So one of the first questions that many of you are probably asking yourself is why Crypto trading? You see it on social media all of the time, people making Millions of Dollars, driving fancy cars, going to exotic places, eating at fine restaurants and seemingly living a great life. While most of us with our 5-day 8-hour workweeks, our long commutes, sometimes multiple jobs that hold us back from taking a vacation, and rising inflation that makes it harder to put food on the table and gas in the car. We are just looking for an answer to allow us to take back control of our lives, to feel we have accomplished something and to maybe have a small piece of the pie that is shared on all the social media feeds.
The truth is, I don't believe that building profit in a crypto trading venture will take time, and effort and will have bumps along the road. Here are some thoughts that you should consider before deciding to start Crypto trading for yourself:
Make sure you are investing extra money
Crypto investing is a budget line in itself and money can only be moved into my crypto investments once the rest of my budget is met. I like following the rules of Dave Ramsey and am working hard to make sure all of my money is accounted for. So if I have debt, I am not investing in my Crypto until that is cleared out, have an emergency fund built up and a balnced budget. I am making sure the rest of my home and life expenses are being covered before I move money into my Crypto. If you aren't following these rules you are in essence spending more than what you make and your investments will only go to paying down debt. So make sure that you have a healthy financial state before moving into investing in Crypto and don't use money that you are using for projects like retirement or emergency funds to fund Crypto.
Crypto investing will require time and energy
Working on building a crypto investing plan will require some work and research that will require time during your week. Learning about the currencies as well as the projects they are tied to, reading news about crypto and monitoring your investments are just some of the work that you will need to do most days to make sure you are making wise choices in your investments and making sure you don't lose money when there are adjustments in the market.
When I first started in this space, I wasn't as aware as I should be the hard work that would be required to earn a few successful trades. I had tried a few tools before I settled on working with Pionex which provided me bots with research parameters, Earning Bots which provided me low-risk low returns investing and the ability to set Stop losses of many of my trades to ensure that if the market did turn for the worse I didn't end up losing large sums of money. This took a few failures before I got better at setting these and I still get them wrong sometimes.
Never invest more than you are willing to lose
This sort of ties into the first rule but I can't state it enough. Investing into Crypto is a lot more volitile than the stock market or mutual funds. This should not be used as savings for retirement, holding emergency funds or as a savings account. However it can be used to generate passive income if maintained and monitored and can be a nest egg that you can use to earn money for some of the extra projects that you may have in life. I believe that if I am careful I can may be earn that extra money that I need for a vacation that maybe I haven't taken, a nice weekend away or saving up for that gadget that you always wanted. When you work hard and have success with crypto trading there should always be something that you can enjoy for your hard work, it may take some time but I believe that Crypto investing can be part of a dream creation machine that will let you get some of those nice things that are sometimes out of reach.
Conclusion
I am hoping this post gives you some basic rules of what Cryto trading is and is not and when it should be used and when it shouldn't. If you believe that crypto trading is still something that you want to learn about and leverage, I hope you keep reading and we can continue to learn together about profitable crypto investing.
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