Let’s face it, we all find it hard to resist easy money. That’s why gambling is so prevalent online. And with the massive potential returns of cryptocurrency trading, many first-time traders have flocked to the exchanges.
But profiting from cryptocurrency trading is not as simple as most people find.
There’s Always a Winner and Loser
It’s impossible for everyone to profit from trading. When you profit, someone else at some point is going to make a loss. That’s unless the prices will rise forever, which they don’t.
The only way most people will profit is if the price continues to rise for a long time. But then at the end, someone will be left holding a coin that nobody wants to buy. Then in that case, the only option left to profit for the holder is from staking. So unless that’s the case, don’t have unrealistic expectations of making a fortune.
Besides being a competent trader, you might very well purchase a coin early. The coin might end up achieving mass adoption. In that case, you wont be the one left holding the bag, and you’ll likely profit.
But how do you know which coins to choose? That’s another story, for another article.
Traders Create Price Volatility
Fear and greed motivates the markets. It’s the cause of the wild ups and downs. Well that, and a lot of market manipulation.
And amongst it all, most people forget what cryptocurrencies are supposed to do. And that’s create a free and fair financial system. That’s the whole idea behind decentralization.
The problem with people who trade for profit is many deliberately manipulate the prices. This creates massive volatility, and makes cryptos less appealing to use as currency.
Traders manipulate crypto prices, which makes prices volatile. This makes cryptos much less-appealing as currencies.
Don’t Bite The Hand The Feeds You
Sure you can trade cryptos. There’s nothing wrong with this alone. But if you’re one of the people manipulating the price, you might be getting rich – at the expense of other people. So screw you.
Not only that, you’re also harming an industry that is supposed to promote freedom and equality.
But no matter how much you’re told this, there’s always someone willing to screw over people to get rich. I’ll leave you with one thought:
Necessity is the mother of invention. Stable coins will diminish the profits of day-traders, and promote mass-adoption. So trade away while you can. Your days are numbered.