One question that everyone asks when the discussion about cryptocurrencies arises is, how can you make money out of them? The short answer is that you can, by doing mining or trading. Mining requires a lot of investments in the appropriate equipment and might not be suitable for those who are not into hardware. The other option is to turn to trade cryptocurrencies. In terms of equipment, it’s a lot cheaper.
The process of trading crypto is no different than trading in the regular financial market. You buy crypto at a certain price, and then you exchange it for money or some other crypto when you notice the growth. The profit will come if you’re able to properly evaluate the movement in the currency value.
So far, the number of people performing this activity has been on the rise. In this article, we will deal with the question many are interested to hear the answer to Is it possible to make living trading cryptocurrencies in 2024?
Well, yes. Giving the fact that these activities carry a lot of uncertainty and that the market is prone to a lot of influences from outside, being informed in detail and following the happenings in the crypto world is of crucial importance. So, we can easily conclude that for serious trading on the stock market, you need advanced analytical knowledge, a lot of thinking, and above all, time. That is if you plan to make this your full-time job – make a living out of it.
What else do you need to know to make a living out of trading?
It’s only logical that you need to be well informed about nature and basic information about cryptocurrencies. They are a digital form of money whose availability (the number of available units on the market) is pre-determined by software. The price is defined, as it is the case in any market, by supply and demand. If a currency attracts more interest in people, its price is growing. Although the value on the stock is not stable and will vary, it is very important to have good timing when you expect to earn something by trading. Luckily, there are apps, such as bitcoins-era.io, that can make trading easier, especially for beginners.
This brings us to the next important point – when is the right time to buy? The units are bought when they are worth very little. We have already mentioned how turbulent and unpredictable this market can be. Some currencies have failed completely, some have been in the very low value for a very long time until they worth rose overnight, some had very high values which had drastically dropped down. Staying in the stock market means a lot of rising and falling will be happening. If you manage to assess which price is the most suitable for you, this could be your weapon for earning high amounts.
A good example of this is Bitcoin. At one point, one unit was worth 10.000 $, but now this value is significantly lower. So, the best would be if you could recognize the end of the downward trend and then earn on the price difference. The good thing about digital currencies in this time is that the Covid-19 pandemic has had very little influence on the crypto stock market because it is not dependent on any economy or central bank.
In this situation of great movements in the value, those who are participating in this stock market have to constantly analyze the movements and have the ability to predict the highs and lows at the right time. Many people have managed to get rich by applying this philosophy. Certain predictions show that the rise in the value of the bitcoin is again expected, starting with the year’s end. One fact that might prove this is the recent announcement from the PayPal company, where they said they would allow this currency as a means of payment. Now could be the right time to invest.
How to successfully follow the movement in the value? It would be good before you start trading to start studying graphs of digital currency value movements. Professionals have been trying to find patterns in the movement, and when they do, they give them interesting names according to how they look (head and shoulders pattern, a candle, triple pick, and triple fall, etc.).
At any time, you can decide to authorize someone else, like a mediator for buying and selling cryptocurrencies, to sell you the desired currency when it reaches a certain amount. But, if you want to constantly increase the real value, it is better to follow the pattern of trading at the right time.
Because, regardless of how professional you may be, making a wrong assessment can happen and happens quite often. The best advice anyone can give you is to approach the trading fully aware of the risk – how much you can lose if you make the wrong move.
Then how do you recognize the currency that is profitable?
A very good question to ask yourself if you plan to live out of trading crypto? Certain currencies have been sticking around the stocks for some time, ad even though they have had their share of rising and fall, they are still highly rated when it comes to profitability. However, the general advice would be to pay attention to the following: when was the currency established, who made them (who is the founder), what is their current status on the stock market, did it have larger fluctuations, and what was the reason behind them.
Finally, earning a living by digital trading currencies is possible, but if you expect high earnings, you have a long way ahead of you. Be prepared and “gamble” only with what you can afford to lose because losing can happen. One thing is definite, and that is that digital currencies are our inevitable future.
