It is easy to wonder, is crypto trading profitable? The answer to this question depends on how you approach the business. You can either use a simple, day trading strategy or use a more sophisticated swing trading strategy. Day trading involves purchasing and selling cryptocurrencies multiple times throughout the day, trying to make a profit off of short-term price fluctuations. While day trading has a great deal of potential profit, it is not without risk.
Although there are numerous cryptocurrency traders, not all of them can be profitable. Even professional traders can lose money in the crypto market. A recent hack resulted in the loss of $500 million worth of digital currency. MtGox, a major exchange that handled 80% of Bitcoin transactions, was also compromised. In this case, 850,000 bitcoins disappeared from the vaults. The success of any cryptocurrency trader is dependent on the amount of capital he or she risked, and the tools he/she uses to trade.
Another way to make money with cryptocurrency is to buy it directly on an exchange. This method is risky, as exchanges are unregulated and are sometimes hacked. Moreover, you have to pay exchange fees when buying and selling, so it is not a good idea to purchase cryptocurrency directly. It’s also better to use a wallet. You should store your cryptocurrency in a secure place, as it can be stolen by the wrong hands.
