The cryptocurrency market is a promising trend in the financial world. Large institutional investors invest millions of dollars in digital assets. That is why it is important to get to know the cryptocurrency market now, before its price flies to the moon. In order not to make a lot of mistakes at the initial stage, use the tips that we have prepared for you. How to earn with crypto trading and why you should consider an option to borrow crypto with CoinRabbit
General Rules of trading. When did this field begin to flourish?
Trading began to blossom from the moment cryptocurrencies became known to everyone. With the popularity of Bitcoin, some figures began to create their own blockchains, and now traders have a wide choice on which currency to make money. Cryptocurrencies are characterized by extremely high volatility, which can potentially produce large profits as well as losses.
If you want to make money from crypto trading, stick to these rules.
- Do not forget about risk control. It’s extremely important to calculate risk per trade, that is, don’t gamble a large amount for the sake of a relatively small profit. For example, if you risk $200, your profit should be at least 3-5 times greater. The main rule of any trader: minimum loss — maximum profit.
- Do not count on trading as your only source of income. Cryptocurrency trading is not an easy substitute for work. Therefore, you should not immediately quit your job, even if you have already achieved some success. It’s important to have several sources of income.
- Do not use public WiFi networks on devices that are connected to the exchange. Public networks are dangerous because their owners may set their own rules that you won’t know about. For example, they can redirect your browser to a phishing version of an exchange or wallet or collect data, including passwords.
- Do not lose vigilance when visiting sites. You should always check the URL of an exchange or other service, preferably twice, to avoid becoming a victim of phishing.
You can borrow against Ethereum, save your asset that way, and spend the money on trading to get maximum profit.
The best and most famous traders of the world
Millions trade in cryptocurrencies, but not all are successful. However, these three are the most famous traders in the world and have official microblogs ticking off well-known social networks.
- Peter Brandt. One of the most experienced traders. He claims that his experience in trading is longer than 45 years. He became well-known in the cryptocurrency industry after he was successful in foreseeing the 2018 bitcoin correction after the digital currency reached its peak in December 2017. He frequently shares technical analyses of cryptocurrencies and observations on asset dynamics in his microblog.
- Lark Davis. He is a well-known cryptocurrency analyst and trader. Lark Davis frequently posts technical assessments of cryptocurrencies and the most recent information on the market for digital assets on his microblog. Additionally, the trader frequently shares predictions of future changes in the price of coins with readers.
- Tone Vays. You can find a large number of analytical materials on various cryptocurrencies on the trader’s microblog. Tone Vays regularly makes technical analysis of popular digital assets in video format and shares his notes with his readers. The trader also publishes links in his microblog to various materials that may be of interest to members of the cryptocurrency community.
And here you can read about crypto investors.
Is it possible to earn with crypto? Pros and cons of trading.
It is possible to make money on crypto-trading, but it is important to adhere to the rules that we mentioned. To be objective, let us outline the pros and cons of crypto trading.
Pros of trading:
- The trader is the owner of the cryptocurrency. Even if its price falls, it still remains in the owner’s account.
- A large number of instruments. More than 4,900 tokens are available for trading on digital platforms.
- Arbitrage trading. You can trade one currency on several exchanges at once. That is, having an account in the same cryptocurrency on two exchanges, you can make a profit due to the difference in the price of the asset on different platforms.
Although, there are some cons too:
- Lack of transparent regulation. Not all digital exchanges are in the area of responsibility of financial regulators.
- Limited liquidity. The liquidity of assets is limited, especially in times of sharp declines in the value of cryptocurrencies.
However, if you stick to the strategy, don’t spend all your money, and use exchanges that you can trust, then you will be successful in crypto trading.
As you can see, anyone can make money on crypto-trading. The main thing is to follow the news, gain experience and invest wisely. Don’t forget to consider crypto loans to get more profits.