Whilst there are many people who are unconcerned about Blockchain’s potential to cause havoc with the world’s markets, there are many people who have used effective cryptocurrency trading to earn big money. In the world of cryptocurrency traders, humbly starting out with $1,000 and seeing this investment grow to $30,000 after a short amount of time is not unheard of. If you are just starting out in cryptocurrency, you have probably heard conflicting advice from every side. To help you understand the advantages of cryptocurrency, this article is a guide to what makes it so profitable.
It’s a Free Market
Known as the first and only trading market that is administered or regulated by any government body or official organization, cryptocurrency traders freely choose their own rules to play by. An Australian crypto exchange company believes that cryptocurrency markets are more profitable due to its freedom from regulations. Traditional stock and forex traders are far more protected from that because the markets are strictly regulated, but there is always the risk with crypto that you can lose all your money due to the more lawless nature of the market.
There are however great opportunities for crypto traders to earn huge profits compared to legacy markets, as in the world of cryptocurrency exchange, if there is a crash, those who can’t stand just play themselves out. This contributes to greater volatility in the market, which skilled traders make the most out of.
The Market is Not Controlled by Big Fish
Cryptocurrency is widely considered to be much fairer for traders. When multi-billion-dollar institutional investors, often known as big fish, invest in super high-frequency computers in an attempt to affect algorithms and rule the trading game, there is far less effect on crypto markets than on other markets. With cryptocurrency, all traders have the same set of opportunities and winning and losing, it depends on whether you know what you are doing and, of course, a little luck.
The Market is Driven by “Dumb Money”
Unlike traditional markets, crypto markets require less complicated procedures for starters. Whilst there have been a few traders who started out with a few dollars and become millionaires, most cryptocurrency traders are amateur investors who jump into this market as a side job or hobby for an extra income stream. Because these amateur investors often have a tendency to make impulsive decisions, there are more volatile swings in the market which opens up opportunities for huge profits.
Opportunities Due to Quick Settlements
You may experience a delay during settlement time on stock exchanges but cryptocurrency settlements are significantly faster. As blockchain technology allows all settlements to process in just a few seconds, there is no crypto exchange that determines the prices. That results in discrepancies across the exchanges where experienced traders tend to take advantage of the technique “buy low and sell high” in which they buy cryptocurrency on a certain exchange and sell them for more on another one.
While the future of cryptocurrency remains a big question for the whole world, it is no doubt a high risk, high return way of making money. Want to make a bet on the crypto markets? Make sure to do your homework and try to have fun.
