The Importance of Income Diversification for Crypto Traders
The Importance of Income Diversification for Crypto Traders
Sometimes, the direction of Bitcoin is unclear. For example, the price action of Bitcoin is actually confusing. I have learned one thing in these recent days: As a crypto trader, do not rely on trading as your only source of income. It is good to have another source of income like real estate, staking, crypto jobs, mining, and other legitimate sources of income. If I say that I will force trade now, it can end up in a loss.
What is your take on this?
Again you are missing another important thing: first, you should not rely on trading itself as an income stream for your living. I mean trading is 101% uncertain thing which means you may make profit some day and loss in some other day still there would be nothing guaranteed in trading that you would earn something at the end of a month. Moreover, if you are able to finish your month securing your capital, that would be a bigger success for most traders in this crypto space.
Honestly if someone make quite the amount of money from trading because they are just that good in analyzing market chart and make decision based on it they probably gonna be fine not having other income.
like basically the people who made hundred thousand if not millions monthly then they are probably already well off and don’t really need to find other income since risk management is all they need but I do agree though.
having other sources of income could never go wrong, it’d be great if someone that make money from trading could also spend some of their money to invest into other thing such as real estate just to have more secured life.
because we never know when market gonna crash like before where it could turn table on us and literally make us lose so much all the profit we’ve gained during bullrun will just vanish.
the FTX collapse is one of example.