Cryptocurrency is gaining more and more exposure ever since the first crypto coin, Bitcoin, was inaugurated in 2009. It has been almost 13 years since the launch of cryptocurrency, and the total number of investors and traders is thriving every year.
There are numerous crypto trading and exchange platforms that list several cryptocurrencies for buyers and sellers. However, some crypto enthusiasts are hesitant to get into crypto trading as they feel it is not the right time to get started.
Why You Should Start Cryptocurrency Trading In 2024
Here we have listed all the reasons why you have to invest in crypto coins this year.
Cryptocurrency volatility
One primary reason people show interest in crypto trading is to take advantage of its volatile nature to get more profits. Without a doubt, the crypto market is highly unstable, where there is a chance to get more revenue within a short period. For instance, the all-time high of one Bitcoin is $67,598, and the current value is $20,128.20 (June 20, 2024).
The value of the crypto coin will rise and fall quickly, even in a single day. So, the abrupt intraday movements can give traders plenty of opportunities to go long and short, but they also carry a higher risk. Thus, before you dive into the cryptocurrency market, make sure to devise a risk management strategy. You can check the prices of various crypto coins by visiting ADVFN.
Deflationary investments
People invest in cryptocurrencies with the intention of a long-term and reliable store of value. Many crypto coins, different from traditional money, retain a finite supply controlled by mathematical algorithms. Thus, it is impossible for any government organization or political authority to decrease their value with inflation. As a result, they are deflationary assets, meaning their buying power boosts with time.
The entire supply of each cryptocurrency is limited by an algorithm. Furthermore, because of the cryptographic structure of crypto coins, a government entity cannot tax or seize tokens without the owner’s consent. Due to this trait, people who are concerned about hyperinflationary occurrences, bank downfalls, or other crisis scenarios will find cryptocurrency appealing.
Transformational technology
The blockchain technology that underpins Bitcoin and various altcoins is lauded as a possible adaptation for different industries, including healthcare, shipping, banking, and more. Allocated ledgers can enable previously unimaginable sorts of economic action by discarding intermediaries and trustworthy actors from computer systems.
Due to this potential, digital currencies have become an appealing investment for those who acknowledge future digital growth. Trading in crypto is an opportunity for those investors to achieve massive returns while also helping the future of technology.
24/7 accessible market
Since there is an absence of centralized governance in the cryptocurrency market, it is normally open for trading 24/7. The crypto transactions will take place on cryptocurrency exchanges across the world. Sometimes, there may be an outage duration while the market adjusts the infrastructure improvements.
Crypto trading is very flexible because it is available 24/7, allowing traders to conduct business any time. In addition, several altcoins are currently on the rise, which helps traders to get more profits and make a diversified portfolio.
Total control over your assets
Crypto trading’s decentralized structure allows you to own and keep your assets without the intervention of a third party. The price of the digital currency is not established by the exchange or a mediator, allowing traders to profit from the current exchange rates to the fullest extent possible.
Ideal for short and long-term investments
When you acquire a crypto coin, you are investing in it with the hopes that its value will rise over time. When trading on the value of a cryptocurrency, you can profit from rising and falling markets. It is ideal for short-term strategies.
For instance, suppose you have planned to start a short CFD bet on the value of crypto because you anticipate that the market will collapse. Your trade will get earnings if you are correct and the value of the cryptocurrency has declined. If the value of the digital currency has surged, you will lose money.
Enhanced liquidity
Liquidity refers to how rapidly and effortlessly crypto may be exchanged into cash without causing a price drop in the market. Liquidity is vital since it allows for decent pricing, quicker transactions, and accurate technical analysis.
As transactions are scattered across numerous exchange platforms, the cryptocurrency market is considered illiquid generally. It implies that even minor trades can significantly impact market values. It is one of the reasons why crypto markets are so unstable.
What You Need To Know About Thefts and Losses Before Starting Crypto Trading
One of the most striking and distinctive features of cryptocurrencies is that it also comes with a major risk. Due to the lack of a central mediator in the crypto market, the investor is responsible for carefully reserving the cryptographic keys that govern their blockchain address.
Investors interested in analyzing the digital currency field must be aware that a variety of specific security precautions are required. Even those safeguards may not be enough to protect their holdings from hackers who are continually improving their hacking methods.
Hackers had stolen billions worth of tokens from crypto investors, exchanges, and wallet software, making theft one of the most typical hazards to crypto users. Furthermore, a variety of techniques exist to deceive investors into handing over their tokens, including doubling frauds, market manipulation, social engineering, and artificial ICOs.
However, there is another threat: the traders themselves. The majority of digital wallets do not allow you to reset your password if you forget the passcode. Because of forgotten codes or misplaced devices, users lost hundreds to millions of crypto investments.
Bottom Line
Investing and trading in cryptocurrency gives plenty of chances for users to gain profits from their initial investment. However, the highly volatile nature makes it a bit risky, which is why users have to be cautious and make a good trading strategy.
