I was always attracted to trading. When I was in my early twenties I started trading the financial markets. At first it was mutual funds, and stocks, but it wasn't enough for me. I wanted to be able to make a lot of money relatively quickly, and was willing to take the risks, so I started trading options. Later I discovered the world of Forex (foreign exchange) and binary options, but left when I realized how shady it was.. (more on that soon)
Recently, with the latest Bitcoin surge I came across a world that I knew existed but never really investigated or took seriously - Crypto currencies. And boy am I happy I did.
In this post I will show you why Crypto currency trading is the best kind of trading you can be involved in by comparing it to other markets. So Let's Go!
Crypto Coins VS Stocks
Stocks are similar to Crypto coins in the sense that they are both a financial asset that has value as they are a part of something. A stock is a share of a company and a Crypto coin is part of an idea / community / company etc. You can hold them for many years, and if the stock / crypto are solid the value will increase over time and you will make money. The clear advantage of Crypto currencies is that they are also traded in pairs so you can trade Bitcoin against Steem for example. In the stocks world it would be like trading Google against Apple..
As a result of this kind of trading the profit potential in crypto currencies is a lot bigger.
Crypto Currencies VS Options
Whether you are trading stock, indexes, and even binary options there are a few problems with the way they are traded. True, if you know what you are doing you can multiply your profits by more than 10 times compared to trading the actual asset. But, options are like a time bomb, the clock is ticking... Every option has an expiry date and time so the closer you get to that expiry time the more value the option loses. So, if you are really professional you can do it in a way that your risk will not be so great but many traders end up being "out of the money" and are left with noting. What I LOVE about Crypto currencies is that there is no pressure to sell. There is no expiry date. I can buy a coin and if for some reason the trade is going against me I'll just hold it until i'm in profit! The only risk is if the coin dies out completely..
Crypto VS Forex
Forex used to be my favorite market. Currency pairs makes it more interesting, and it's the biggest financial market in the world with a daily trading volume of over 5 Trillion USD (yea.. that's >$5,000,000,000,000), so there is no liquidity problem. However, unless you are a serious trader trading millions every day, you will have to use a forex broker to trade. Most brokers in the industry (even if they won't admit it) are market makers which basically means they trade against you. If you win they lose and if you lose they win... To top that the gains in forex are relatively small as most currency pairs don't move more than 1%-2% a day. In order to make it more attractive, most brokers let you trade on a 1:100 leverage. So if the pair went up 1% you can make 100%, but it goes down 1%... you lose it all. When I traded Forex I was always on pins and needles.. every trade could have been my last (even though I loved the adrenaline..:-) .
Now that I trade Crypto currencies which is just like forex BUT I can make amazing profits WITHOUT leverage so there is no real pressure here, just fun!!
Check out a recent example: On June 8th I bought Ethereum when it was at 0.09401001BTC.
In just a few days it went up by over 50% (I'm still holding it)
To get to these results in forex you would have to trade with leverage and put your money at risk.
Crypto Coins Are Easy To Pass Around!
One of the best things in crypto currencies is how easy it is to transfer money. When you trade in conventional financial markets it is usually a hassle to deposit and withdraw your money. In crypto trading it's easy! You can literally go in to your trading account, have a great trade, click a button and send your bitcoin profits to a wallet like CEX.IO which will convert it to regular money and put it in your credit card on the spot!
So to sum it up, Crypto trading is probably the most exciting financial market you can trade right now. I hope I wet your appetite in this post to start trading Cryptos.
I would love to share my strategies and tips with the Steem community, so if you enjoyed this post and want to learn how to trade cryptos profitably, then follow me, spread the word, and share the love!
Till next time,
Crypto Trader