The Benefits of Trading Crypto
If you’ve been around long enough, you’ve probably heard of cryptocurrency. For the past 10 months, I’ve heard people constantly tell me about the prolonged growth that the Cryptocurrency market is currently in.
They’re not wrong.
In this article, we’ll be listing down a variety of reasons investors and traders alike should add cryptocurrency to their portfolios and why one should look as early as now to do so.
Massive Returns
As of the time of this writing, Bitcoin currently has a support point of around 34,000 USD. Looking back 10 years ago, Bitcoin in 2010 had a valuation of less than a dollar for a single coin. That means that over a span of 10 years, Bitcoin would have shown an average growth rate of 90.47% per year. While they have only existed for a short period, cryptocurrency has proven to be more profitable than other investment options over the last 10 years.
A key characteristic that goes into trading cryptocurrency, of course, is its high liquidity. Liquidity measures how easy it is to purchase an asset at a price close to its market value. This is simply because of the high trading volumes that cryptocurrency markets operate in. The transactions that take place are dispersed across multiple exchanges which means that comparatively small trades can have a huge impact on market prices which also feeds into the volatility of the market prices and constantly pushes the price of the currency to new heights.
Variety of Algorithmic Trading Platforms
In the dawn of a new era of technology and smart AI, autonomous smart crypto trading platforms means that novice traders can make money from the market even without prior trading knowledge. The advantages of making use of these algorithmic trading platforms are the speed and accuracy in which they operate — all for minimal subscription charges.
These trading platforms work by identifying trading signals within the cryptocurrency market to pinpoint the most profitable trades within the market and execute orders on behalf of the user.
Cryptocurrency is a speculative technology
Now, this may initially like a bad thing but think about it, this means that there would be periods of hyper-growth, with constant and rapid intraday price movements that can provide a range of opportunities for traders to go long or short as well as for investors to buckle up for the long haul.
As cryptocurrencies continue to grow into becoming a more accepted form of currency, experts agree that the value of cryptocurrencies will only go up. Plus, it doesn’t hurt that cryptocurrencies such as Bitcoin come in limited supply while its market cap only goes up, indicating a consistent increase in the value of an individual coin.
Conclusion
With that said, these aren’t the only benefits of trading in cryptocurrency. It’s a 24-hour market, the ability to go long or short and trading with margin accounts are all benefits that are commonplace in any cryptocurrency broker. While the currency may be decentralized, that doesn’t mean it’s going to vanish any time soon. If you’re looking to expand on your current portfolio, this just might be your answer.
