Types of crypto trading

Major & Exclusive types of Crypto Trading in a Nutshell

Trading is good. But you should know a fact uttered by Mark Douglas that goes like “ If you can learn to create a state of mind which is not affected by the Market’s Behaviour, then the struggle cease to exist”.

The value of asset holding is getting a change. Even a billionaire is more proud of holding cryptocurrencies than his massive physical and financial wealth. Cryptocurrencies are dominating the financial sphere. In that sense, a trader, who is a newbie in this digital trading would have no to less knowledge about crypto trading, their types, how to register, the transferring fees, etc. In this blog, let us know about the types of crypto trading and their uniqueness in trading in cryptocurrencies compared to normal stocks.

What is Crypto Trading?

Cryptocurrency trading is the mechanism of trading in cryptocurrency or bitcoin or any other altcoins through a cryptocurrency exchange platform. This platform facilitates the trade and exchange of cryptocurrencies into fiat or vice versa based on the demand of the trader. An individual can do any number of trades or exchanges without any restrictions or regulations from the central authority. Crypto trading is done very fastly within seconds due to its digital nature and its infrastructure.

They are highly secure because of the protective shield technology — “Blockchain Technology”. They have high scalability so that they conduct multiple transactions within seconds without any technical hassles. For each and every transaction, some percentage of the amount of crypto will be deducted as fees. You can do either long term trading or short term trading on cryptocurrency. But there are various different types of crypto trading, but the above two are the most sought out and the major types of crypto trading. Let us get into the details:

Major types of crypto trading:

1. Short Term Crypto Trading: Short term crypto trading is similar to stock trading in which the traders or investors put their fiat money or cryptocurrency into a particular coin and takes it out when the prices reach a higher price. Talking about the volatility, the cryptocurrencies have a high volatile rate that will lead them to the immediate trading scenario changes that one can experience. Short term trading has various types of scenarios where we can discuss it in the upcoming paras. To be short, short term trading is a short form of trading cryptocurrencies with a moderate investment to reap the benefits in a short time. For short term trading to succeed, one has to invest a huge amount so that one can reap huge profits. But as far as concerned, short trading has its risks too.
2. Long term trading — Long term trading is one of the safest methods in crypto trading. That is where a trader or an investor invests their money for a long time in one or more crypto and sells them when they are at peak range. So, this is a kind of trading that can bring you assured profits, either smaller or bigger. Long term trading can be preferred for newbies or medium investors whereas short term investing is encouraged by skilled investors or entrepreneurs. On the basis of crypto trading, most of them prefer long term trading due to the volatility of the market.

Styles in crypto trading:

Apart from the crypto trading types, there are various styles in which crypto trading is done in an effective manner. Some of the styles of crypto trading include

1. Scalping
2. Day Trading
3. Range Trading
4. Intra-Day trading
5. Swing trading
6. Position Trading
7. Investing

1. Scalping — Very quick move based trading method that the trades happen instantly in a short time.

2. Day Trading — Trading that happens in a day mostly refers to the day trading.

3. Range Trading — Most of the P2P trading or limit trading falls in this category. This trading happens between the range of fixed value.

4. Intra-Day trading — the trading that happens in a course of days.

5. Position trading — Trade over the long term.

6. Swing trading -Trading in multiple areas and rotating the trade.

7. Investing — Investing in a particular coin or trade

Apart from these basic trading methods, there are some priority trading types that one should focus on while dealing with cryptocurrency trading.

1. Crypto Margin trading
2. Derivatives Trading
3. Copy Trading
4. Spot Trading
5. OTC trading

Let us see each of them specifically so that we can get a clear understanding of the different types of trading.

Exclusive Types of Crypto Trading:

1. Leverage Trading (Margin Trading) — You need not worry if you are running short of funds to invest in your crypto investments. Leverage trading helps you to level up your trading portfolio by attracting investments and encouraging the investors for combined capital so that the dividends can be split up after a successful profit. For instance, if you are running short of funds to invest in crypto, then you can gather a group of investors who are interested in investing in crypto. Their small contributions will help to gather a lump-sum amount that can help to leverage more profits in the future. This is the significance of Leverage or Margin trading.
2. Futures Contract — It is an asset to the crypto medium that comes with a solid timeline. You can schedule your contract at a fixed rate and do business using future contract features. A futures contract is one such epic trading feature that works like scheduling the mail. You can schedule your investment over a particular date at a fixed rate and do business with the investors to invest in the crypto exchange. All kinds of staking and crypto investments come under the futures contract. For instance, if you want to trade two months later, using the futures contract feature, you can schedule the trade after two months and hold the fiat in your crypto account deposit. Only after the end of the lock-in period, you can withdraw the profits along with the percentage of profit. It supports more than 200 trades.
3. Perpetual contract — As the name indicates, this contract based trading happens on the sensation of emotions. It is a crypto to crypto medium that does not come with a timeline. If a particular investor believes that the particular coin may increase in value in the future, then he can trade on that coin. Similarly, if he thinks that the particular coin may drop out or go down, then he can sell them whenever he aspires to do so.
4. Copy Trading — This type of trading helps newbie traders in the crypto market. For example, A new crypto trader will find it difficult to find new trade and earn profits on them. On the contrary, the new trader using copy trading, can imitate the trading strategies of the expert trader and earn profits like a pro. Copy-trading comes with multi portfolio creation, investment, and profit calculator to analyze the profit value of the new trader or investor.
5. Spot Trading — With their High TPS and high liquidity features the spot trading helps in conducting the transactions in a fraction of seconds. This kind of trading feature is used in popular exchanges like Binance to make the transactions conduct faster than before. The supported orders are Market, Limit, and Stop loss.
6. Over-The-Counter Trading — You can multiply your trading revenue through this OTC trading feature. Because of its manageable fees, and smooth transactions, OTC is one of the best options for traders to earn revenue from crypto trading.

These are some of the most prominent crypto trading ideologies in the crypto industry.

Final Contemplations:

With all kinds of crypto trading being discussed from short term to long term, from day trading to intra-day trading, and from margin trading to OTC trading, you would have got a clear idea about cryptocurrency exchange services that are available in the crypto exchanges or in the crypto market. If you are in a plan to kickstart your cryptocurrency exchange platform do not forget to induct these features into your site so that it looks professional and attracts more users to invest in your platform. So, why waiting? Use a popular white label crypto exchange software and initiate your exchange platform instantly.