Trading cryptocurrency can be stressful, emotional, and addictive. Despite this, many people choose to trade cryptocurrency on a daily basis looking for the ultimate underrated gem and hoping that it one day shoots to the moon.
Whilst this is unlikely for many cryptocurrencies, it still doesn’t stop people buying low and trying to sell high. Although there can be plenty of pain in trading cryptocurrency, here are three benefits you might gain.
A deep knowledge of the market and your emotions
Unless you get extremely lucky, you are more than likely going to lose money trading cryptocurrency without doing sufficient research. This means that you need to have a basic understanding of both the underlying technology of cryptocurrencies as well as other factors.
Through trading cryptocurrencies, you can gain a wide knowledge of the market, understand the differences between coins, and learn their price history.
Before investing in cryptocurrencies, it is essential to gain as much knowledge and complete as much research as possible. Use a wide variety of sources and see where they agree and disagree.
Even when you think you have completed enough research and taken the plunge into cryptocurrencies, you will probably soon realise that it isn’t enough. Fortunately, cryptocurrencies are always evolving and adapting. This means that you can never stop learning, and as the industry continues to evolve, there will be more and more material available.
Trading cryptocurrency also allows you to learn about your emotions and how to control them. If you are unable to control your emotions, you may make poor decisions. Learning how to control your FOMO or when to sell your bags – however difficult that might be – will teach you a lot about the emotions of trading.
Now this is a controversial benefit to trading cryptocurrencies as it won’t happen for everyone. There are numerous stories on the internet of people who have ploughed their life savings into cryptocurrencies only for the price to dramatically crash. If this happens to you, then earning money will certainly not be a benefit of trading cryptocurrency!
However, if you are wise, cautious, and perhaps a little bit lucky with the timing, then you could find yourself with more money than when you began.
In today’s world of stagnant wages, a little extra income is always going to be positive. It may perhaps take the pressure off some of the bills piling up, or you may even be able to treat yourself to that nice holiday you have been eyeing up.
There is little doubt that the reason most people invest in cryptocurrencies is not due to the technology, but because they think it is an easy way to make some money. So long as you are aware of the risks beforehand and you never invest more than you are willing to lose, then you might find yourself with some extra pocket money.
Trading cryptocurrency can be a fun hobby
Many people who trade cryptocurrencies can find the whole process extremely stressful. However, before you begin trading cryptocurrencies, you need to be aware of what you yourself want to gain from it.
Trading cryptocurrency can be very similar to going to the casino. You know there is a chance that you might win big, but you also know that the house usually wins. If you take the logic that you are only going to trade cryptocurrencies for fun, then it is possible to make it a hobby in your spare time.
There is a diverse community in cryptocurrency. Twitter is often where most people hang out, and whilst it can be extremely confusing with many inside jokes, there are also some very funny people there. There are also numerous subreddits and slightly hyperactive coin communities that you can join. Beware though that many coin communities do show cult-like behaviour that can be off-putting.
Obviously, there is never going to be a guarantee that trading cryptocurrencies is going to be fun. There are many variables – you yourself, the current market, and the depth of your research can all be factors. But if you go in with a gambling mentality and don’t bet too much, then it is certainly possible to enjoy it. Just don’t get too addicted.
You may trade cryptocurrencies and find that it hasn’t benefitted your life in any way whatsoever. You may lose lots of money and not enjoy the stress. Trading cryptocurrencies is certainly not for everyone!
However, when done correctly, and if the market favours you, then you can learn a lot and possibly earn a little money.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.