In recent years, cryptocurrencies have become all the fuss and most notably, the Bitcoin. You’ll hear people discuss cryptos – as they’re now frequently referred to – at dinner parties, barbeque parties and the like. Over time, the demand for these digital currencies has resulted in price surges regardless of a rough ride occasioned by dips now and then.
For those still in the dark about cryptos, they’ll find this article helpful in their quest to gain knowledge on this new-age currency.
1. Technology and broker risk remains high
Still considered emerging technology, cryptocurrency trading bears enormous risk especially for person trading huge volumes since it remains unclear how software and brokers would react to surprise situations. In case you thought Forex brokers are high risk, consider crypto traders twice as risky. Shadiness aside, the many unknowns of crypto technology poses a massive threat for current and potential traders.
2. Calls for a certain level of technical acumen
Cryptos are a super nerd creation. With Linux for instance, you require a bit of technical astuteness. We aren’t suggesting that you start learning how to code, far from it, but supposing you don’t know your way around a computer, refraining from trading cryptos until they build user-friendly interfaces.
In a nutshell, if you don’t possess a certain level of skill in using a computer, stay away from trading as you’ll end up losing tons of money quickly.
3. Trading bots allow you to leverage your strategy in the exchanges
Crypto-trading bots are hugely eulogized lauded as the perfect answer for traders keen on leveraging in the ever running cryptocurrency exchanges, defined by volatile market movement.
In addition to facilitating investors with a savvy approach to for trying out strategies to generate gains while keeping losses to a minimum, trading bots save traders the stress of spending long hours monitoring market trends and executing trades.
Gunbot is one such trading bot whose user-friendly interface, lifetime license, adaptability (works on Mac, Windows, and Linux) and allows for testing of over thirty strategies makes life a lot easier for traders.
4. High volatility
At the beginning of 2018, the crypto market started out bearish; however, the degree of price fluctuations has noticeably dropped. Nonetheless, traders seem to find crypto-money trading appealing to investors and new-traders who wish to avoid huge price variations.
Still more volatile in comparison to gold, traders stand to make handsome gains if they diversify and take the time to hone their trading skills.
5. Decentralized exchanges are gaining popularity
Also referred to as DEx, decentralized exchanges are slowly becoming a favorite among crypto aficionados. DEx’s never engage intermediaries and the authorities, which allows direct trades on a retailer-to-retailer basis.
DEx’s don’t require traders to deposit money before initiating a trade, don’t suffer server downtime, don’t ask for KYC documents and don’t experience hacker attacks. Simply put, you remain in control of all your assets.
Crypto-trading isn’t child’s play. You need to take the time to grasp the nitty-gritty of trading before giving it a go. Also, invest in what you can afford to lose. The possibility of losing your entire investment remains high like in all kinds of trading.
Try out your trading strategies via a trading bot as many times as you can to ensure they work on all kinds of market conditions and keep losses to the minimum.