3 Challenges Faced By Crypto Traders: How To Overcome Them

Despite the immense potential of cryptocurrency trading, there is no doubt that it is beset with various challenges. From understanding the rules and regulations to maintaining an optimal risk-management strategy, trading crypto can be a tricky business even for experienced traders.

In this article, we will discuss some of the most common challenges faced by crypto traders and what you can do to overcome them.

1. Market Volatility

The most common challenge that traders face is the volatile nature of the crypto market. Cryptocurrency prices are subject to sudden and sharp fluctuations due to its decentralized structure, meaning any news or rumors can cause a dramatic price change. This means it’s important for traders to adjust their strategy accordingly to make the most of market movements.One way that traders can manage this risk is by using a free crypto portfolio tracker like Moonrig.io.

As a crypto portfolio management software that supports over 100,000 traders around the world, Moonrig.io offers automated strategies to help traders make more effective decisions when it comes to risk management. With various features such as personal portfolio tracking, price alerts, market analysis and the ability to monitor crypto in real-time, Moonrig.io can be incredibly helpful in navigating volatile markets.

2. Lack of Regulatory Clarity

Cryptocurrency trading is largely unregulated, which can make it difficult for traders to know what’s allowed and what isn’t. As regulations vary from country to country, traders need to stay up-to-date with the latest legal developments in their region. This will help ensure traders are compliant with all local laws and regulations when trading crypto.

It’s also important to understand the terms and conditions of any exchange or platform you use for trading. This will ensure that you know what fees and commissions may apply, as well as any restrictions on deposits and withdrawals.

3. Security Risks

Security is a major concern when it comes to cryptocurrency trading, as hackers are constantly looking for ways to steal user funds. Traders need to use strong passwords and two-factor authentication whenever possible, as well as store their funds in secure wallets or exchanges. Traders should be aware of phishing scams and other fraudulent activities that may target their accounts.

Finally, traders should also be aware of the risks associated with trading on unregulated exchanges or platforms. These may not offer the same level of security as regulated exchanges, so it’s important to proceed with caution when using them. Secure storage of private keys and other sensitive data is essential when trading cryptocurrency.

To your benefit, Moonrig.io does not require access to your private keys. We enable you to securely store and protect them in a self-sovereign manner while still providing the benefits of portfolio management.