Are You One of These 5 Types of Crypto Traders?

  • Five types of crypto traders are: day trader, swing trader, position trader, diversified investors, and HODLers
  • Each crypto trading type has its own unique benefits. Choose the one that will best fit with your goals.
  • Crypto trading is paired with research in order to minimize risks.
  • When trading, use a highly reliable crypto exchange platform such as LYOTRADE.

More than a decade ago, cryptocurrency was basically worth zero. But what was once a mere obscure concept has now become a multi-billion-dollar asset class. Thousands of short-term and long-term traders and crypto enthusiasts were reeled into the industry because of the soaring prices and interests. Not to mention the investors who can see through the market’s high volatility and focus on the long-term potential of cryptocurrency.

With the industry’s unpredictability, five types of crypto traders were born. Let’s get to know each one of them.

What is Crypto Trading?

Cryptocurrency trading is the method of speculating on price movements or buying and selling of coins using a cryptocurrency exchange. Crypto trading is not a walk in the park since it should come with market research so understanding the different types of traders is of utmost importance.

5 Types of Crypto Traders

There are different types of crypto traders and each is defined by the style the trader is using. As a crypto trader, you need to check if a crypto trading style will align with your goals and if the benefits it provides are the ones you are looking for. The five variations of crypto trading are: day trading, swing trading, position trading, diversified investors, and HODLers.

  1. Day Trader
    Day traders mainly profit from small price movements because they focus on short-term trades that last not more than 24 hours. The strategies they use such as mean reversion, arbitrage, and liquidity mining need to be executed quickly. They concentrate on small price movements and therefore do not hold any positions overnight.
  2. Swing Trader
    Most of the time, swing traders position overnight and this style typically lasts for a few days or a week. In order to get the most gains from a price movement, swing traders predict trend reversals by using technical analysis.
  3. Position Trader

Position traders trade for weeks or months. Why? Instead of predicting a reversal, unlike swing traders, they identify a trend and place a trade next to the trend.

  1. Diversified Investor

Diversified investors do not bet on down trends or price increases. Instead, their goal is to diversify their portfolio and hold assets for the long term. They will most likely use exchange-traded funds to buy future crypto exposure that hold a sufficient amount of crypto and trade it on a stock exchange.

  1. HODLer
    HODL is a crypto acronym that stands for “Hold on for Dear Life.” This means that they firmly believe ion the value of the crypto they have and hold it for a long period of time even amid a bear market. A perfect example of this would be the people who bought bitcoin back when it was still extremely cheap. Despite market volatility over the years, they never traded their BTC until its value skyrocketed, giving them thousands of dollars worth of profit.

What is the Best Crypto Trading Style?

The best crypto trading style is the one that best aligns with your goals. You can master one type of trading, you can try all of them, or switch from one type to another any time you want. There are no boundaries when it comes to crypto trading as long as you constantly research, are aware of all the risks, and are using a reliable cryptocurrency exchange.


LYOTRADE is a centralized cryptocurrency exchange powered by LYOPAY. Here, you can do Spot, Margin, and Futures Trading. You can also do staking, DEX Swap, or buy and sell crypto through card or bank transfer. LYOTRADE offers high liquidity and accepts 53 fiat currencies and 250 cryptocurrencies. Its adherence to the latest global Anti-Money Laundering and KYC procedures makes the platform safe and secure for all types of trading.

Create an account now and start trading on LYOTRADE. Follow our social media accounts for the latest updates.

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