Is cryptocurrency really profitable ?

[Sotherefore]

There are many people we met on different online communities who claims to be making a sustainable profitable by trading of cryptocurrency, but research stated that 90% of people who trade volatile market most especially forex and crypto currency lose their money most especially day traders, it has even been reported by the American trade commission that Americans only loses about 80 million in u.s. dollars in the last few months due to cryptocurrency.

Now based on this research, it is only 10% of people who are trading the volatile market are really making money from trading. inasmuch as it is risky to trade the volatile market I believe the 10% of people who are able to make money consistently with cryptocurrency at those that understand the volatile market perfectly to a point of predicting the next movement of a particular coin or currency.. 90% of people who are losing in cryptocurrency are those people that don't have better understanding of the volatile market.

if people are really losing so much in trading of cryptocurrency and forex, Then newbie should consider knowledge and understanding of the volatile market as the most important because this is what will help them to trade perfectly without losing.

Now my question is does it really mean that it is only 10% of traders that are able to make money base on this prediction ?

 

[Dickson0804]

I want to know more about DeFi

 

[MoneyMaker1]

Investing in crypto assets is risky but also potentially extremely profitable. Cryptocurrency is a good investment if you want to gain direct exposure to the demand for digital currency, while a safer but potentially less lucrative alternative is to buy the stocks of companies with exposure to cryptocurrency.

 

[Victorial]

Any form of online business is risky and crypto investment or crypto trading is not excluded. There is great potential for making profits if you know how to trade crypto pairs or invest in the right coins. I have been trading forex for the past few months and I have made losses. I have barely profited from any trade. Still, it has not been bad progress. The fear of losing some profits you have made has hampered my profits. I always close early. I do not want to be greedy but I think I have to know how to exit at the right time

 

[funmi]

Of course, cryptocurrency is very risky. Your analysis maybe very correct about the 90% losses. To me, I have not actually profited from this trade yet and I don't know why? With the 10% that are gaining from it, I can not categorically say that cryptocurrency is profitable. Though I am still hopefully and looking on to God to make what I have lost and still gain more. But right now, cryptocurrency is not yet profitable if not the business is trial and error business and many people's hard earned money is being lost into it per day, it is very disheartening. Someone who already have high BP should not try this business at all.

 

[btaliat]

This article may be accurate as truly money are not made by all investors of crypto. Many don't know how it works, they only want to join the league of crypto enthusiasts. These sets of people don't do any research before they invest. They invest for the money only. And crypto cannot be traded blindly. The 10% that are making money are the ones that know how to cut their onions.

 

[goodmoneygoodlife]

It's the standard high risk = high reward scenario with crypto. I wouldn't know what the risk-adjust returns (i.e. Sharpe Ratio) is.

I bought some BTC back in 2018 to invest in a 'fund' -- got scammed and lost 66% of my $. But it rose so much that I still was able to come out ahead and earn some cap gains. I think in crypto investing you oughta keep these things in mind:
1. High reward = high risk. Don't throw all your money into it. You can easily lose all your money.
2. Crypto is extremely volatile, but if you think it'll go up long-term, only look at your account once a year.

You need to have a very strong stomach to weather the +/-80% volatility though.

 

[sincerem]

Their is no need asking this kind of question, when we know cryptocurrency have been with us for 14 years. Cryptocurrency is profitable no doubt, it depends on your level of experience. If you aren't accustomed to the pattern of crypto currency, it will be better to seek for experience first before investing on the coins, to avoid making investment mistakes that will cost you your money. I don't invest in any coin without having a clue where the price will move next to. Lots of people makes that mistake of trading crypto blindly. If you trade crypto blindly, you simply incur losses. Because, it isn't like gambling where you invest with virtue of luck. It is more advanced, you need to learn how the tricks works there and apply the finishing touch to make profit with time. It doesn't work over night, if you're buying and holding your coin. To make profit, you simply have to buy and wait for a given period of time before profit comes in. It isn't a magic, it comes with better planning and execution. When you plan well, invest wisely you'll definitely reap the reward, because you executed what's needed in order for profit to come.

 

[Kingsley]

Without a sound understanding of how the market works it will be a waste of time and resources to venture into crypto currencies trading. Trading crypto is very risky even sometimes the very expect too gets burnt, because the market is not really been controlled by a set of rules rather it is regulated by the forces of demand and supply.

As we all know from basic economics that human behaviours are highly unpredictable, people change their minds at anytime . So also is trading crypto the prices are not stable, so it may either be in your favour or against you. But the key to achieving success in crypto trading is having a good knowledge.