The question may be naive, but truth is that i highly doubt we can find an active trader here with audited tax returns or trading records who can prove he consistently beated the S&P actively trading cryptos over the past years. Please, prove me wrong if you can
I guess most lose their shirt, a few survive. This market seems to offers very bad risk rewards / low probability ratios, only making the brokers richer
Note i'm not talking about buy and hold during a major bull run like last year or that one guy who turned 1000$ into a million over a one shot x1000 leveraged trade, or pump and dump scams etc, i'm talking about real active swing / day trading
Even top shot traders at prop trading desks in major banks to not beat the S&P. Their audited returns show between 8 to 20% annualized which is quite miserable when you know you can bank 100% in 1 or 2 years with leveraged real estate
As far as i understand, the crypto market works exactly like the FX and binary options, which is a super scammy industry designed to defraud retail traders.
Major crypto brokers are not even licensed neither audited and very likely highly manipulate the markets to crush the retail traders; wash trading, stop loss hunting, etc, you name it. Binary options and fx trading are banned in many countries for quite obvious reasons. Everything is designed to make you lose. Traders have less chances to win at this game than when playing the roulette.
This year has been a sideway market, which makes it very hard for traders to make money, but is very good for brokers as traders try to make money from frequent, smaller highly volatile market movements. Many must have lost their shirt
Just looking at bitcoin charts i can see so many obvious signs of market manipulations, stop loss hunting, bart simpsons patterns / pump and dumps. This market is totally rotten to the bone and artificially pumped by brokers, the biggest scammers, as they hold (and move) most of the liquidity in this new unregulated market. Guess why coinbase doesn't want to be audited?
If you're successful at trading cryptos even in this bear / ranging market, awsome, i want to know you
cheers
Beating S&P shouldn't be that hard tbh. That's not too much per year, how much is it less than %10 or so? I think that must be possible for the past 8 years or so if you have been trading carefully. Yeah if you look at just one year maybe SP already passed you this year because 2018 was a bad year for crytpo however if you look at the past 5 years or so a trader can pass SnP easily considering that's really really low bar to go over. I think making sure you are always trading and always on the move to the next trade is the key part here, if you keep holding for too long that means you are dead in crypto market.