Can Trading Crypto Currencies Actually Be Profitable?
Trading is tough. Period. And anyone who says it isn't is lying to you. The only way to learn how to become at least half decent at it, is purely by experience alone. The amount of mental and emotional fortitude needed to remain disciplined and work according to your strategic plan, can feel can an uphill struggle at the best of times. But, like anything, with determination and persistence, this is an obstacle you can eventually be overcome. And this is just a breakdown of the Forex markets. How do the crypto markets compare?
Many will warn against the perils of trading crypto. Like it's a sure fire way to lose all your money and fast. Now, this statement has some truth to it but I feel is too broad by definition. A lot of whether this holds true or not lies within the individual pulling the strings. The great thing about trading crypto (and ironically, the worst thing) is the volatility it carries with it. Adapt the same "successful" trading techniques utilized in other markets to their crypto counterparts and there lurks a huge opportunity to make money. Such as those out there who recognized the top of the BTC market at $20,000 and shorted it all the way down. Oh yeah, they do exist!
Because of the extreme nature of the charts, so must come an extra level-headed mindset and approach to these sensitive markets. Money management being, of course, one of the highest on the list of skill sets in your possession. So in that respect, having a fair amount of experience in previous day trading would be very advantageous. But the bottom line is the indicators "do" work, even in this new realm of trading crypto. Sure, you will get the odd spike in price or dump, but that happens even in regular non-crypto markets, albeit perhaps not with such violent conviction. Hence money management should be a huge priority when formulated a game plan for crypto currency trading.
I've always seen crypto as more of an invest tool. Therefore I have always been buying and hardly sold any of my holdings. It's the long-term play which garners more interest for me, however I've studied the intra-day charts and played around with a demo account, just to see what would happen. The results were, I'm please to say, better than I would have expected. It was more experimentation than anything else, over the course of about a month, but proved that trading digital assets can work if put to the test. Although as I said, it comes with many caveats.
So, to answer the question, yes. You can make money from trading pairs of crypto against one another, but only armed with a portfolio of market experience behind you and excellent money managing techniques. Nothing is impossible and crypto is yet another asset class that can be explored to make money from, in more ways than one. Give it a go with a demo account and see how you get on. You may be surprised with what you're capable of. Hopefully in a positive light, of course! :)
I agree that it takes a lot of dedication and discipline to be able to trade almost any type of asset that trades on an exchange. I have always dreamed of doing it but never have had the time to dedicate to it which is why I have been more or a medium term trader where I would buy and hold for a 10-15% jump before rotating elsewhere. Even then, the emotional volatility always gets to me and I have typically held my losers too long. Hopefully, I will have my opportunity in the future!
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Sounds like you're doing an excellent job so far, man. Hone the skills you already know and earn some potential big money! :)
Great article! ☺
I agree but one need special data set like one from santiment.
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Of course it can be, if you are good at it
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