Who is a trader and who is a merchant
In cryptocurrency, you often hear two words:
trader and merchant.
They play different roles on the exchange
Trader
A trader is a person who buys and sells cryptocurrency to profit from price fluctuations.
He analyzes the market and tries to buy cheaper and sell at a higher price.
Example
Trader buys
at a price of $2000.
After a while, the price becomes $2200.
He sells cryptocurrency and makes a profit.
Merchant
A merchant is someone who works in P2P trading.
He constantly buys and sells cryptocurrency for fiat.
Usually, merchants earn from the exchange rate difference.
Example
Merchant buys
at 99 rubles.
Then he sells for 101 rubles.
The difference is his profit.
The main difference
Trader
• profits from the price changes of cryptocurrency
• trades in the market (spot or futures)
Merchant
• works in P2P
• profits from the exchange rate difference
Outcome
There are different roles on crypto exchanges:
• Trader - trades cryptocurrency
• Merchant - engages in cryptocurrency exchange between people.