Cryptocurrencies have been in the news a lot lately, and for good reason. They are quickly becoming one of the most profitable investments around. But what are cryptocurrencies, and why are they so valuable?
In this blog post, we will discuss 3 reasons why it's profitable to trade cryptocurrencies. We will also provide you with some helpful tips on how to get started!
What Are Cryptocurrencies?
Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control.
If you are interested in getting involved with cryptocurrencies, it's best to start your journey with Moonrig.io. With this crypto portfolio management software, you can keep track of all your investments in one place. It enables you to monitor crypto in real time and receives instant crypto notifications.
So, now that we know what cryptocurrencies are, and how to get started, let's discuss why it's profitable to trade them.
Reason #1 - Cryptocurrencies Have A High Market Cap
Cryptocurrencies have a high market capitalization, which means they are worth a lot of money. As of October 2022, the total market cap of all cryptocurrencies is over $980 Billion. With this much capital, it's no wonder that cryptocurrencies are becoming more and more popular.
High market caps are generally associated with large, successful companies. However, due to their innovative nature and multi-industry disrupting potential, these blockchain-based currencies have been able to command such a high valuation.
With so much potential and still being in the early stages of global adoption, there is a good chance that the market cap for cryptocurrencies will continue to grow.
Reason #2 - They're Volatile
Volatility provides opportunity. When the markets are volatile, it means that prices can go up or down very quickly. This provides opportunities for traders to buy low and sell high. Cryptocurrencies are especially volatile, which means there is a lot of opportunity for profit.
By having instant notifications from Moonrig.io, you can better take advantage of these volatile market conditions. Trading doesn't mean you have to be glued to your screen all day, with Moonrig.io you can set up triggers to buy or sell when certain conditions are met.
Reason #3 - They're Decentralized
As we mentioned before, cryptocurrencies are decentralized. This means that they are not subject to government or financial institution control. This makes them very attractive to investors, as there is no central authority that can manipulate the price.
Although many exchanges are centralized, you can trade on decentralized exchanges to fully take advantage of the decentralization of cryptocurrencies. This sense of freedom and independence is one of the reasons why cryptocurrencies are so popular, which increases capital inflows.
As you can see, there are many reasons why it's profitable to trade cryptocurrencies. From their high market capitalization to their volatility, to their decentralization, there are plenty of profit opportunities.