Swing trading means holding a cryptocurrency for a few days to a few weeks in order to capture a single price move. You buy after a pullback and sell when the price has reached the next interim high. Swing trading thus sits between hectic day trading, where positions are closed on the same day, and long-term holding over years. For investors in Germany this time frame has a consequence that many underestimate: every gain falls within the one-year speculation period and is taxable as soon as all private disposal gains in a year reach €1,000.
Swing trading is particularly common in crypto because price swings are larger than with equities. A weekly gain or loss of ten percent is not unusual for Bitcoin, and smaller coins move even more. These swings are the swing trader's trading opportunities and at the same time the biggest risk. This guide explains how the strategy works, which indicators swing traders use, what a trade costs in fees and how the German tax office treats the gains. You will not find buy signals here.
What is swing trading? Positions held for several days to weeks
A swing is a single wave in the ...
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