5 Reasons Not to Be Scared of Crypto Trading
Cryptocurrency is a topic that often elicits opinions that can be quite extreme at times. Most people come to know about crypto because of its strongest proponents, some of whom believe that it’s a magic bullet of sorts. There are also opinions from its most passionate detractors, who regard it as a bogeyman to global finance.
Knowing what the most widespread opinions on crypto are like, it’s understandable for a newcomer to get intimidated by the idea of crypto trading. But in truth, trading in crypto is not nearly as dangerous, scary, or difficult as it may seem. Like any form of investment, it should be studied carefully and regarded with a clear head.
Is your fear of crypto currently outweighing your curiosity on the topic? If so, here are five reasons not to be scared of crypto trading. These should dispel any unfounded claims about what crypto can and can’t do, thus helping you make an informed decision about whether or not to invest in it.
It’s More Straightforward Than You Think
Many think of cryptocurrency as inscrutable or too complicated for the likes of ordinary traders. But even if you don’t think you fit the bill of the typical tech genius or “crypto bro,” there may be something for you in the field of crypto trading.
The key principles of crypto trading aren’t as convoluted as you might assume. Moreover, it’s now easier than ever to find free crypto-related knowledge like crypto eBooks, crypto blogs, and crypto education platforms. You can use these resources to learn the basics about crypto assets, how to use crypto-related technologies like wallets, and how to determine the best crypto investment strategies for your situation. Before you know it, you’ll be as well-versed in the language and terminologies of crypto as your contemporaries are.
You Have Several Choices of Coin to Trade
Today’s crypto market is also more diverse than it was a few years ago, when it was exclusively dominated by currencies like Bitcoin (BTC) and Ethereum (ETH). Aside from these two popular tokens, there are now thousands of crypto coins that you can trade in.
Rather than fear this influx of new coins, you can celebrate how many choices you currently have. You aren’t limited to the most talked-about coins when it comes to choosing a crypto that fits your financial interests. For example, if you want to invest in a coin that has advanced security and anonymity features, you can explore a privacy coin like Monero (XMR) and keep coins in an XMR wallet.
There’s More to Cryptocurrency Than Scams and Security Breaches
It’s true that cryptocurrency has earned something of a reputation for being associated with scams, security breaches, and other forms of crime. But it isn’t fair to attribute these solely to the medium of crypto, as these events can also happen on channels for fiat currency.
It should also ease your mind to know that crypto privacy and security technologies are getting better by the day. If ever you decide to get into crypto trading, you can be assured of the safety of your assets as long as you trade using reputable platforms and apps.
You Can Determine Your Own Risk Appetite for Crypto
Just like when it comes to trading in stocks and real estate, there’s risk involved in trading cryptocurrency. But the risk is also quite different from that of conventional assets. First, new traders are right to be concerned about the speculative nature of cryptocurrency value. Second, it must be acknowledged that the cryptocurrency market can be volatile. At one point in the year, it can be bearish, or on the receiving end of consistent growth; at another point, it can turn bullish, or prone to underperforming for an extended period of time.
As a crypto trader, treat your crypto assets like you would treat your investments from other asset classes: be aware of your risk appetite and act accordingly. Never take on more risk than you’re capable of handling, and only trade in amounts that you can afford to lose. Remember that you are not completely helpless to the trends that govern the crypto market. Knowledge of how the market works, plus knowledge of your risk threshold, will be powerful weapons to take with you on your crypto journey.
There’s a Passionate and Helpful Community behind Crypto Trading
Lastly, newbies to crypto might assume that they’ll be trading among a hostile crowd. Perhaps you also have an impression of crypto traders as cutthroat rivals to your fortune, always sporting an “every man for himself” mentality.
But one of the biggest and most pleasant surprises that a new trader will uncover is the warmth and generosity of the crypto community. A lot of crypto enthusiasts are actually happy to share their knowledge and guide others through the ins and outs of trading. Try commenting on a crypto blog or engaging fellow traders in a crypto forum, and you’ll see for yourself how receptive your peers are. Joining the ever-growing crypto community will definitely make your trading experience more fun and less lonely.
In truth, there are fewer things to fear about today’s crypto trading scene and more things to get excited about. Give crypto trading a chance, and you could be rewarded for it in unprecedented ways.