Cryptocurrency trading can be a lucrative activity for those who have the right knowledge and expertise. But as a beginner, you might be wondering how much you can expect to make as a crypto trader. The answer to this question is not straightforward, as it depends on various factors such as the amount of capital you have, your risk appetite, and your trading strategy. In this blog, we will explore these factors and try to give you a rough idea of how much a beginner crypto trader can make.
First of all, let’s define what we mean by a beginner crypto trader. For the purpose of this blog, we will consider a beginner crypto trader as someone who is new to the world of cryptocurrency and has no prior experience in trading. This person may have some knowledge about the basics of cryptocurrencies and how they work, but they do not have a deep understanding of the technical and fundamental analysis of the market.
So, how much can a beginner crypto trader make? The short answer is that it depends. If you are just starting out and don’t have much capital to trade with, then it’s unlikely that you will make significant profits right away. In fact, you might even lose money if you don’t know what you’re doing. However, if you are willing to put in the time and effort to learn about the market and develop a solid trading strategy, then you can potentially make a decent amount of money as a beginner crypto trader.
To get a better understanding of the potential earnings of a beginner crypto trader, let’s look at some of the factors that can affect your profits.
- Amount of capital: The amount of capital you have to trade with will have a significant impact on your profits. If you have a large amount of capital, you can afford to take bigger positions and potentially make larger profits. However, you should also keep in mind that the larger your position size, the higher the risk of losing money. On the other hand, if you have a small amount of capital, you will have to be more cautious and trade smaller positions to minimize the risk of losing money.
- Risk appetite: Your risk appetite, or the amount of risk you are willing to take, will also affect your profits as a beginner crypto trader. If you have a high risk appetite, you might be willing to take bigger positions and potentially make larger profits. However, you should also be aware that the higher the risk, the higher the possibility of losing money. On the other hand, if you have a low risk appetite, you might be more comfortable trading smaller positions and potentially making smaller profits.
- Trading strategy: Another factor that can affect your profits as a beginner crypto trader is your trading strategy. It’s important to have a well-thought-out trading strategy that takes into account your risk appetite, the amount of capital you have, and the market conditions. A good trading strategy should also include a risk management plan to help you minimize your losses.
Now that we have discussed some of the factors that can affect your profits as a beginner crypto trader, let’s look at some rough estimates of how much you can expect to make.
If you are a beginner crypto trader with a small amount of capital and a low risk appetite, you can probably expect to make anywhere from 5-10% in profits per year. This is a conservative estimate and does not take into account the possibility of losing money.
If you are a beginner crypto trader with a larger amount of capital and a higher risk appetite, you could potentially make higher profits. Some experienced traders have been able to make returns of 50-100% or even more per year. However, it’s important to keep in mind that these are exceptional cases and not the norm.