptocurrency market? Let’s find this out right now.

What is swing trading in crypto?

Crypto swing trading is all about focusing on charts that display daily price changes. In the crypto market, this gains additional complexity as we know how volatile digital coins can be, even throughout a period of 24 hours. Daily and weekly charts are considered the most helpful tool in that issue, as it becomes easier to spot the reversal of the crypto price tendency when you see the development of the price throughout the day.

One more reason for crypto swing traders to use daily crypto price charts is that they are more likely to show stronger tendencies and provide you with a more complete picture of the market. The more information about crypto you have, the better you will be able to respond to its frequent value movements.

Swing traders who want to make money from cryptocurrencies also should consider using techniques of fundamental and technical analysis. When you study the fundamentals of a digital asset, it becomes easier to determine which event impacts its value the most. Once such events occur, you will already know how to react to them. Technical analysis is also very useful, especially if you use the best indicators for crypto trading, such as Bollinger Bands, MACD, and RSI.

One more important thing you need to realize is that swing trading in the crypto market might be both more profitable and complicated because of the market volatility. Prices can change in minutes, bringing either significant profits or losses. From this point of view, crypto swing trading is riskier than swing trading of stocks or other traditional securities.

Moreover, understanding the role and services of an introducing broker is paramount in crypto swing trading. An introducing broker can offer access to robust and stable trading platforms, which is crucial given the rapid price changes in the cryptocurrency market. reliable and efficient trading platform ensures that trades are executed promptly and accurately, helping to mitigate the risks associated with platform downtime or technical glitches.

What impacts potential earnings from crypto swing trading?

It’s impossible to predict everything in the world of trading, especially if things are related to the cryptocurrency market. There are several factors that can impact whether you will succeed and to what extent you will. Consider the following:

  • Your potential earnings from crypto swing trading heavily depend on your starting point. Consequently, your starting swing trading budget is related to your regular income and financial possibilities. If you can deposit no more than $1,000 to your account, you will gain fewer returns than those who can afford to start with $10,000. The higher the stakes are, the less variable the percentage of returns becomes.
  • Your starting budget affects the amount you will be able to afford to allocate to a single trade.
  • Swing trading isn’t the most intense style, but still, it requires concentration and a regular approach. If you use a swing trading style but don’t get to your trading board too often, you are very unlikely to earn good money from this.
  • Proper knowledge and constant learning are determining factors for crypto traders, especially if they choose such active approaches as swing trading. You need to learn how to analyze fundamentals, conduct technical analysis, study the performances of crypto assets within short time frames, and react to frequent crypto price changes properly. Thinking that you can start earning huge cash right from the kick-off is silly. Everything requires time, experience, and effort.
  • The market and assets you choose can also heavily impact your success during the swing trading process. In this case, we focus on digital currencies. To some extent, you are lucky because volatile markets are considered the most profitable. It’s difficult to find something more volatile than crypto funds. But in practice, what tends to be volatile can both work in your favor and damage your trading experience with losses. So, be attentive.

How to succeed in crypto swing trading?

There is no ultimate guide that will explain to you how to constantly earn money from crypto swing trading. All we can suggest is that you should pay a lot of attention to learning how to use the tools properly.

As for your budget, swing traders aren’t recommended to allocate more than 1%-2% for a single trade. Your main task is to devise a strategy that will keep you away from significant risks. Saving money by making 1%-stakes is a good variant to consider.

The final recommendation is that you should get into the real market straight away. Work on a demo account for some time in order to master the swing trading approach and to create the best strategy that will work in the crypto market for you specifically.

Mark Funk
Mark Funk is an experienced information security specialist who works with enterprises to mature and improve their enterprise security programs. Previously, he worked as a security news reporter.