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Can Crypto Trading Be a Full Time Job? Doubts Discussed

One of the most common questions that comes up when we talk to people about investing in cryptocurrency is “how much time do I need to invest in this?”. For many, the answer is “as much as you can spare”.

The cryptocurrency market never sleeps, and it never takes a day off. It doesn’t matter what day of the week it is or what country you live in, there’s always someone around who wants to buy or sell cryptocurrencies for profit.

The world of crypto has changed so much in recent years that anyone can make money from it, no matter what their background is or what their interests are.

Crypto trading can be an opportunity to be as full time job and earn handsome money, but you need to be very careful and follow the process of trading because the market is volatile and unregulated.

This article will guide you the process of trading in cryptocurrencies and what are the precautionary measure and steps to follow

So let’s get started,

Deciding factor to trade in cryptocurrency

With the price of Bitcoin and other cryptocurrencies continuing to rise, the interest for investing in cryptocurrencies has also been increasing. The two methods for trading cryptocurrencies are CFDs and purchasing the coins themselves.

Trading crypto in CFDs

CFDs are a type of contract where you’re betting on whether or not the price of a cryptocurrency will change. CFDs are different from investing and trading, in that they don’t involve actually owning any cryptocurrencies.

If you open a long position on a cryptocurrency – that is, buy it at a lower rate and sell it at a higher one – then if the price of the currency goes up, you’ll make an automatic profit.

However, if the price does go down and your loss is deductible from any gains for tax purposes.

Obviously, this isn’t true for short position which is totally opposite.

Purchasing cryptocurrencies via exchange platform

The process of buying cryptocurrencies is not very straightforward. It can be done by a number of ways, but the most popular one is purchasing it through an exchange platform.

An exchange platform is a website that allows people to buy and sell digital currencies. They are designed to allow transactions between people and are usually not part of any government-regulated financial system.

Exchange platforms can be classified into two categories – centralized and decentralized. A centralized exchange platform has a central authority that controls the information that is shared on the platform, while a decentralized exchange platform does not have any central authority controlling it – all transactions are done peer-to-peer.

The most popular exchanges are Coinbase, Kraken, Bitfinex, and Binance.

3) Investing in ICOs (Initial Coin Offerings)

An ICO is a fundraising tool that trades future cryptocoins in exchange for cryptocurrencies of immediate, liquid value. The first step to investing in ICOs is reading up on the project and understanding it.

You can start by reading up on the company’s whitepaper and looking at their roadmap to see if they have a clear idea of what they want to achieve. You should also look at their team and advisors, as well as any partnerships they have made with other companies.

Investing in ICOs can be risky, but if you do your research and invest wisely, you can make a lot of money.

Crypto Traders Must Know These 7 Things!

Trading in crypto assets is based on the price fluctuations of these assets. You must know these 7 things to be able to make the best decisions and be successful in trading activities.

1. Understand the Basics of Crypto Trading

2. Know the Difference Between Day and Swing Trading

3. Learn How to Read Charts and Technical Analysis

4. Keep Current on Market Trends and News

5. Set Up a Strategy That Works for You

6. Trade with Emotion in Check

7. Be Aware of Your Own Risk Tolerance

How to Stay Safe and Trade Safely in Crypto: 5 Tips

The first thing to do is to be aware of the risks involved in trading. For instance, there is a risk that the cryptocurrency you purchased could be subject to an attack or theft by hackers.

You should also understand that there are various ways for you to stay safe and trade safely like setting up a two-factor authentication system, using cold storage wallets, and avoiding large transactions when possible.

1) Always verify the identity of the person before doing any transactions.

2) Never share your private keys with anyone.

3) Use 2-factor authentication whenever possible.

4) Do not invest more than what you can afford to lose.

5) Stay updated on all the latest news about cryptocurrency trading and scams so that you know what to watch out for next time

The following are the top 9 strategies for trading in cryptocurrencies.

1. Buy low, sell high: This is the most basic of strategies and it’s also one of the most common.

2. HODL(Hold on for Dear Life): In this strategy, investors hold onto their assets and do not sell them until a better opportunity arises.

3. Diversify your portfolio: Investing in different cryptocurrencies can help to minimize losses and maximize returns during a bear market.

4. Hold on to your profits: If you have made some money on an investment, then it is best to hold onto it until you have reached your desired level of profit or if you think that the cryptocurrency will experience a significant price increase in the near future

5. Focus on what you know best: It’s important to focus on what you know best, and not go on multiple things at once. This will give you an edge over other traders who are trying to do everything at once and end up doing nothing well.

6. Use stop losses to protect your investment: A stop loss is an order to sell a security at a specified price if its value falls below a certain threshold. This strategy allows investors to limit their losses on any given trade and reduce the risk of catastrophic losses.

7. Keep an eye on volume levels to spot trends early on: Traders are advised to keep an eye on volume levels to spot trends early on and make informed decisions. They can also use these levels to measure the strength of a trend and help them determine when to enter or exit a trade.

8. Trade with the trend

Trade with the trend is a cryptocurrency trading strategy that relies on the assumption that the price of a cryptocurrency will rise if it follows the trend of its direct competitor. This strategy can be applied to any two cryptocurrencies, but it is most commonly used by traders who are interested in buying one cryptocurrency and shorting another.

9. Watch out for fake news and false statements from companies in the crypto space

There are people who intentionally give out wrong advice. These people are not experts, but they want to take advantage of others and make a profit.

6 Critical Questions for Evaluating the Cryptocurrency Market

What is the purpose of your token?

What is the current market cap?

What are the total tokens in circulation?

Who are the team members and advisors?

How much money has been spent on marketing and what is your marketing strategy for the future?

Do you have a working product or service that generates revenue from customers or investors?

Is there any institutional support for your project such as partnerships or investments from large companies, banks, or governments?

FAQs

Where can I get the source of live updates and news of cryptocurrencies?

Cryptocurrency live updates and news is a way to stay in the loop with all the latest happenings in the crypto world.
There are a number of websites that offer cryptocurrency live updates and news. Some of these websites include CoinDesk, CoinTelegraph, CoinMarketCap, and Investing.com.

What are the different ways to trade crypto currencies?

1) Trading with other cryptocurrencies
2) Buying or selling with fiat currencies
3) Investing in ICOs (Initial Coin Offerings)
4) Trading on cryptocurrency exchanges

Can you earn a living by day trading in crypto currency?

This is a very popular question among people who are just starting to trade in crypto currencies. The answer is not as straightforward as it sounds. There are a lot of factors that need to be taken into account before making the final decision.
The first thing that you need to know is what type of crypto currency you want to trade in. You will also need to figure out which exchanges you want to use for trading and how much money you have available for investing.

Can I buy and sell crypto multiple times a day?

It’s important to note that you are not limited to just buying and selling once a day, or even once a week. You can buy and sell as many times per day as you want.
But you have to keep in mind that every buying and selling there are the small amount of charges are being deducted.

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