Cryptocurrency’s emergence has opened new avenues for financial engagement globally. The crypto trading landscape is diverse, encompassing full-time professionals, part-time enthusiasts, and casual investors alike. However, it’s important to recognize that not all traders operate in the same way. Each type of trader has unique strategies, levels of risk tolerance, and approaches to market volatility.
According to CoinMarketCap, the global crypto trading market records over $145 billion in daily transaction volume, showing just how many people are actively trading digital assets every single day. Yet, only a fraction of those traders are consistently profitable, and that’s because trading style plays a huge role.
In this article, we will break down the different types of crypto traders, the psychology behind each one, the risks they face, and how platforms like ZendWallet can help Nigerian traders and global traders alike stay ahead. By the end, you’ll be able to answer the big question: What kind of crypto trader are you?
The Evolution of the Crypto Trader
Before diving into trader types, it’s worth understanding how the crypto trader came to be.
- In 2009, Bitcoin launched, and the only “traders” were miners exchanging coins on forums.
- By 2013, with Bitcoin crossing $1,000 for the first time, early adopters began trading on centralized exchanges like Mt. Gox.
- Between 2017 and 2021, the rise of altcoins, ICOs, and DeFi gave birth to specialized traders — day traders, swing traders, arbitrageurs, and more.
- Today in 2025, the market has matured. With ETFs pulling in $247 million in inflows (April 2025 data), institutions are now trading crypto alongside retail users.
This evolution proves that trading isn’t a “one-size-fits-all” activity. Instead, it’s about knowing which category you fall into and building strategies around it.
The 6 Main Types of Crypto Traders
Here’s a deep dive into the most common crypto trader profiles in 2025:
1. The Day Trader
Day traders thrive on short-term price movements. They buy and sell cryptocurrencies within the same day, often making dozens of trades.
- Goal: Quick profits on volatility.
- Strategy: Technical analysis, candlestick charts, and indicators like RSI and MACD.
- Risk: Burnout, high transaction fees, and significant losses if they chase pump-and-dump scams.
- Stat: A 2024 Binance study shows that only 12% of day traders are consistently profitable, but those who succeed often achieve annualised returns above 30%.
If you’re checking charts every 15 minutes, you might be a day trader.
2. The Swing Trader
Swing traders look for price swings over days or weeks. They hold longer than day traders but shorter than long-term investors.
- Goal: Capture medium-term trends.
- Strategy: Combine technical and fundamental analysis, often riding waves from market news.
- Risk: Sudden market crashes or missing out on long-term gains.
- Stat: According to Glassnode data, swing traders made up 35% of all exchange trading volume in 2024, showing their dominance in the mid-term game.
If you hold crypto for a week or two waiting for a breakout, you’re likely a swing trader.
3. The Scalper
Scalpers are hyperactive traders. They make profits from very small price changes, sometimes within minutes or seconds.
- Goal: Accumulate small profits multiple times a day.
- Strategy: High-frequency trades, arbitrage bots, and order book analysis.
- Risk: Requires large capital and extremely low fees to be profitable.
- Stat: Scalpers account for nearly 15% of global crypto transactions, according to CryptoCompare 2025.
If you find yourself glued to the screen, making dozens of trades in an hour, you’re scalping.
4. The HODLer (Long-Term Trader)
“HODL” originally a typo for “hold” became a crypto meme, but it represents long-term investors. These traders buy and hold for months or years, ignoring short-term fluctuations.
- Goal: Benefit from long-term growth.
- Strategy: Dollar-cost averaging (DCA), accumulating Bitcoin, Ethereum, and blue-chip altcoins.
- Risk: Holding through bear markets requires strong conviction.
- Stat: Glassnode reports that over 70% of Bitcoin supply hasn’t moved in over a year, proving the strength of HODLers.
If you believe Bitcoin will be worth $1M someday and refuse to sell, you’re a HODLer.
5. The Arbitrage Trader
Arbitrage traders profit from price differences between exchanges. For example, if Bitcoin trades at ₦17.5M on one exchange and ₦17.8M on another, they buy low and sell high instantly.
- Goal: Risk-free profit through market inefficiencies.
- Strategy: Bots and automation to exploit price gaps.
- Risk: Requires fast execution, high liquidity, and multiple exchange accounts.
