Just read the question again! OF COURSE, they do! Crypto traders do make money. Why are they active on this market daily if they didn’t?
In this article we answer your doubts about whether crypto traders make money and how much crypto traders make.
But we must admit that this question is not as straightforward as it might seem. While there are undoubtedly individuals who have achieved exceptional success in cryptocurrency trading, the path to financial gains is filled with risks and challenges.
The decentralized nature of the crypto market, with its rapid price fluctuations and unpredictable trends, presents a double-edged sword for traders.
On the one hand, it offers the potential for explosive returns, but on the other, it also harbors the risk of substantial losses.
Let’s get familiar with how much money traders regularly make in this market.
What Percentage of Crypto Traders Make Money?
If you ask google this question, you will be disappointed! It reports that only 5% of traders can make money, 5% break even, and the rest, 90%, are losing all their money in the crypto trades.
Even though determining the exact percentage of crypto traders who make money is challenging, various surveys and studies have provided insights into the overall profitability of crypto traders.
A 2023 survey by LendingTree found that 38% of cryptocurrency investors reported losing money, while 28% reported making a profit.
The remaining 13% claimed to have broken even. These figures suggest that a significant portion of crypto traders, nearly half, may experience losses.
You can read the complete article at: lendingtree
Another study by Forbes Advisor UK in 2023 indicated that only 57% of crypto investors made money in the previous year. The remaining 43% either lost money or broke even, highlighting the volatile nature of the crypto market.
It’s important to note that:
These statistics are based on self-reported data and may not accurately reflect crypto traders’ true profit and loss distribution.
Additionally, the success rate may vary depending on factors such as:
- Trading experience
- Risk tolerance
- Investment strategy
While there are undoubtedly money-maker crypto traders who have earned considerable gains, the overall profitability of crypto trading is uncertain.
All traders must conduct thorough research, adopt sound risk management practices, and only invest what they can afford to lose to mitigate the loss.
How Much Crypto Traders Make?
While tales of overnight millionaires might capture the imagination, a crucial question remains: How much can crypto traders realistically expect to earn?
An average and experienced crypto trader with a starting investment of $5,000 to $10,000 can earn between $40 and $80 daily by engaging in strategic trades, typically three to four times daily for 2-3 hours. This is your answer to how much crypto traders make a day.
For those who dedicate more time and effort, devoting 5-6 hours to full-time trading, the potential earnings can soar to $100 to $180 per day.
This highlights the earning potential of crypto trading. Still, it’s important to note that these figures are based on experienced traders who thoroughly understand market trends, technical indicators, and price action.
Continuous learning and adaptation are crucial to stay ahead of the crypto market and make revenue.
How Do Crypto Traders Make Money?
To answer how crypto traders make money, crypto traders can make money through various strategies that primarily involve buying and selling cryptocurrencies at opportune moments to profit from price fluctuations.
Here you can find some of the most common methods crypto traders use to get money:
1. Day Trading
The first method through which the traders make money is day trading. Day traders aim to capture short-term price movements by buying and selling cryptocurrencies within the same day or even within hours. They quickly analyze market trends, news, and technical indicators to identify potential gains and exit points.
2. Position Trading
Position traders adopt a longer-term approach, holding their positions for days, weeks, or months. They analyze fundamental factors like blockchain technology, project development, and market adoption to identify cryptocurrencies with the potential for significant growth.
3. Staking
Staking, one of the most common methods to make money for traders, involves locking up cryptocurrencies in a designated wallet to support a blockchain network and earn rewards in the form of additional cryptocurrency. Traders can benefit from the possibility of passive income for long-term holders.
4. Yield Farming
Yield farming involves participating in Decentralized Finance (DeFi) platforms to earn interest on cryptocurrency holdings. Traders deposit their cryptocurrencies into liquidity pools or lending protocols and earn returns based on market conditions.
5. Play-to-Earn Games
The rise of Play-to-Earn (P2E) games has revolutionized the trading methods and gaming landscape, introducing a new paradigm where players can earn cryptocurrency rewards while engaging in their favorite pastimes.
These games encourage the players to participate by providing them with opportunities to acquire in-game assets, such as NFTs or virtual currencies, which can be traded or sold on dedicated marketplaces.
Crypto traders can use the potential of P2E games by acquiring these in-game assets, anticipating market trends, and making money.
6. Derivative Trading
Derivatives, such as futures contracts and options, allow traders to speculate on the future price movements of cryptocurrencies without actually owning them. This strategy can be highly leveraged and offers greater exposure to market fluctuations.
7. Mining
Cryptocurrency mining, verifying and adding transaction records to a blockchain, offers crypto traders an acceptable income.
Using specialized hardware or cloud-based mining platforms, miners contribute computational power to secure the network and receive rewards from newly minted cryptocurrencies.
The mining profitability depends on various factors, including the type of cryptocurrency being mined, the miner’s hash rate (computing power), and the current market price of the cryptocurrency.
8. Cryptocurrency Consulting
Experienced crypto traders can offer their expertise to individuals or businesses seeking guidance on cryptocurrency investment, trading, or DeFi strategies.
9. Holding
Holding cryptocurrencies can be profitable for traders to make money and have a passive income.
By implementing long-term price appreciation, leveraging staking rewards, delving into DeFi yield farming, capitalizing on asset appreciation, seizing strategic trading opportunities, diversifying their portfolios, funding future investments, and earning passive income through airdrops, traders can make a good amount of money for living.
Take the next step by reading our detailed guide on “Is crypto trading worth it?“.
In The End
Remember, crypto trading is not a get-rich-quick scheme. It demands dedication, perseverance, and a willingness to learn from mistakes.
Overall, giving the exact number of the income of the traders is not accurate. You will not know these statistics exactly, and it is because of the instability of the market.
But you got familiar with the ways that readers use to make money. If you know any other ways of How Crypto Traders Make Money, please mention them in the section below, as we only provided some.
Now that you know the answer to “Do Crypto Traders Make Money?” do you like to start trading and making money?