I am sure you are aware of the recent thwarting of Instant Deposits and Withdrawals in Cryptocurrency exchanges and the high fee for payment gateway led deposits and withdrawals. This have probably led to a lot of frustration in you.
The market is bullish and a halt on instant deposits and withdrawals mean an opportunity lost for day traders. More so for arbitragers who used the instant deposit and withdrawal facility to continually buy on one exchange and sell on another making decent profit on the same capital. The halt has ruined their opportunity as well.
A great investor once said, “The stock market is a device for transferring money from the impatient to the patient“. This investor is none other than Warren Buffet himself. Replace the word ‘Stock’ with ‘Crypto’ and you’ll know what I mean. I will come back to the importance of this quote later.
After the payment gateways’ decision to stop the instant deposits and withdrawals they are now charging the exchanges a 2.36% fee for processing withdrawal using NEFT. The exchanges are passing on these fees directly to the user.
At this very moment the only exchange that is allowing free withdrawal is Coinome and even they have shut new registrations. Zebpay still allows withdrawals but takes a good 1 working day to process them.
Now, let us take a moment to understand how this pandemonium is a good thing for traders.
Let me put a tiny disclaimer that this is indeed just my opinion, you are free to have your own on.
- A higher withdrawal fee (2.36 % of 1,00,000 is 2360 INR) will discourage traders from withdrawing money.
- Impatient traders can use the opportunity to trade carefully or atleast learn the patience to hold. After all isn’t it better to hold ‘Coins’ than INR?
- The higher trade volumes would show a finger to the authorities trying to curb the growth of cryptocurrency markets, eventually in the near future, forcing the government to regulate it.
- Roadblocks make way for innovation – This is a roadblock, there will be an innovation, just be patient.
- An opportunity to learn and trade using cryptocurrency like Bitcoin and Ether only. Forget INR, trade in crypto using crypto at Binance. Increase the amount of coins you hold and when things back home settle down, sell them for fiat INR.
- Create a healthy awareness of how crypto currency trading should not be taken lightly. It is a risk and will always be. Greater awareness helps you mitigate the risks to a greater length.
- And Finally the hodlers. The hodlers have always been rewarded and will again be rewarded. Seeing the phenomenal rise in the value of crypto, the market has been over-friendly with the day traders. It is time to upgrade from being a trader to investor. Invest in good projects and hold. I started with 0.5 Bitcoin capital which cost me about INR 2 lacs in October. Today I only have 0.35 Bitcoin. My value in INR has increased from 2 lacs to 4.3 lacs but had I decided to HODL my Bitcoin, I will still have 0.5 BTC which is a whopping 6 lacs on this day.
As Warren Buffet has warned. Do not be impatient. Do not let the patient investors take your money. Be patient, hold your coins, let the exchanges come up with a solution and then begin trading again. Who knows your Ripple is worth $3 by then.
May the force be with you.
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