The cryptocurrency market has been a very interesting place for investors to start investing and getting exposure to some of the most innovative assets all over the world. During the 2017 bull market, a large number of users entered the space and started to trade digital assets.
However, a very important question remains open: How Much do People Make Trading Cryptocurrency? In this post, we are going to be answering this question and trying to help you understand how the entire crypto market works.
Disclaimer: the information provided in this post shouldn’t be considered investment advice. We are not financial advisors. Never invest more than what you are able to lose and always request information to your own financial advisor. The information in this article is for educational purposes only.
Users can start trading cryptocurrencies in a very easy way through a large number of platforms. In general, exchanges are the best ways users have to handle virtual currencies and start profiting from positive trades.
The best digital asset exchanges include Binance and Coinbase, among others. The exchange you select will depend on a large number of factors, including the availability in your region, the number of virtual currencies supported and their fees.
You can deposit funds to the exchange and start acquiring different virtual currencies such as Bitcoin (BTC), Litecoin (LTC) or Ethereum (ETH), among others. You can then create your own strategies to start profiting from crypto fluctuations over time.
You can follow the next strategies:
The first two strategies are going to be specifically designed for cryptocurrency traders. These users will be able to speculate with the fluctuations in prices. The number of funds used and the time they keep an order open are going to be certainly important to understand how much do people make trading cryptocurrency.
While some users will make large amounts of money with these fluctuations, other users will have to hold their digital assets and they may not get profits. For example, if you were a crypto holder from 2017 and you bought close to all-time highs it is highly possible you are still in negative. A large number of ICOs have disappeared while other tokens remain over 95% down from their all-time high.
However, if you would have performed day trading or swing trading strategies, you would now have the possibility to earn some larger profits - or smaller losses. Thus, you should take it into consideration.
You can make a lot of money if an asset is undervalued and it is in a bear market. However, the difficult task is to discover the asset that is going to be growing. While we could understand why something happened, it is certainly difficult to predict what will happen.
To answer the question “How Much do People make Trading Cryptocurrency?” we need to understand which are our targets as well. If we want to get millionaire by investing $100, then this is highly unrealistic.
However, if we invest larger amounts and we are happy with profits of 10% per trade, then we could enjoy in the long term better results than those holding their coins without trading. If the bull market is long, then we will certainly have the possibility to buy dips and continue to expand our exposure to cryptocurrencies.
Having a good and diversified portfolio is also going to be a very important thing to do. While having the only Bitcoin could be a good thing for maximalists, then it may not be so good if we take into consideration that altcoins may have larger gains in the future.
It is also important to answer “How Much do People make Trading Cryptocurrency?” understanding that users can also buy and add to their portfolios non-crypto assets. This is going to make it easier for individuals to reduce their exposure to the market but still earn the profits a bull market would provide.
If you are a long-term user, then you can also average buy Bitcoin and other virtual currencies. Although this could not be so intensive as trading digital assets on a regular basis, it can provide great results in the long-term. Many users are already average buying virtual currencies in order to avoid buying at the top of a market but also being sure they are entering the market when the price falls.
providing you with access to some of the most exclusive, game changing cryptocurrency signals, newsletters, magazines, trading indicators, tools and more.