Why crypto traders buy and sell cryptocurrencies ?
Why do people buy and sell cryptocurrencies?
Cryptocurrency is a buzzword in today’s digital era. Most people make money when they buy and sell cryptocurrencies for profits or losses due to lousy crypto trading strategies or decisions.
Most cryptocurrency newbies are confused about when to buy and sell cryptocurrencies. But the fact remains that cryptocurrency is of high volatility, unlike forex and stock trading. Even the expert still makes a loss on it. Still, applying the correct trading principle and mastering technical and fundamental analysis will minimize loss and make massive profits on your crypto trading.
Crypto traders buy when there is a dip and sell on profits when it rises. And there are two essential terms cryptocurrency newbies should understand, which are called bearish and bullish markets, which depend on market changes.
The bearish market occurs when there is a massive selloff by institutions and whales, which might be caused by government policy or a ban. The bear causes big panic in the market, especially for beginners who panic sell and thereby lose out on most of their portfolio. Still, intelligent and patient traders hold and bag more crypto tokens to their portfolios.
The bullish market is one of the most anticipated markets in the crypto market, when crypto tokens pump or rise in prices, giving up to 5- 10000% profits to crypto traders and investors.
Cryptocurrencies rise and drop from time to time – if you invested thousands at this very moment and have it back in millions in a couple of future years. There is also a possibility of losing the money you have invested, so make sure to support what you can lose. For instance, Bitcoin, one of the most popular cryptocurrencies in the world, has driven many investors and traders in the past years.
Many traders invest in this coin because it’s the top crypto of the millennium, and 4 – 5 because it is the most profitable. If you decide to invest in this industry, know the pros and cons.
Advantages of buying and selling cryptocurrencies
There are lots of advantages that present themselves when one is a crypto trader or investor. Most traders confess that it makes them save and earn, make more money profit within a short period, become their own boss, and several advantages that come with it. I highlighted a few of them below.
Easy Access- Cryptocurrency is available in public and can be used by everyone. Investors worldwide can easily access it because of the decentralized operation. Payment transactions have been made easy, while in a traditional payment system, a broker always adds fees for every transaction you make.
Private-With cryptocurrency, you don’t need to share your personal information or the details of every transaction between you 14 and the beneficiary. All the transactions are secured with the use of ‘Cryptography.’ Once a cryptocurrency transfer has been verified, it can’t be reversed or charge-back. This protects the users from fraud and hacking.
Lower Fees-Unlike when using a credit card, you need to pay interest; cryptocurrency charges will never be a problem. All you need to do is research the best wallet to use that matches the kind of cryptocurrency you are using. This can also be a significant advantage for travelers.
Mobile Payments- If you are worried about exposing all of your identification when purchasing online using your cards and bank accounts, well, cryptocurrency just made it suitable for you. You can easily make payments and buy from online stores without providing personal information through the internet or recipient; only your wallet address will be visible to them. You can do all of these transactions using your mobile phone.