There are bound to be controversies surrounding the risks of trading crypto with latest reports suggesting that it is problematic to gambling addicts. To an extent, there is truth in this, considering the unprecedented level of risks and volatility that comes with investing in crypto. However, taking a broader look at the concept of gambling, you would agree that even stock trading is a form of gambling since it involves the betting on or against the viability of a company.
What makes crypto trading different, nonetheless, it’s never-been-seen-before lightning quick and almost unpredictable nature that pumps excitements as well as adrenaline at a rate that is second only the intense effects of high stake gambling. As such, it is no surprise that crypto trading has become attractive to gamblers and it has spurred concerns like the one cited above.
We at VCT understand this and to us, crypto trading is not gambling and so we take it seriously by following a series of procedures and rules that ensure that our members do not make mistakes that would jeopardize their finances. Therefore, we would never risk the safety of our clients and blindly take on trades that would hurt their chances of making profits. Every decision goes through rigorous mathematical analysis from our expert traders and comes with various fail safes, which proves that our services are well thought out crypto investment solutions.
Nevertheless, it is not uncommon to encounter traders that are stuck on viewing the crypto market as a 24/7 available gambling portal. The crypto market is more than this notion, at Verified Crypto Traders we orientate our members on ways to establish their crypto trading activities as viable investments and not as one shrouded in uncertainties and unwarranted risks. Here, we would answer few questions that would help you transcend the gambling tag of crypto trading.
What Is The Recommended Minimum Starting Money For Crypto Trading?
Like every other viable business, crypto trading also require discipline when it comes to capital. It is important to put aside a capital that you are willing to lose, as when you are trading crypto there is no guarantee for profits. The recommended minimum starting money for trading crypto is $2,000 and your risk affinity should determine just how much you would want to go over this figure.
Therefore, you can choose to go as high as $10,000 or more if only you understand the risks that comes with this decision and you are willing to face its consequences. For us at VTC, we recommend that traders start with 1 BTC, however, as earlier mentioned, you are to evaluate the risks involved before picking a particular capital to start with.
What Are The Risks I Might Encounter In Crypto Trading?
Crypto trading is a very risky profit-making endeavor that could rob you of all your money. While this may sound scary, it also establishes crypto trading as the most profitable investment option. Consequently, traders often jump at mouthwatering opportunities without considering the risks that accompany them. It is imperative to note that in the crypto market, the bigger the opportunity the magnitude of losses is also multiplied.
In light of this, traders must eliminate emotions while trading and base every decision on well-analyzed facts that would increase their chances of winning. Even after doing this, it is wise to set up various risk management protocols and rules that would limit the adverse effect of a flawed analysis or ineffective trades.
Bearing this in mind, we recommend that our traders manage their trade size by trading 1% of their funds with a max of 2% on each trade so as to mitigate against risks. This also increases their chances of extending their streak in the crypto market. Trading and the amount you use is always your own choice. Trading in Crypto is risky and there is a big chance that you can lose all.
Which Trading Strategy Should I Utilize In Order To Earn Money Back?
There are various ways of making money in the crypto market and we have designed our services to take advantage of the diverse nature of the market. Some these trading strategies include:
Margin trading: This strategy is exclusively known as the riskiest trading strategy in the crypto market and only traders with high risk threshold should take this up. It basically requires traders to leverage on the short burst of crypto prices.
Long term trading: This strategy involves a lot of patience and a knack for insightful trades that promises to yield remarkable profits on the long run.
Scalping: Despite the slow pace of the crypto market, a strategy like scalping gives traders an opportunity of every price movement so as to yield profits, regardless of how insignificant they are.
Crypto trading is a serious business to those that take the pain to adhere to the unwritten rules that separate them from gamblers. This is why we at VCT always encourage our members to value risk management and take up strategies that best suit their risk threshold.