Contents of this article:
Trading is called the most profitable of all the ways to make money on cryptocurrency. Profitability depends on the experience and skill of the trader, as well as the starting capital. The larger the deposit, the higher the earnings, subject to a successful strategy. Beginners who plan to earn money by trading on the stock exchange are interested in whether trading can be made the main source of income. Let’s try to answer this question.
Is it possible to live on trading income alone?
Whether it is possible to earn on trading as much as necessary to cover all the required expenses depends on your standard of living and requests. For example, you spend $1,000 per month. It is important to note that a monthly income of 7-10% of the deposit is considered very well, about the same amount earned by professional traders who have been trading on the stock exchange for more than a year. From this we can conclude that in order to receive a stable monthly income of $1,000, a trader must open a deposit of at least $14,000. This is a large amount, and it is extremely rare for a beginner to afford such start-up capital.
A novice trader will be able to earn $210-300, subject to successful trading, which has yet to be learned by investing $3,000 in crypto.
It is worth concentrating on increasing capital, gradually increasing the amount of investments at the initial stage. This will allow you to create a good deposit, regularly increase earnings, in order to earn enough money from trading for a comfortable life eventually.
How much can a professional trader earn?
Cryptocurrency trading earns large companies and private traders. There is no exact data on the income of professional traders, because no one wants to disclose this information.
The income of an experienced trader who has been trading crypto on the exchange for a long time and is well versed in the peculiarities of the market depends on the platform used (often traders trade on several exchanges at once), the diversity of the investment portfolio, and the chosen strategy.
The professionalism of a trader is not evidenced by a record income from a transaction, but by stability. If every month for several years he earns 5% of the capital, he can be called a professional. If a trader receives an income of 40% of the deposit in one month, and loses 50% the next, it is difficult to call him a professional.
Nevertheless, trading is a risky type of income, so in some months the income may be insignificant. The trader has a chance to earn 20-30% of the deposit when the rates rise, but at the same time, the risks of losing the deposit and incurring serious losses increase.
How long does it take for a beginner to make trading a main source of income?
Success for a novice trader can be considered an income in the amount of 3-5% of the deposit every month. This result can be reached within six months by immersing yourself in the study of trading, mastering technical and fundamental analysis, the basics of investing and risk management.
A novice trader can achieve great success over short distances.
Beginners take risks more often, and risk can bring more profit unlike professionals who operate according to a pre-built system. But it is important to understand that this is a one-time success. A high risk will allow you to make + 50% of the deposit today, and tomorrow you will lose this money.
The success of a novice trader in the cryptocurrency market depends on knowledge, skills and an initial deposit. In order to learn how to trade crypto in a few months, to come to a stable income, you need to:
- choose a reliable exchange for trading;
- invest in cryptocurrency, balance and diversify the investment portfolio;
- learn how to work with analytical data, predict, select promising assets;
- draw up a risk management plan to control risks;
- learn how to use exchange tools that help reduce risks.
You will learn all this in the course from Crypto Crew traders. Our team has developed a course for beginners and experienced traders who want to earn more. Join to start trading on the stock exchange on your own in a month, increasing your capital!