What Kind of Trader Are You?

Cryptocurrency trading attracts all different types of personalities and traders — some traditional, and some off the beaten path. What kind of trader are you?

The Loss Aversion Trader

This is the trader that always cuts his losses and never waits too long after making gains. If the gains are too good to be true, they believe it probably is, and sell before their investment really pays off. If their investments lose value, they assume the price will continue to drop, and take the loss every time.

The Day Trader

This is the trader that loves being fully immersed in the market. Day traders make short-term investments, playing the daily 5% to 7% variability that most tokens experience on an hourly bases. These traders love exchanges with low transaction fees, and consider themselves experts at reading all the different graphs on tradingview. These traders love the high intensity experience of short term trades, and consider themselves risk takers to make significant gains, or sometimes losses.

The Crypto Signal Guys

This is the trader that’s subscribed to three different crypto signal bots, so they can brag to their friends that their making gains in the crypto market, but don’t really get what’s going on. They can’t commit the amount of time necessary to being a day trader, but want to benefit from fast trades, so they automate trades based on signals they receive.

The Gambler

“I love trading crypto, it’s like gambling, you never know if you’re going to win or lose. But when you win, you double your money.” According to a survey, 21% of people who trade crypto enjoy the market because of the kicks they get from turning a profit. Like a true gambler, these traders don’t need to know if their trade will be successful for the thrill. Most of these traders will be the first to admit that their knowledge level is low, but love trading the crypto markets nonetheless.

The Bandwagoner

This describes every person who bought Bitcoin back in 2017. Everyone was making money on Bitcoin — the bandwagoner saw the coin market cap chart and thought, “if everyone else is making money…” When everyone else is making money, the bandwagoner will follow despite any personal beliefs or thoughts regarding whether it’s the right choice. The bandwagoner assumes that everyone else probably knows something they don’t, so they trust the knowledge of the masses and join the fray.

The Holder

These traders are much more passive than other traders. They are in it for financial gain, but looked at the Bitcoin rainbow chart and thought “I don’t need to day trade, Bitcoin will his $1M in a few years, I’ll just wait.” They consider crypto part of their long-term portfolio, and believe that as a long term investment there is significantly less risk. Even if crypto drops, these traders believe that is part of the process and will make proportional gains in the long run, always.

The Tech Evangelist

These traders believe cryptocurrency is the future. The tech evangelist is watching the FED increase interest rates, watch the levels of global inflation, and are driver towards cryptocurrency as the future of hard currency: more cannot be minted, printed, or created like fiat. Many tech evangelist were participants in crypto from the beginning. They were early adopters of bitcoin, saw the enormous value of smart contracts when Ethereum was created, and love the mainstream, legitimizing adoption that crypto is experiencing.

Which Trader Are You?

A recent study has shown that a subset of people, exhibiting specific personality traits, are more likely to adopt cryptocurrency. Coined the Dark Tetrad traits — Machiavellianism, subclinical narcissism, subclinical psychopathy, and subclinical sadism — researchers found that narcissism was positively associated with crypto attitudes. Machiavellianism was associated with buying intention, mediated by conspiracy beliefs. They are more distrustful of government which was linked with a greater desire to purchase crypto.

It is clear that certain personalities are more attracted to crypto trading than others. As crypto experiences more adoption these personality associations will probably decrease, and more types of traders will emerge. Which trade are you?

About Centuries Analytics

Investing in cryptocurrency doesn’t have to be risky — not anymore. We let data speak; not investors, “experts”, pundits, or tv show commentators. Centuries uses social media, financial, and macro-economic data to determine and predict cryptocurrency markets.

Find out more: https://www.centuriesanalytics.com/