Nowadays, the average household income is decreasing even if a couple is both working, and many housewives want to raise their income even a little, starting with a side job.
Do you have concerns like, "How about investing in cryptocurrency as one of the side jobs that housewives do?"
"Those cryptocurrencies that I heard some people have made a lot of money in a short period of time, can they make a profit from a small amount of money?"
Cryptocurrency investment has a strong image as a speculative product that causes abnormal price movements.
There were also cases where the customer's money was leaked due to hacking damage, so there may be bad images of cryptocurrency.
However, by understanding the basics of cryptocurrencies, you will find that they are surprisingly familiar to you.
Therefore, in this article, I will explain in detail the knowledge that housewives should keep in mind to be able to do cryptocurrency trading.
- 1 What is cryptocurrency? Another explanation!
- 2 How many people are holding cryptocurrencies?
- 3 Is it possible for housewives to make money through cryptocurrency trading?
- 4 What should housewives know before starting cryptocurrency trading?
- 4.1 About Exchanges and Sales offices
- 4.2 What is Altcoin? (Bitcoins are not the only cryptocurrency!)
- 4.3 You can trade cryptocurrency with cryptocurrency
- 4.4 Cryptocurrency can be sent and stored
- 4.5 Difference between spot trading and margin trading
- 5 Summary
What is cryptocurrency? Another explanation!
First, I will explain what cryptocurrency is like.
In 2008, an anonymous person named Satoshi Nakamoto published a writing on cryptocurrency.
"Bitcoin", which is a representative of cryptocurrency, was developed based on that paper.
Bitcoin became the world's first cryptocurrency to be traded over the Internet in 2009. After that, many cryptocurrencies other than Bitcoin are developed.
The background behind the development of virtual currency does not require a central administrator like the state or the government, there was a purpose to perform transactions, payments, and specific functions only on the Internet (Some cryptocurrencies may be corporate based).
For example, in the conventional banking system, fees were collected when making overseas remittances and credit card payments.
Not only that, but it also required enormous labor costs for security reasons. As a result, higher cost for the users.
It is an epoch-making technology that enables quick remittance and settlement, and at a low cost.
However, in cryptocurrency, you won’t have to pay the central administrator (in this case, the bank, etc.).
Such cryptocurrency technology is supported by technology called "blockchain" that blocks data and performs transactions and approvals.
In the blockchain, sophisticated transactions are performed to prevent data tampering, and multiple people approve the data, making it extremely difficult to tamper with the data.
As described above, cryptocurrency continues to grow in popularity with high expectations due to advanced technology.
How many people are holding cryptocurrencies?
How many people are holding cryptocurrencies in Japan and around the world?
I will analyze the actual number of holders and countries with many holders from the data of public institutions.
Which country has a large amount of cryptocurrency?
Next, let's look at the holders of cryptocurrencies in the world.
Below is a graph by "Dalia Research", a global research company in Berlin, Germany.
As the AVG (Average) in the graph above shows, the average value of the countries surveyed is 7%. The holding rate in the countries on the left side is higher than the average value.
For example, the Japanese cryptocurrency holding rate is 11%, which is higher than the UK/US 9%.
On the other hand, in the graph on the right side of the average value, the countries such as South Korea, India and Brazil.
What can be analyzed from this survey is that the ratio of cryptocurrency holdings in Japan is higher than in developed and emerging countries.
Why you should hold cryptocurrency that is surprisingly popular?
From the graph analyzed above, we can see that the percentage of Japanese who owns cryptocurrency is high. Among them, the purpose of holding cryptocurrency is often for investment.
As you can see from the age distribution, there are some people, mainly those in their 20s and 30s, are investing in cryptocurrencies, considering active asset management.
Also, cryptocurrencies can be bought and sold easily on the Internet, which is an advantage that even beginners of investment can easily enter.
Therefore, it can be analyzed that many people, regardless of gender, unexpectedly own cryptocurrency.
You can invest from a smaller amount than other financial products, so you may want to try it out.
Is it possible for housewives to make money through cryptocurrency trading?
Many housewives are engaged in cryptocurrency trading.
Although depending on the amount of funds, but it is possible to make a profit if it is about several thousand yen to 100,000 yen per month.
Although, there may be concerns like,
- Required funds
- Do you have time to trade cryptocurrencies when you are busy every day?
- I don't want my husband to know that I’m doing cryptocurrency trading!
I will explain specific solutions here.
I can only prepare a small amount of money, but how much can I trade?
Cryptocurrency investment can start trading even without a large amount of funds like stocks and foreign exchange transactions. Specifically, there is an advantage that you can trade from about 500 yen to 1,000 yen.
Since you can invest from a small amount, you do not have to be locked into the fixed concept of “investment = requires large amount of money”.
On the other hand, I think there is concern that a small amount means you cannot aim for enough profit.
