Why Trade Crypto Currencies

You probably heard about all the money that people made trading(or just hodling) Bitcoin, and a wide range of alt coins- both great and bullshit ones.

And then you've probably heard about the market crash and overall market dropping from 800 billions to 400 billions, than 200 billions, which is near the current "hard bottom".

In 2017, everyone could be a crypto guru- in 2018 that got much harder to achieve. You could buy pretty much any crypto coin at the beginning of 2017, then sell it at 10x, 100x, in some cases even 1000x+ times.

But now prices are moving slowly, going up and down, people are hardly making money and most of them are even  losing it- as always(or at least always except year 2017).

Still, there is a small portion of people who're not living in illusions that 2017 will come again. They do their research, follow trends, make proper entries and go out without greed. And they make money. We are quickly going to start revealing what they are actually doing and what makes them successful, but before jumping on that during next articles, let's explain why would you trade cryptocurrencies in the first place:

Yeah, the market is crazy volatile, and most people lost their money(as everywhere else!?), but there are two undeniable facts about crypto currency trading:

1- The crypto market trading entry is funny low and easy to get involved with

Unlike trading stocks and most other markets, the process of starting is extremely simple and non-demanding- limits are very low- you can start trading on most exchanges by depositing as low as $10 to a $100. And if you don't have cash you can always mine some altcoins and deposit them to your exchange of choice. And if you choose an exchange platform like Binance, you can deposit and withdraw up to 2BTC(~$13k) within 24 hours, without identity verification!

This is really a nice argument. There is no simpler way to start trading. And if for no other reason, you can start trading cryptocurrencies just to get the feel and learn a bit about trading in general. After all, the cryptocurrency trading is not much different from any other trading market- in fact, it is fundamentally the same- fundamental analysis, technical analysis, risk management and trading psychology can all be learned here cheap and then applied elsewhere.

2- The crypto market trading gains are among the highest recorded ever, if not absolute leader in trading gains.

Just take a look at the biggest gainers for the day:

and this is just today!

According to this article, the highest performer of 2017 was Ripple(XRP) with a total gain of 36,018%!!! Beat that if you can in any market.

If you bought $10 worth of Ripple, you would make $3.6k, and investing a thousand bucks would yield you $360k in just one year.

Now, you may think that those gains that we saw in 2017 will never come back again- and you might as well be right. But with volatility comes the opportunity, and this is another great argument on why should anyone try the crypto trading:

Volatility and the compound effect

Good traders love volatility, even when it kills them. Why? Because when there is no volatility there is no point- nothing!

Imagine buying a coin that costs $50 and finding out that after a year of holding it its worth is still $50. Boring, right? You didn't lose money, but you didn't earn any either.

High volatility, on the other end, allows traders to lose(if the price goes down), but also win(if the price goes up).

You can see on the screenshot above how big daily gains and loses can be in the crypto market. But those coins can often be hard to catch and navigate through various exchanges. Still, even most stable and highest ranked coins often do range +/- 5-10% during the day or a few. And catching those often can make you an income, and potentially much more than that!

Instead of dreaming of catching a coin that will rise 36.000% as Ripple, let's see how else we can gain large amounts of money trading crypto:

#1:

Deposit: $250(no withdrawing).

Tactic: Catching trend and riding the ~30% volatility that usually can be catched once a month with coins like Stellar(XML) and EOS(doesn't always have to be the same coin).

12 months x 30% = 1.3^12 = 23.29 * $250 = $5824

#2:

Deposit: $250(no withdrawing).

Tactic: Catching daily trends and riding the ~1-5% volatility that usually can be catched every day with pretty much every crypto coin except maybe Bitcoin and Ethereum.

365 days x 1% = 1.01^365 =  37.78 * $250 = $9445

but now the compound effect really comes into play, even with still just 1% per day:

730 days x 1% = 1.01^730 = 1292.37 * $250 = $323094

And since the compound effect is exponential- around 900 days of consistent 1% gain would be enough to make $2 million dollars!

And even though 1% per day can't be achieved by most, it certainly can be achieved easier daily than on other trading markets. Not to mention how much crazier is the compound progression if you can get 2-3-4-5% per day or even week...

That's why I encourage you to embrace the low deposits and easy of access- as you never know what are you destined for.

Thanks for reading and watch out for the new articles on this profile and my upcoming website- Crypto Trading Tutorials