 With all the new platforms and apps that pop up, trading cryptocurrency has become extremely easy. You're basically just one click away from buying or selling your favorite coins. Trading in itself is a different beast, though. In this video, I wanna explain the differences between day trading, swing trading, and hardling just based on my personal experience alone. So here is why I started. In 2020, I started educating myself on trading in general. I started day trading because at that time, I was stuck in my apartment due to the obligated quarantine caused by COVID-19, which means I had a lot of time. So I was super motivated. I was eager to learn more about patterns and just understand the market. I also wanted to make money while I'm stuck in my apartment. So what is day trading? Day trading means you're placing multiple trades per day. You never hold a position overnight. Your positions have a short time horizon and it requires a lot of your active time. I was basically staring at a computer all day. I started a day trading challenge with $10,000 and I focused on one to 2% trades only. Obviously, I made some mistakes in the beginning which forced me to hold my coins for a longer period of time and I wasn't able to day trade them. I learned from those mistakes fairly quickly and I made some rules for myself. One of which was don't hold a coin overnight. That's a really good one if you're a day trader. By the way, the $10,000 that I invested into this project was not money that I actively needed to pay my bills or anything. So I was not stressed at all if I had to hold it or if I lost on paper or on the app a couple percent because I know worst case I'm just gonna hold it and I don't need it. After a couple of weeks, I was able to get zero to five positive trades in per day, all of which were one or 2% of my total investment. So I was able to bring the $10,000 all the way up to $50,000 and I felt fantastic until I looked back to see where I started. This brings me to hard link. The very first trade of my day trading challenge allowed me to purchase 400 BNBs for $10,000. I'm pretty sure you know where this is going. I usually hate those articles and headlines that say this is how much money you could have had if you invested $1,000 into X five years ago. But I think for this video and to illustrate day trading versus holding or hard link it's important to show you guys. So if I held my initial investment of $10,000, the 400 BNB I could sit on a whopping $200,000 right now at the current price of $500 per BNB with absolutely zero work. Yeah. This made me think and realize that I will never be able to outsmart the market and that I will always lose on a massive amount of money if I try to time the market perfectly. I missed out on so much money just because I was in and out of the market within a couple of hours. Some days I woke up to a 20% gain within BNB just at one finance coin. But guess what? I was holding my USD because I was a day trader. I need to be in and out of the market fairly quickly. Lesson learned. On top of that, the 400 BNB could have made me another 25 BNB or $12,500 in interest if I held it in an interest paying wallet which brings me to the next point. If you have any cryptocurrency laying around that's not making you any money, what are you waiting for? Check out blockfi.com slash Johannes and you can get up to $250 when you sign up. And on top of that, you can start generating interest today. I think it is fair to say that my day trading skills did not outperform the market and I missed out on a lot of money which means I wasn't able to maximize my financial gains. On top of that, spending so much time in front of the computer was not my dream life. So what to do next? Swing trading. What is it? Swing trading is defined as placing multiple trades per week with a lower amount of transactions and a longer time horizon. It also requires less time in front of the computer which I liked a lot. When I started swing trading, I basically just used the knowledge that I gathered throughout the day trading phase and I was able to achieve the same outcome with lesser time in front of the computer. Also, I saved money because I had lesser transactions which means lower fees. I was holding the coins between two and 12 days like it always depended on how the market reacted but usually let's just say an average of like one week I was holding my coins and it was beautiful because usually I put those coins into my interest paying wallet again and made money while holding them and then a week later I sold them. So with that one transaction I made money twice not only on holding and getting the interest from that coin, I also made a better capital or financial gain because I didn't miss out on all the massive 20% in between. So now what is the best strategy if you're not a professional trader? First of all, I wanna say I'm not a financial advisor. I mean, you guys know that. You're well aware of the fact that I just create YouTube videos and share my mistakes and like my success stories here. So make sure you do your own research before you invest in anything. And here's what I've learned from this project, this experiment of day trading or this day trading challenge. I realized and understand now that I will never be able to time the market perfectly. I will never be able to outsmart the market. It's simply not possible. So does that mean day trading is done for me? Absolutely not. I simply switched up my strategy. What does that mean? I basically put the majority of my capital, my investment money into cryptocurrency that I'm holding long-term. It's generating income in an interest-paying wallet. And then I have a very small play money account with $1,000 which now is close to $6,000 and I day trade swing trade on there. So here's the new strategy. Every time I have a successful trade, I take 50% of the gain in cash and keep the other 50% in the coin I traded. That way I can hold on to the coins I actually like while having fun in the crypto day trading world. All right guys, that's it for today's video. I really appreciate your time. Thank you so much for watching. Have a wonderful day.