If you have lost your job due to the ongoing Covid-19 pandemic and are looking at ways to make a living online, crypto currency trading offers a chance to secure an income without ever having to leave your home, which would be a dream for many people. Of course, this would naturally seem a bit daunting, but if you apply yourself and make use of the free online resources, you can become a competent trader in just a couple of months.
Learning the Trade
As with everything, you have to start at the very bottom and a few hours a day reading online guides and market reports will most certainly help you to gain a deeper understanding of cryptocurrency and the markets around the world. If you are running out of cash, there’s always Nimble payday loans to tide you over, and you can repay the loan over 6 months.
Virtual Accounts
Once you feel that you know enough to start trading, it is wise to begin with a pretend account, and see how you would do if it was for real, which gives you the valuable opportunity to get some hands-on trading experience. If you would rather your ISP not know what you are doing online, click here.
Trading for Profit
There are two types of crypto traders, those who trade for investment and those who trade for profit, and you would fall into the latter category. Trading for profit means frequent transactions, rather than buying and sitting on the units, and even a marginal profit is deemed a good transaction. You will be exploiting short-term opportunities and you have to learn how to make quick decisions, which should be based on current real-time data. Here is a link to the Australian government website about self-employment, which is a must read for any budding entrepreneur.
Stable Internet Connection
It is vital that your Internet connection is stable, as you need to know current market prices in real time, all of the time. Losing your Internet connection at the wrong moment could cost you a lot of money, so make sure your connection is stable.
Coins or Derivatives
When trading cryptocurrency, you can actually buy the coins or derivatives, using Contract For Difference (CFD), which allows you to speculate on the currency’s value without actually owning it. You can make money from predicting a rise or a fall in a cryptocurrency using CFD, which is how many small traders pick up a profit. Of course, the secret is to analyse the market history and by taking many variables into account, you predict the price of your target cryptocurrency over a specific period.
Pros & Cons of CFD Trading
There are pros and cons when trading CFD,
The Pros
- Speculate without owning the currency.
- Trading on margin magnifies gains.
- Open long or short positions without restriction.
The Cons
- Leverage is risky.
- Unsuitable for long-term investors.
- Very speculative.
Whatever you decide to do, spend a lot of time with the free online resources and you will have to apply yourself to become a competent crypto trader, but the rewards make it worth the effort.
It should be noted that there are no guarantees with any form of trading, and trading crypto is a very speculative market, and the more you learn, the better your chances of making a living.
