Medium term crypto-currency investment (Swing Trading)

Medium-term crypto-currency investing, or swing trading, is a medium-term investment strategy. Chartist patterns, supports/resistances and indicators are used to make gains on short-term price movements.

To do this, the trader observes the evolution of crypto-currency prices over four time units: monthly, daily, 4 hours and 1 hour to refine the position taking.

This type of trading is based on the concept that after an asset has traveled a certain distance, it will rest and then continue in the same direction.

Some of the technical tools that swing traders use include:

– Monthly, daily and 4-hour charts.

– Chartist patterns (i.e. technical patterns)

– Support and resistance levels

– Indicators (RSI, MACD, etc.)

The first thing to consider in swing trading is managing your capital. It is important to have a well-defined money management system to limit your risk.
As you can see, swing trading is riskier than investing but it also allows you to make more profit in a much shorter period of time.