One of the leading cryptocurrency traders at an online trading service eToro – Jay Smith – is not fazed by the volatility of the market. He welcomes it.
An early investor in bitcoin, Smith has moved to other cryptocurrencies and tech stock, diversifying his portfolio over the years. What’s more interesting, eToro — the social network for the traders — uses contracts for difference commonly known as CFDs. This adds a lot of risk to an already unstable market, allowing investors to bet on the cryptocurrency prices. While the company claims to protect the users from losing more than they originally invested, the risks are considerable. This does not stop people from following Smith on the platform and copying his every move.
A school dropout, Jay Smith has been involved with eSports from a very early age and was quick to recognise the value and potential of cryptocurrencies. He went on to purchase a number of digital tokens, earning on the price differences. In his opinion, CDFs and cryptocurrency are a natural fit, and with the protection provided by the platform and experienced investors as guides, there is no harm in trying.
With the volatility of the market, people need to be prepared to weather losses, and Smith does not worry about 20% drops. He has seen worse, having survived the 2013 crash. The ebb and flow of the cryptocurrency market is familiar to him at this point, and with experience he has gained confidence. Considering the number of people that follow Smith on eToro, this confidence might not be misplaced.
As for the future of the market, here’s what we’re advised to expect:
The traders who like volatility will go there and to similar cryptocurrency markets as Bitcoin continues to grow and stabilise.