How to Become a Successful Cryptocurrency Trader in 2020
How to Become a Successful Cryptocurrency Trader
The interest in cryptocurrency has increased significantly in the last 10 years, with more and more people aspiring to become successful cryptocurrency traders. From crypto trading to blockchain games, more and more industries are adopting cryptocurrency transactions and technology. Interestingly enough, according to data, now there are more than 47.14 million blockchain wallet users from all over the globe.
Yet, becoming a successful cryptocurrency trader in 2020 can be hard. There are many challenges that blockchain technology and crypto trading have to overcome, with the year 2020 being one of the most serious tests for the world economy.
If you are a newbie, though, do not hesitate to sign up for our crypto trading course. With us, you can learn how to overcome the obstacles that the cryptocurrency industry is facing today and become a successful cryptocurrency trader in 2020!
This article will reveal the most important things you must understand if you want to become a successful crypto trader.So let’s look at the biggest challenges to cryptocurrency and crypto trading in 2020, challenges that will affect both beginners and experienced crypto traders.
The Ultimate Guide On How To Become A Successful Crypto trader
Successful Cryptocurrency Traders Know The Basics of the Cryptocurrency World by Heart
To become a successful cryptocurrency trader in 2020, you should invest enough time and resources to understand the complexities of crypto trading. It’s not a secret that cryptocurrency, defined as virtual money, is a phenomenon that has already revolutionised the entire financial sector. As cryptocurrencies are governed by computer algorithms, not central banks, more and more people turn to cryptocurrencies and crypto trading.
It’s not a secret that the cryptocurrency market is highly volatile. Take bitcoin, which has a fixed quantity of BTC, for example! To become a successful cryptocurrency trader, one has to understand that volatility is an important measure of risk, which can help traders make a fortune.
Also, we should note that the most widely used cryptocurrency is still bitcoin, launched in 2009. The potential of bitcoin inspired a wide range of cryptocurrencies, known as altcoins. A deep understanding of the industry and the top cryptocurrencies that will explode in 2020 can pave the way to crypto trading success.
In-depth knowledge and analysis are crucial to help crypto traders develop a consistent trading strategy. After all, consistency is the key to success! Analyse your moves, learn from your mistakes, and focus on your long-term success instead of quick profits.
To Become a Successful Cryptocurrency Trader in 2020, You Should Embrace the Pros of Cryptocurrency Trading
Wondering why the world of cryptocurrencies has evolved so much and why blockchain technology is a big thing? Well, cryptocurrencies have various advantages, including their decentralised nature - advantages that successful cryptocurrency traders have already embraced.
Cryptocurrencies can offer inflation protection in 2020 and eliminate the need for third-party payment processors. On top of that, all cryptocurrencies use blockchain technology to ensure user privacy and safe trading. In fact, data privacy and safety are essential in our tech-driven world.
Furthermore, to be successful, a cryptocurrency trader has to understand the evolution of cryptocurrencies over the years, which is impressive. As of June 2020, according to sources, there are more than 5,300 cryptocurrencies out there. Some cryptocurrencies can be exchanged for fiat currencies, which may lead to an increase in crypto-to-fiat payment platforms.
On top of that, blockchain technology can impact the whole world far beyond the financial sector, so people are crazy about trading cryptocurrency. Various fields, including the gaming industry, healthcare, space exploration, and music, have turned to blockchain technology to increase user safety and interoperability. All that can result in higher acceptance of cryptocurrency transactions and trading.
To Become a Successful Cryptocurrency Trader, One Should Learn How to Overcome the Biggest Challenges to Cryptocurrency in 2020
Despite the increasing popularity of cryptocurrency and blockchain technology, we have to agree that the year 2020 has been grim for many industries. So, let’s look at the biggest challenges to cryptocurrency in 2020 that successful cryptocurrency traders have to overcome.
Cryptocurrency and COVID-19
From global unemployment to healthcare burden around the globe, COVID-19 has transformed our world to a point of no return. The ongoing coronavirus pandemic keeps challenging economies worldwide. The world of cryptocurrency trading is no exception! In fact, IDC’s Worldwide Blockchain Spending Guide predicts a slowdown of blockchain solutions in the short-term.
That said, in the long-term, the blockchain industry may play a vital role in online payments, supply chains, healthcare monitoring, loan distribution, and even e-voting. As experts claim, returning back to normal won’t be an option after the pandemic, so the cryptocurrency industry can only help us adapt to a post-coronavirus world.
Thus, successful cryptocurrency traders have to invest time in in-depth analysis and look at the bigger picture. Cryptocurrency courses and workshops can help traders get up-to-date information and connect with other traders.
Cryptocurrency and Crypto Regulation
Despite the perks that blockchain solutions can offer in 2020, there are many uncertainties and no clear global regulations on the use of cryptocurrencies and crypto trading. Therefore, cryptocurrency traders who want to conquer the crypto world have to familiarise themselves with all these specifics. Believe it or not, though many countries admit that crypto trading isn’t illegal, crypto trading hasn’t been legalised worldwide either.
No doubt that one of the main challenges to the cryptocurrency world is the number of new bills in 2020. The EU Fifth Anti-Money Laundering Directive or 5AMLD, for instance, is one of the major changes in the crypto field. Note that 5AMLD requires crypto platforms to identify their clients for anti-money laundering purposes.
