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Can you live doing Bitcoin trading?

6


With each passing day, active trading and long-term investments have gained a lot of popularity; this being an activity that until recently was thought to be only for some privileged.

The advance of the Internet has allowed more and more retail participants to trade in stocks, bonds, precious metals, etc; and it is not for less, the facilities offered today have made it possible for absolutely anyone to participate in the world of investments.

And not because it is easy to access, it is easy to win; for nothing, you will need a lot of practice, perseverance and discipline to achieve profitability by exercising this profession. There is no doubt about the unlimited possibilities that exist.

, Can you live doing Bitcoin trading?, Forex-News, Forex-News

It is likely that you discovered this activity through cryptocurrencies; and it is that the simple purchase of them supposes a form of investment and protection of value.

But if what you want is to go further, and speculate with small market movements, making money constantly, and becoming your main source of income, then Bitcoin and cryptocurrency trading is for you, without a doubt You can live on this.

Before you start, and make yourself believe that this activity is the easiest and most profitable, let’s compare a bit with long-term investment.

Holding, Bitcoin and cryptocurrency trading

Today, there are many who come to the world of investments through the massive proliferation of online courses; the vast majority, teaching active trading.

However, it is necessary that you understand that scalping, intraday and swing trading (check this article if you do not know these terms), are the most difficult ways to achieve profitability.

What is the reason ?, simple, greater exposure to risk. You must have a great tolerance for this, and it is not something that has a beginner trader.

The more operations you do, the chance that your account will break is greater.

I don’t think it’s something to worry about; On the contrary, active trading is a great way to grow your capital faster. As the risk increases, the potential gains do too.

The key is respect for a trading plan, perseverance, discipline, and control of psychology, We’ll talk later of this.

At this time it is relevant that you know that the cryptocurrency holding company is much less risky than investing through active Bitcoin trading. However, equal risk must be controlled.

, Can you live doing Bitcoin trading?, Forex-News, Forex-News

And what is the cryptocurrency holding?

It is nothing more than the purchase of cryptocurrencies in the real market, this being a key difference with trading; Well, in the case of cryptos, it is done through Contract for Difference, better known by its acronym in English as CFD.

The Holding or investment in the medium and long term should be the way in which a trader starts in this activity. Its leisurely nature allows the investor to make decisions without pressure.

However, I do not think it is a bad idea to start through Bitcoin and cryptocurrency trading, because it will be much more what you will learn, but you need to understand that you will need many flight hours to get really interesting results.

When you do active trading, you must have a good amount of hours a day; So if you do, the earnings must pay the hours spent.

As a recommendation before moving on to the next topic, if you are starting and want to venture into Bitcoin trading, you should do it while investing in the long term.

Trading plan and psychology

I have no doubt that this is what really mattersWell, you may look really interested in starting Bitcoin trading, but you find that it is the most difficult way to start.

With a trading plan where you specify clear rules for market entry / exit and risk management with which you minimize your losses, the probability of success increases.

You may not have the best strategy in the world, but if the probability indicates that if you respect the rules, the profits will always be greater than the losses, this is more than enough.

The question is when we go to reality, mistakes begin, the majority of your emotions.

Here the investor psychology comes into play, which will only be forged as you gain experience.

Discipline and perseverance in strict compliance with rules is what will lead you to success. But this is not something you will achieve overnight. You will need practice, and so we advance to the 3rd and last point to be discussed.

Broker selection, demo accounts, transition to real account

I’m ready to start trading Bitcoin and cryptocurrencies, now, where do I do it?

This is a frequent question, and today there are thousands of places to trade and invest, but the question is which to trust; In addition, you must consider which offers the best features that fit your need

Choosing a broker is not usually an easy task, but it is enough to check that it is offered by a legal and regulated company, good customer service, reasonable swap and spread commissions, convenient deposit and withdrawal forms for your specific case.

It is recommended that you investigate carefully if you are just starting.

From here from Crypto Trend we can recommend 2 brokers with a high reputation:

  • Binance: World leading cryptocurrency exchange. Currently they offer futures of the main cryptos of the moment, being this an excellent way to perform Bitcoin trading.
  • Plus500: Financial company, leader in the Broker service market for cryptocurrency and stock CFDs, Forex, indices, among others.

Both cryptocurrency brokers offer demo accounts so you can start practicing what you have learned.

Just take it with extreme seriousness, and treat him as if he had real funds.

As soon as possible, make a transition to a real account, it is there where you will really feel the emotions play with your decisions; It does not matter that you start with little capital, always deposit what you are willing to lose, so you will not have emotions trying to erratically protect a risk that should have already been assumed.

To end: Trading with Bitcoin and cryptocurrencies is a high-risk activity, but it offers unlimited possibilities, so managing your capital will be the key to success.

I hope you liked this post, if so, let us know in the comments. Any questions or suggestions will be welcome, I will be happy to answer.



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