Today, I will unravel some secrets about crypto trading that you never knew existed!

If you have been losing money in crypto, I’m about to expose what you have been doing wrong and channel you in the right direction.

And if you have been making profits in crypto, also read till the end to learn new strategies that will 100x your portfolio.

Hop in for this jolly ride into crypto trading.

Crypto Trading Explained – Types of Crypto Traders

Crypto trading involves you buying a coin at a lower price and selling off when the price goes higher.

For example, buying BTC at $19,000 and selling when the price gets to $20,000. That’s a $1000 gain there!

You have a wide range of coins to choose from – Bitcoin, AI tokens, Metaverse tokens, etc.

Doing this requires you to acquire a level of knowledge of it like risk management, fundamental and technical analysis, understanding candlesticks, etc.

Another thing that can help you when getting into crypto trading is knowing the kind of trader that you want to be.

Let’s look at the four types of crypto traders;

i. Investor

This type of trader does proper research and buys into a coin with a lot of potential. Then he holds the coin for a long time, even for years.

However, he doesn’t bet his entire portfolio on only one coin. He includes other coins that he trusts.

Now, investors are also referred to as rich traders.

They’re already rich or too busy to watch everything happening in crypto.

So, they study carefully and spread their money out over selected coins.

This way, if one coin goes down, they won’t lose all of their money.

That is how investors reduce risk and maximize their profits.

It’s like putting your money in different bank accounts. If one bank fails, you’ll still have money in the other accounts.

Imagine you have $1000 and you want to invest it in crypto.

You could buy $1000 worth of Bitcoin, but what if Bitcoin goes down? Then you’ll lose all of your money.

Instead, as an investor, you buy $100 worth of Bitcoin, $100 worth of Ethereum, and $100 worth of Litecoin, etc.

Such that, if Bitcoin goes down, you’ll still have money in Ethereum, Litecoin, and the other coins you invested in.

If you have a lot of money to put into crypto, consider using this approach. 

Next, we have the traders that like to gamble.

ii. Degens (short for Degenerates)

They don’t have a lot of money, so they try to buy coins that are going up in price and sell them quickly before the price goes down.

This is a risky way to trade, but it can be profitable if you’re lucky.

Also, Degens never get emotional about their trades. They know that they’re taking a risk, so they’re not afraid to cut their losses and move on.

Say you have $50 and you want to trade crypto.

You could buy a coin going up in price, and then sell it when the price goes up even higher.

If you’re lucky, you could make a lot of money.

But if you’re not lucky, you could lose all of your money.

That’s Degens for you.

They know that they’re taking a risk, but they’re willing to do it because they think they can make lots of money.

iii. The Swing Trader

These traders research the trending coin and buy into it with the aim of selling quickly and re-buying or finding another one.

Like the investors, they don’t bet their entire portfolio on a particular coin.

A swing trader is someone who buys a coin when there is good news about it, and then sells it when people start to get excited about it (FOMO).

While this approach allows you to make money in the short term, you have to be careful not to get caught up in the hype and sell too late.

For instance, assuming you hear that there is a new coin that is going to be released. You think it sounds like a good investment, so you buy some.

The price of the coin goes up, and you make some money. But then something goes wrong with the coin, and people start selling.

You know that you need to sell your coins before the price goes down too much, so you sell them and make a profit.

That’s how a typical swing trader operates. It is a recommended approach to boost your portfolio.

iv. The Losers

A loser trader is someone who is too attached to a coin. They think that the coin is going to do well, so they hold onto it and never sell it.

This is you if you have been losing money in crypto.

It is a bad way to trade because you could miss out on making money if the coin goes down in price.

Loser traders also tend to have small portfolios. They only invest in a few coins, which makes them more vulnerable to losses.

Imagine you have a coin that you really like. You think it’s going to do well, so you hold onto it and never sell.

But then the price of the coin goes down, and you lose money.

If you had sold the coin when it was high, you could have made a profit.

And you could still curb your losses now that the coin has gone down but you held on to it hoping that it will rise.

That’s what makes you a loser.

But you don’t have to lose anymore.

Join our Bybit 30 days trading challenge to receive daily signals.

Also, you will learn how to trade profitably via live sessions on Telegram.

To participate, click on the links in the description to create a Bybit account and join our Telegram channel.

I know that you are wondering the best type of trader to be to make the most gains.

Read my thoughts on that in the next section.

Which Is The Best Crypto Trader? – My Thoughts

You can choose to become any of the above-listed types of trader except being a Loser, of course.

Note this, 

As an individual, you can choose to be a degen, a swing trader, and an investor.

This depends on the coin you are trading.

What do I mean?

When buying BTC, for example, you can choose to work as an Investor.

I mean since it’s an established coin, you can afford to buy and hodl it long-term.

Then for newly launched coins, you can swoon into the market as a Swing trader or a Degen.

You buy the coin and sell off way before the price crashes.

Again, you must also know when to sell.

If you hold onto a coin that has gone up by some degree, you will miss out on making some profit.

And if you hold onto a coin that has gone down a lot, you could lose all your money.

So, be realistic about your expectations. Not all coins are going to make you rich.

Conclusion

…And it’s a wrap!

Hope you have learned a thing or two from this post on how to stop losing money in crypto and trade like a pro.

Never get too attached to any particular coin. If a coin is not doing well, you should sell it and move on.

This is important because some coins are going to go down in price and never come back up.

Lastly, while delving into the crypto trading space, be sure to acquire the required knowledge and choose the type of trader you want to be for each trade.

Join our Telegram channel and join the live sessions to improve your crypto trading knowledge.

Meanwhile, the 30-day Bybit trading challenge is still on. Create a Bybit account here to get free trading signals for the next 30 days.

Give this post a share to help inform others.