crypto investing: How mock trading can help new first-time investors master crypto investing

Synopsis

The crypto market is highly volatile and hence the risk-reward ratio is high. If an investor can learn risk management effectively, he/she can gain sizeable returns in the long run. Mock trading not only helps with buy/sell strategies but also with the psychological aspects of investing.

Amit Nayak

Co-Founder and CEO, Sahicoin

Crypto investments are rapidly gaining popularity among new-age investors. Over the last few years, participation in the industry has grown tremendously. In India, we have more than 10 crore crypto owners, and the number is continuously rising. As per Gemini’s 2022 Global State of Crypto Report, the year 2021 has been a transformative year for the digital asset, with over 51% of India’s crypto owners starting their journey last year.

While most investors look to join the bandwagon, the biggest problem for users is complex information, which is scattered across multiple platforms and lack of experience in the crypto market.

A mock trade ecosystem not only provides a safe paper trading tool but also educates users to start investing which is of utmost importance for a beginner.
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Starting with mock trading is the way to go for informed, and return-bearing crypto investments. Mock trading allows new investors to learn and practice crypto investing without using real money. Beginners and enthusiasts in crypto investing can learn about the ecosystem before stepping into the real market.

Mock trading option along with a social network of friends and experts is the need of the hour for the crypto ecosystem. It is like Eklavya learning from gurus around him, without having one dedicated to him.

Let’s look at some of the key benefits of mock trading platforms that can enable first-time investors to master crypto investing.

Risk-free tool to practice
Mock trading enables beginners with a simulation of the real crypto market. Since no real money is involved, they can practice their investment strategies and skills without the fear of losing their investments.

Gain expertise
The crypto market is highly volatile and hence the risk-reward ratio is high. If an investor can learn risk management effectively, he/she can gain sizeable returns in the long run. Mock trading not only helps with buy/sell strategies but also with the psychological aspects of investing.

Reward-based experience instils confidence
Reward-based mock trading motivates beginners to consistently maintain their portfolios. Thus, building a sense of confidence in beginners. As a result, practising mock trading not only helps investors to upskill but also provides them with a rewarding experience.

Final Word
No doubt, crypto is a highly speculative, volatile, new, and lucrative investing ecosystem. While more investors are participating in the segment, it is ever-evolving where even seasoned investors learn something new each day. Mock trading platforms simulate the real crypto world to equip crypto investors with best-in-class knowledge and skills. As crypto participation grows, this new mode of practising crypto investing will continue to gain massive traction.
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Bought onCurrent Value Buy (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

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Updated: 05/14/2022 — 02:00

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