Since the launch of Bitcoin in 2009, crypto traders have experienced all sorts of emotion. The crypto markets took years to develop where only the extremely patient were able to weather the storm. Then, in 2016 and 2017, the massive returns started pouring in making all the years of patience worth it. Of course, since then, it has been nothing but pain especially for altcoin investors. So, what’s next? Can novice traders still make money in the crypto markets? Absolutely.
Efficient Market Hypothesis
For those who studied finance in college, there is a commonly taught theory called the Efficient Market Hypothesis. This is a hypothesis that states asset prices reflect all available information. A direct implication is that it is impossible to “beat the market” consistently on a risk-adjusted basis since market prices should only react to new information. You’ll find people on both sides of the aisle regarding this hypothesis, but the fact is that it certainly DOES NOT apply to the cryptocurrency market.
Cryptocurrencies are still in their infancy and, as such, have not matured to the level needed for the EMH to apply. This means that there certainly are plenty of opportunities for traders to make money. But, since institutional money is now flowing into the market, traders will need to devote more time and energy to finding those opportunities.
Opportunities in Crypto
Since the altcoin market is still in a bear market, there can be no denying that trading opportunities are limited. Typically, the opportunities that are available are from following trading patterns and signals and/or jumping quickly on breaking news. With various hedge funds and proprietary trading firms entering the market, they are more than likely going to be the ones to find those opportunities. And if solo traders do spot an opportunity, the return may not be as great as it could have been earlier. So, what is a novice trader to do?
Well, there are several options. One interesting opportunity that is growing in popularity is to initiate a collateralized debt position, commonly known as a CDP. These positions are essentially posting collateral in order to receive a loan guaranteed against the deposited amount. In regular life, an example would be obtaining an auto tile loan where consumers receive in cash in exchange for using their car as collateral. Consumers can continue using their as long as loan payments are made. It’s a very similar concept in cryptocurrency. Consumers can deposit crypto tokens, such as ETH or stablecoins, in exchange for a loan at a specified borrow rate. It’s a great opportunity if a trader feels like their deposited coin will increase at a higher rate of return that what they’re paying in interest.
Cryptocurrency Asset Management
Another option for crypto traders is to leave their capital in the hands of seasoned professionals. In traditional markets, an example of this is when accredited investors deposit capital in hedge funds. Hedge fund professionals then use that capital to invest with the goal of beating the market. Any return above and beyond a standard index fund is considered “alpha.”
Of course, the problem with depositing capital at hedge funds is that very few of us would qualify as accredited investors. Fortunately, one great option exists and that is Hodium. Hodium is a leading cryptocurrency asset management firm focused on professional trading, investing, and portfolio management.
Hodium hires the best of the best within the crypto sphere in order to generate outsized returns for its investors. In fact, the company promises to generate daily returns between .1% and 1.5% depending on market conditions. That really is an impressive return especially since users will be able to withdraw their capital at any time they wish.
In addition to the impressive returns, the minimum deposit required is easily met. The company accepts deposits in the form of Bitcoin, Ethereum, Litecoin, and more. For Bitcoin, the minimum deposit is 0.001 which is approximately $10 as of this writing. And for those who are skeptical about the company’s ability to generate the returns it claims; a small deposit is a great way to test their traders’ abilities.
It has been fascinating to watch the development of the cryptocurrency market over the past 10 years. The market has come a long way, both in terms of trading opportunities and dynamic business changes. Although the past few years have been tough for crypto traders, opportunities still do exist to make money. That being said, if traders want to leave finding those opportunities to the professionals, Hodium presents a really compelling opportunity.