Living on Cryptocurrency Trading

Living on Cryptocurrency Trading

Is trading cryptocurrencies for a living possible? It's the question that is on everyone's mind when they start trading crypto. It's the question that is on your mind too, right now! And it is totally legitimate. Why would you commit to something if you're not going to get something out of it? Why would you invest years of your life and potentially thousands of dollars of your savings if you're not absolutely sure that you're going to get it back tenfold? It must become lucrative and a real source of revenue. There's just no other way.

Mark Douglas, president of the firm "Trading Behavior Dynamics" and author of many famous books that changed how traders approach the market, says in his book "Trading in The Zone" that just 10% of the active traders are consistent winners. That means that the 90% of traders are, and I'm sorry to say it, consistent LOSERS.

This doesn't only apply to traders of stocks or FOREX exclusively. It applies to everyone participating in the Market. If you can make consistent gains somewhere so to convince people of your profitability, everyone will come running to you and give you their money in the hopes of getting a better return.

It doesn't matter if you make a big buck once or twice or even thrice, if you're going to lose it all in a day or two. I'm talking about consistency here!

Which means that to make it in this market you have got to be in the top 10%. Not an easy thing to do, for sure.

So, is cryptocurrency trading for a living possible?

YES! Absolutely and without a doubt. But, It's not easy. The crypto trading world is divided between two kinds of people, as you are well aware now. The people who are on the top and those who are in the very bottom. The middle portion does exist, but sadly it's insignificant. The contrast between levels of success in the trading world is really accentuated. And for a good reason.

It's because the majority of people trade for the wrong reasons. They want to make money fast. Thousands of dollars in an instant. And why not! It seems so close. So easy. Just a click of a button away. People are doing it every day! So, why not ME!?

Instant gratification is queen among the majority of crypto traders.

But, don't forget! People are losing money every day too! In the pursuit of instant success, gratification and profit. This method works great, if you are a gambler. Not a trader.

Consistently profitable traders are not after the short-term gain. They are in it for the long run. They understood, long ago, that to make it in this game, you must master your own emotions and be patient.

Trading psychology plays a huge role in making you a consistently profitable crypto trader.

You think that for crypto trading to become a source of revenue you need to make those unrealistic returns of 100%, 130% or even 200%?

No! It doesn't work like that.

The real measure of how profitable a trader is does not rely on such exaggerated returns. The go to reference, or the "bar" that traders set to themselves is no other than the S&P 500 index. It's a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices, and many consider it to be one of the best representations of the U.S. stock market. It's the performance benchmark for all traders big and small. And if you want to become a successful trader, you have got to beat it. You have got to outperform it EVERY YEAR.

What you need to know is that for rational investors to make money investing with minimal risk, they can just put their money in the S&P 500 index and wait till the end of the year to get 10% return on their investments. Nearly a sure thing. So, for you to become a successful trader you need to beat that. You need to become a more attractive opportunity for investors.

Let's say, with your trading strategy, you are consistently getting 15% a year returns on average. That means that you can offer potential investors the possibility to make more money, if they come to you instead of just putting their money in the S&P 500. Which means that you'll have more funds on your hands and allow you to boost your earnings many times over.

And VOILA! that's the trick!

To do crypto trading for a living you need to know what you're doing. Know it very well. Have a solid and unshakeable discipline. Be patient. And above all, practice, practice, practice. You need to become, yourself, an attractive and reliable investing opportunity with a record that shows what you can do for people and how YOU can make them money.

The business of cryptocurrency trading is all about volume. The better you are funded, the more money you'll get out of your win rate.

Disclaimer: Please don't consider this as financial advice. This article is to share with you my thoughts in the hopes of providing you with some insights that could help you do your own research. Don't forget, at the end of the day, you are the only one responsible for all your trading decisions. Trade safely! 

Author bio

I have been a trader since 2015. My trading strategy allowed me to transition to a better lifestyle. But it didn't come easy. There was a lot of work, research and learning opportunities along the way. Thankfully, I came through.
I am also a copywriter and SEO specialist. I have created blogs, product descriptions and webpages in collaboration with clients and online brands all over the world.
Finally, I might add that I have a passion for teaching as I've been a professor of finance since 2012.
You can visit me on my website obsessivecryptocurrencydisorder.blogspot.com.

Publication date: 
09/20/2021 - 17:00
Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.