The creation of the first cryptocurrency; Bitcoin, has caused a massive change in value perception in the financial world. This earned the interest of several participants in our world financial market. Cyber coins are tagged as the next great evolutionary leap of the world's legal tender. Although as of now, no country is known to have legalized cryptocurrency as her national legal tender, this hasn't deterred the value growth of the crypto coin. Cryptocurrency offers its users massive financial freedom since it is not directly connected to any country's economic change. In addition, it eases online financial transactions, making the process faster and cheaper.
This has made numerous financial enthusiasts venturing into the crypto world. Apart from Bitcoin, other cyber money has been created, these alternative cryptocurrencies are generally called Altcoins. Hundreds of altcoins have been created which brought about the creation of the cryptomarket. Altcoins' values vary greatly, plus they are all priced and grow in value at different rates. Cryptocurrencies value fluctuates greatly, although it is not directly affected by any nation's economic status it is still affected by basic economic factors, demand, and supply.
People that seek to benefit from this periodic change in the price of cyber money are known as cryptotraders or crypto-investors. The major difference between investors and traders is the time difference between each trade. Investors are looking to make a profit in the long term while traders resort to short-term profit making from cryptocurrency. Unlike other walks of life, being a cryptotrader doesn't have a constant or structured flow of income. You can make as much as $100 000 profit in a month and in the next month, make as much as $200 000 loss.
Cryptotrading as your sole source of income is a risky way of life since the future of the market is always uncertain. This uncertainty can cause a trader to make a massive profit or a huge loss. Generally, investors in the market use the process as a side hustle, that is, it is not their major source of income. It is understandable since they have to wait for a pretty long time to cash in their profit or loss. However, some traders actively trade as consecutively as every 5 minutes, and trading the coin is their sole way of making a living. These traders spend time trying to fine-tune their skills to be able to predict the market's movement more accurately. Just like in Forex trading, cryptotrading has also produced numerous successful active participants.
It is possible to make cryptotrading a sole means of living but it is quite safer to have another means of income apart from trading coins.