Following the launch of Bitcoin and many other cryptocurrencies, many people worldwide want in on the action. A good guess is you, too, are leaning in the same direction but don’t know if it is the right call.
While the potentials are enormous, it is needful to stress some of the hindrances to successfully trading the crypto market.
So, in this post, we cover several factors that could impede your overall trading experience.
1. You don’t believe monetary transactions are going to be fully digitalized:
The truth is, paper money and coin are on that road to extinction. While the same could not be said about banks entirely, almost everyone would agree that bureaucratic processes are shortened with the aid of cryptocurrencies – needless to mention the ridiculous interest rates.
You can bypass prying eyes in your transactions, but be that as it may, a mental shift from the brick-and-mortar way of conducting business transactions is necessary to comprehend the potentials of these digital currencies fully. In Hong Kong, for instance, Forbes reports a massive digital payment boom.
2. The volatility of the market is relatively high:
Pay attention to this closely…
If you’ve got the term “investor” by chance seated somewhere in your bio and complain about the fluctuations of the cryptocurrency market, perhaps you should have a rethink. Every trading instrument out there, stocks, bonds, you name it, are almost always a gamble.
One day, the price of one biotech company is turning someone into a millionaire overnight, and the next, it is an entire nightmare.
The same is true with the crypto markets; prices rise and fall now and again, so deal with it. Sorry (not sorry), there are no cookie cutters, so prepare to lose some and win some.
image via Unsplash
3. It may not be as secure as the pro-cryptos argue:
One of the outstanding features of the cryptocurrency market and its unique value proposition is that transactions made through cryptocurrencies are secure through infrastructures known as blockchains.
These security measures are not without lapse as government institutions are looking for ways to regulate potential fraud cases and whatnot.
Nonetheless, the foundation of decentralization is still paramount, and transparency is intact. Furthermore, two-step authentication and verification via SMS and emails are evolving to better the security of users.
Platforms, such as the Bitcoin profit app, safety of users are certainly at the top of the agenda.
So, if you are still doubtful of your security with these digitalized currencies, you might want to seat this one out and wait for the following big stock.
4. I don’t understand all this technical stuff:
It goes without saying: trading cryptocurrency requires some level of skill, particularly for folks who want to trade themselves. It so happens that there are several ways to cash out big time from the crypto frenzy and merely stare at charts.
A popular trading terminology amongst traders in the market is HODL – that is a fancy way of saying, relax, and watch the market. You don’t have to speculate the rise and fall of the market every day to be successful. You can invest in a couple of coins and wait for an appreciation.
Otherwise, the best strategy is to get the required knowledge and devour as many resources as you can lay your hands on. Again, there is also the option of seating on the sidelines.
Final validation:
While the upsides are undeniable, owning any of these currencies comes with risks. It would help if you constantly remained aware of these risks to trade successfully, go in without the proper knowledge, and end up frustrated.
So, what is it going to be?
