While there’s no denying the cryptocurrency market has seen its ups and downs recently, it can still be an incredible career opportunity for those who understand how trading works, and anyone willing to invest their time and effort into the market.
There are plenty of popular types of cryptocurrency, and it’s a good rule of thumb to diversify your portfolio. Many people get started with Bitcoin since it was the harbinger of cryptocurrency and still tends to be what most people think of when crypto comes to mind. But if you truly want to make this a full-time thing, you may want to consider going beyond the popular cryptos.
Take a look at the data on a variety of cryptos. For example (as of this writing) Quant saw gains over 5% and Monero, 4%, while Bitcoin, 2%. Why are the former seeing these higher spikes? This is the type of info you’ll be considering on a daily basis.
Whether you’re a beginner or you’ve been trading on the side for a while, no doubt you have one question. Can you actually be successful as a full-time trader?
Absolutely. But, like any other career choice, it takes dedication. Let’s look at how you can turn your side hustle or hobby into a career that sets you up for long-term success.
Prepare Yourself for the Challenge
Making any kind of career change can be challenging, and when you’re going full-time with something like investing, it’s an even bigger leap thanks to the risks involved. Before you jump into the world of cryptocurrency full-time, it’s essential to make sure you’re up to the task.
Chances are you’ll be working from home. Remote work has become extremely popular in recent years, and there are plenty of benefits. It offers a lot of flexibility, but there are some physiological risks of working from home to consider. Understanding how remote work might affect you can help you prepare for it, and prioritize your mental well-being. Some of those risks include:
- Loneliness and isolation
- A lack of productivity
- Little social interaction
- An unhealthy work-life balance
If you’re going to work from home, consider having a designated office space and specific working hours. Take frequent breaks, and do what you can to maintain close social relationships. If you’re able to prioritize a healthy work-life balance, you’re more likely to maintain your mental well-being.
Taking care of your well-being has many benefits. In addition to reducing stress and anxiety, self-care can help to reduce brain fog. Trading crypto full-time requires a lot of focus and clarity. The last thing you want is to feel “fuzzy” or like you can’t make decisions effectively. Brain fog is caused by everything from a lack of sleep to nutrient deficiencies. Prioritize rest, eat a healthy diet, and get some exercise every day. Self-care isn’t selfish and it won’t take away from your productivity. In fact, it will allow you to perform at your highest level.
Understand the Risks
As the old saying goes, no risk, no reward. Any investment is a risk, and crypto can feel like an even bigger leap of faith because of how new it is. However, by understanding some of the biggest risks and building yourself a safety net, you can protect yourself from huge financial losses.
Some of the biggest risks involved in trading include:
- Volatility
- Unclear values
- A lack of regulations
- Cybercrime
You can protect yourself by staying calm and researching the market. Don’t fall into the trap of “FOMO” (Fear Of Missing Out) and buying high. You don’t have to follow current trends just because everyone else is doing it. Trust your gut and stay the course. Panic selling is another big issue to avoid. You could risk losing a lot of money by selling too quickly.
Finally, make sure you have a strong cybersecurity system in place, and that you understand how to protect your identity and finances online. As cryptocurrency continues to grow in popularity, hackers are becoming more advanced in what they can do to steal your information.
Consider CFDs
A contract for difference (CFD) is an agreement you make with a broker, in which you invest in derivatives of assets, instead of buying shares of stock. In the case of crypto, you’d be investing in a derivative based on the value of the currency instead of actually buying the currency. This allows you to make quicker trades and set parameters to minimize losses and maximize profits.
For example, you can set a stop loss order to automatically trade crypto before it goes below a certain value. Or, you can decide to take profit at a certain point based on a technical analysis of the market. If you’re investing in a crypto that’s on its way up but the market is bearish, setting a take profit point allows you to earn money and get out before volatility affects value.
Additionally, CFDs help you sidestep the fact that crypto is unregulated, since brokerages offering CFDs are typically subject to regulations. A CFD enables you to strategize and minimize risk in order to earn consistent profits as a full-time trader.
Understand Technicals and Fundamentals
In the crypto world, technical analysis includes factors like support and resistance, Fibonacci levels, and pivot points. The fundamentals of a particular crypto include the team that’s behind its creation — and any changes to that team, as well as how many people are buying and using the crypto. Additionally, there are the technicals of trading, in general, which come down to market chart patterns and price fluctuations.
Pair your understanding of these concepts with tech tools. No trader worth their salt leaves it up to old-school pen and paper. Software can help you run the numbers, while crypto trading bots enable you to automate trades based on your analyses.
Manage Your Expectations
You’ve probably heard success stories of people who have gotten involved with cryptocurrency and made a small fortune seemingly overnight. However, those people are the exception, not the rule. Understanding the risks is only part of the battle when it comes to full-time crypto trading.
If you’re a newcomer to the industry, it’s a good idea to have a backup plan in place, or at least take your time before you turn it into a full-time career. A good rule of thumb is to ensure your portfolio is strong enough to handle price swings.
Even if you’re in a comfortable position with a healthy portfolio, one of the best things you can do is to find an exchange program that you trust. Choose a platform that provides insured wallets for keeping your currency safe, like Coinbase. It will help to mitigate some of the risks so you won’t lose everything, even when the markets start to swing.
As long as you’re willing to manage your expectations and you don’t expect to get rich overnight, you can find success in crypto trading. Do your research, stay ahead of the game, and make sure you understand how to take care of yourself in the process. By keeping your finger on the pulse of the crypto market, you can experience long-term success.
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