What to choose – currencies or cryptocurrencies? Time to take stock
Stock trading is quite strongly influenced by the opinion of the majority, that is, crowd pressure.
Moreover, this statement concerns not only the choice of the direction of transactions, but also the choice of the asset for which these transactions will be opened.
Therefore, as soon as they began to add cryptocurrency pairs to the assets available for trading, many traders began to use them in their work.
And this is not surprising, because trading cryptocurrency is fashionable; every day we hear stories about how someone made fabulous money on Bitcoin.
But now time has passed and we can already sum up how profitable and comfortable it is to trade cryptocurrencies and whether they are really more profitable than ordinary currency pairs .
What does the situation look like now?
The size of the spread – here the classic currency pairs still remain the leaders, for example, if you open the most liquid currency pair EURUSD, you will pay 40-50 dollars in spread. While a transaction of the same volume on Bitcoin will cost $140.
In principle, not so much, even if you use scalping strategies that involve frequently opening new positions. And if the commission is reduced in the future, then Bitcoin will be able to compete with the most popular currency pair.
Volatility is not the last indicator if you want to make quick money. For cryptocurrencies it is simply off the charts.
If you have tried to trade conventional currencies and cryptocurrencies, you can appreciate this moment. On the one hand, it’s unusual and scary how quickly the trend is moving, but on the other hand, you can earn money much faster.
It takes some time to adapt to the dynamics of the cryptocurrency market.
Automated trading - unfortunately, there is still a fairly small selection of advisors designed for trading cryptocurrencies, and the available multi-currency advisors do not always trade effectively.
It is clear that the situation will change over time, but for now you have to be content with manual trading using indicators, fortunately, the latter works quite adequately on cryptocurrencies.
Profitability – everything is quite interesting here; on the one hand, we can say that trading cryptocurrencies is much more profitable than other assets.
Even without using leverage, you can earn hundreds of percent here if you choose the right asset and guess the direction of the trend . But on the other hand, the losses will be quite significant if you open a trade against the trend.
At the same time, by promptly closing unprofitable trades at the first signs of a trend reversal, you can avoid significant losses.
In summary, we can say that the only significant difference between trading standard currency pairs and cryptocurrency assets is the speed of the trend. Cryptocurrencies have enormous potential for profitability, but for this you need to competently manage open transactions.