What type of trader are you? The market will affect your tra | Cryptology News Channel

What type of trader are you?

The market will affect your trading profit, but your strategy will also impact your crypto success. There are two huge categories of strategies – short-term and long-term.

Let's start with short-term active strategies. They are based on holding for short periods of time, and the main goal is to get profit from small price movements. Staying in this category requires quick reactions and fast decisions. You must pay a lot of attention to managing your trading risks. Risk management helps cut down losses. Exchange fees will be a critical indicator if you are an active trader. Remember that Cryptology offers one of the lowest fees on the market.

A long-term investor is the opposite of the previous one. If you follow a long-term strategy, you hold assets over a long period of time. The main focus is to diversify an existing portfolio rather than bet on a price increase. So you must learn how to build a balanced portfolio, avoid emotion-driven behaviour, and set a long-term mindset. However, the definition of long-term varies depending on the investor. Hodlers who buy and hold digital assets for longer periods of time must be very patient about market movements. Because the longer you hold – the more you gain.

So depending on your intentions, risk tolerance and time, you can choose the strategy that suits you best. Understanding your style of trading can help you make better investing decisions.

Which trading style suits you? Share in the comments.