Making money from cryptocurrencies is becoming more difficult for several reasons that reflect the evolution of the market and the increase in competition. Here are the main factors:
1. More mature and competitive market
The cryptocurrency market has grown exponentially, attracting institutional investors and professional traders. This increases competition, making it harder for ordinary investors to make easy profits.
Automated tools and sophisticated algorithms are used by large players to gain an advantage in the market.
2. Lower relative volatility
Although cryptocurrencies are still volatile, the maturity of the market has brought a certain stabilization compared to the early years. Exorbitant profits from extreme price movements are less frequent.
3. Tighter regulations
Governments around the world are implementing stricter regulations for cryptocurrencies.
4. Increasing mining difficulty
For cryptocurrencies based on proof-of-work (like Bitcoin), the mining difficulty increases over time.
5. Increased risk awareness
Many investors have become more wary of scams, rug pulls and unsubstantiated projects.
6. Global market performance
Cryptocurrencies are increasingly correlated with traditional financial markets.
7. Lower enthusiasm during bear markets
The cryptocurrency market operates in cycles. During bear markets, general interest declines, reducing opportunities for quick gains. Many projects also fail during bear markets.
8. Proliferation of tokens and projects
The creation of thousands of new cryptocurrencies dilutes the market.
9. More complex strategies
Conclusion: While the cryptocurrency market still offers opportunities, a higher level of knowledge, patience and strategy is required to achieve good returns. In addition, investors need to be more selective, analyze projects carefully and adapt to changes in the regulatory and technological landscape.