Trading cryptocurrency is all about speculation if you are interested in making a good profit. You have various opportunities available like holding your coins until they reach a specific value. Or, you could speculate on the fact that the market is going to fall as you are not even the owner of the asset you trade. Regardless of what option you choose though to profit from cryptocurrency, everything starts with the decision of trading crypto in the first place. Why should you do so? Here are some reasons to take into account before trading cryptocurrencies like Bitcoin (BTC).
5 Reasons To Consider Trading Cryptocurrency
1. Taking Advantage Of The Volatility Of Cryptocurrency
The volatility we see in crypto is like no other modern investment. As a very simple example, between the months of October of 2017 and 2018, we saw Bitcoin go as low as $5,800 and as high as $19,300. In 2021 and 2022, Bitcoin has fluctuated between under $30,000 and over $60,000 with more volatile price shifts coming soon for BTC. The stability of some other cryptocurrencies can be seen as higher but speculative interest is quite obvious in the market.
Many say that the volatility is what makes everything exciting. You have access to countless opportunities as long as you are willing to take the risk. Obviously, you should only do this when a proper risk management strategy is in place. But due to the volatility of cryptocurrencies, the opportunity for huge profit is there.
2. Unlimited Access
You can access the crypto market at any point of day or night. It does not even matter what day of the week it is. The market is not governed by a centralized entity. Instead, a transaction is taking place right between the individuals. You only have to deal with limited downtime periods, like a fork, which are quite rare.
Trading crypto can be done against fiat currencies whenever you want to. This allows you to so easily take advantage of any market move as soon as you notice it.
3. Transparency
Whenever you initiate money transfers, you want to be careful with transparency of financial or personal information. With cryptocurrencies, all information stays private. It is stored on the blockchain and it can be both anonymous and very transparent at the same time. The user can easily make any transaction desired and will know when it actually happens.
4. Control And Security
Whenever dealing with matters related to finances, two very important things have to be in the back of your mind. They are security and control. With cryptocurrencies like Bitcoin, you have complete control over your investment. All transactions use blockchain technology. This automatically means that security is very high. Nobody can take your coins away from you. With every single transaction, you have complete control.
5. Better Taxes
With traditional currencies, the user always has to pay some sort of fee whenever making a transaction. This is based on how much you trade and the tax that might apply in different situations. With BTC transactions, fees become lower and lower. Also, you do not have to deal with taxes for the transaction you carry out. At the end of the day, this can only help you to save a lot of money. That money can so easily be used to have more to use in the future for other cryptocurrency investments.
Crypto Conclusion
Buying and selling cryptocurrency has risks like any other investment. But as we've established in this article, there are many reasons to consider trading crypto.
