How To Make a Living Trading Cryptocurrency: Cryptocurrency has taken the financial world by storm, and it’s clear that this trend isn’t going away anytime soon.
However, there’s more to trading crypto than simply making money. You can use cryptocurrency to generate income without even owning any cryptocurrencies yourself!
All you need to do is understand how the whole thing works, and luckily we have just the guide to help you out. Here are some tips to make a living trading cryptocurrency.
Learn Technical Analysis
Crypto trading is all about timing your entries and exits correctly in order to make a profit. Technical analysis is a tool that can help you do just that.
It studies historical price data and patterns in order to predict future trends. The most popular technical indicators are MACD, RSI, SMA, EMA, Bollinger Bands, Stochastics Oscillator, and Moving Average Convergence Divergence (MACD).
However, there are many more that are available for use as well. You’ll need to experiment with the tools available until you find the ones that work best for you.
Choose the Right Crypto Exchange
Before you start trading cryptocurrency, you need to choose the right crypto exchange. There are a few things to consider when choosing an exchange, such as fees, security, and user experience.
Keep in mind that different exchanges offer different coins and trading pairs.
Your choice of platform may also be influenced by personal preference. For example, if you like simple interfaces with clear instructions, then Binance is a good choice for you.
If simplicity isn’t important to you but rather low trading fees are more attractive, then Coinbase might be better for your needs. It’s also important to note that some exchanges have been hacked in the past so do your research before depositing any funds on them.
Diversify your Portfolio
When it comes to cryptocurrency trading, one of the smartest things you can do is diversify your portfolio. By investing in a variety of digital assets, you can mitigate your risk and protect your investments in the event that the market takes a turn.
The biggest mistake new traders make is over-trading. They see a tiny dip and think they need to buy right away, or they see a small spike and think they need to sell immediately.
This type of trading is called day-trading, and it’s how most people lose money in the crypto market. If you want to be a successful trader, you need to take a long-term approach and hold onto your coins for months or even years.
Cryptocurrency trading is a marathon, not a sprint. The markets never close and the assets are always fluctuating in price. This can be stressful, but it is important to remember that cryptocurrency trading is a long game.
Rome wasn’t built in a day and neither is your crypto empire. Be patient, do your research, and don’t put all your eggs in one basket.
Pick the Best Times to Trade
The cryptocurrency market is open 24/7, but that doesn’t mean you should be trading all day, every day. In fact, the best times to trade are typically when the market is most active.
For example, in North America hours of 6:00-9:00 am and 3:00-6:00 pm Eastern Standard Time are considered peak periods for trading activity.
Keep Track of Your Profits/Losses
If you want to be a successful cryptocurrency trader, you need to keep track of your profits and losses. This will help you make the right decisions about when to buy and sell. You can use a spreadsheet or dedicated software to track your progress.
Take Advantage of Timezones
As a cryptocurrency trader, you have the advantage of being able to trade 24/7. This is because there are exchanges all over the world that are open at different times. So, if you take advantage of timezones, you can make money around the clock.
The best strategy is to work with markets in your own timezone first and then branch out from there. If you’re in America, for example, trading Bitcoin (BTC) on Binance will give you a couple hours ahead of other markets when it opens each day.
Cryptocurrency trading can be a very lucrative career, but it’s not for everyone. If you’re thinking about getting into the game, there are a few things you should know.
First, cryptocurrency trading is a high-risk, high-reward venture. You can make a lot of money, but you can also lose everything you put in. Second, you need to be comfortable with volatility. Expect to have your portfolio go up and down 10% or more on any given day.
Third, know what you’re doing before investing your hard-earned cash in cryptocurrencies. Educate yourself by reading as much as possible and learning from other traders who have been successful so that you can see what works best for them.
Finally, consider automating your crypto trading if you want to increase your earnings potential.
If you’re thinking about trying your hand at trading cryptocurrency, there are a few things you should know. First, the market is extremely volatile—prices can fluctuate wildly from day to day.
Second, there’s no guarantee you’ll make any money; in fact, you could lose everything you invest. Third, you need to be comfortable with risk; crypto trading is not for the faint of heart.
Finally, you need to have a solid understanding of the market and the underlying technology before you start trading.
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