Can You Make A Living From Trading Cryptocurrencies?
If you want to know if it’s possible to make a living trading cryptocurrencies, the answer is easy: Yes, it is absolutely possible. More than that, there are a lot of guys making an excellent living by crypto trading. But the question should likely rather be: How easy is it to reach sufficient profits to be able to do nothing else anymore?
Professional day traders with years of experience, who already live from trading since quite a while, usually find it relatively easy to trade the crypto markets. The high volatility is simply heaven for skilled traders. However, it takes time and effort to come to that point.
Day trading is a business like any other business as well. But it’s for sure not the right business for everyone. Like there is simply no job in the world which is for everyone. We all have different talents, skills, needs and priorities.
If you want to find out if day trading cryptocurrencies will be the right way for you, answer the following questions for yourself first of all:
Requirements of Crypto Day Trading
Is Freedom A Goal You Would do Anything For?
The underlying goal is the most important drive for any long term success. You need to ask yourself if the idea of becoming financially free and even locally independent is such a strong drive and passion for you, that it will help you to comply with discipline, stay focused and deal with losses which are part of the game.
Do You Have the Necessary Psychological Conditions to be a Crypto Day Trader?
If you know you really want the lifestyle of a free crypto trader more than anything else, you should still be aware of the psychological setting which is needed to do this job.
What you need is:
- Emotional Self-Control
- A strong sense of responsibility towards yourself
- A responsible way to handle money
- A strong focus on your goal
As somebody who would be kind of self-employed you need the mindset of an entrepreneur. You need to get up everyday, do your job concentrated and the best way you can and consequently stick to your trading strategies – you need to take crypto trading for serious when it’s your daily job and you rely on your own success.
You need to keep track of your trades in a trading journal to keep an overview of profits and losses. Sticking to your trading plan in each trade is a special challenge – Not doing so is one of the most common mistakes of traders in general. Changing trading decisions due to upcoming emotions of fear or greed within a running trade is mostly a bad idea.
That’s where we come to the second psychological requirement of a day trader:
Emotional Self-Control to be able to Make a Living From Crypto Trading
The No1 enemy of each trader are his very own emotions. Markets are constantly ruled by fear and greed. Bull runs occur because everyone jumps on the train, one after each other, not to miss the train – driven by pure greed.
While bear markets or price dumps are ruled by naked fear – people even sell on very low prices just because the fear of losing more or even everything is overwhelming them. To succeed in crypto trading you need to control your emotions and stick to your trading strategies in a very rational way.
A Strong Sense of Responsibility Towards Yourself
As a crypto trader you are like self-employed, with your very own business. You will only comply the above mentioned self-discipline if you are aware of the sense of responsibility you need towards yourself. You will be alone, the will not be a boss asking you for results or supervising your work.
So you need to feel the responsibility of a boss. You will be your own boss and you alone will be responsible for yourself. If you are generally a character that needs an ass kicker to get something done, then it’s not a good prerequisite for a successful trading career. Be aware that this would definitely be a character trait you’d strongly need to work on.
A Responsible Way to Handle Money
A job that has to do with money should be done by someone who is good at handling money. If you’ve never been good with money, you should seriously ask yourself if a job related to it is the right thing for you.
A Strong Focus on Your Goal
Trading is not an easy job all the time, so there can be days where your losses exceed your profits and you feel frustrated. Dealing with losses is part of the game. You will only overcome negative emotions and losses when you keep your higher goal in mind. Only a strong focus on the lifestyle you want for yourself will keep you upright and strong although there might sometimes also be your blood in the streets.
So if you are aware of all these conditions and still really want to go this way, then make sure you start with getting the necessary skills.
How To Become A Successful Crypto Day Trader
In order to become a professional trader able to make a living from crypto trading you should first of all spend some time educating yourself about all important aspects related to crypto trading. Try to get as much understanding as possible about the territory you are about to enter.
The best way is to read some good books as well as good blog posts and one or the other forum discussion to get deeper into the field of crypto trading. One area you should also create clarity about are the tax laws of your country regarding cryptocurrency trades.
So far there exist tons of books about trading in general but still very few about the niche of cryptocurrency trading. Those few existing books about crypto trading are even mostly not very specific concerning trading strategies and technical analysis, which will throw you back to books about Forex trading.
We found out that there is a lack of good literature compiling the necessary knowledge regarding all major aspects of crypto trading, which is why we worked hard on a useful handbook including it all:
- An introduction to the world of crypto trading with an explanation of general trading rules and aspects you should be aware of.
- An introduction to Technical Analysis which will let you end up with an adequate set of tool you can use for your trades
- A range of crypto trading strategies explained, with chart images and at-a-glance-summaries
- An explanation of proper risk management with different strategies
- The major mistakes you should avoid in order not to make bigger losses
- An overview of how to use social media, not to waste too much time with nonsense
With the purchase of the big crypto trading handbook you additionally end up in our community mailing list, where we share trading ideas for free. Of course you can easily unsubscribe at any time.
You should learn crypto trading as fast as you can – the market conditions will likely not stay as they are for many more years. As soon as the crypto markets will be ruled by institutional market makers and bots like the traditional financial markets, it gets an entirely different game! Hurry to participate in the “Wild West of Crypto” which it still is right now.