Types of Bitcoin Traders: Scalpers, Day Traders, Swing Traders and Position Trading
Types of Bitcoin Traders
There are various types of Bitcoin traders. The type of a trader one is depends on the amount of time which they hold their bitcoin trades.
The different types of bitcoin traders also use different time frames to place their trades.
The various types of Bitcoin traders are:
- Scalpers
- Day traders
- Swing traders
- Position BTCUSD traders
Each type of Bitcoin trader is explained below and as a beginner bitcoin trader you can decide which type of Bitcoin trader you want to be based on your personality and the chart time frame that you would want to be trading with.
Types of Bitcoin Traders
The Bitcoin traders who are scalpers hold on to their trade transactions for only a few minutes. With the objective of making a small amount of pips in profit, 5 to 10 to 20 pips.
Scalpers are the type of Bitcoin traders that make many bitcoin trading transactions in one day and participate in bitcoin trading during the busiest times of the btcusd trading market. A scalper bitcoin trader can open anywhere between 30 to 50 trades per day.
Scalpers are Bitcoin traders who can make quick decisions.
Scalpers use 1 min cryptocurrency charts to put their orders. They use 5 minutes Bitcoin chart time frame to determine the bitcoin crypto currency trend, if the bitcoin trend is going up or down and to decide their entry and exit.
Scalper 5 minutes bitcoin trading time frame bitcoin trading strategy
A Scalper using 1 minute chart time frame wants to go long, checks 5 minute chart, looks like the cryptocurrency trading example illustrated below, since it displays the bitcoin trend is moving up, the scalper will then decide it's okay to buy bitcoin crypto.
Types of Bitcoin Traders - Scalpers - Scalping Bitcoin - Scalper Bitcoin Trader
Types of BTCUSD Traders
Bitcoin Day Trader - This type of Bitcoin trader holds onto their trade transactions for few hours but not more than a day. With the objective of making quite a number of pips profit: 30 to 70 pips.
The cryptocurrency day trader makes 2 or 5 bitcoin trading transactions in one day, participating during the busiest times of the btcusd trading market and they don't hold their orders overnight.
These BTCUSD Crypto Currency traders use the 15 minutes BTCUSD Crypto Currency charts to put their orders. They use H1 chart to determine the btcusd cryptocurrency market trend, if it going upwards or downward & to decide their entry and exit.
Bitcoin Day Trader 1 Hour time frame bitcoin trading strategy
A BTCUSD Crypto Currency day trader using 15 minutes crypto chart wants to go long, checks 1 hour time frame, it resembles the cryptocurrency trading example illustrated below, since it displays the btcusd cryptocurrency trading market bitcoin trend is moving up, the cryptocurrency day trader will then decide it's okay to buy bitcoin crypto.
Types of Bitcoin Market Traders - Bitcoin Day Traders - Cryptocurrency Day Trade - Types of Bitcoin Traders
Types of BTCUSD Traders
Bitcoin Swing Traders - This type of bitcoin trader holds onto their Bitcoin trades for few days to a week - with the objective of making a large number of pips in profit, 100 to 400 pips.
This type of market trader makes an average of 2 to 5 bitcoin trading transactions in one week, holding onto their trades overnight. Swing bitcoin trading method requires bitcoin traders who are patient.
This type of bitcoin trader uses the 1 hour Bitcoin charts to put their orders. Swing traders use the 4H chart to determine the Bitcoin trend, if it is going up or down and to decide their entry and exit.
Bitcoin Swing Trader 4 Hour chart time frame bitcoin trading strategy
A bitcoin swing trader using 1 hour candlesticks charts wants to go short, checks 4 hour candlesticks chart, it resembles the cryptocurrency trading example illustrated below, since it displays the bitcoin trend is moving down, the swing bitcoin trader will then decide it's okay to Sell/Go Short bitcoin crypto.
Types of Bitcoin Traders - Swing Traders - Swing Bitcoin - Swing Bitcoin Traders
Types of Bitcoin Traders
Position Bitcoin Traders - This type of bitcoin trader holds onto their bitcoin trade for weeks or months. With the objective of making a big number of pips, 300 to 1000 pips.
