Talks about Bitcoin and other cryptocurrencies have flooded the internet. The mainstream media has also covered stories about cryptocurrencies.
Experts say that blockchain technology, which is the basis of virtual currencies, can potentially transform the global financial systems. And this innovation presents excellent money-making opportunities.
For this reason, professional traders have jumped onto the digital currency markets to boost the win ratio.
High competition level from some investment banks combined with high-frequency algorithms has led to edge losses in legacy markets for some retail traders.
Bitcoin and other virtual currencies remain relatively new to some people. Consequently, institutional investors are yet to dominate their markets.
Massive gains of up to 1000% in prices and the wild swings or volatility characterize the crypto markets.
Most people also associate cryptocurrencies with high risks, and this scares off some investors. However, seasoned traders consider these dynamics of a crypto market beneficial.
Here’s why Bitcoin trading is the most profitable venture for some investors today.
Free Market
Anything happens in the cryptocurrency market depending on what the buyer and the seller agree. Crypto exchanges like the Bitcoin Era operate with minimal regulations.
However, an unregulated market has its downside. For instance, whales may opt to manipulate the market through inside trading, spoofing, wash trading, dumps, and pump.
The worst that can happen is losing money through a crypto exchange bust. That’s because some crypto exchanges do not have insurance policies to protect deposits from their users.
Thus, you risk losing your money through a crypto exchange. High-Frequency Powerful Computers Don’t Dominate the Crypto Markets
Some investment banks have spent a lot of money purchasing supercomputers, hoping to get a competitive edge over retail traders.
To be continued...
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