Cryptocurrency trading is highly profitable. Especially, if you have a very good day trading cryptocurrency strategy. You know one thing i have discovered about data science, with new innovations comes an easier new opportunity to make money.
Optin to start trading cryptocurrencies is one of the complete power to change your financial situation. The potential is just so strong that, you can make a living off crypto trading alone. This is the best way to say one of the finest goodbye to your 9 ~ 5 daily job.
Currently, there are many professionals in cryptocurrency trading struggling to increase their Return On Investment (ROI) winning ratio. Cryptocurrency market is still new, and have not been really dominated by the institutional investors. Cryptocurrency traders can still make up to 1000% from their investment returns, due to the wild swings of volatility.
Although, the unpredictable movement of cryptocurrency prices do scare many people off, but seasoned traders are riding it as wild as they could, as well as making huge profit, while doing so. So in this post, i am going to show you why i said capital – Y.E.S, that cryptocurrency is highly profitable.
Firstly, when i say Y.E.S, it always comes with an in-depth meaning like this;
Y – Your mindset (positive or negative)
E – Experience (good or bad)
S – Strategy (long-term or short-term)
So this is exactly what i mean, when you get me to say, yes in any situation. Now let’s get started with the reason i said that the crypto trading is profitable.
1. The market is totally free
In the cryptocurrency market, everything goes. Most of the most popular exchanges operates with little or no regulation at all. The implication to this unregulated market is that crypto whales can play fraudulent activities like pump and dump, spoofing and what is called, wash trading. The market is highly manipulative in its nature.
Money held in most exchanges are not insured. This is to say that, fake exchanges can make away with your money any time they want. This is one of the biggest risk of investing in an exchange, without researching on it thoroughly. Before starting to invest your hard bought cryptocurrency in an exchange, especially if you’re with the intention of swing trading cryptocurrency, try to do a thorough research on the exchange first, before putting your money into it.
Although, cryptocurrency market comes with a bigger risk on your entire investment in the market, it can still yield you a very high profit income. Crypto market is control by investors for all other investors. If the market crashes, then everything plays out itself.
Unlike stock and Forex trading markets, cryptocurrency trading market runs 24/7 continuously. No weekends, no time-out. Since the market doesn’t sleep, it creates a cleaner price patterns for all trade analysis.
2. Not dominated by high frequency super computers
In stock or forex trading, large investment banks do spend million dollars in purchasing high frequency super computers to instantly outperform other person traders in the market.
These super computers have in-built powerful algorithms to trade stock in a matter of milliseconds – even less. Thus, retail investors are simply thrown of the edge with such powerful technology. The banks can even buy off the market to manipulate towards their own price target, which they will make huge income, when the push the items back into the market with the new prices.
3. The cryptocurrency market is driven by dumb money
The protocols to enter trade with bitcoin and altcoins is much lower, unlike in the legacy markets, where each trader are all competing against the unbeatable multi-billion dollar companies. These companies has the financial ability to buy computers and keep hire full-time position for professional traders.
In the crypto market, anyone can start cryptocurrency trading with little investment (i.e. few dollars), and minimal requirements for registration. This is why there are more each trader in the crypto data-science market than big financial institutions. These people always have good day trading cryptocurrency strategy to make profit on daily involvement in the market.
Most of these people are not even full-time traders as par say. They do trading as a side hustle kind of hubby, while still doing there daily jobs. These traders comes with the intention to only buy when the price is low, and sell when price goes high. But that is not the case for amateur traders that trade with emotions and FOMO.
The term Dumb Money is used to capture buyers that buy high and sell low. They emotionally chase the market price movement, and that’s how they will buy in spike of cryptocurrency prices due to FOMO (Fear Of Missing Out), then panic-sell when price is going low. Thus, incurring loses on their first investment, and that is why markets driven by dumb money are more volatile and easier to predict.
If you’re a beginner, and would like to have a fresher guide on how to trade cryptocurrency the right way, read my crypto trading guide for baby boomers.
4. Settlements and arbitrage is super fast
In stock trading, buying and selling settlements can take days, due to the underlying, inefficient technology. Settlements are handled and processed through centralized bodies such as, Depository Trust and Clearing Corporation (DTCC). This third-party system of settlement takes time, and that’s exactly one of the reasons the cryptocurrency was established to cut third-parties in the financial transaction of people.
Most companies that serve as third-party in stock trading system normally practice what is called, naked short selling of stocks with the income, before sending it to the people.
Blockchain speeds up settlement in few seconds, if not instantly. There is no third-parties in the cryptocurrency trading market. This is what sometimes, lead to arbitrage opportunities where traders by from an exchange as fast as possible, and sell it fast on yet another exchange to make huge profit under some couple of minutes.
5. You have control to your financial assets
In cryptocurrency trading market, you have many ways to keep your financial entitlements away from the market itself. Since cryptocurrency is compared to Gold and Diamonds, it also has the power to increase in worth over time, but in stock trading, worth of financial asset depreciate most of the times. This is why they cannot be stored.
Cryptocurrency has specialized devices and softwares to store them safely, and away from the risk of loosing them through theft and hack attacks. This particular feature of cryptocurrency is what made good number of investors to shift from investing in stocks to investing in cryptocurrencies.
In addition to cryptocurrency profitability
Make sure you always choose a good cryptocurrency exchange site to avoid loosing your investments to fake or scam sites. I strong recommend you to always buy cryptocurrencies using Changelly, as you can use your credit or debit card to buy any crypto coin of your choice.
If you are looking for one of the best cryptocurrency trading site to use and make money online with crypto trading, i will suggest you register an account with Binance. They don’t always accept new members due to high inflow of new users. They are stable and regulated to a good extent.
Don’t always leave your cryptocurrency investment with exchange wallets, as you stand on the risk of loosing it instantly. Necessarily, you should use a universal hardware wallet device to store your cryptocurrency stake, especially, if you’re holding them for a long time to make profit by HODLing cryptocurrencies.