There are many reasons for you to start trading cryptocurrencies. For instance, the amount of money that can be made through it is a good reason itself. Many people are interested in doing this since it is one way to make more money or gain more cash. Of course, you don't have to use crypto trading as your primary source of income. But you can use it to improve your revenue stream if you are so inclined.
Cryptocurrency trading has become more prevalent in recent years, with thousands of large cryptocurrency transaction worldwide. It's a great way to earn a substantial income while also gaining exposure to the potential of new technologies and markets. There are numerous benefits to cryptocurrency trading. Such top five benefits are listed here.
- Low Fees
When you compare crypto trading with other competitors of this field, you will find it charges a minimal fee for trading. Of course, the amount depends on the crypto exchange, but usually, it is less than 1%. The fee itself can be broken down into a few parts. First of all, the fee you pay for depositing coins to your trading account is a small amount.
Secondly, most platforms offer what is called a maker-taker fee model. This means that when you place an order for trade, you are designated as maker or taker depending on what you do with that order. The fees are charged differently for each role, depending on the platform and the trading pair used.
- Opportunity For Global Diversification
The cryptocurrencies are traded 24 hours a day, seven days a week, which allows you to make trades at any hour. If you choose the right coin and timeframe, arbitrage becomes almost entirely possible. Although this crypto trading process can be pretty stressful, you will find all those efforts fruitful in the end.
- Higher Profits
As I said before, there are many benefits to trading cryptocurrency. However, you can make more money due to the existing price differences between two or more different cryptocurrencies. That is, for example, if the price of Bitcoin rises X % (and spreads across all crypto currencies), but Ethereum drops Y % (and spreads across all cryptocurrencies). Ethereum will be worth more than Bitcoin by the end of the day because it has a lower price after considering negative spreads.
- No Need For An Intermediate
If you compare the advantages of making with those of stock trading, it can be seen that there is no need for an intermediary such as a broker. This means that no one else between the seller and the buyer will take your profit and appropriate it themselves or distribute it to others.
- Transparency And Reliability
All trades are visible to the user who uses the service. All data is kept on a blockchain, which provides absolute transparency and trust. Global regulators can't touch it as long as all trades are properly recorded using blockchain technology, such as Bitcoin.
Making money is a huge luxury that crypto trading provides on large cryptocurrency transaction. It doesn't require any more clarification to prove its potential.