A trader has various ways to trade in the cryptocurrency market. He can trade via day trading or swing trade or a long-term trade. It is important for a trader to be aware of the differences between these in order to choose the best for themselves. Let’s start exploring these differences:

The basic difference between the three is the time period. Day trading refers to buying and selling the cryptocurrency on the same day whereas swing trading refers to buying the stock and holding it for a certain period of time before selling it. The time period can range anywhere from a week to a few months. Whereas long-term trading refers to holding onto stocks for long durations of time like a year or so.
Another major difference between day trading and swing trading is the trade indicators to look at before trading in each of them. Day trading requires proficiency in technical skills and the ability to read charts and candlesticks with expertise whereas swing trading requires a mixture of both technical and fundamental skills. It requires the trader to have an idea about the company’s growth and future prospects.

Position Sizing

Next is the capital requirement in both cases. Day trading enables you to trade on margin which helps you trade on relatively less capital at a larger scale helping in making more profits but also exposing one to more risk. Whereas in swing trading one can’t trade on margin and requires the full capital to trade.
Another difference in the two is that a trader can be short on certain cryptocurrencies when day trading which means selling a stock at high first and then buying it back later at a lower price which is not possible in swing trading in cryptocurrency.
Day trading positions are squared off by the broker you are trading through directly whereas in swing trading the trader has the liberty to square off his position whenever he wants.


One very important point that traders should note is the level of risk for each type of trade. A day trader will take advantage of leverage and will take on heavy positions to benefit from minor moves in the token. However, this is a double edged sword as heavy positions lead to heavy losses if proper risk management steps are not taken. This is why traders that are not looking to take on a higher level of risk should stay away from day trading as minor movements do cause the p/l to change significantly. It is also often said that day trading is one of the toughest aspects of trading due to daily volatility which is somewhat nullified on higher timeframes!

Day trading and swing trading both have their pros and cons but a person who might be just getting started with cryptocurrencies should focus on swing trading and learn more about how the market works and then get into day trading as it is a professional task and cannot be done by a newbie.