There is no denying the fact that cryptocurrency exchange is the order of the day. The trend of using digital currency to buy and sell commodities is augmenting with every passing moment. At the same time, the number of people jumping on the bandwagon and turning into Crypto traders is also increasing. As they are pretty successful and are able to make huge bucks simply through crypto trading, more people are enticed to move toward it. If you are also someone who is thinking of doing the same, it’s necessary for you to have all the required information beforehand. This includes the real tasks involved in crypto trading, how to become a crypto trader, and whether it is really worth it or not.
In this article, we shall talk about how much successful crypto traders make and whether it is really worth opting for or not.
1. Who Are Crypto traders?
To put it simply, crypto traders are those people who tend to buy and sell cryptos. They do this by using the services of some crypto exchanges, which make their tasks easier and more efficient. There are a plethora of cryptocurrency exchanges available and traders can avail of any option that wants to put their trust on.
However, it’s not as easy as it sounds. Crypto trading involves various trading strategies and one needs to be really proactive in managing his crypto trading actions to be a successful trader. The strategies involved in the whole trading process involve algorithmic trading, technical analysis as well as swing trading, day trading, and scalping.
2. Is Crypto Trading Lucrative?
A lot of people are tempted to turn into crypto traders when they see their peers earning handsomely through them. The profit margins they earn make them want to jump into crypto trading and do it for themselves as well. However, before you do it and get your hands on the bitcoin trading software to manage your cryptos, you need to know whether crypto trading is a lucrative option to avail or not.
When it comes to pointing out the exact amount that a crypto trader could have earned the highest ever by trading, there comes a difficulty. A lot of traders don’t really uncover the trading benefits they have received from being a part of the crypto trading industry. A lot of information is concealed, and no one has any idea about it.
However, one piece of information that is really authentic and you can have an idea about the crypto earnings through it is the fact that an anonymous trader was able to make a profit of around $100 million through the Bitfinex exchange, that too in a single month back in the year 2017. The crypto industry saw a massive surge in the entry of traders as soon as this news went out.
If you think the estimation is exaggerated, you need to know that despite the fact that it is a highly lucrative activity to trade cryptocurrencies, the volatility of the market makes it highly risky and the same time. If luck is not on your side, you may and up using all your money in a single minute. this is why, while signing up for cryptocurrency trading, the traders have to be willing enough to take a massive financial risk.
How To Become A Successful Crypto Trader?
Becoming a successful crypto trader requires you to be knowledgeable of certain Crypto concepts. If you are nonchalant towards these concepts, you may end up losing big as the crypto trading is already extensively risky and tricky.
Also, luck plays a massive role in crypto-trading activities. There have been times when investors were able to make a 1000% return on their investment, while other times, they ended up losing all their savings.
Some major crypto concepts you need to be aware of before entering the world of trading include:
Swing trading is a form of trading in which the investor or trader keeps a hold on the crypto stock for some time and then sells it off. This way, he is able to make some small benefits through the movements made in the market. It’s a great trading opportunity and doesn’t lead to any significant losses.
Just like swing trading, scalping is short-term trading that is made efficiently. This is also done to get maximum profit whenever there is even a minor movement in the price. Most of the time, there is a need for extensive technical analysis to make this work.