Can You Make a Living From Trading Cryptocurrencies?

Yes, you definitely can. Trading cryptocurrencies is highly lucrative, in fact, and there are several Bitcoin millionaires out there to prove it. Bitcoin is the most well-known cryptocurrency out there, and arguably the most successful, so it’s many people’s introduction to cryptocurrency. For the uninitiated, cryptocurrencies are virtual currencies that are typically paired with social or content-purchasing platforms. They’re blockchain-based systems, which is basically like an electronic ledger that records information about cryptocurrency exchanges. Crypto prices have tended to surge and fall rapidly in the past, making them controversial will some investors. Opinions range from crypto being the future of money to it being a fad that will soon crash, but it’s impossible to deny the recent success of Bitcoin.

The question shouldn’t be “can you make a living?” when it comes to cryptocurrency. Instead, the question should be “how easily can you make a living?” You’ll need to know how to set up a crypto account and develop a successful trade strategy.

Bitcoin Wallets

First, you’ll need to set up a digital wallet for your cryptocurrency. There’s a range of options available that vary in security, features, and supported platforms, but there are several big-name wallets that are good for beginners. Every wallet has a private key and public address which is imperative for protecting your cryptocurrency and doing anything with it. The private key lets you access your money, and the public address is where others will send it to you. It’s generally recommended to use both “hot’ and “cold” storage. A hot wallet is connected to the internet, allowing yourself access to exchange platforms. Your cold storage is an online backup where you can still have access to your crypto even if your exchange platform goes down.

Cryptocurrency Exchange Platforms

Once you have a wallet, you’ll need to find ways to acquire cryptocurrency. It’s possible to mine cryptocurrency, but the process is difficult and requires a significant hardware investment to handle on your own. Most find it easier to simply exchange for cryptocurrency. There are many platforms you can use to purchase crypto with fiat currency, exchange different cryptocurrencies, or earn crypto via other means such as games or crypto gambling. A crypto trader can use these platforms similarly to a stock exchange to make money from their investments. It’s important to note that Bitcoin and many other cryptocurrencies are extremely volatile, but that’s perfect for a specific kind of trader.

Crypto Day Trading

Day trading, like the name suggests, is when financial institutions (stocks, bonds, crypto, etc.) are bought and traded within the same trading day. The daily win-rate make is a popular option among traders, and the rapidly changing price of Bitcoin and other cryptocurrencies makes it an ideal strategy. Experienced stock day traders usually make an easy transition into the crypto market, and there are multiple opportunities to profit each day. The flip side is that day trading is considered difficult and requires experience to pull off consistently, but with the right bitcoin day trading guide, you can learn the basics and start building your portfolio.

To be successful with day trading, you’ll need to invest a serious amount of time and have a strong sense of self-discipline. Day trading requires near-constant analysis of the market, so you’ll need to look at it as your full-time job. Also, like with any form of trading, it can be easy to let emotions rule your decisions. You need to resist making moves based on fear and accept that some days just won’t go well. You’re basically an entrepreneur in this situation. You decide what to do at every moment, and you’re the only one responsible for handling your money.

If you’re new to trading, or just aren’t comfortable keeping your own books, it’s a good idea to work with a broker. Brokers can offer good advice and make sure everything you’re doing is above board. After all, it’s easier to need a broker than a securities litigation attorney. If you ever are in a situation where you need a FINRA lawyer, firms that specialize in securities arbitration, such as Herskovits PLLC in New York will have your back. You can also rest assured that brokers will do their best to give you sound investment and trading advice. Your success is their success, after all.