When they are in social media trap, they will not succeed in doing any trade. Here, most new traders in crypto markets, trade without understanding the blockchain technology the cryptocurrencies are based on and are often misled by tips and tricks sourced from communities on social media.
Ashwin Saraaf, a 30-year-old, from Gudgaon village in Madhya Pradesh was introduced to cryptocurrency trading during the COVID-19 imposed lockdown in 2020. “I was bored during the lockdown and saw advertisements about crypto trading apps and news reports about people entering crypto trading. So I tried it out,” says Ashwin, who works as an agent for ICICI prudential and is the father of a 2-year-old. “I initially invested Rs 2,000 and earned a profit of Rs 400 overnight. So I added another Rs 20,000 of my savings and it grew to Rs 30,000 within days,” he says.
Cryptocurrency traders keep track of the price movements of cryptocurrencies, they use cryptocurrency trading apps to speculate if the price of a cryptocurrency will move up or down. The traders make a profit when they buy these digital currencies, also referred to as coins or tokens, at a low price and sell them at a higher price. Read More