What are the best cryptocurrencies for swing trading?
Swing trading is a short-term trading strategy designed to take advantage of short-term price swings on an asset. Swing trading is not day trading, in fact, swing traders can hold on to an asset for longer. In most cases, a trader will open a position if the price of the crypto asset swings by a certain percentage. Swing trading cryptos need to have the following attributes:
They must have a history of large trading volume to ensure there is enough liquidity in the market for orders to be filled.
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 also need to be mainstream with relatively good press coverage every day.
Well, in case you want to swing trade cryptocurrencies, there are many options to buy and sell. But the two below are perfectly ideal.
Dogecoin (DOGE) is a meme coin that has been trading in most exchanges for the past few years. It is largely a speculative asset that has managed to rank among the top 15 crypto assets by market cap.
Data source: Tradingview.com
Dogecoin gets a lot of press coverage, so if there is anything happening with regards to the token, you will find out fast. Also, it is prone to wild swings in price action, a perfect attribute for swing trading.
Ethereum (ETH) does not swing as much as Dogecoin. But it is still a very volatile asset, especially if you intend to hold it over a month or so.
Besides, as the second-largest crypto by market cap, Ethereum gets all the press coverage you need. The only downside with Ethereum is that it’s expensive to trade, but despite that, it can offer very good opportunities for your swing strategy.