Is trading cryptocurrency worth it? It is important to learn about the potential risks and rewards of crypto trading before you start investing. You have to investigate how much you can earn trading cryptocurrency. What are the potential and drawbacks?
Can you afford the loss if it happens? Or can you not be so proud of yourself and lose control if you made a lot of fortune?
After estimating the crypto growth after the bitcoin halved, most people are thinking about whether trading crypto is worth it and whether they should start investing and trading.
But you should not just dive into something just because of the rumors and estimates. You have to know the reality and psychology of the market. Then, if you find yourself capable, start the crypto journey!
In this guidance, we want to answer that you can make money from crypto trading. And if it is worth it or not. Stay with us till the end to get all of your answers about crypto trading and its worth.
Can Crypto Trading Make You Rich?
If you are looking at crypto trading as a money-generating method, you better let it go and find another money-making job! No one can assure you whether you can get rich by cryptocurrency trading and being in this market.
There are so many factors that you need to consider before thinking about getting rich by crypto trading. Let us clarify these factors.
What Are the Factors to Consider Before Investing in Cryptocurrencies?
- Asset Allocation: Before answering can you make money with crypto trading, at first you have to decide how much of your investment portfolio you want to allocate to cryptocurrencies based on your risk tolerance, financial goals, and timeframe.
- In simple words, look at your pocket and calculate if you have enough for investing, and losing it won’t make a huge impact on your life!
- Thorough Research: Before investing in any cryptocurrency, conduct thorough research on its whitepaper, technology, use case, and team. Avoid investing based on hype or fear of missing out.
Now that you are determined to start trading cryptocurrencies, you have to know how many investing options we have to decide which one is suitable for you based on your portfolio.
What Are the Crypto Investment Options?
- Direct Purchase: Buy the cryptocurrency directly on a crypto exchange or broker.
- Digital Wallet: Store your cryptocurrency in a secure digital wallet.
- Exchange Traded Funds (ETFs): Invest in ETFs that track the performance of cryptocurrencies.
- Asset Managers: Utilize asset managers like hedge funds or mutual funds to invest in cryptocurrencies.
- Proxy Investment: Buy stocks of crypto exchanges or companies involved in blockchain technology or supply the sector.
Knowing all this information, then you have to measure them accurately; it would be great if you ask for guidance from professionals in this industry.
Weigh Your Options:
- Consider the pros and cons of each investment option.
- Consult a financial advisor for personalized guidance.
- Make informed decisions based on your risk tolerance, financial goals, and investment horizon.
Now a question pops in your mind and that is how much can you make trading crypto? You are not patient enough to wait for the process step by step, and you want to get your answer about whether trading crypto makes you rich and if it is worth it. Let’s go to the next section to answer them.
How Much Can You Earn from Crypto Trading?
If there were an exact number, I would be really happy to share it with you guys! But you all know it is not possible to give numbers. The amount of money you are going to make depends on your activity.
At first, it depends if you are trading or investing. Which means you have chosen short-term strategies or long-term ones!
So, you know that to answer this question:
- Your chosen strategy matters,
- Your experience matters,
- And also, the market condition matters too!
No one tells you, but you also need a bit of luck in trading cryptocurrency! So, if you have all the packages, start it now!
As ZipRecruiter reported, the average annual salary for a crypto trader in the United States is around $96,774.
Cryptocurrency trading can profit from daily returns of around 2-5%, with the average being around $100 per day. However, there’s also a chance for greater gains (up to 20%) or losses (up to 3-4%). Look at the table below:
Trader Type | Monthly Earnings |
Beginner | $100 |
Experienced | $5000 |
Professional | $100,000 |
NO GUARANTEES!
If you want to know if you can make money on crypto trading, it is better to take a look at the benefits and disadvantages of this market, and then you can decide for yourself.
What are the Benefits of Trading Crypto & Mitigating the Risks?
To see how much you can make from crypto trading and estimate the number, it is better to take a look at the pros and cons of the crypto market. As you know, cryptocurrency is getting more popular with investors worldwide.
With technological advancement and industrialization, digital currencies like Bitcoin are becoming more widely accepted. Cryptocurrency makes it easy to send money without going through banks or other financial institutions, which can be counted as the first benefit!
1. Protection Against Inflation
Since central governments do not control cryptocurrency and have a restricted supply, it can help shield against inflation.
2. Faster & Less Costly Transactions
Cryptocurrency transactions are processed much quicker and can be completed with minimal or no fees when compared to traditional methods.
3. Accessibility
Anybody with a computer or smartphone can use cryptocurrency, and there is no need for identification verification or credit checks.
4. Transparency
All cryptocurrency transactions are publicly viewable on the blockchain, making the system more transparent and accountable.
5. Decentralization
Cryptocurrency is not controlled by any central authority, which can make it more secure and transparent.
These are only some of the most important advantages of the cryptocurrency.
In spite of its numerous benefits, crypto also comes with certain drawbacks, such as high volatility, susceptibility to fraud, regulatory uncertainty, excessive energy consumption, limited acceptance, technological complexity, lack of consumer protection, and a developing legal framework.
We hope all this information was useful for you to guess if trading crypto is worth it. Let’s have a conclusion for the topic.
Interested in related content? Our post on “is crypto anonymous?” will offer additional insights.
Conclusion Remarks
The choice to engage in cryptocurrency trading should not be made carelessly. One cannot decide if trading cryptocurrency is worth it or not only based on their senses!
It is critical to undertake extensive research, determine your risk tolerance, and comprehend the possible benefits and risks as well.
If you’re thinking about getting into crypto trading, start with a small investment and progressively expand it as you acquire expertise.
All traders need to know that success in cryptocurrency trading involves patience, discipline, and dedication to ongoing study.
Please share your ideas and experiences with cryptocurrency trading in the comments below. Have you been successful with cryptocurrency trading? How much can you make from crypto trading?