Therefore, today we’ll delve into the kind of personalities crypto traders showcase while opting for their trading strategies. Maybe just for some laughs. So, here we go:
Bull
Bull means a positive trend in the price of a market. Bull traders usually bet for an asset to rise in the price graph. These traders are optimistic about the market trends and believe it will keep climbing up in the foreseeable future. Usually, a bull market happens when the investors are very optimistic about the future performance of an asset or the total market indexes.
Bull traders invest in cryptos that are rising in value. Their goal is that the rising price movement of crypto will be favorable in the long run. Those types of traders only purchase coins when the price is in a specific position. The majority of bull traders hold their assets; so far, the investment value keeps rising in value.
Bear
Bear refers to a negative trend in the price of a market. That is from top to bottom. Bear traders are the opposite of Bull. These types of traders sell their assets because they think that the price will fall in the future. That is, the bearish task is the rule – “buy at a lower price and sell at a higher price.” Once they have sold their assets, which is mainly during the general mass trend, the price of the crypto asset falls, and the demand declines.
Yield Farmer
Yield farming refers to the practice of staking or lending crypto assets in order to generate high returns or rewards, which is in the form of additional cryptocurrency. Sometimes, it is called Liquidity mining, which simply means locking up crypto assets in liquidity pools and reaping rewards in the form of trading fees. Just as a farmer expects a yield from their product, yield farmer expects a maximum return from their investment. In real life, those farmers are like cryptocurrency investors who have invested valuable proceeds in cryptocurrency.
Most times, yield farming is seen as STAKING. But there is various complexity going on behind the scene. In most cases, it operates with users called liquidity providers that add funds to liquidity pools. One similar thing with yield farmers is that they typically move their funds around between different protocols searching for high yield. Because of that, they get other economic incentives from Defi platforms that are looking for more capital for their platform.
Alt Maximalist
These are sets of traders who invest in crypto assets other than Bitcoin. Altcoins constitute all other cryptocurrencies that came to exist after Bitcoin. That includes Ethereum, Monero, Link, Ripple, etc. Unlike Bitcoin maxialists, these altcoin maximalist like to believe in potential of all or some other cryptocurrencies that are showing positive outlook. These traders believe that Bitcoin has its own set of shortcomings and other altcoins will solve those shortcomings.
Bitcoin Maximalist
Most BTC maximalists think that it is the only Bitcoin that retains its worth proposition, and they believe that altcoins are doomed to fail ultimately. These kinds of traders don’t believe that any other coin apart from Bitcoin has a future.
One thing that distinguishes Bitcoin maximalists from the rest of the crowd is that they see beyond the blockchain’s technical merits. They see Bitcoin as the only cryptocurrency that is capable of having economic value in the future. Even though these sets of traders agree on the issues surrounding BTC, like scalability and energy, they still think that it is capable of becoming the next “digital gold” in the future.
The One Staying on the Side Waiting For A Pullback
This set of people are neither bullish nor bearish traders. They are mostly called Swing traders because they trade on a specific target. Unlike the scalpers who are ready to trade at any time, this set of traders are always more grounded. They study the cryptocurrency and wait on the side for their target to click before investing. They don’t react based on changes in the market because they have their long-term target.
Traders in this category depend heavily on technical analysis. They study the previous market chart and the current market chart to determine future prices. They understand price dip and other changes in the market. They are very popular, and they become better with time. That’s because the more they trade, the more they understand the market.
The One That Enters No Matter What
Investors or traders in this group are always quick to make money. Whether the market is having a bullish run or bearish run, they don’t care. What is always on their mind is how to make money. They are ready to trade at any time, and they always make a quick deal. Most people call them “Hare” traders. That is because the animal, Hare, is popularly known for its fast running and dexterous jumps. So, in cryptocurrency, traders who enter into sharp and speedy deals are named after this particular animal.
Looking at it from the trading view, hares engage in scalping – a risky strategy that requires constant jumps in positions within the price corridor.
Scalping is a nice trading strategy and is considered to be the top trader’s skills. Traders or investors who fall into this strategy always make huge profits because they understand the network very well for them to make all these quick deals.
The One Opting for DCA
This set of traders or investors divide their total amount to be invested into different parts. Then they use each part to invest in a targeted asset. They do this in order to reduce the impact of volatility on the overall purchase. They make the purchase at any time regardless of the price of the asset. This investment strategy removes somethings like; market timing to know when is the best time to invest. Dollar-cost averaging (DCA) can also be known as a dollar plan.
The One Going All-In
These are often referred to as the day traders because they are devoted to the trade. They are very active in the crypto market. Usually, they make money from crypto trading. These sets of traders are very active, and they have the time to monitor the market all the time to know the various market trends and impacts in the market.
However, this set of trading is very risky and requires a bit of caution. This is because the crypto market is volatile, and to be on a safer side, these set of traders limit their stake in a single cryptocurrency.
The One Not Entering Because Gold is Better
Traders or investors in this category are always arguing about cryptocurrency. They are not interested in the crypto news or regulations. Investors or traders in this category are mostly called “Ostrich.” That’s the animal that hides his head in the sand and is unaware of real-life events.
One good example of such traders is Peter Schiff. He’s a big gold investor and doesn’t see any future in cryptocurrencies. Unlike an ostrich, Peter not only hides his head in sand, but also sticks out his head every once in a while to spread negativity about Bitcoin and other cryptocurrencies to protect his gold stock. May god help him!
These set of traders think that cryptocurrency is too risky to invest in. They are usually ignorant about the potential of cryptocurrencies and don’t pay attention to any price fluctuations or any new innovations in the crypto space.
Which type of trader/investor are you?
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Written by: Narender Charan
