Can you still make money on cryptocurrency in 2021?

Can you still make money on cryptocurrency in 2021?

It seems that bitcoin traders tend to fall into two different categories, either you accept the long term and see great potential for high returns as the market matures and the use of the currency expands, or you like the idea of ​​trading profitably when the price goes up and down.

Whether you are someone who enjoys a buy and hold approach to cryptocurrency, or want to make money with Bitcoin right away, the fundamental question is always whether you can make a difference. profit.

Where we are now

It’s good to have a perspective on the history of bitcoin and appreciate its origins in a relatively short period of time.

Less than ten years ago, the market capital of Bitcoin was around $ 1 million. In just three years, that number has grown to almost $ 16 billion, which is impressive growth by everyone’s standards.

It also suggests that there has been high price volatility and dramatic highs and lows between the two dates and numbers.

However, even when it appeared to be on its knees, Bitcoin remained the dominant cryptocurrency, and there will be similar peaks and troughs over time.

Future demand

It is also very important to recognize that Bitcoin is still on the path to acceptance, and as technology advances and uses it, this should drive demand for cryptocurrency, which could increase its value in return.

Considering the fact that Bitcoin can still be seen as a work in progress, this is the main reason some investors take a long-term perspective and think this might be a good time to buy and hold.

Swing price

As noted, since this is still an investment opportunity that is still in its infancy compared to other more established investment vehicles such as stocks, it is to be expected that that there are barriers to value.

Using the same argument that increased use and adoption of Bitcoin will increase value, there is a chance of making a profit if market sentiment pushes the price higher than what you originally paid.

If you are a trader who benefits from the income generating potential of market volatility, Bitcoin can be considered a great investment environment as it offers the opportunity to profit from regular price fluctuations.

More mature market

Although price volatility is a common feature of cryptocurrency, overall there has been a noticeable change in the magnitude of this volatility as the Bitcoin market begins to mature.

Put simply, as the adoption of Bitcoin becomes more widespread and widespread, it means that the price swings weren’t as wild as they started out.

This is not the case, it means that the trading opportunities are not sufficient at all, but it seems that Bitcoin trading is not such a mad rush, as the broader price stability is driven by the wider adoption of Bitcoin.

Everyday offers promise

Knowing that wild price swings aren’t as regular with Bitcoin can be seen as good news for short-term traders, as it could mean losing might not be as painful if you can close on a price that doesn’t. is not that far from your original price. transactions.

Despite the lower volatility compared to previous periods, it is not uncommon for bitcoin values ​​to rise and fall in whole dollars throughout the day, meaning that each day presents a potential opportunity to create profit.

Learning curve

Despite the fact that there are currently chances of making money trading cryptocurrencies, it should also be understood that understanding how the market works and behaves is a lifelong learning curve.

Having this mindset that you are learning and always perfecting your technique should help you maintain a high level of focus and inspire you to stay on top of current market trends and seek out information that can be critical to your trading performance.

As with any form of financial trading, having the best possible control over your emotions and being focused are qualities that can often help you make steady and consistent profits.

Suffering goes hand in hand with making a profit, and it might be wise to reconsider what the cumulative benefits really matter at the end of the day.

Is Mining Right For You?

It is worth bringing up the topic of mining and briefly discussing whether this angle is the right angle for your Bitcoin trading strategy.

Mining is a whole different ball game and while winning may sound appealing, it should be noted that it requires a high level of computer skills and processing power.

The so-called platforms that you can set up for this mining often cost several thousand dollars, and this is not an aspect of Bitcoin trading that is suitable for those with limited investment capital and a lack. of processing power and know-how.

Go straight

With all of the above, you can decide that the best trading strategy for you if you are new to bitcoin trading is to make a direct investment in cryptocurrency.

This is a simple strategy that involves buying Bitcoin directly and then trading it with other cryptocurrencies, but it can allow you to cut yourself off and discover new ways to try and earn money. money in this dynamic market.

Could this be the year that proves that there is still a lot of racing in Bitcoin trading?