There are two main types of traders in the cryptocurrency market, they are “long-term and short-term” traders; Each group of them is classified according to how long they want to hold in a specific trading position, "a specific price".
Long-term traders usually work in studying price trends over long periods of time; This allows them to make their decision to buy bitcoin and hold it for long periods, hoping to make profits at a price higher than the original entry point.
This proposal is based on the assumption that as the use-case scenario increases and more adoption, the demand for Bitcoin and its associated technology will increase; The demand for cryptocurrency increases; What ultimately leads to an increase in value; This was observed with the rise in the bitcoin price, which coincided with an increase in market capitalization and trading volume.
On the one hand, short-term traders analyze the daily behavior of Bitcoin's price, and seek to take advantage of price fluctuations; These traders thrive on market volatility; This is what Bitcoin currently has.
In the past, fluctuations in Bitcoin's price were usually huge. As every small event within the currency market had a very serious impact on the price of the cryptocurrency. As adoption grew, Bitcoin became more stable; Price volatility has decreased significantly; Therefore, experts believe that it is a better time to trade the cryptocurrency, compared to earlier, given that there are great risks from trading digital currencies, especially if they do not rely on studies or experience in the field of trading in general.