Everything in this world has its advantages and disadvantages. Inevitably, we arrive at the conclusion that nothing absolutely perfect exists. As with any other venture, trading has its risks, too. In this article, I will try to explain to you the advantages and disadvantages of Cryptocurrency trading.
You can manage your time as you wish
The good thing about being a trader is that you can also do other activities in parallel to it. Let’s say you are keen on something that is not directly related to trading. Well, that’s wonderful because you can easily make some time for that passion of yours. You can devote 10 hours daily for trading, but you can also devote only one. The people who trade decide how much time to spend on all things that matter to them like trading, hobbies, family time, or sports.
Your office can be everywhere
There are a lot of problems with typical workplaces. Many people are not happy with the fact that they are always at work and miss precious time with their family and friends. This problem doesn’t concern traders because they can choose where to work from; they can work from home, or on the each, or even in a peaceful village, all that they need is an internet connection.
You can begin with a low investment
Many people believe that in order to make money they should have a lot of savings beforehand. Yet it is important to note that knowledge is far more valuable than money because without the right knowledge you will quickly lose even the most solid starting capital.
You know exactly how much you can lose
Something called Stop Loss functions like brakes or, in other words, when you make a deal and the price starts to move in the opposite direction and then reaches a specific value you have chosen, the order is closed automatically. This is very useful because you know exactly how much you risk losing at the beginning of each deal.
You need practice and knowledge
It is extremely hard to generate profit without having the necessary knowledge and experience of the market. Most people start trading with expectations of huge profit and the get-rich-quick idea in their minds, yet they do not understand how the market works. What happens next? They lose all their money and blame the market for that. If you want to reach profitable deals, you need to invest time in reading and practice in order to understand the market, so that doesn’t happen to you, too.
You cannot always be right
Every trader, even the richest and the most experienced ones have had and will have lost deals. Lost deals are an inseparable part of this profession. The aim of every trader is to have more profitable deals than losing ones. With the right strategy, you can still earn substantial profit even if your losses are more than the good deals. The key to success is to realize that you cannot always be right and to be cold-blooded enough to accept any loss that comes into your life.
You should be mentally strong and disciplined
Being mentally strong and disciplined are qualities that the most successful traders possess. Imagine that you have staked a large part of your capital in a deal and it starts moving in the losing direction. You must be strong enough mentally to take the necessary action. Most traders in fear of losing everything pull out of the deal at a loss. Unfortunately, in just a few hours they see that the price has actually begun to move for their benefit, and become frustrated that they are at a loss. That is exactly why, if you want to be successful, you need to build the necessary psyche and discipline, which is easy for some people and difficult for others, but it is in no way impossible.
! Disclaimer: This is not financial advice, just the author’s views regarding the subject matter. This is for reference and informational purposes.