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The Long Term Investor AKA Hodler
Long term investors are investors who will hold their bitcoin for over a year and are likely to give the crypto market more time to mature before they cash in their investments. Long term investors come from all walks of life including, cryptocurrency tech enthusiasts such as coders, anti-establishment contrarians, and financial gurus seeking to maximize their wealth. Here are a couple common strategies used by long term investors: One is to invest in promising big caps with great market sentiment and institutional backing. Another is to invest in small cap gems with the greatest potential of exponential gains and a solid business plan. Any long term strategy requires a pragmatic approach to the size of your investment and a fair amount of research. Stepping away and letting the market run its course can be the least taxing strategy and statistically one of the most profitable ones.
The Swing Trader
The Swing Traders are the doom of the cryptocurrency market feed offing the corpses of fomo zombies and moonboy armies. They are the bane of the bear market and the glory of the bull market. These patient predators feed off the impatience and insecurities of novice traders. Swing traders will place orders over the course of several days, weeks, and months, and take gains as they see opportunity play out in the trends. When the market is bullish and it is time to buy the dip, swing traders are patiently waiting for confirmations, setting stop losses and going long. When the market is bearish and institutional investors are driving down the price, swing trading are making gains shorting on margin.
The Day Trader
As the market is relatively new, day traders in the cryptocurrency market are more widely known for trading on margins or during a bull market. These traders are likely among the most educated and experienced in technical analysis. They are experts at spotting trends, interpreting market data, and charting. A day trader puts in trades that may play out in their favor over the course of a few hours or a day. Spotting patterns in charts and placing short term plays consistently is the way these traders make money. Margin trading can be especially profitable given the right risk to reward approach and a keen eye on the market. The high volatility of the crypto market makes for an extremely risky yet potentially highly profitable trading environment.
Fundamental Trader
Fundamental traders stick to verifiable statistics such as market capitalization, partnerships, competition and market growth. Buying the rumor and selling the news is a common fundamental trading strategy. Understanding market trends, market sentiment, and supply and demand are key to making informed decisions as a fundamental trader. Fundamental traders are typically associated with a long term strategy, however, short term trading based on company specific events is also a great way to trade on fundamentals.
Novice Trader
The guy who just blamed you for his bad trade. Just another noob who heard about a get rich quick pump and dump scheme from his “friend” and is taking out a significant portion of his kids college savings in order to moon his way into a fortune. He is certain that [insert latest crypto scam] is the answer and is willing to stake everything in order to get rich quick. Driven by emotion and irrational behaviors this fomo zombie will eat you alive for the slightest quip at their crypto ambitions. Novice traders will do everything to back their favorite Youtuber (who they get all their information from) but will invest nothing for themselves in the form of any kind of real research such as analyzing market data, reading whitepapers, or following the latest news from accredited sources.
The Best Strategy
The Advanced Trader embodies all the best trading strategies surrounding fundamentals analysis, technical analysis and market sentiment. In order to profit the most, traders who employ these three strategies while Swing Trading, Long Term Hodling, and Day Trading will have the most success in the market. The advanced trader does not utilize emotion in their trading strategy. Advanced traders avoid the pitfalls of fomo, and ignore the rantings of shill master zealots. Understanding whether the market is currently in a bear or bull trend is a starting point for all great traders. Once a trader understands the current trend of the market, they will then choose the best tools to use such as fundamentals, technical analysis or market sentiment. Using these methods in tandem with thorough research of market data increases the probability of gains and diminishes the risks of losses. In order to sustain their gains, advanced traders keep records of their trades and are constantly looking for new ways to improve. A great trader is one that takes advantage of low-risk/high-reward situations and practices this over time.
Posted from my blog with SteemPress : http://travelbehemoth.com/5-crypto-trading-strategies-and-the-best-strategy/