This article will assess the suitable crypto exchanges for swing trading in 2022.
We will discuss which cryptocurrency exchange is best for swing trading based on the following criteria:
- What exactly is crypto swing trading?
- Factors to consider when choosing the right exchange
- Best exchanges for Swing Trading
- Exchanges for leverage trading
- Strategies for crypto swing trading
What Is Crypto Swing Trading?
Crypto swing trading is a trading style that holds the asset for a few days to several weeks.
Swing traders can look for trading trends and opportunities by using technical and fundamental analysis.
Swing trading has a significant advantage over day trading in that it requires less active trading. However, because the positions are held for a longer period of time, they are vulnerable to overnight and weekend market risk.
Because it has many markets and is volatile in both the short and long term, cryptocurrency is ideal for swing traders.
To learn more about how swing trading works, its advantages, and disadvantages, and strategies that seek to forecast future price movements based on the past performance of investment security, check out our post How Does Swing Trading Work.
Factors to Consider When Choosing an Exchange
To begin, you must understand the distinctions between liquidity and trading volume. After that, we’ll explain why this is so important for you if you’re planning to swing trade cryptocurrency. Finally, we will list the cryptocurrency exchanges with the highest liquidity and trading volume.
Trading volume: The total quantity (the total number) of currency units traded during a given time period.
Liquidity: The speed with which a cryptocurrency can be purchased or sold in the market because of its market price.
A trader seeks high liquidity on crypto exchanges because it reduces the risk of significant slippage. In the worst-case scenario, you may not be able to enter or exit the market entirely if it is extremely liquid.
Liquidity frequently corresponds well enough with trading volume and market capitalization. The greater the market capitalization, the greater the trading volume and liquidity.
The importance of liquidity is critical for extremely high volume traders, such as institutions. However, liquidity is not a critical factor for low-volume traders, such as most retail investors. Still, there are small cryptos that don’t even have a $1000 volume, so don’t overlook them or be misled by them.
Top 4 Crypto Exchanges for Swing Trading
When you are looking for the best crypto exchange for swing trading, there are a few things you should consider.
First, make sure that the exchange has low trading fees. You don’t want to pay more than what is necessary when you are trading your money.
Second, look at the liquidity of the market. If there is not enough liquidity in the market, then it will be difficult to make trades or you will have to wait a long time before your order is filled.
Third, look at their security measures and reputation with regulators and users.
The following list contains three crypto exchanges for swing trading:
1) Binance – Binance is an ideal exchange for swing traders because it offers both high liquidity and low fees. Most exchanges have low liquidity because they only list a handful of coins, so their order books are shallow and expensive. But Binance has over 150 coins listed on its platform and offers some of the lowest fees out there—even lower than those offered by Coinbase Pro (which charges 0.1% per trade).
2) Bybit – The first thing that makes Bybit stand out from other exchanges is its mobile app. The app allows you to trade on your phone or tablet anywhere at any time, which is great if you like to trade while on the go
Another key feature of Bybit is its high liquidity levels. This means that there are always enough people trading on the platform so that you can get a good price for your trades without having to wait too long for them to go through. This means that you will never have problems getting into a position quickly or exiting one quickly when necessary without having to wait around for too long before being able to do so.
3) KuCoin – Kucoin is becoming one of the most popular cryptocurrency exchanges. It has many advantages over other platforms, including low fees and a wide variety of spot markets.
The platform has an incredibly low fee structure, with all trades having a 0.1% fee attached to them. This makes it an attractive option for those who are looking for an alternative to other exchanges with higher fees on some coins.
Another benefit of using Kucoin is that it has more than 500 different markets available for trading altcoins at any time. This allows you to easily diversify your portfolio without having to worry about getting scammed or losing money when dealing with fraudulent companies online (which is especially important if you’re using an anonymous coin like Monero).
4) Coinbase – Coinbase is a cryptocurrency exchange, which means that you can use it to trade cryptocurrencies. It’s a great place to start if you’re new to the world of crypto trading because it offers some of the most popular coins and lets you get started with a minimum of fuss.
However, Coinbase isn’t just for beginners—it’s also one of the best crypto swing trading exchanges out there. That’s because its low fees mean that you can make bigger profits on each trade. And since Coinbase has a user-friendly interface and supports multiple currencies (including Bitcoin, Ethereum, and Litecoin), it’s easy to move your money around as needed.
Best Crypto Exchange for Swing Trading w/ Leverage
Using crypto trading leverage, you can increase your crypto purchasing power. However, not every exchange allows for leverage trading. Furthermore, leverage trading can vary greatly between crypto trading exchanges.
A trader will use leverage for one of two reasons.
- Boost your purchasing power
- Can accept quicker returns on fewer movements
On the market, there are various crypto leverage trading products.
- Futures (Perpetual futures)
- Options
- Trading on Margin
- Tokens with high leverage (Binance’s own product)
You must choose one before you can determine which cryptocurrency exchange is ideal for leverage swing trading for you. More information can be found in our blog about the best crypto leverage trading platform.
Crypto Swing Trading Strategies
Swing traders should always keep an eye out for a shift in price movement, trade on price weakness, or hunt for specific technical patterns and that’s where strategies come into play. Strategies are a set of rules that traders follow to help them decide when to enter and exit trades.
There are many different strategies available to the swing trader, but they all have one thing in common: they require you to know the direction of the overall market. If you’re looking for a new strategy or want to improve your current approach, read more here: How Does Swing Trading Work.
Listed trading pairs
If you are about to begin crypto swing trading on an exchange, you must first ensure that the crypto trading pair is listed. How can I tell if a crypto exchange has a crypto pair listed?
- Go to Coingecko or Coinmarketcap.
- Click on the exchanges
- Find the exchange you’re looking for.
- Now, click to locate the cryptocurrency pair you seek.
Which cryptocurrency exchanges have the most cryptocurrency pairs listed?
Below, we have listed a few of the most well-known crypto exchanges and the number of cryptocurrencies they support.
- Binance: +500 Listed Cryptocurrencies
- Coinbaise: +120 Listed Cryptocurrencies
- Kraken: 93 Listed Cryptocurrencies
Keep in mind that there is a slight difference in the number of currencies and trading pairs listed. As an example, if Bitcoin is listed, it only counts as one cryptocurrency.
However, many crypto trading pairs may be listed alongside Bitcoin. BTC/ETH, BTC/BNB, BTC/SOL, and so on.
Conclusion – The Best Cryptocurrency for Day Trading and Swing Trading
Swing trading is a popular trading strategy in both the stock market and cryptocurrency. Swing traders typically hold positions for a number of days or weeks, and it depends on the trade setup.
Should you begin swing or day trading? The simplest method for figuring out is to test them both and determine which one best suits your trading style. Before you begin, you should also learn about risk management principles such as setting a stop loss and proper position sizing methods.
Still curious about swing trading? Check out Martina’s Learn to Trade & Invest Crypto Academy platform to get access to all content and resources, our trading community, and 2 Zoom lives with Martina every month.