Can You Make A Living From Trading Cryptocurrencies?

It is possible to earn a living by trading cryptocurrency. There are many people who make a good living trading crypto currencies. The question is: Is it possible to make enough money to live off of crypto trading?

Day traders who have been trading for years and are familiar with crypto markets, often find it easy to trade. High volatility is paradise for experienced traders. It takes effort and time to get to this point.

Day trading is just like any other business. It's not for everyone. There is no job that is right for everyone. Each person has different priorities, talents, needs, and skills.

Up 50% Off Cryptohopper discount code available, Other Crypto related Promo Code...

Answer the following questions to determine if day trading cryptocurrency is right for you:

Crypto Day Trading Requirements

Do You Believe Freedom is a Goal for Which You Would Do Anything?

For long-term success, the underlying goal should be your driving force. It is important to consider whether the goal of financial independence and local autonomy is a passion and drive that you have. If so, it will be easier to keep track of your progress and stay focused.

Are You a Crypto Day Trader and Do you Have the Psychological Conditions?

You should be aware that if you truly want to live the life of a crypto trader, it is important to understand the psychological environment required for this job.

You need:

Self-discipline
Emotional self-control
You must have a strong sense of self-responsibility
Responsible money management
Focus on your goal with a strong focus

Self-Discipline

You need to think like an entrepreneur if you want to be self-employed. You must get up every day, work hard and be focused in order to succeed at crypto trading.

To keep track of trades and keep track of losses and profits, you need to keep a trading journal. It is difficult to stick to your trading plan for each trade. This is one of the biggest mistakes traders make. It is a common mistake to change trading decisions within a trade that is already in progress due to emotions like fear or greed.

Here's the second psychological requirement for day traders:

To be able make a living from crypto trading, you need to have emotional self-control

Every trader's greatest enemy is his own emotions. Fear and greed rule the markets. Bull runs happen when everyone gets on the train and jumps on it one after another - driven by greed.

Bear markets and price dumps are driven by fear. However, people will sell at very low prices because they fear losing everything or more. Crypto trading requires you to be able to control your emotions while remaining rational.

A strong sense of responsibility for yourself

Crypto traders are self-employed with their own business. If you have a sense of responsibility towards yourself, you will be able to follow the self-discipline mentioned above. You will be the only one responsible for your actions, and there will be no boss to ask you for results or supervise your work.

You must feel responsible for your boss. You are your boss, and you will be the only one responsible. A successful trading career is not possible if you're a person who needs to be pushed around by others. This would be a trait that you would need to improve.

How to manage money responsibly

Someone who can handle money well should have a job that involves money. You should seriously consider if you are able to handle money if you have never worked in this field.

Crypto Related News- cryptohopp

Why crypto arbitrage is NOT a sure win strategy

At the time of writing, almost 1000 different cryptocurrency exchanges are available on the market. For those who wish to profit from crypto arbitrage trading, this number is a huge opportunity. What is arbitrage trading? And what should you consider before you start to execute this strategy?

Short-term crypto arbitrage trading

Arbitrage refers to the act of buying an asset and then selling it in another place in order to profit from any deviation in prices between markets. For example, One $BTC is currently trading at $16,020, but it costs $16,000 on Binance..You have now purchased your Bitcoin on Binance. Hopefully, you can sell it quickly enough to Kraken to make $20 profit.

Many traders are excited by the possibility of making some money from the differences between exchanges. But before you rush to get out of your job and start cashing in, it's important that you read this article.

Like all money-making instruments, crypto arbitrage has its risks. We'll be discussing some of the most common pitfalls when using crypto arbitrage.

Projects with the same name

There are many cryptocurrency tokens that you can purchase and many of them share similar (or even identical) symbols. One example is the project SIA, which is a decentralized cloud storage application. Its symbol is very similar to that of another project called 'SAI'. If you mix the two symbols, you will lose all your coins. If you are a trader, this may seem simple, but it becomes much more dangerous and worrying when you consider the fact that there are many projects with similar ticker symbols. For example, Binance has $CMT and CyberMiles has $CMT. Other cryptocurrency exchanges have $CMT too, but this usually stands for 'Comet', which is a completely separate project. This is just one example of many such cases, $HNC(HellenicCoin), $HNC(Huncoin), or ($BTCS] Bitcoin Scrypt and ($BTCS]Bitcoin Gold. You will soon see that this is a common problem, especially for new traders. Worse, exchanges won't offer a refund if funds are sent to the wrong address.

This is a mistake that you can avoid. Take a look at the volume and price of each option. If you are unsure about the price on one exchange, it is likely that the wrong symbol is being used. You can also check if arbitrage is being done with the correct symbols by looking at the logos for each project. If they have different logos, it may not be the same project.

2. Exchange wallets offline or on a different blockchain

Exchanges may choose to disable cryptocurrency wallets for a particular platform or the entire exchange. It could be due to security concerns or general wallet maintenance. This could occur just as you are about to make a big trade or put some wheels in your cogs.

Many cryptocurrency exchanges have a page that you can use to check if your wallet is available online. They might also let you know when it should be online again. It is worth it before you trade.

Double-check that all exchanges offer the tokens on the exact same blockchain. __S.29__

These are only a few of the many factors to consider when considering crypto arbitrage.

3. Deposit and withdrawal fees are high

Trading at any level is aware that exchanges love to charge withdrawal fees. HitBit will charge 0.00085 BTC to withdraw your Bitcoin, which is a substantial chunk of your cryptocurrency.

You should research the withdrawal and deposit fees for both exchanges that you trade on. You could lose all of your potential profits (and more) if you don't pay these fees, rendering the entire thing useless.

To avoid this problem, you can simply calculate your total expenses before you execute an arbitrage trade. You can either use a spreadsheet to calculate the total expenses or simply write down the numbers on paper. This tool will help you get started. It lists all fees for major exchanges.

4. Pump and dump programs

Without 'Pump and Dump" schemes, the cryptocurrency market wouldn't be the same. This scheme is used to scam traders by artificially raising the price of assets by providing false positive news, price action and other misleading information with the ultimate goal of selling large quantities of these coins at a high profit.

A handful of groups exist to pump and dump crypto. Once they succeed, those who purchased the crypto last are left to hold the bag’ and are virtually unable sell it.

A little technical analysis can help you determine if you are buying into a P&D plan. Technical analysis is a subject that requires its own article. However, we won't be able to tell you how to do it right now. In short, look at the 1-minute charts and volume among other T/A indicators.

5. Trading fees

The fees charged by exchanges are subject to constant adjustment. This means that you might be paying low fees for your favorite pair and then pay a lot more. Coinbase Pro increased their fees by 200% in 2021 for traders they considered to be low volume, leading to frustration. This is why it is important to check the fee structure each day to avoid getting caught.

Page updated

Google Sites

Report abuse