Is cryptocurrency trading profitable?
Fennix > 11-26-2021, 07:21 AM
If you are finally ready to start your own cryptocurrency business, then trading cryptocurrencies is exactly what you need. This is beneficial, because in a short time you can get a substantial profit or just make a cash investment. But trading crypto money is not such an easy task. In particular, because cryptocurrency exchanges are designed for professionals, and many do not even have a Russian-language interface. In addition, it is difficult for beginners to understand the terminology that professional traders use in their work.
Trading cryptocurrency on the stock exchange is profitable, and many perceive this as a fact. But is it really so? Let's figure out why trading digital coins can bring profit, and are all cryptocurrencies highly quoted?
When learning news about cryptocurrencies, first of all we hear about Bitcoin. But there are other cryptocurrencies that are no less actively listed on exchanges and bring significant profits every day. This creates a couple of undeniable advantages compared to the usual trading:
Cryptomonets are global in nature. The coins are not tied to any state. Thus, digital currencies are considered independent. But the question is different – is it possible to make money on them by trading on the cryptocurrency exchange? The answer is unequivocal - yes. States do not control coins, in many countries Bitcoins and other cryptocurrencies are not even considered money or property with value. Based on this, they are not taxed. Having earned several Bitcoins on the exchange platform, the trader will not need to pay for them.
Cryptocurrency is impossible to control and track. Crypto exchanges can provide the public with the history of transactions or trading volume, but if traders have not passed verification, then it is impossible to track them. And there are a lot of sites on the web that offer complete anonymity. The owners of large accounts have paid attention to the cryptocurrency precisely because it is beyond control. Exchanges are trying to preserve this feature of virtual money, of course, as long as it is not prohibited by law.
Cryptocurrency earnings on trading are not tied to time. Most exchanges operate 24/7, so you can master new trading pairs at any time of the day or night. There are no official opening hours, as on exchanges with fiat money. This makes the conditions for arbitration ideal.
Cryptocurrencies are highly volatile. Last but not least, frequent and strong fluctuations in the exchange rate help to make money by trading on cryptocurrency. As soon as the price falls, cryptocurrencies are bought, and when it grows, they are sold. And they put the difference of the course in their pocket. I am glad that such fluctuations can occur ten times a day. Moreover, the next price fluctuation is affected by anything – from gossip started by an enterprising trader to the financial collapse of some country.
Before trading cryptocurrency, keep in mind that a lot depends on coins. Among the traded currencies there must be coins that are in demand, otherwise you will not be able to earn a lot. It doesn't matter if these cryptocurrencies are expensive or not. It does not make a significant difference even if these are old coins or they have just appeared.