In Defense of Crypto Trading
Stable coins. Unstable coins. Coins tied to gold and silver. Coins tied to US currency. Coins looking for regulation. Coins looking to unhinge from national government scrutiny and all that goes with it, including inflationary power and market influence.
It’s all a little much, right? You’d have to have a superhuman brain (or Ai, ahem) to analyze it ahead of time, pick the winners, and invest wisely for a big payoff.
In fact, it’s gotten so outrageous that the minute-to-minute turns of the market are all over the news every day. Traders panic and increasingly can’t see the bigger picture. Newcomers face too huge a barrier to entry and walk away.
Outsiders see it as a huge scam. But there’s something to crypto trading, and that’s why we’re here to serve traders and why trading is growing in spite of the naysayers.
Crypto is a Profitable Market
But here’s the thing: a lot of people just hear about inquiries and SEC investigations. They may even hear about the foolishness of overvaluing tulips and markets built on dreams (and nothing more). But it’s less often there’s an honest discussion about the uses of cryptocurrency and the reasons why normal, boring would-be traders should hitch their wagons to crypto.
We’re pretty pro-crypto here (no surprise) so here are some of our observations about the promises of crypto, whether you’re a dyed-in-the-wool trader already or just wondering if there’s anything to this new market.
The first reason to seriously consider crypto is that cryptocurrency is — against the minute by minute protestations of those watching their coins — a profitable market.
This intuition is backed by research, not just hype. A Boston College Business School team assessed almost all the ICO coins and their trajectories from January 2017-June 2018 when they released a report finding the average investor reaped 82% profits. even when investors waited for coins to be listed on exchanges (which usually happens late in the lifecycle of fundraising for a new coin) the profit rates were over 60%.
Other examples of newcomers able to learn en route and turn a profit abound.
Check the Loomio cofounder’s journey here.
Heck, even the police are getting in on the action.
Overall, profitability continues. The market ebbs and flows, but it taps into some truly innovative technologies ad companies that are changing the face of the world — and that’s a recipe for profitability over time.
The market itself is expanding exponentially, further adding automatically to the profitability of many altcoins as their platforms explode (we’re seeing that it’s true that many more young people want to invest in crypto because it offers more freedom than other currencies and stocks — 30% of millennials is quickly turning into a huge, profitable market with up to 100,000 new crypto wallets issued on the busiest days this year).
Crypto is a Stable Market
Crypto has its own patterns and is emerging as a reliable market in spite of small market caps and volatile coins. It enjoyed a small pattern that continues this fall, emerging from a summer slump for a bullish 4th quarter. This may have been attributable to a slow summer ICO season (when conferences and launches are scarce) as well as to the buffer of exciting updates that tend to emerge in the fall — this year, NAGA’s echange and chip debit/credit card offers even more liquidity to traders looking to change money easily and spend or cash out as they would if they were FIAT traders. Whtever the reasons, we see this pattern yearly, and that’s a good sign the market has its own lifecycle and it not simply tied to the whims of a few big investors.
AiBB is launching a similar service to NAGA on its trading advice platform, which goes between exchanges, as well as allowing EU residents the money and banking functions and regular bank card they are used to using. we’re not an exchange — we’re here to advise traders and help them navigate lots of exchanges easily. However, more services for users and traders help us all. With increasing users entering the market all the time, increasing price stability results, and use of the coins in each platform increases.
“Stable” coins, like those annouced recently by the Winklevoss firm, are another way in which the entire market matures and different kinds of coin options stabilize decentralized coins even further.
Stable coins come in multiple flavors: fiat-collateralized coins are protected from crash by the pegs to FIAT currency, but they’re also unable to be decentralized.
Gemini Coin will be pegged to the US dollar, for example. But they’re not the first. Trustcoin has been successful in raising a round for their coin which is pegged 1:1 to the US dollar. Agau is backed by gold and silver. Coins like these increase market representation and attract new traders as well as wider adoption. They stabilize other altcoins in an ecosystem that is increasingly normalized.
And normalization is the key to encouraging more use of altcoins in general. Even if crypto is stable, its profitability discourages exchange and use (when was the last time you decided to spend a gold bar on groceries?). Instead, valuable entities are held, which just shrinks the number of circulating coins and gives the market more volatility (fewer coins moving through exchanges can more dramatically increase or decrease prices).
Crypto Rules are New Rules
Because crypto trading is still so unregulated, trading rules that apply to stock market day traders don’t exist. Is this a positive thing? Absolutely. Without a large balance in your account, you can be a day trader (or a night trader. The crypto markets are open 24/7).
Jumping in at the pro level, with pro-dollars and daytime hours reserved for trading is a huge barrier to entry that keeps many people out of stock trading altogether. In the crypto world, participation is open to many more potential traders.
Crypto traders don’t need 25,000 in their account at all times. They don’t need Tuesday afternoons free. Fractionalized trading is also the norm, which allows traders access to more, smaller trades rather than large lots — without paying prohibitive commissions.
Because crypto markets are new, traders also don’t have to worry about competing with computers executing thousands of trades per second based on algorithms long established (and inaccessible to newcomers and outsiders).
Because crypto markets are so new, and unregulated, opportunities for smaller traders abound.