Cryptocurrency – you may have heard about it? There are few people on the planet who do not know about crypto and its pending mission to take over the financial world. The truth is cryptocurrency is taking monumental steps to change the way the world does business, trades, sends payments and overall – how we live our daily lives.
Although this may sound a little daunting to people who have yet to embrace it or take the time to learn how it works, there really is nothing to worry about. In fact, crypto is excellent for the economy in many ways. One of those ways is that it creates jobs, which will be the focus on today’s post.
What Will You Need to Get Started?
Before starting to earn money from cryptocurrency, there is a need to learn more about it. Reading a couple of blog posts are a good start but speaking with experts and diving into some financial literature and financial education should always be a priority. Entering the world of crypto without your wits about you could end in disaster. Always be cautious and always do your research to avoid pitfalls and scams.
From a practical standpoint, you will need to find products and services in order to retrieve and store cryptocurrencies. Exchange platforms are easy to find and researching the best ones is paramount. Their cybersecurity is what lies between your wealth and assets – and losing it all. Moreover, you will also need a wallet to store your cryptocurrency in. These are something like bank accounts but because crypto is completely decentralised, you are also the bank manager. Lots of people choose the Luno Bitcoin Wallet because it is safe and convenient to use. Oh, and you will need an internet connection.
It’s Mostly About Trading
Most make a living from cryptocurrency through trading digital currencies. In fact, some people believe that trading crypto now is a once-in-a-generation opportunity to make some significant money – and may not come around on such a silver platter ever again.
Crypto trading is exactly what you think it is. It happens through the exchange of cryptocurrencies on, you guessed it, an exchange platform. Sometimes trades are between two digital coins and in other trades, fiat currencies are also involved. Where you put your money and when you do it is crucial, but can only be decided by you, your knowledge and most likely your gut feeling. The overall aim is to have digital currencies with a higher value than the day before, or in some cases, the same value as before to not lose money.
The Biggest Threat to Crypto Traders
The biggest threat to traders is that it never ends. In a normal job, it is governed by rules set by your company. You cannot be chatting by the water fountain at 9.10am but you can be chatting on your break at 10.15am. Then, once the clock hits 5pm you get to go home , with any overtime going towards the house or a vacation. However, the day doesn’t work like this for crypto traders. In fact, there is no such thing as a day.
Crypto trading is a constant machine. If a trader is happy with their work, they pour themselves a brandy, read their kids a story and hit the hay. While they are sleeping, dreaming of the excellent results they can get excited, about in the morning, things can change. The other side of the planet is waking up and still trading. Asians may pull the plug, then Australians quickly jump ship and blogs begin to circulate. In summary, hitting the snooze button could cost you significantly.
Nevertheless, this situation may sound scary, but it shouldn’t. There are risks with any job and this is not more significant than insecure jobs around the world while people sign up to mortgages and shake hands on financed cars. It won’t be the last time we will tell you – but research is important.
Why Having an Exit Strategy is Key
One of the biggest mistakes that people who are trying to make a living from cryptocurrency make is that they do not have an exit strategy, or they do not stick to it. If you see your coin is falling in value, then you should premeditate an exact figure of when to get out. Some people are reluctant and firmly believe the coin will grow again. The truth is it might, but smart traders do not take these risks. They get out exactly as planned.
An exit strategy should work in both directions. If your coin is surging and all the reporters are talking it up, guess what? It has to come back down at some point because there are only so many of each digital coin. Have an exit strategy for rising values as well. This can be harder to sell at but just as beneficial – especially if bedtime is near!
Other Ways to Make a Living from Crypto
Trading is the main way of making a living through cryptocurrency, but it is not the only way. Indirectly, people make a living from cryptocurrency all the time. Its materialisation into such a financial force has created thousands of jobs in the technology industry, as well as helped consultants and experts find clients.
However, this isn’t all. There are other ways that everyone can make money from cryptocurrency. Some of them may seem subtle but they still count – and one of them is happening in front of your very eyes right now:
· Write about cryptocurrencies
· Simply using it
· Gambling in crypto
· Crypto mining – note, this is not as profitable as it once was
· Holding them – this is like trading but on a microscopic level as you wait for their value to increase before getting out. It’s really somewhat similar to an investment.
· Cryptocurrency faucets
· Lending digital currencies
As is evident, there are an array of ways that cryptocurrency can help your bank balance. This is on top of trading it which offers a viable and highly possible method of earning a living from cryptocurrency. If you do decide to start any of the aforementioned ventures or enter into the world of crypto as a trader for the first time, remember that you can never research enough. Knowledge is power in a lot of domains and it also applies in the world of digital currencies. Good luck!