In the US, the discussed Cryptocurrency Act of 2020, triggered by Facebook’s Libra project, also demands more digital clarifications in order to prevent online crime and tax evasion. So, as stated above, successful cryptocurrency traders have to follow the news and analyse all the factors that may affect their trading moves.
Cryptocurrency and Crypto Infrastructure
To become a successful cryptocurrency trader in 2020, or even the next crypto king, one should be familiar with the crypto infrastructure. Despite all the legal unknowns in the world of crypto trading, the cryptocurrency market is expanding. With the increasing demand of blockchain solutions and crypto transactions, however, platforms will need to improve their infrastructure to accommodate more and more people.
Scalability becomes a major concern to attract new cryptocurrency traders in 2020 and guarantee pleasant user experience and safety all at the same time.
When it comes to user experience, we should note that usability is also a major obstacle to cryptocurrency. Crypto trading beginners and users who are not exactly tech-savvy may experience difficulties with crypto transactions, especially for possible day-to-day payments.
In 2020, Successful Cryptocurrency Traders Should Protect Their Safety
Though blockchain technology is considered unhackable, data rights and safety are still some of the major challenges to cryptocurrency trading in 2020.
For instance, cryptocurrencies that are offered in exchange for fiat currencies may become a target of online attacks. To provide an example, Trinity Wallet lost $2 million after hackers had targeted its payment processor system Moonpay. When it comes to future day-to-day payments, cryptocurrency experts should also think about how to resolve possible buyer-seller disputes.
Cryptocurrency scams are another challenge that successful cryptocurrency traders should deal with. From fake apps to email scams, cryptocurrency scams are everywhere. Here you can learn more about Bitconnect and OneCoin - two of the biggest crypto scams ever.
Thus, to become a successful crypto trader in 2020, consider finding a reputable broker to protect your safety!
To Become a Successful Cryptocurrency Trader in 2020, You Shouldn’t Turn a Blind Eye to Environmental Problems and Global Economies
To become a successful crypto trader in 2020, you should be aware of all the environmental, financial, and social problems out there. It’s not a secret that crypto mining requires a lot of energy. Believe it or not, the Bitcoin’s mining industry uses more power than the whole of Denmark! No wonder that the Bitcoin halving of 2020 will impact miners and traders.
Interestingly enough, according to stats, 44% of Bitcoin’s and 52% of Litecoin’s mining pools in 2018 were in the Asia-Pacific region. To make cryptocurrency technology more eco-friendly, experts suggest reducing mining rewards or switching to different mining algorithms. Dealing with such environmental challenges, along with climate change and pollution, is vital for societies to thrive and crypto traders to succeed.
The world of digital currencies is changing all the time, so any successful crypto trader should be aware of how the world economy works. One of the biggest challenges to cryptocurrency in 2020, for instance, is the rise of new bitcoin-like digital currencies.
Interestingly, China has released a major plan to switch to digital payments to take on bitcoin and their dependency on the US dollar. No doubt this process will affect crypto trading across the globe, so successful crypto traders should stay informed in 2020.
To Become a Successful Cryptocurrency Trader in 2020, You Should Tame Your Emotions and Understand the Social Attitudes towards Crypto Trading
Though the cryptocurrency industry can change the whole world, we have to admit that the cryptocurrency market is veiled in misconceptions. As a result, social attitudes towards crypto trading and blockchain platforms are still pretty negative. Due to poor regulations, security concerns, and high volatility, many people still consider crypto trading dodgy.
As cryptocurrencies have been used for illicit activities on the dark web, many refuse to believe that the cryptocurrency world is already a vital part of our reality. Nevertheless, a crypto trader who wants to be successful in 2020 should focus on trading education, analysis data, and consistent trading - not on social attitudes.
On top of that, crypto traders should control their emotions to become successful. There’s no place for revenge, fear, or overconfidence in trading. Do not forget that trading is not gambling!
Simply create an enjoyable work routine, find a balance between work and personal life, and stick to your plan to crypto trading success!
- To become a successful cryptocurrency trader in 2020, you should invest a lot of time and resources in trading education. After all, the world of cryptocurrencies has evolved significantly over the last decade.
- The year 2020 has challenged economies and societies worldwide, and crypto trading is no exception. If blockchain technology manages to overcome some of the challenges of the ongoing pandemic, the world of cryptocurrency trading might win our society.
- One of the main problems of cryptocurrency in 2020 is unclear crypto regulation. Volatility, safety concerns, and usability are also major issues that successful crypto traders should consider.
- Successful cryptocurrency traders should not turn a blind eye to the environment and all the economic trends and social problems across the globe in order to stay ahead of the market.
- To become successful in 2020, any cryptocurrency trader should learn how to control their emotions and stay consistent.
In the end - though blockchain technology and virtual payments offer numerous benefits - cryptocurrencies are still not widely accepted. The year 2020 with its turbulent events can determine the future of the entire crypto world.
If you are a beginner to the fascinating world of cryptocurrencies, we at Trading Education are here to help you explore the world of crypto trading. Simply sign up for our crypto trading course to become a pro in 2020!
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Are you ready to learn how to Become a Successful Cryptocurrency Trader in 2020 for real? What’s holding you back? Let us know in the comments.
Trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors.
eToro is a multi-asset platform which offers both investing in stocks and crypto assets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 62% of retail investor accounts lose money when trading CFDs with this provider.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors.