Meet the Money Makers: the new breed of crypto-crazies
6 min Beginners Beginners
For any buyer, you always need a seller and for a seller, you need a buyer of equal amount. That is how we make a perfect market. And to develop such a market you need players who can play on both sides of the trend. That’s where our Money Makers come in.
Money Makers are the breed of the traders who play the trend as it goes. For the crypto market, though, which is still at a nascent stage and needs to develop more, the arrival of Money Makers are a welcome change.
The quick rise in 2017 and the quick crash in 2018 attracted money makers to the crypto world in search of yield as elsewhere in stocks and currencies, this volatility was fairly absent, especially last year. For these traders turned money makers, this volatility provided an opportunity to trade and earn both ways.
Who are these traders and how do they do that, at the same time making money quite frequently? These are the traders who usually follow their own set of techniques and analysis to trade and make money. Some use technical charting tools, some use momentum theories while others just go by plain screen reading.
Thomas $BTC Anderson a Twitter user with the handle @TrueCrypto28, is one such money maker with technical charting tools at his disposal and trades at both ends.
Anderson does not have many followers and hence does not have much influence over market participants. But another Twitter handle @PhilakoneCrypto used by Philakone of Canada has nearly 95,000 followers has quite an influence and trades quite frequently on both the sides.
Stevie Vixx [LTC] with Twitter handle @vixcontago is one such money maker who uses volatility to make money. “[I am] definitely a trader. I understand the technology and its appeal, but long-term steadily rising computing costs subject these currencies to big drawdowns (miners need to consolidate) and as such, I think it is better traded than held,” said Steve in a message reply on Twitter. Stevie has more than 5,000 followers on Twitter.
Given the volatility and cryptocurrencies’ popularity, which is only increasing by the day, it is only natural that more and more traders from other markets would keep flocking into the crypto market to trade and make money, especially when other markets go calm while cryptos still provide enough legroom to trade the volatility.
But there arises one question – Wouldn’t too much volatility and sudden change in direction kill these money makers, specifically when there’s sudden change in direction from up to down or vice versa in one single day?
Certainly, that possibility is always on the horizon and hence there is a need for more futures such as the CBOE one that brings in some stability into the market and results into subsiding heightened volatility, as it expands the carpet wide open and brings in more and more money makers into the game.
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It can not be a mere coincidence that just after the launch of Bitcoin’s CBOE futures, Bitcoin prices came crashing down. Not only has it brought some sanity back into the cryptocurrency market, but has also helped in reducing volatility.
The launch of futures also allowed traders (who are money makers in the crypto world) to bet on the short side of the trade.