Any frequent internet user has likely encountered countless popups urging them to drop everything and begin a lucrative career trading cryptocurrency. Most of the time, we dismiss these claims as clickbait pipe dreams or scams, and in some cases, they are. However, the crypto industry is currently booming, and people are indeed making money off of it.
Wall Street tycoons have long been earning high numbers by trading stocks daily, and the cryptocurrency world works similarly. Skilled traders will find themselves at home in the crypto world, while newcomers will need to dedicate significant time to building up the skills needed to reap the benefits of crypto trading.
So, yes, it is possible to make a living day trading crypto. Whether or not the process will be a walk in the park for you is another matter. Using a reputable crypto exchange can simplify the process for those new to the world of cryptocurrency.
What is Cryptocurrency?
Cryptocurrency is hard to conceptualize but is generally thought of as virtual tokens that can be used to make secure online payments. Cryptocurrency isn’t regulated by any central authority, meaning banks and other financial institutions are not involved.
The digital asset earns its name from the encryption techniques used to make it virtually impenetrable. Most cryptocurrencies operate using blockchain technology that renders the currency unalterable by spreading it across several computers, a process called decentralization. Through decentralization, the currency is almost entirely immune to government interference.
The most popular and well-known type of cryptocurrency is the blockchain-based Bitcoin. It was the first cryptocurrency of its kind to arrive on the scene and remains the star of the crypto show to this day. Since Bitcoin’s inception in 2009, several copycat or alternate cryptocurrencies have emerged. As of 2019, over 18 million bitcoins were in circulation.
How Does Cryptocurrency Work?
Like any other form of currency, crypto can be used to buy goods and services or be traded for profit. Many crypto traders see crypto as the currency of the future and so race to purchase it, inflating its value.
Cryptocurrency eliminates third parties like banks to allow for easier transactions between two parties. Cryptocurrency requires only nominal processing fees, allowing users to avoid steep charges from banks or credit card companies. Those who value their autonomy and privacy tend to favor cryptocurrency.
Earning a Living Trading Cryptocurrency
The cryptocurrency market is volatile, making it excellent for day trading. It is like a fast-swinging pendulum with extreme highs and lows, allowing for high profits if your timing is right. The central idea of crypto trading is to make a quick profit.
Before you start, you’ll need to develop a strategy. Like other forms of trading, you may not want to trade every day, so you’ll need a strategy to maintain your balance. You will need to clear the plenty of time in your life to learn the crypto trading ropes. Jumping into the practice blind won’t end well. Start by consulting blog posts, books, and forums, and familiarize yourself with your country’s tax laws.
With dedication and knowledge, it is possible to make upwards of $500 in a single day trading crypto. However, that number may be the exception rather than the rule.
Crypto trading takes a lot of hard work and discipline. Before casting aside all other work for crypto trading, ask yourself if you truly want to dedicate time to learning the tricks of the trade. Crypto trading is not for everyone. For example, someone with a gambling addiction may be a risky candidate for a crypto trader. Goal-oriented people with strong self-discipline are the best candidates.
Crypto traders have no higher-ups breathing down their necks, pushing them to complete their work. They are self-employed and therefore need to take on an entrepreneurial mindset. So, while the short answer to the question is that yes, day trading crypto can be lucrative enough to be a singular source of income, it is not for everyone.