Profit Opportunities in trading Cryptocurrencies 交易加密货币的获利机会
Besides committing funds to DeFi products, what are the other ways to gain profits in crypto? 除了向分散式金融产品投入资金外，还有其他以加密方式获利的方法吗？
Cryptocurrency trading requires skills and strategies. Having additional trading experience will help you in managing your portfolio. If you are new to cryptocurrency trading, you can still pick up some basic skill sets and venture into the world of blockchain. These are some of the important pointers to make the most out of your cryptocurrency trading strategies.
The cryptocurrency market operates similarly to the traditional stock market. You can trade in more than one exchange at any single point of time. The best part about cryptocurrency exchanges such as Exonium is that there will not be market opening or closing hours! Trade anytime, whenever you are! With these exchanges facing different regulations and operational costs, they provide for varying costs. The difference is where the profit comes in.
Arbitrage trading involves buying one cryptocurrency at a lower price to trade at a higher price in another exchange. Successful arbitrage trading requires intensive research.
Usually, you will need market comparative software to determine the various market prices. You can also use software or trading bots for automated trading.
Due to the volatility in the market, arbitrage traders will need to react and execute their planning almost immediately in order to chase the spread difference. The price differences between the markets don’t last for long. The faster you execute your plan, the more you are likely to gain. You also need automation to stay active 24/7. The crypto market never sleeps. Significant swing in cryptocurrency is very popular, usually during odd hours.
If you are not comfortable with arbitrage trading, let’s take a look at other alternatives.
Most of the crypto market price actions are made up of demand and supply in the open market. Most people buy the coins when it is in demand and sell when the market crash. Such trades have seen the market experiencing a frequent bear and bull run pattern over the years.
It is not always swing trading that earns the biggest profit. It is time to go against the mob mentality if you are looking to maximize your profits. Do not sell only because the other traders are doing away with their coins. Be fearful when others are greedy. Be greedy when others are fearful. Don’t FOMO. Don’t FUD.
Holding a specific cryptocurrency you believe in also helps protect you from pump and dumps, which is very common in cryptocurrency trading. Sometimes, traders with huge holding can manipulate the market by creating a dip in value leading to other bear traders selling their coins. The whales then buy back at lower prices. However, by not selling and holding on to your asset, you will not fall into that trap and can also take advantage of the market. There is an opportunity for you to buy at lower prices as well.
If you doubt the power of holding to the assets, look back at BTC history. Even during BTC crash back in the days, if an investor holds on to BTC during the bear market in 2014, he/she will still be in profit in 2020.
However, stay keen to notice a case of defunct project or a cryptocurrency losing its value consistently over a long period of time. You don’t want to keep your assets to diminished values. The best way to execute the holding plan is by relying on market analysis and be up to date with the latest market development.
One of the reasons for the increase in the value of the cryptocurrency market is the declining traditional economy. Cryptocurrencies such as BTC is inversely correlated with the fiat economy. Over the past 3 years, BTC has slowly become a reliable alternative as compared to government-issued currencies or even Gold as an asset.
Don’t be quick to write the traditional economy off yet. While it has been on a go-slow, it is slowly making a comeback. Governments and central banks have in place several monetary fiscal policies to revamp the economy. However, this brings up a problem of the existing centralised finance system. An intermediary is involved and citizens around the world have to trust the centralised institutions to make the right decisions. However, since cryptocurrencies are built on blockchain technology, the need for trust is eliminated.
Once the economy stabilizes, investors are likely to return their money to the usual stocks. It might take a hit on the cryptocurrency economy. Keep safe by diversifying your investments. Have both crypto and fiat assets. This allows you to gain from growth in either traditional and digital assets.
At the lowest are some of the best times to buy stocks. You can get way too many stocks for way too little. However, it would help if you had a little bit more of the traditional markets’ knowledge.
Follow the Trend
There are several crypto trading strategies that traders or long term investors can make use of. You may refer to our support page to view our entire series of Crypto Trading 101. Click the link here: https://exonium.zendesk.com/hc/en-us/sections/360004668951-Trading
Do note that some of the strategies recommended will not work for everyone because every trader has their preference. No matter how the other ways to maximize profits seem alluring, they might not be appealing to some. That is where following the trend comes in.
Some traders lack the skill to arbitrage, while others don’t have the trust to lend out. Some also don’t want to risk looking for other alternative investments. They can still use the comfort that comes with following the trend.
It only requires you to observe the market trends for possible change. Go for long positions when the market looks to be on a bull run. Open short positions for a falling market.
Use several market analysis tools to observe possible market movements.
***Disclaimer: This content is not financial advice and should not form the basis of any financial investment decisions nor be seen as a recommendation to buy or sell any good or product. Trading cryptocurrency is complex and comes with a high risk of losing money. You should carefully consider whether trading cryptocurrencies is right for you and take the time to learn how trading works and decide how much money you are prepared to risk.
Exonium is a brand new world-class crypto exchange that places an emphasis on security and protection of users’ assets as well as high liquidity.
Exonium was founded to propel cryptocurrency into mass adoption. Merging the best of the exchange ecosystem and the principles of social network platforms, the exchange aims to put the power back in the hands of the community by empowering and enabling traders.
Be part of the future. Be in power. Be in a network of financial freedom.
Ready to start trading on Exonium? Try out the seamless registration process and sign up for a new account today at https://exonium.one/
准备好开始用嘉库交易了吗？试试无缝注册过程，今天就在 https://exonium.one 注册一个新帐户!