Swing trading is a short-term trading strategy designed to take advantage of short-term price fluctuations of an asset. Swing trading is not day trading, in fact swing traders can hold an asset longer. In most cases, a trader will open a position if the price of the crypto asset fluctuates by a certain percentage. Swing trading cryptos must have the following attributes:
They must have a history of significant trading volume to ensure that there is sufficient liquidity in the market for orders to be executed.
You also want an asset that has a propensity for high volatility so that there are more openings to enter a trade.
Swing trading crypto assets should also be mainstream with relatively good media coverage every day.
Well, in case you want to trade cryptocurrencies, there are plenty of options for buying and selling. But the two below are perfectly ideal.
Dogecoin (DOGE) is a coin that is traded in most exchanges for the past few years. Much of it is a speculative asset that has managed to rank among the top 15 crypto assets by market cap.
Data source: Tradingview.com
Dogecoin enjoys a lot of media coverage, so if anything happens regarding the token you will find out quickly. In addition, it is prone to wild fluctuations in price action, a perfect attribute for swing trading.
Ethereum (ETH) does not swing as much as Dogecoin. But it’s still a very volatile asset, especially if you intend to hold it for more than a month or so.
Also, as the second largest crypto by market cap, Ethereum gets all the media coverage you need. The only downside to Ethereum is that it is expensive to trade, but despite this it can provide some very good opportunities for your swing strategy.