Trading: The Fair of Cryptoassets and Types of Sellers
The Market. You’re enveloped in a cloud of spices, fresh fruit, vegetables and herbs. The voices of sellers are coming from everywhere. One offers to buy juicy, but slightly wrinkled strawberries at a good discount, another beckons with bouncy peaches more expensive, but with the prospect of enjoying them in 10 days, the third offers super ripe cherries as a contribution to future jam for the winter, and the fourth — spices, promising to turn any dish into a gourmet restaurant.
Any trade, be it a food market or a crypto exchange, is characterized by the fact that each seller has a different strategy (give a discount, promise a long-term or short-term benefit, etc.) and has a different buyer going for his offer, be it a quick result or a prospect.
Trading
Trading follows the same principles as a grocery market, only here you’re exchanging assets on a crypto exchange (a platform where a seller and a buyer agree on a transaction).
The seller (trader) follows a certain trading strategy and trades assets. The trading strategy or their “handwriting” refers the trader and their operations to a certain type of trading on the exchange. All traders are also conditionally divided into types.
Types of traders
- Intraday traders
Intraday traders are traders united by the principle of conducting transactions within one trading day. Intraday traders usually open several positions at once to gain more profit and compensate for losses. It is important to realize that the market is volatile and asset positions can change significantly even within one trading day, which affects the work of intraday traders. Their schedule and working hours are directly related to the functioning of an exchange.
2. Scalpers
This is a type of intraday traders trading in very short time intervals — from several seconds to a couple or three minutes.
Scalpers make a small profit and repeat the operation several (many) times.
A significant limitation of scalping is the trading fees, which in the case of systematic repetition of the operation can cost the scalper a tidy sum.
3. Position traders
They prioritize trend trading over large time frames without the distraction of short-term price fluctuations. A position trader is similar in strategy to an investor in that they too hold positions for long periods of time. A position trader must have a good understanding of what they are trading and a deposit to withstand possible price swings.
4. Swing traders
Swing traders bet on short-term price fluctuations during a long-term trend. For example, if the price of an asset has been rising for several weeks, a swing trader waits for a wave of trades against the uptrend. They realize that in the uptrend, the growth will continue and now is the time to buy the asset cheaper. A swing trader waits for the desired growth of the asset and sells it profitably. The duration of their position is from several hours to several days.
5. Arbitragers
This type of traders plays on the difference in the price of assets on different markets. In this case, the data of technical and fundamental analysis are not crucial at all, but it is important to know and compare the value of assets on different markets and understand whether it will change during the transaction. Arbitrage transactions will be successful provided that orders and fees are processed quickly and there are no sharp fluctuations in the price of the asset. The main item of unpleasant additional expenses of an arbitrager is the cost of depositing and withdrawing funds on different exchanges.
6. Robotraders
Their trump card is special algorithmic systems for making deals. And the trades won’t be made by humans, but, as you have already guessed, by robots. The owner forms a trading strategy for the “assistant”. Such automation gives the trader a big trump card up their sleeve: a quick reaction to market movements and the ability to make complex calculations, as well as eliminating the human factor and the risks associated with it.
How do you know which type of trading is best for you?
Traders, in order to come to their favorite strategy, train long, long and hard, wasting the most precious things — time and money. Only through experience can you come to what you do best.
Cosmic FOMO teaches you how to trade crypto and allows you to try out classic intraday trading, as well as apply various crypto strategies in practice. A significant plus is that even if you choose a failed strategy, you will not lose money and still get a base yield, and with it valuable experience, which is so necessary for any crypto die hard. Your money will remain safe. Cosmic FOMO winnings are accrued in COSMIC tokens, which can be easily exchanged to USDT and then withdrawn to your wallet.
It’s worth noting that when registering, you’ll get a free NFT (game pilot), with which you can race in HARDCORE mode against other players and take the prize pool of $30–40. This is a great opportunity to get started in Cosmic FOMO without significant investments and learn trading by playing.
Join Cosmic FOMO and master trading without financial losses!
