Cryptocurrencies are one of the most fascinating topics of discussion around the world. The hype that crypto space has managed to create is simply unprecedented and has created huge interest in the masses.
Even after a decade since Bitcoin’s launch in 2009, the public at large is still quite skeptical about cryptocurrencies, and hence many either make wrong decisions while investing or don’t invest at all. In fact, the hype around electronic money makes it more complicated for people than it actually is.
Trading cryptocurrencies is an art, just like carving a stone or painting that masterpiece. It requires certain amounts of knowledge, observation, skill, and a lot of patience.
Before investing time and other resources in any art, one needs to decide what to expect and what not to expect out of it. And in this regard, crypto trading is no exception. So let’s find out just that.
What to expect before putting your bet?
- It will take a lot of time to understand the market. Cryptocurrencies are quite different from your traditional forex or equity trading. Without having learned the basics of crypto space, it will be quite difficult to understand market trends, which is absolutely essential for success. Hence, learning these basics will take some time to get into your brain.
- Overnight success is a rarity in crypto space too, unlike general perception. There are many rags-to-riches stories out there in the market, of people who invested money in Bitcoin and became super rich within a few months. Justin Sun, the founder of TRON, is one such example. However, stories of failure, though not popular, are far more in number. Just search for the 2018 bearish trend, and you will realize what this means.
- Cryptocurrency is a volatile market. Since it is based on a technology, which not even the regular investors understand completely, many end up judging it totally wrong. For this one needs to study the market trends regularly, which can be a daunting task initially.
What not to expect from crypto trading?
- Cryptocurrencies will not turn your hundreds into millions, not in a short span at least. A myth revolves around crypto trading, according to which buying Bitcoins will make you rich. Yes, the market had a big rally in 2017, but the following year was a disaster. Therefore, having unrealistic expectations will only demotivate you, which could, in fact, rob you of some success you could have with lesser expectations.
- Bitcoin is NOT the only successful cryptocurrency. As per a survey conducted earlier this year in Europe, over 70% of the respondents did not know much about cryptocurrencies, though most of them had heard about Bitcoin. True, Bitcoin is the biggest and most valued digital token, but it is not the only one. In the last few years, many altcoins have emerged successful, which have been stable, profitable, and even more usable than Bitcoins.
- Though some people think that crypto space is impeccable and cannot be hacked, the reality is, unfortunately, a bit different. There have been hacks on crypto exchanges and other platforms, which have caused losses running in hundreds of millions. Though the underlying blockchain tech is quite secure, cyber attacks have still been inflicted, and this begs investors to be extra cautious about their digital assets.