Position Bitcoin Traders place an average of 2 to 5 orders in a year, position bitcoin trading method requires those who are patient, experienced and have huge account balances that can withstand huge draw-downs.
Position bitcoin traders use 1 day or weekly cryptocurrency charts to put their orders. They use weekly cryptocurrency chart to determine the bitcoin trend, if it going up or down and to decide their entry & exit.
Types of BTCUSD Traders
Position bitcoin trader using the daily candlesticks charts wants to go short, checks weekly time frame, it resembles the cryptocurrency trading example illustrated below, since weekly chart time frame shows the bitcoin trend is moving down, the position bitcoin trader will then decide it is okay to sell - Go short.
Types of Bitcoin Traders - Position Traders - Position Bitcoin - Position Bitcoin Traders
Types of Bitcoin Traders
Most popular type of Bitcoin trader or the best Bitcoin trader type is the day trader & scalper bitcoin trader depending on the method of bitcoin trading of each trader, but these two bitcoin trading methods are the most widely chosen bitcoin trading methods. Scalping cryptocurrency trading requires those that can make quick decisions while cryptocurrency day trading is for those who want their trades to run for longer and have more time when making bitcoin trading decisions. When starting it is best to try bitcoin trading scalping or cryptocurrency day trading. This bitcoin trading methods are the best because you do not leave cryptocurrency orders open for too long. At the same time you do not leave cryptocurrency trades open overnight and you can trade when you have time to watch the btcusd trading market movements. In Bitcoin it is best keep orders open for as long as the bitcoin trend setup is in your direction and exit immediately once the bitcoin trend direction starts to reverse.
In the question about which type of bitcoin trading style is used by the best Bitcoin traders or by the top Bitcoin traders the two bitcoin trading methods above are the most commonly used bitcoin techniques. Traders can also automate these scalping or day trading styles by implementing their bitcoin trading strategies using automated cryptocurrency bots.
For bitcoin swing traders, leaving bitcoin trade transactions too long can also take up your profit and this bitcoin trading method also requires a lot of skills so it is best to stick to the short term bitcoin trading methods for most beginner Bitcoin traders.
Position bitcoin trading isn't good as it requires a huge account balance & sometime it can result to huge draw-downs.
For bitcoin trading swing trading and position bitcoin trading methods, leaving a bitcoin trade transaction open for too long, might mean these trades can reverse & move against you with a lot of pip movements and can even wipe your account, for this reason swing & position bitcoin trading methods are not very popular. It is best to stick to bitcoin trading scalping and cryptocurrency day trading so as to better manage the funds in your cryptocurrency trading account.
It is not recommended for the Bitcoin trader who is a beginner to leave orders open overnight, it's best to always close open cryptocurrency orders at the end of the day.
Cryptocurrency News Traders - Types of Bitcoin Traders - News Trading - this bitcoin trading news trader places orders during economic news release time, either guessing the news will be positive/negative or placing pending cryptocurrency orders above & below btcusd trading market bitcoin price. News technique is risky as volatility is massive, whilst liquidity might be non-existent. You may not get filled or, worse, your stop loss might not be honored! News Trading technique can be very profitable for some bitcoin traders but requires some skills.
Bitcoin Bot Traders - Types of Bitcoin Traders - Automated Bitcoin Traders - the cryptocurrency trading robot trader - automated bitcoin trader is the type of bitcoin trader that uses automated bitcoin trading programs known as cryptocurrency trading robots - Expert Advisor Robots - EAs Automated Robots Trading Bots to trade the online btcusd cryptocurrency market. This automated bitcoin trader will setup an Automated Bitcoin Bot on their bitcoin trading platform & the automated bot will then open and close trades on behalf of the trader based on the trading strategy which has been used to program this automated cryptocurrency bot. If you are new to automated cryptocurrency trading and would like to find a trader using automated trading robots to help you come up with an automated bot, then you can find out more about automated trading on the Bitcoin EAs Article - MQL5 Expert Advisor Robots Forum.
