More and more people begin trading cryptocurrencies as it has become a lucrative venture, although still risky. There are reportedly over 100 million crypto traders around the globe, including Wales.
The rave of cryptocurrency began in 2017, with the issuance of Bitcoin. At the time, for most people, it was a foreign technology difficult to understand, while others saw the potential and got in early. With it, a bunch of skeptics considered the innovation a hype that would soon fizzle away like smoke.
Today, the industry has over 10,000 cryptocurrencies, with more still making entry into the space. Down from the leading cryptocurrency, crypto enthusiasts have developed numerous ways to invest in crypto assets, with the most popular means being crypto trading. Other means include hodling, arbitrage, crypto exchange-traded funds (ETFs), and others. All these means are as lucrative as crypto trading.
Beyond the gains, cryptocurrency trading is an engaging activity. The thrill of buying low and selling high is something to look forward to. As earlier mentioned, crypto trading is a lucrative venture. However, the risks are on the same pedestal, if not higher, with the gains. Thus, it is not an area to delve into without expertise or at least someone who can guide you.
Opting for spot and futures trading
Crypto trading can be done via spot trading and futures trading. Traders who trade spots usually have to buy low and sell high. So they take advantage of the price difference on a crypto asset so that if the asset moves up as anticipated, profit has been made. If the price moves in a downward direction contrary to expectations, it is counted as a loss.
Alternatively, traders can opt for futures trading, in which they could trade in any direction regardless of the way the market moves. If it moves low, they can trade in that direction; likewise, they can trade to the uptrend as in spot trading.
Each of these trading methods is given different names. When a trader believes — based on their analysis — that the price of an asset will make a retracement, they open a trading position in line with that, which is said to be shorting the asset. In contrast, if they open a position based on anticipating an upward movement on the asset, they long for the asset.
While a few people are satisfied with trading spots, a handful of others combine both trading methods. Although there are no hard and fast rules that restrict you to one method, trading either of the methods without a trading strategy is foolhardy. Why is that? This is because that is the easiest way to lose your funds.
Trading with strategies is the first step to making your trading profitable. A good trading strategy involves fundamental and technical analyses, proper risk management, and trading psychology. All these combined to make a profitable crypto trader.
Traders can also adopt an automated strategy to trading by using crypto bots. Automated trading software like Bitsgap comes in handy as trading bot options for investors. It is reliable, easy to use, and offers an unprecedented 14-day trial, which is way more than anyone on the market and gives newcomers plenty of time to figure out how trading bots operate.
With an automated crypto trading platform, traders do not have to be actively involved in the trading process. The bots carry out the majority of trading activities. The only thing the trader has to do is setting a trading range which the bots can work with.
Some market’s best trading bots have built-in risk management and profit maximization tools that allow users to control the amount of investments to put at risk. Algorithms like Trailing Up and Trailing Down (when enabled) can even modify the bot’s grid allowing for making an additional profit during the price surge or cut losses in case of a sudden dip, while SL/TP orders allow to shut bots down in case the market situation changes dramatically.
Trading Crypto in Wales
Crypto trading is considered borderless. In fact, it can be referred to as a global phenomenon. You would certainly find a crypto trader, investor, or enthusiast anywhere where there is the internet.
Wales is not an exception. However, in comparison to some other regions, Wales harbors less than a significant number of crypto traders, while in the United States and China, crypto traders keep adding to their numbers.
At present, Wales is yet to take an active stance on crypto regulations. Still, this part of the United Kingdom has been witnessing innovations since 2019. That year, Wales announced plans to create a local digital currency geared to boost the economy of small and medium enterprises.
That is as far as the European country has ever come close to anything crypto-related. Even with the emergence of a central bank digital currency (CBDC), Wales has not made a move. Meanwhile, the European Central Bank (ECB) is already contemplating releasing a digital euro, which can be adopted by member states.
Despite its passive role, crypto scams in Wales have been on the rise prompting stern warnings from the police in North Wales back in February. The police advised citizens to steer clear of investment scams making bogus claims.
UK citizens also faced a similar situation which led the Financial Conduct Authority to advise investors in the UK to back off crypto investment. Interestingly, the UK has adopted a regulatory approach, and even went ahead to ban a popular crypto exchange from operating within the country.
Crypto trading is yet to garner attention in Wales. Perhaps the volatility of the asset class is scaring off citizens. Nevertheless, cryptocurrency payments are making a grand entry into Wales.
Back in May, the Welsh cinema Sol Cinema accepted payments in Cardano (ADA), a top ten cryptocurrency, to celebrate an event. It is only a matter of time before Welsh investors begin to embrace crypto trading wholeheartedly.
