We have talked a lot about cryptocurrencies and crypto trading on our website a lot. This is mostly because there is still a lot of things to explore in the field. But most importantly, is crypto trading still a viable and profitable venture in 2023?
While this is an interesting question, the answer isn’t as straightforward as the question. Blockchain has a lot going for it when it comes to potential, but we all know potentials don’t pay the bill. But also, blockchain isn’t the same as crypto trading either.
Both crypto trading and investing in cryptocurrencies have withstood the test of time. However, although we’ve seen record-breaking ICOs and raising billions of US Dollars, is crypto trading still profitable today?
What is crypto trading?
Crypto trading involves buying, selling, and trading cryptocurrencies. Given the fact that many new coins emerge every day, it is virtually impossible for the average person to keep track of them all. So, one has to select which cryptocurrencies will be profitable for them in 2023 and concentrate on trading them.
This generally works by buying a certain crypto coin or asset while it’s low and waiting for it to rise before selling them off. Because cryptocurrencies are very volatile, you can always expect the price of the coin to move. It’s in leveraging this fluctuation that one trades cryptocurrency. Whether it’s still a profitable business in 2023 is another question entirely.
Is crypto trading still profitable? Why?
Many and varied cryptocurrency trading opportunities have made cryptocurrency trading so popular even in 2023. There are new kinds of cryptocurrencies, new blockchain technologies, and the emergence of initial exchange offerings or IEOs. These have all made it possible for crypto trading to remain viable and profitable even in 2023.
IEOs enable investors to acquire a cryptocurrency coin through an initial offering. The growth of this trend is bound to create another avenue for profitability in the crypto ecosystem in 2023. IEOs can provide a way for traders to make more money off the rise in the value of cryptocurrency.
Some new coins like NEO, Qtum, and many others are successfully developing blockchain technology, a good example is the Bitcoin Cash fork which created a new chain called bitcoin cash. Many people also think that we will see a lot of new cryptocurrencies emerge as the interest in cryptocurrency continues to grow.
Moreover, this opportunity is not limited to just one or two cryptocurrencies but all of them which might create more value in real-time. Thus, helping investors derive more profit from this volatile market by trading the most profitable altcoins with high volatility.
Cryptocurrency trading platforms have also improved over the years. With exchanges like Binance and Luno getting better, and new ones like immediateconnect popping up here and there with new features that help make crypto trading profitable.
There are many cryptocurrency exchanges available today, but not all of them have a good reputation. So one has to be careful and select the most reliable exchange for trading. Also, one should make sure that the currency being traded is supported by the given platform.
For example, Binance Exchange supports both crypto trading and IEOs, but on Huobi exchange supports just crypto trading. Some new coins are not supported by some exchange platforms. So, it is important to ensure that the cryptocurrency being traded in is also supported by the platform or else it will be a total waste of time and money.
Cryto Trading drawbacks
Crypto trading has some drawbacks too. One of the most recurring issues that is discouraging new traders to enter this market is the massive volatility in prices in cryptocurrency markets. The fact that cryptocurrencies are highly volatile is actually one of the major reasons why crypto trading still remains profitable today.
Throughout 2022 and beginning of 2023, there has been a bear in the crypto market meaning that crypto rates have been falling. This is one of the effects of its volatility as you cant predict when there will be a bull market.
It’s true that the price of Bitcoin and other currencies depends on a lot more than just supply and demand such as the number of miners, hash rate, total circulating supply, and many other factors. But it’s these highly volatile cryptocurrencies that generate eye-popping returns for investors.
Volatility can also be a curse. With the rise in the price of cryptocurrencies, we have also seen its fall. And this volatility can really scare a lot of investors, especially new ones who are just getting into this field.
But if they’re willing to put in money and time then they may be able to reap some pretty impressive returns. Cryptocurrency trading is not for the faint-hearted.
What about NFTs
The emergence and acceptance of non-fungible tokens (NFTs) like CryptoKitties and Decentraland has also created a lot of opportunities for traders. These are the digital assets that are scarce but can be duplicated.
This allows traders to profit off the rise in the price of cryptocurrencies through trading these digital assets.
Moreover, it’s the combination of these two factors which make them a lucrative choice for traders in 2023. The adoption of NFTs has caused cryptocurrency prices to skyrocket as more people realize its potential use cases.
This will always be an opportunity for traders to make money with cryptocurrency because there is always room for growth as more people understand it better and as more businesses start using it.
The potential of cryptocurrency trading is still promising as more and more people begin to understand what it is and how they can use it. This will continue to create opportunities for traders who have the right trading strategies that can capitalize on this opportunity.
Crypto trading is still profitable today, but to profit from it you have to develop the right strategies. In 2023 and beyond, there will be more opportunities for traders to profit in this market.
We need all the help we can get as new technologies, new ecosystems and new kinds of cryptocurrencies emerge. As I have said earlier too, most traders will have a better chance at succeeding in cryptocurrency trading if they know what they’re doing and if they know the trends surrounding cryptocurrencies.
Therefore, we need to be aware of the trends, regulations and changes surrounding cryptocurrencies. Understanding how it works and how to profit from it is the key to success in this market.