The main techniques in crypto trading
In this article, we introduce you to the main techniques in crypto trading.
Basically, a trader is a person who operates in the financial markets. Its objective is simple: to make money by buying and selling financial assets.
These assets that the trader manipulates can take different forms, but we will mainly talk here about cryptocurrencies.
Nevertheless, 90% of everything that will be said here will also be valid for traditional markets.
The trader takes so-called “speculative” positions as opposed to an investor who will seek to understand the fundamental value of an asset before putting his money into it.
Traders fall into three main categories:
- swing trader
- day trader
- scalp trader
Each of these profiles has its own particularities. No profile is better than the other. It only depends on one person: you!
Indeed, your personality will naturally lead you to adopt one trader profile rather than another.
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The swing trader is a trader who will be on the borderline between trading and investing.
Thanks to technical analysis, the objective here is to predict the evolution of a cryptocurrency over several days or even several weeks.
It is the slowest form of trading and often, by definition, the least stressful.
A swing trader can claim this activity in addition to his job.
Most of the traders you can see on the networks are swing traders.
The day trader is a trader who will be much more active than the swing trader.
Indeed, in this context, it is every day that you will have positions that will open and close! Moreover, the name of day trader comes from there: your trades are carried out in one and the same day.
Here, your objective will be to predict the evolution of cryptocurrencies over the hours to come and no longer days or weeks!
On the other hand, the scalping trader is a trader who will enter and exit his positions in a few minutes or even seconds!
It is a very aggressive way of trading and requires very close attention and concentration.
This is probably the most stressful trading situation and, therefore, the one where managing emotions is the most complicated.
Trading as a profession
Becoming a trader is like all professions: you can learn it!
Some people have a narrow view of trading and the trader.
A trader is, above all, a person who has trained to master numbers, technical analysis, but also emotions and impulses!
But in addition to these specific skills, it is also the trader’s conditions of activity that are unprecedented.
Indeed, you may find yourself handling amounts of money that are… crazy! And when you make a trade worth several thousand euros, you have to be able to manage the pressure!
Then, if you are a trader, what difference does it make to do it from New York, Bali or Paris? Absolutely nothing. You are totally free to trade wherever you want, as long as your internet connection is stable!