One thing that most investors know is that cryptos are volatile. The stories about people making millions during a surge make all the headlines, but stories about people losing everything sometimes make the headlines. Additionally, there is no central body or physical asset the risk is enormous. Still, due to their volatile nature, people have made fortunes in the crypto markets. If you are smart and can find a pattern in the price movement, you can make a fortune here.
SMSF Bitcoin technology can potentially transform the entire financial system of the world. Cryptocurrencies are still relatively new and are not dominated by institutional investors. A good amount of money can be made by swing trading, which is why cryptocurrencies are the most profitable market to trade. Let us talk about these points in detail:
- Crypto is a free market- Many crypto exchanges operate in jurisdictions with little to no regulation, meaning giant whales can do insider trading, pump and dumps, and all sorts of non-ethical stuff. At the same time, the profit opportunities in a free market are enormous as there is greater volatility so that traders can take advantage of price inefficiencies, and the market runs 24/7.
- Quick settlement and arbitrage- When you buy traditional stocks, there is a settlement delay. The transaction date or the payment can often take up to three days. This delay is caused by inefficiencies and is usually processed through centralized companies such as the Depository Trust. Many institutions have found a way to exploit delayed settlement times through naked short selling, which can be bad for small traders.
- Transactions are Fast- Blockchain technology is speedy regarding the settlement time to just a few seconds. There is no single crypto exchange that dominates the entire market. There are billions of supercomputers that make whole transactions smooth. Fast settlement helps the traders to withdraw the money and use that money anywhere else.
- An excellent long-term investment- Cryptocurrencies are a significant long-term investment, provided you invest in cryptos with an objective. Bitcoin and Ethereum were launched with great purposes, and the early investors in a crypto project that reaches its goals can be richly rewarded over the long term. For a crypto to be successful, its widespread adoption is essential.
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Wrapping Up
Cryptos are a tremendous long-term asset that will make many people rich in the coming times. The only thing is to understand the risk when investing in this digital asset, as it has enormous swings.
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Disclaimer- This content should not be considered financial advice and is for educational or
informational purposes only.
