3 Best Ways to Get an Edge on the Crypto Market (2021)

The cryptocurrency market has long been a place of opportunities for generating money and for ways where creative minds have been able to open up opportunities that are untapped and that can often generate significant amounts of wealth.

While a majority of those who directed the cryptocurrency market do so in a way that is relatively cut and paste and follow a lot of the people that are doing the same thing, there are trailblazers in the cryptocurrency market that look for ways to get an edge and to open up unique opportunities that are unsaturated and that can yield significantly higher levels of profit.

In this guide were taking a look at three of those ways to be able to get an edge in the cryptocurrency market in 2021, starting with a look at how the cryptocurrency market is a sea of opportunities, for moving on to look at how there are lots of competition among traders and getting an edge can be the difference between profits and loss, and then finishing off with a deeper look at getting an edge in the crypto market and how to do so.

The Crypto Market is a Sea of Opportunities in 2021

As the cryptocurrency market has exponentially expanded over the last few years it has opened up a range of new opportunities for generating revenue with in the market, as well as many secondary ways of generating income as well that have turned the cryptocurrency market into up a sea of opportunity in 2021.

No longer is the only way to generate an income with cryptocurrency simply trading, investing, or mining, but instead there are a diverse range of different options for those who would like to get an edge over the market and to generate an income in novel ways.

It is most important for traders to keep an open mind and to be ever vigilant of the new opportunities that enter the market, because they can quickly become saturated as word of them spreads and crypto users rush to take advantage of these new and powerful opportunities.

Lots of Competition Amongst Traders

One thing that is clear in 2021 is that there is more competition amongst traders than ever before in the cryptocurrency market, as now trade volumes are significantly higher and in general the market is more sophisticated making competition tougher than it used to be.

This makes it important to take every opportunity to build knowledge and experience of cryptocurrency trading in order to have the upper hand against newer traders that come to the market and against veterans that have more resources at their disposal.

While on the surface increased competition amongst crypto traders may seem like a negative, it is also a very positive sign for the health of the cryptocurrency industry as a whole and for the future of crypto trading.

Getting an Edge Can Be the Difference Between Profit and Loss

While in many situations getting an edge over the rest of the market may simply be a way of optimizing the way trading is done, in many other situations it can actually be essential to gain an edge over the market and this can be the difference between generating profits and losses.

Typically getting an edge over the market includes things such as leveraging on knowledge that isn't widely known, using tools that have powerful capabilities, and other ways to increase the likelihood of generating profit and reducing the likelihood of generating loss.

Luckily in 2021 there are many tools and opportunities available to us traders that would like to get an edge over the rest of the market, and this can lead to the generation of profits and reduction of risk in the process.

How Can Getting an Edge Make a Big Difference for Traders?

Find Easier Opportunities for Profit

One of the major benefits of getting an edge over the rest of the market is that it can make it easier to find opportunities for generating profit, with that being many ways to open up strategies that can make it much easier for profit generation.

This may be something as simple as looking for an arbitrage opportunity that is widely not widely known amongst crypto traders with something like this allowing for much easier generation of profit.

Bitcoin whenever there is the chance to take an easier option to generate profit and reduce risk it is certainly worth doing so and should be a consideration for all traders when they see these opportunities arise.

Reduce Risk

The reduction of risk is one of the most important considerations for all traders in the cryptocurrency market at any opportunity to gain an edge over the market by reducing risk should also be taken as there is a diametrically opposed relationship between risk and profitability.

The lower levels of risk that a trader experiences the higher chance of them generating long-term profit successfully, and therefore instead of only seeking new ways of making more money, it is also an effective strategy to look for ways of reducing the likelihood of losing money as well.

Different ways of reducing risk may be things like using tools that are effective for risk mitigation such as unique order types and hedging, with these strategies giving the traders that use them a much higher chance of reducing the risk then traders that choose not to use them.

Open Up New Opportunities

The third way of gaining an edge over the rest of the market is to look for ways of opening up new opportunities that are untapped and that will have a higher likelihood of being successfully exploited then strategies that are saturated.

New opportunities tend to rise during things such as the listing of new cryptocurrencies on exchanges, the listing of new trading pairs on exchanges, and the introduction of new tools to the market for the first time.

In all three of these situations there can be a race between traders to be able to exploit the opportunities presented by these new tools and listings sooner than others, with this commonly being seen where there are pumps when new assets are listed on exchanges for example.

3 Best Ways to Get an Edge on the Crypto Market

Covesting

Covesting is the first form of cryptocurrency copy trading to be widely popularized within the market, and in only the space of four short years Covesting has grown rapidly to become the #1 alternative way to trade cryptocurrencies.

The basic structure of Covesting is that experienced traders known as strategy managers will create peer-to-peer investment funds that are tied to the strategies and that other uses, known as followers, will then invest into and will have that capital copy the same trades as the strategy manager.

While this presents the opportunity for followers to gain an edge over the market by partnering with some of the top performing traders in the cryptocurrency space, it also gives strategy managers an edge over the market by allowing them to be able to increase the revenue they generate with a 20% success fee on all profits.

Yield Farming

Yield farming is a new way to increase the amount of revenue that is generated by capital with the aim being to use different decentralized finance platforms in order to piggyback investments upon each other and to compound the returns that are generated.

Yield farming gives traders an edge over the market by allowing them to generate more revenue from the same amount of capital, with this being unprecedented before the beginning of the defi craze in 2020.

While this is a good opportunity to be able to get an edge of the market, it's important to understand that many defi platforms are experimental and that there is a significant amount of risk and yield farming and so it is important to do due diligence before beginning.

Using Margin Trading Effectively

In 2021, margin trading is no longer perceived as being a risky way of engaging with the cryptocurrency market, but instead that misconception is now gone and a majority of the trades executed by retail traders every day in the crypto market is done so using margin trading.

Margin trading is one of the most powerful ways to gain an edge over the rest of the market, and using platforms such as PrimeXBT, which is a margin trading center cryptocurrency and traditional asset trading platform, can lead to significantly better outcomes in the market without it.

As an example, PrimeXBT provides leverage of up to 100X total cryptocurrencies including BTC, ETH, LTC, and EOS, and up to 500X on a wide range the world's leading traditional assets like stock indices such as S&P500 and FTSE100, for expense such as USD/EUR and AUD/CAD, and commodities such as gold and oil.

By using leveraging and shorting on platforms such as PrimeXBT, traders get an edge of the market by being able to more efficiently use the capital and to also generate profits from drops in the price of assets instead of only increases in price.

In Summary

Covesting, yield farming, and margin trading are three powerful ways to be able to get an edge over the rest of the cryptocurrency market and to tip the balance in your favor in order to increase the likelihood of generating profits and reducing the risk that is typically found with in the crypto market.

Each of these different strategies brings with it specific opportunities and advantages that can be exploited in order to generate significant long-term amounts of revenue in the cryptocurrency market, and each of these three techniques should be thoroughly explored and understood in order to have the chance of being able to use them to generate profit.

You like to learn more about the three techniques and how you can effectively use them to get an edge over the cryptocurrency market, check out Covesting, yield farming and margin trading.