However, cryptocurrencies have high volatility (price fluctuations), so you can sufficiently aim for a large profit margin.
By accumulating transactions, you can firmly pursue profits even with a small amount of money.
Is it possible to trade between busy housework?
Do you feel that you are busy with housework on weekdays and do not have time to do cryptocurrency trading?
Cryptocurrency trading can be done 24 hours a day, 365 days a year. Other financial products cannot be traded on weekends and holidays.
However, in cryptocurrency trading, you can trade at your own convenient time.
In addition, you can quickly deposit Japanese Yen by depositing at a convenience store or quick payment with a credit card.
The advantage of cryptocurrency trading is that even housewives who do not have much time can work easily.
What should housewives know before starting cryptocurrency trading?
With the explanations so far, I think you have gained a better understanding of cryptocurrency.
However, the above contents alone do not mean that you have sufficient knowledge about cryptocurrencies.
Therefore, I would like to introduce about five points that you should keep in mind before starting cryptocurrency trading.
About Exchanges and Sales offices
You can choose from two types of exchanges and sales outlets to trade cryptocurrency.
The main difference between the two is the difference between the "commission" and "spread" of the transaction.
The main feature of the exchange is that users can buy and sell cryptocurrencies. On the contrary, you can trade cryptocurrency with a sales company that operates a sales office.
On the exchange, the spread (the difference between the selling price and the buying price) is small, and you can choose various ordering methods.
However, if the transactions are overcrowded, there is a risk that orders will not be executed due to the heavy server.
In addition, market orders may result in purchase at a higher price than desired.
Regarding that, at the sales office, you can purchase cryptocurrencies with a simple operation, and because you are directly trading with the sales company, the orders definitely pass through.
There is a merit that cryptocurrency trading can be done intuitively.
However, since the spread is higher than that of the exchange, you need to pay attention to the cost when you buy and sell frequently.
What is Altcoin? (Bitcoins are not the only cryptocurrency!)
Cryptocurrencies other than Bitcoin are collectively called "Altcoins".
Many people have the image of "when speaking of cryptocurrency, it’s Bitcoin", but there are more than 1500 types of cryptocurrencies.
Some of them have been developed by companies for convenient payment and transparent contracts.
Altcoin, which has a high market capitalization, is listed on domestic and overseas exchanges and is actively trading.
- Bitcoin cash
These are altcoins that are highly liquid and should be checked when investing in cryptocurrencies.
You can trade cryptocurrency with cryptocurrency
Cryptocurrencies can be traded between cryptocurrencies.
Bitcoin is a representative cryptocurrency, but it can be traded with altcoins such as Ethereum, Ripple, and Bitcoin Cash.
Bitcoin is currently recognized as a key currency on exchanges around the world.
Keep in mind that you can buy and sell various virtual currencies via Bitcoin.
Cryptocurrency can be sent and stored
Cryptocurrencies do not have to be stored only on the exchanges where they are bought and sold.
You can send and store individually to other exchanges or your own cryptocurrency wallet.
Cryptocurrency exchanges have a high degree of built-in security, but hacker attacks are endless.
It is important for you to distribute and store the cryptocurrency you have.
When sending or storing money, passwords other than those on the exchange, such as two-step authentication and private keys, are also required, so keep them strictly.
Difference between spot trading and margin trading
There are two types of cryptocurrency trading methods: spot trading and margin trading
What is Spot trading?
Spot trading allows you to buy and sell cryptocurrencies within the funds you can prepare yourself.
The basic trading style is from buy order to sell order only. You can make a profit by buying at a cheap price and selling at a high price.
You can trade within the scope of your own funds, so the loss is limited, but less money also means less profit.
In short, in the case of spot trading, the more the amount of money, the better the trade.
What is Margin trading?
Margin trading allows you to trade cryptocurrencies above the original funds by depositing the funds on the exchange as margin.
Since it is possible to trade by leveraging (increasing the ratio of investment funds), even those who can prepare only a small amount of money can efficiently trade.
The difference from spot trading is you can buy and sell not only buy orders but also sell orders.
In the spot trading, no profit can be made unless the price rises. However, margin trading can predict a decline and pursue profits.
However, keep in mind that margin trading involves borrowing money from an exchange.
If you reach a certain margin maintenance rate, it will lead to a large loss. In the worst case, you may be in debt, so a proactive investment strategy is essential.
In this article, we have introduced the prerequisites that housewives should keep in mind when starting cryptocurrency trading, the points that they should be aware of, and the advantageous information that should be aware of.
Surprisingly, there are cryptocurrency holders in many countries, and new financial products are actively traded.
Cryptocurrencies can be invested with a small amount of money, and there is no limit on trading time compared to stock investment.
It's easy to invest at your own pace, so why not positively considering entry into cryptocurrency.