Types of Cryptocurrency Traders
Now that you have decided to enter the world of cryptocurrency, aside from the common terminologies, you also need to know what type of trader you are. Traders vary in their style and it is important to identify which one suits you best. Below are the different types of cryptocurrency traders.
In scalping, the main goal is making constant profits as many times as they can throughout the busiest times of the day. Scalping is all about making very quick trades. Scalpers hold onto for a few seconds to a few minutes at the most. These types of traders take profits quickly, and they cut losses just as quickly. You can scalp by spot buying and selling cryptocurrencies.
A day trader, as the term implies, trades during the day. Day traders will usually avoid holding anything after the session closes and will trade in a high-volume fashion.
Unlike day traders, swing traders like to hold on to trades for several days to several weeks at a time. These type of traders can’t monitor their charts throughout the day so they dedicate a couple of hours analyzing the market every night to make sound trading decisions. They take advantage of a longer time frame in order to call a turn in the market. They aim to profit from an entry into the market, hoping the change in direction will help their position.
Usually, the longest time frame of the three, the position trader differs mainly in their perspective of the market. Position traders have a good grasp of fundamental analysis and usually make their trading decisions based on their fundamental knowledge.
Now that you know the different types of traders, the next step is to know your trading style. It might take a while to identify your trading style and you might even switch from one type to another just to know which one works well for you.
Once you have identified what type of trader you are, be sure to stick with it as changing your trading style every so often can lead to trouble, not to mention massive losses. And whatever it is, make sure it suits your personality and will help achieve your goals.Sign up for a FREE account now!