As we navigate the ever-evolving landscape of finance, cryptocurrencies have emerged as a compelling avenue for potential wealth creation. Bitcoin, in particular, has garnered widespread attention due to its decentralized nature, imperviousness to government oversight, and robust security features.
Also, Bitcoin has provided high returns on investments, and many people have earned a lot of money by investing in Bitcoins.
How Much Money Can You Earn from Crypto Trading In 2024
You can make profits as much as four times the amount of money invested in 2024, but it all depends on the type of currency you decide to invest in. A report by a renowned and recognized magazine says that the value of a single Bitcoin jumped between 2022 and 2024, from less than twenty thousand dollars to above forty thousand dollars.
In other words, its value more than doubled within a year. And in case, the same rate of appreciation continues, one can expect that the value of a single Bitcoin will easily reach over eighty thousand dollars by the end of 2024.
For Ethereum, another popular currency, early estimates suggest that the value may reach above three thousand and three hundred dollars in the next year from the present value of little more than two thousand dollars in 2024. So, you can make only a marginal profit of around a thousand dollars in a year through this currency.
Good Practices of Wealth Accumulation And Cryptos
It is possible to amass a lot of money by trading in blockchain-based assets. However, buying and selling blockchain-based assets generally carries many risks.
For instance, from 2010 to 2022 (during almost a decade), the currency’s value has fluctuated by more than a hundredfold. So, amassing wealth by trading in blockchain-based currencies is not as easy as one might think.
Although there is no surety that crypto trading will be profitable, one certainly has the scope to maximize one’s profits by following some good practices.
Invest Using Copy Trading App
Trading in any asset, whether stocks or cryptos, derivates, etc., requires thorough knowledge and detailed market analysis. Most people must go through a long learning curve and commit many mistakes before they can eventually trade like professionals. Most inexperienced traders suffer heavy losses, eventually losing interest in trading.
Copy trading is the solution to every woe that a new crypto trader may have. Copy trading allows a trader to copy the bookings of experienced plays.
Experienced players have widespread knowledge and know the tricks of the game. So, all you have to do is opt for an app that allows copy trading. Then, you must select the profiles that you want to copy from, and their booking will automatically be replicated in your account.
However, as a new player, you may not want to expose yourself to big risks, and in such cases, you can set up a limit in your account known as stop-loss trading. With features like stop-loss trading, the booking will stop if the loss value exceeds a certain threshold that you have set.
Research Well Before Investing
Trading profitably becomes easy when thoroughly researching the market and figuring out the common loopholes. Study the market well enough to know which cryptocurrencies have a low level of volatility.
Also, it is best to know about those currencies that will be in great demand in the future. For instance, Bitcoins have a lot of acceptability.
Diversifying always helps prevent losses. Diversifying means buying several different assets or cryptos, in this case, Bitcoin, Ethereum, Dogecoin, and so on, such that if one asset takes a hit, you can still make profits.
Celebrating Ethereum’s 8th birthday not only adds a nostalgic touch but also offers an opportune moment to reflect on its past successes and anticipate its promising future.
It is best to split your money between one steady asset (sure shot profit) and two risky assets (which may give huge profits or result in losses).
Have A Trading Strategy
It is always advisable to have a solid trading strategy if you wish to make the most out of crypto trading. If you are new to the trading world, it is best to start with a small sum of money. It is true that the margin profit on a small sum will be less, but so will the losses.
Also, it is best to set aside a definite corpus for trading. People tend to keep stalking greater sums of money if they lose in the hope of a recovery. However, this is a foolish proposition, and setting aside a definite sum for trading is prudent.
It is also very important not to be emotional when trading in any asset. Only if you are cool and stick to a prefixed strategy will you then make a profit.
Focus On Trading Volumes And Liquidity
Trading volumes mean the number or amount of cryptos that you buy or sell. Often, buying in large volumes may give better returns; however, depending on the volatility, it might even lead to a heavy loss. So, the trade volume is an important consideration in the crypto market.
Also, a factor known as the average daily trading volume is considered by big plays with a high value, depicting a great demand and being a worthy investment.
Apart from the trade volume, the liquidity of crypto also determines its value. Liquidity means the ability of one form of crypto to be exchanged either for another type of crypto or for any fiat currency. The more liquid the asset, the better it is as an investment option. So, try investing in a relatively liquid crypto.
As it has been discussed earlier there is no guarantee that buying or selling a particular crypto at any given time will result in a profit. So, it is best to be cautious when investing. If a person is new to the field, it is best to go for an app that allows for copy trading from experts.
Apart from this, it is also advisable to be well aware of the volatility and the market sentiments before making any move. Moreover, preventing major losses is also equally important, so try going for stop-loss orders to prevent any major loss in the crypto market.