A hype that everyone is talking about, including celebrities and well-known people, is crypto trading. It has a lot of potentials to grow due to the increasing number of millennials who are more attracted to this type of investment rather than stocks or physical assets.
But what type of crypto trader are you? Are you a fundamental, technical, or day-trader? Do you trade in huge volumes or just a little? Do you hold cryptocurrency funds or trade on margin and then sell it when your profits reach a certain point?
Recently, we’ve been spending a lot of time reading blog posts and articles about crypto trading and came across the following descriptions of types within the crypto community:
Type 1: Fundamentalist
Fundamentalists held cryptocurrencies as an investment asset. They are not day-traders, and they do not engage in speculative activities. Do not engage in market manipulation.
During a bullish market, they buy slowly and accumulate in their wallets. As a result, they seldom do day trading.
Type 2: Technical Trader
Trades based on technical analysis. Moves according to indicators for short time range and trades frequently during a short time. Trading is done with a relatively high frequency in order to make better predictions regarding price movements and market tendencies of value-conscious investors.
Only engages in speculative activities when the price movement reflects positive market signals or support, such as a major spike or dip.
Type 3: The Day Traders
They trade cryptocurrencies on margin (a risky way to trade) and usually do not hold their position overnight. They aim to make gains from short-term price discrepancies and volatility.
These traders are happy whenever the crypto markets are in a bullish trend. They trade in a short period of time, without discernible patterns and with only one goal: to make profits.
Type 4: The Pump & Dumpers (The Manipulators)
They earn money by artificially pumping up the market price. After the price hike, they then profit from dumping or selling at a higher market rate. This is a widespread practice in many cryptocurrency groups, and it needs to be eliminated altogether.
These types of traders often manipulate the market and make impulsive decisions when they get the opportunity to earn money. Although this practice is illegal in most countries around the world, pumpers are still prevalent in crypto trading.
Type 5: HODL
HODL stands for Hold On for Dear Life. They trade in the long-term (daily to weekly) and do not engage in any pump-and-dump activities when the market is bullish or bearish.
Type 6: The Impulsive
These traders gamble in the market. They make decisions quickly, making considerable profits in a very short time.
They frequently trade during the bullish market and resort to short-term trading to make big money when there is a chance of a crash.
Type 7: The Macro Traders
They trade on a long-term basis and hold their coins for an extended period. They only move when they read about major news events, or you can describe it as “macro-trading” in crypto markets.
Which Type Of Trader Are You?
Crypto trading is a never-ending cycle of making profits and losing money. If you find yourself asking the questions above, it may be helpful to categorize yourself into a specific type of trader and figure out which method will work best for you.