Trading Cryptocurrencies can be a lucrative venture. But to make it more than just a hobby, you need to cut down on your time spent doing it. Unless you’re willing to spend most of your spare time researching developments in the crypto world and analyzing market trends, there’s just no way around it: trading cryptocurrency is an investment that requires a lot of time. But don’t worry! By capitalizing on the many trading opportunities that arise from day-to-day activities, anyone with a little bit of patience and persistence can turn their passion for cryptos into a part-time job. Here’s how…
Learn the Basics
If you’re eager to make money from trading, but don’t know where to begin, you’re in the right place. This section will walk you through the basics of trading, from the risks and rewards associated with it, to how you can get started.
The first thing to note about trading Cryptocurrencies is that it is a very high-risk investment, with the reward being very low. You can lose a lot of money by trading. Therefore, you need to approach it with extreme care. In this first section, we’ll provide you with an overview of cryptocurrency trading and the basic terminology you’ll need to know to get started. You’ll also learn about investments and traders, and how Cryptocurrencies work.
Create an Account with a Trading Platform
The first step toward making cryptocurrency trading your part-time job is to get a trading account with a trading platform. The two most popular trading platforms for beginners are the eKrona and BitcoinX. While there are other trading platforms, these two exchanges offer beginner-friendly interfaces and features, making them the best places to start your trading journey. Once you’ve opened an account with one of these trading platforms, you’ll need to deposit money into your account. Depending on the trading platform you use, this can take a few minutes or a few hours. Once your money is in your account, you can start buying cryptos.
Pick a Cryptocurrency to Trade
Once you’ve got yourself a trading account with a trading platform and some money in your trading account, the next step is to pick a cryptocurrency to trade. You can choose any cryptocurrency you like, but keep in mind that the lower the market cap is, the less liquid the market is, meaning the fewer opportunities you’ll have to trade.
Focus On the Undervalued Ones
Another trading tip is that you should always try to find undervalued Cryptocurrencies. The reason behind this is that while the price of a high-rated cryptocurrency might be going up, there might be a relatively new cryptocurrency that is also undervalued and could be a good investment.
For example, let’s say you want to invest in Ethereum. Ethereum’s market cap is relatively high, which means that there are a lot of people trading it. On the other hand, if you want to trade one of the newer Cryptocurrencies, like the eKrona, the market cap is a bit low, so fewer people are trading it. Therefore, if you want to make money from day trading Ethereum, you’d have to compete with a lot of other investors. On the other hand, if you want to make money from day trading eKrona, you have less competition, meaning you have a higher chance of making a profit from your investment.
Day Trading
Day trading is when you trade a single cryptocurrency for a few hours or days at a time. It’s a very risky approach since you have very little time to get the best price for your investment and have a very limited number of opportunities that way. It’s often done by professional traders who want to make big profits from very big investments. If you’re planning to day trade, you’ll need to have your trading strategy ready before you start trading. You might have a trading strategy for buying low and selling high, or you might have a trading strategy that’s focused on short-term market predictions. Whatever your strategy is, make sure you don’t deviate from it, or you’ll risk losing a lot of money.
Conclusion
There’s no denying that trading cryptocurrency can be a pretty lucrative venture. But to make it more than just a hobby, you need to cut down on your time spent doing it. Unless you’re willing to spend most of your spare time researching developments in the crypto world and analyzing market trends, there’s just no way around it: trading cryptocurrency is an investment that requires a lot of time. But don’t worry! By capitalizing on the many trading opportunities that arise from day-to-day activities, anyone with a little bit of patience and persistence can turn their passion for cryptos into a part-time job.