What is a trader? The guide you need

You hear the word “trader” everywhere in crypto networks, but what does it really mean?

The basic definition

A trader is simply someone who buys and sells financial assets hoping to make money from the price difference. Sounds easy, right? Spoiler: it isn't.

The trader's work consists of:

• Analyze the market
• Predict whether prices will rise or fall
• Enter a position when you see the opportunity
• Exit with profits (good luck)

You can trade anything: stocks, currencies, commodities, cryptocurrencies, or derivatives like CFDs.

What every trader needs

To avoid ruining yourself in the attempt, you need:

Knowledge: Understand the markets where you operate. You cannot trade Bitcoin if you do not know how it works.

Real-time information: Geopolitical contexts, economic news, regulatory changes… everything affects prices. Being informed is survival.

Extreme discipline: Especially in Money Management. This means controlling how much you risk in each trade so you don't lose it all.

Types of traders

Independent traders: They operate on their own account, with their own money. They are the ones you see on Twitter/X talking about their strategies. The advantage: total freedom. The disadvantage: total responsibility.

Crypto Traders: They specialize in cryptocurrencies. Many use leveraged (CFD) derivatives to amplify (y riesgos) profits.

Flow Traders: They work for clients, managing their investments. They not only trade but also must keep the client portfolio happy.

The reality

Most traders lose money. Market prediction is almost educated guessing. But some manage to be consistent if they have: -Discipline

• Rigorous risk management
• Specialization (focus on a specific market)
• Ability to adapt

Trading is not long-term investing. It is a different game, faster and riskier. If you think you can, make sure you have the capital you are willing to completely lose.