Introduction
One of the attributes of the Blockchain is cryptocurrency trading. The process of managing virtual assets obtained as payment for functions, development of activities, participations and bets, is a must for the user of a decentralized platform. Who doesn't want to be their own boss? Who can't like to set their own salary? Start a company with a minimum investment; these are just some of the defining characteristics of Blockchain technology.
Background
In the traditional banking system you can open a savings account to save FIAT, opting for the services of a banking company that technically takes care of doing the complete management of your funds leading you to be only the depositary and owner of the capital. You practically become the beneficiary of the bank account and the resources are used by the central entity to make its own investments. According to interest rates, fixed terms, opening hours, daily withdrawal limits, among other conditions, traditional banking corresponds to a centralized system that is being gradually displaced by Blockchain technology and cryptocurrency as a global economic system.
In contrast to the above, an open source company allows the registration of an account with some financial service provider and have at your disposal an endless number of wallet addresses of which you are the only real owner and have full control of the assets.
Can I have control of my assets?
A Crypto Wallet corresponds to an encrypted code whose address is stored on the blockchain giving you 24/7 access to capital from anywhere in the world. You do not depend on a central entity since the Blockchain is a trustless system where you own your security keys and preserve anonymity. The technology makes it possible to store cryptos of different denominations, as well as, peer-to-peer exchange. In the same way, the user can trade and rely on the fluctuation of the market to get some profit margin for each investment.
According to the above, we see that investing in the Blockchain is more than a savings system, the experience with the management of Tokens becomes a free activity provided with options and access to products. You can look for information about a trusted Exchange where you can store the assets and start the experience by yourself without the need of intermediaries or cumbersome steps that only lead to waste time. You can open as many wallets as you want and there are no restrictions on trading, transferring, depositing, exchanging, etc.
What type of Trader do you consider yourself?
A trader is a person who trades cryptocurrency. Dedicated to the buying and selling of securities, a trader chooses to subscribe to a certain financial service and get involved with crypto trading to start trading. There are short term and long term traders, scalping traders, experimental traders who are guided by chance, professional traders who take care of the detailed study of the crypto-space through knowledge acquisition and market research, Traders manager, Brokers, etc.
Basically, being a Trader is rather a philosophy of administrative action and attitude to business, since, every trader seeks to profit from the exchange of securities by betting Cryptocurrency for a certain period of time.
What are the types of Traders? How do they work?
Defining what type of trader one becomes is a subjective task that is related to one's way of thinking as well as the results and purposes one wishes to achieve. Trading is governed by a human condition in front of business, it is summarized as an impulsive attitude to the opportunities to try to make the most of the prices offered by the market at a given time.
Trader in the short term:
It is a trader whose trading is based on short periods. Taking advantage of bullish and bearish market trends to buy and sell assets strategically and with immediate results. It must make fleeting decisions in contemplating short intervals ranging from a few hours to a day. There is a higher investment risk, as well as, the possibility of earning extravagant sums in a short time.
Long-term Trader:
It is defined as the trader who bases his investment on prolonged periods ranging from a week to months or perhaps an entire year. This trader is in charge of the detailed study of bullish and bearish periods to make his investment, usually resorts to review the history of a cryptocurrency validating its previous behavior in the market and then wait for the repetition of such behavior generated by the exchange demographics.
The long-term trader develops a patient attitude to business so that he can see his investment protected and thus be able to handle reliable, high-impact trades.
Scalping Traders:
Scalping Traders are considered to handle the momentum on trades in an abrupt manner related to the risk and luck factor. They usually do not contemplate technical factors or market research, basing their investment only on the volatility of market prices in minimum time intervals and according to short readings. The result sought by Scalping is instantaneous, corresponding to seconds of action. As you can notice, this practice is considered the most risky and is carried out by people who like betting with capitals that are permanently subject to total loss.
Comparative analysis
"Technically, the short-term trader relies on short bullish periods, while the long-term trader relies on broader market interpretations, taking into account both bulls and bears, to inform his decision making. A scalping trader, on the other hand, relies on luck and opportunism, with no need for technical underpinnings."
Conclusion
The stock market can be studied in such a way that financial movement can be predicted to a certain extent. A trader should be trained in the statistical area to make correct use of the tools that lead to successful trading. When we accumulate a certain amount of tokens, we may need to explore crypto-trading with the intention of trading as a beginner. In this way we will be able to go defining what type of trader we represent, likewise, we would have the option to see our capital grow gradually recognizing finally that trading with virtual assets does not end at the time of earning the tokens, but, it is only the beginning of potential negotiations that could add a large margin of profit to our wallet and making our performance on the Blockchain a large-scale effect.
Original Content
2021