Making a living as a cryptocurrency trader is many people’s dream, but most of them are reluctant to give up on the stability of their job to venture into one of the most challenging industries. They want to be certain of success in case they make this choice, but the answer to the title’s question is more complex than it might look. More specifically, making a living out of trading crypto will depend on a series of factors that will be discussed today.
# Trading knowledge
Do you have a background in trading? Have you already traded currencies, stocks, indices, or commodities? Did you manage to be profitable over a given period? If the answer is yes, then including cryptocurrencies in your trading portfolio should not be an issue. You already have some of the skills required to trade successfully and that would be a great starting point.
In case the answer to the above-mentioned questions is “no”, then you need to start learning about trading in general and then study in-depth the cryptocurrency market. The next step will be to start trading demo and then live with a reliable provider. Brokers like easyMarkets had already included cryptocurrencies on their trading list and are providing educational resources for clients willing to learn how to trade. What’s important to note, though, is that trading is a skill-based endeavor and it could take at least a few months until consistency in results will start to show.
# Daily Schedule
The cryptocurrency market is one of the most volatile in the world and with valuations changing at a fast pace, traders need to monitor their trading accounts as frequently as possible. This is where your current daily schedule plays an important role. Does your current job allow you to at least take a brief look at the market throughout the day? What other responsibilities do you have outside of your job? It’s important to adjust the trading regime according to the daily schedule. At the same time, a suitable trading strategy must be chosen to fit it.
# Financial situation
Trading crypto requires you to invest money. Fortunately, with so many different cryptocurrencies and investment tools available, it does not take a huge investment to start trading. However, it’s imperative that you have a stable financial situation before starting to trade. You must trade money that you can afford to lose if you don’t want emotions to hijack your trading performance. Start small, be responsible, and only invest savings, not money intended to cover critical expenses.
In conclusion, making living trading crypto is possible, but it will require a series of conditions to be met. Your trading knowledge, daily schedule, and financial situation are a few of the things you must consider before starting to trade crypto. This is one of the most fascinating markets, but at the same time, it comes packed with great challenges. Learning to trade requires study, hard work, diligence, and flexibility.