By: Ruzaan du Plooy

Are You A Trader, Gambler, Or A Spectator?

 

Within the Cryptocurrency trading world there are a variety of methods or mindsets to buying and selling cryptocurrency. Generally these fall under three types of traders/mindsets; a trader, gamber or a spectator. A trader is a person who generally takes risk and reward deeply into consideration and trades on a daily to weekly basis. While a gambler is a person who acknowledges the risks and rewards but is far more inclined to taking higher chances on trades to result in “hopefully” much higher rewards. Finally, a spectator is generally someone who might or might not know what or how cryptocurrency works, and chooses to observe while gathering knowledge. They generally are brought in by the hype of cryptocurrency and are watching to see how or when it rises and falls. This type is often too cautious to buy into a cryptocurrency as it is usually considered a volatile market and their lack of knowledge on the subject. 

 

Furthermore; within the idea of a Trader mindset, they limit their risk but also usually don’t reach the high rewards like the gambler…but also not suffering the same losses either. They generally trade with a calm demeanor, taking time to decide whether a trade would be within their risk and reward limits. They don’t generally hold their eggs in one basket so to speak. Traders more often than not diversifying their portfolio across various common and trusted cryptocurrencies. Traders take into account their own experiences along with trusted methods and trading advice from experts. They trade as often as daily or to as little as weekly but always staying on top of their investments making sure to have a steady gain of value with minimal losses. The majority of the active cryptocurrency traders can be found or allocated somewhere within this mindset. They are an often sustainable and highly valued mindsets since it can be a commonly used and understood investment method.

 

A gambler’s risk-to-reward allocation is vastly different from that of a trader’s while gamblers generally take higher risks for higher rewards. A gambler generally relies more on their intuition and “gut” feeling when deciding on their trades expecting or hoping that a certain cryptocurrency will rise quickly after their trade. They can often trade everyday or weekly like a trader, however when a cryptocurrency is falling a trader could generally pull out their investment from that coin to limit their loss. While a gambler would rather invest more or keep their original investment expecting a larger upturn, sometimes even waiting a vastly longer time for the expected upturn; for even months up to years. Gamblers can also become involved in trading of unbacked cryptocurrencies on other exchanges, eventually ending up with a variety of “worthless” or “unknown” coins. A smaller portion of the community can be found under the gamblers mindset due to the higher risks, but it is always a draw due to the limited effort for high gains. 

 

Then the final mindset is that of a spectator, most spectators of the cryptocurrency world aren’t even invested into cryptocurrencies. However those that are, don’t generally pay as much attention as a gambler or a trader. Most spectators heard about Bitcoin during its original climb back in 2017 and 2018 when a single Bitcoin had reached a whopping $20,000. It gained many people’s attention – that simply holding onto a coin could net tens to hundreds of thousands of dollars. From that point it caught a variety of people’s attention and Bitcoin even became a common household term. The broad majority of spectators never buy a single bitcoin but always watch whether cryptocurrency will fulfill the prophecy of becoming the currency of the future. Which if it would happen would vastly increase the investment value.

 

The other minority of people who watched cryptocurrency during the boom actually bought into the market around that time. Some bought in during the peak only to watch it fall and they generally lost all interest along with their investment. Others bought in later on and held their coins, they generally have little intention of selling them. They will casually watch the market over the years to see if their investment will one day grow to the 2017 and 2018 peaks again or even beyond.

 

Whether you fall specifically inside one of these mindsets or are a bit of a trader and gambler. They are the general population of cryptocurrency holders, you may trade and exist outside this scope as well. But whether you exist within or outside of these brands and mindsets it is important to know and understand your trading style to best undertake and plan your investment strategies. So if you’re new and just getting into cryptocurrencies or have been trading for years; at CoinSmart you can be a trader, gambler or a spectator as they have the tools you need to take full advantage of the market and your investment future. For newer users or for those quick trades they offer simple smart trade that will allow you to quickly and simply trade your cryptocurrencies between any coin or CAD. If you’re an advanced user or a day trader who likes to use charts, setting specific trade limits or stop losses Coinsmart has extensive advanced trading features. No matter your investment mindset or tactics take full advantage of the market with their wide variety of tools and active support.

 

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