- Stat: Arbitrage opportunities in crypto have declined by 60% since 2020 due to tighter exchange pricing, but traders with the right setup still make consistent returns.
If you’re always checking prices on multiple platforms, you’re an arbitrage trader.
6. The Algorithmic Trader
Algo traders use programs and bots to execute trades automatically based on market signals.
- Goal: Remove human emotion from trading.
- Strategy: Coding bots for arbitrage, market-making, or predictive analysis.
- Risk: Coding errors, exchange downtime, and bot exploitation.
- Stat: By 2025, over 55% of crypto trades are executed by bots, according to CoinShares research.
If you trust a bot more than your gut, you’re likely an algorithmic trader.
The Psychology of a Crypto Trader
Beyond strategies, being a successful crypto trader requires discipline and emotional intelligence.
- Fear of Missing Out (FOMO) drives many traders into bad decisions.
- Fear, Uncertainty, Doubt (FUD) makes traders panic sell during downturns.
- Greed leads to over-leverage.
- Patience separates winners from losers.
A 2023 survey by Kraken showed that over 60% of traders lose money due to emotional trading, not lack of knowledge.
How ZendWallet Helps Nigerian Traders and Global Traders Stay Ahead
At ZendWallet, we understand that being a crypto trader is about more than just buying and selling digital assets. It’s about timing, reliability, and having the right platform to support your decisions.
Across Nigeria and beyond, traders are constantly seeking platforms that make it easier to deposit, swap, and withdraw assets like Bitcoin, Ethereum, and Solana instantly.. That’s where ZendWallet comes in.
Speed That Matches the Market
Crypto markets move fast. ZendWallet ensures deposits and withdrawals happen quickly, so traders don’t miss opportunities. From BTC to ETH to SOL, you can swap and trade seamlessly.
Secure and Transparent Transactions
For traders, security isn’t optional; it’s essential. ZendWallet is built with the highest security standards, giving traders peace of mind that their funds and data are safe at all times.
Reliable Liquidity for Every Trader
At ZendWallet, we understand that liquidity is crucial for seamless trading. That’s why we ensure traders experience smooth swaps and dependable access to their funds, free from delays or hidden restrictions. Our commitment is to provide a straightforward trading experience.
Global Trade
ZendWallet is designed with Nigerian traders in mind, yet its global reach ensures a comprehensive platform. This allows users to trade locally while accessing the worldwide crypto market without limitations.
The Advantage of ZendWallet
Every trader, from a beginner starting with their first Bitcoin deposit to a seasoned professional managing multiple assets, can stay ahead of the market with ZendWallet. We’ve built our platform to support your growth and trading journey.
How Nigerian Traders Fit In
Nigeria has become a global crypto hub:
- Ranked 2nd in the world for crypto adoption (Chainalysis 2023).
- Over 22 million Nigerians own or trade crypto.
- Daily P2P trading volumes often exceed $1.5 billion across platforms.
But Nigerian traders face unique challenges: currency devaluation, unreliable exchanges, and high transaction fees. Our platform, ZendWallet, which combines secure trading, FX-friendly conversions, and transparent liquidity, is a game-changer.
Choosing Your Trading Style
So, what kind of crypto trader are you?
- If you love fast action → Day Trader or Scalper.
- If you’re patient but strategic → Swing Trader.
- If you’re in it for the long run → HODLer.
- If you love efficiency and arbitrage → Arbitrage Trader.
- If you prefer coding to emotions → Algorithmic Trader.
Your personality, risk tolerance, and time commitment will determine your style.
Final Thoughts: The Future of the Crypto Trader
The crypto trader of 2025 is no longer just a hobbyist. With $4.1 trillion in market cap, ETFs attracting hundreds of millions in inflows, and countries like Nigeria ranking among the top adopters, trading has gone mainstream.
But success depends on knowing what kind of trader you are and choosing the right platform to match. Whether you’re day trading, scalping, or HODLing, the right strategy and mindset can make all the difference.
And no matter your style, ZendWallet gives you the foundation to deposit, swap, and withdraw Bitcoin, Ethereum, Solana, and more with confidence. It’s the starting point for every trader who wants a secure, reliable, and easy-to-use crypto experience.
At the end of the day, every profitable crypto trader has one thing in common: they play to their strengths.
