Making money in the crypto market : Holders vs Future Traders

in Steem Alliancelast month (edited)

Making profit in the crypto ecosystem has been one direction everyone is trying to participate in, this is because over the years, the crypto ecosystem have proven to be a trustworthy and legitimate source of income to anyone who has access to internet connection. The good thing about this is that crypto system has numerous ways in which it's users can generate profit that could even change their life in a short period of time by just applying a little bit knowledge and hard work in all they do.

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Initially it all started with the long term traders who motivated users to buy assets and hold for a long period of time in order to make profit from the volatile movement in the crypto ecosystem. Indeed this method has been very very profitable to user as they buy asset at low price and get fortunate enough to sell at a higher price and take the difference as their profit from their trades.

Indeed I must say to you this sort of crypto and earning has been in existence for a long period of time and the good thing is that it is still in existence because most traders believe fully in this long-term hold and sell when the price get higher. This sort of method is very safe especially if they blockchain or the asset didn't experience any hack or Federal government attack over the period of the wait.

Along the line traders can gor him tired of this long-term but, hodl and sell of the crypto asset just to make profit, so therefore some exchanges came up with the smart idea which we now call Future Trade. In the current generation the future trade has been found out to be one of the most famous type of trading and way of generating income from the crypto market, they core difference between the two terms of trading is that future traders could make their profit in just hours or even minute but long-term traders have to take a longer period of time to make such profit.

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Another major difference is that a long-term trader doesn't need so much technical knowledge like technical indicators, trading lines and even Japanese candlestick movement. Just with enough fundamental knowledge about the asset is enough knowledge for you to turn out to be a successful long-term trader.

On the other hand the future trading technique requires a lot of technical skills in order to generate profit and become a successful trader, in order to become a successful future trader it is expected you have high standard knowledge on technical analysis, you also need knowledge on how to use powerful technical indicators, so you need to learn about technical analyzing strategies or trend lines, also you also need knowledge on how to utilize the Japanese candlesticks and finally you wouldn't go far if you don't know how to utilize fundamental news/ knowledge about the crypto assets you're about to invest in or trade on.

Another major difference between the future traders and the long-term traders is that long-term traders tends to have little or no business with leverages concerning the assets they are trading on, but on the other hand the future traders uses leverages to place that trade and that is why they make maximum profit whenever they succeed and lose so much money whenever they fail.

Also although they long traders are also affected by the volatility of the crypto market but they effect are not so much intense this is because they might still be holding their assets when they volatility turns out to move the opposite direction and help them generate profit. But on the other hand the future trader are very much affected by the volatility of the asset this is because they asset in which they hold and they trade in which the place, is usually in a certain period of time so therefore when the volatility occurs is affect them so much whether positively or negatively.

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@jueco

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