Even though crypto trading has been around for quite some time, it is still considered risky in many circles. For some, it is even a taboo topic and has been likened to gambling. But for those who have taken their time to understand the system of crypto trading and how it works, it is no different from projecting stocks.
In recent times, especially during this COVID-19 pandemic, it is clear that crypto is the way to go after the dollar’s continuous decline. A classic case is that of billionaire owners of Topline Square, Jack Dorsey, and Jim McKelvey, who invested $50 million in bitcoin to diversify their investment this year. This is a clear indication of the trust reposed in cryptocurrency by heavy hitters. Still not convinced?
Here are five reasons you should really consider crypto trading.
1. High Returns
Crypto trading is very profitable, and the turnaround time can be swift. The highest return you can make on US stocks is about 20%, which most people consider great. With crypto trading, one good surge in demand leads to a swift soar in prices, making a pretty decent profit. Fast eth trading is a sure way of making such high returns in a short time.
Although it does come with some risks, you should study the system, watch trends, and have a trading strategy.
2. The Diversification Advantage
Some analysts predicted that the stock market would underperform, and even in some instances, crash due to the COVID-19 pandemic that brought many businesses to a grinding halt.
Diversifying investments like what Topline Square owners did is a sure way to ensure that your assets remain safe. Though people will doubt their performance, they are most likely to thrive as they are currently doing.
3. It Is Your Money
It is one thing to have money, and another to have money that you are in full control of and have immediate access to. Most people save with banks as they guarantee some level of safety.
But saving with them also means leaving your money at the mercy of the bank and its investors. Have you ever tried to make a large cash withdrawal from the bank for dire emergencies? The process can get so bureaucratic that you begin to wonder if it is indeed your own money or not.
With crypto trading, your money is in your control and directly accessible. Your loss or profits depend solely on the decisions you make and not dependent on some investment banker that will tie up your money and leave you hanging when you need it most.
Liquidity remains a basic factor in any asset, and this refers to how easy it is to buy or sell it. By their nature, cryptocurrencies have high liquidity and move along quite fast. Trading platforms also facilitate the trading of crypto using various techniques, tools, and strategies such as limit-orders.
5. It’s That Simple
The simplicity of crypto trading is one of the reasons it is catching on. All you need is to do your research into the kind of cryptocurrency you want to trade-in and what strategies you will be adopting in your trades. Then select a trading platform, sign up, buy your cryptocurrency, deposit into your wallet, and you are all set. Phemex will be a great sample of cryptocurrency margin and spot trading platform: you can view this phemex review for your reference.