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Trading Is Not An Ideal Income Model

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Written by   202
4 months ago

Why Are You In Crypto?

If people were, to be honest, the main objective is to make money. However, the motivation or reason behind this agenda is actually rather important. If you are employed full-time and are looking to further cushion your nest egg, you are in an entirely different situation than the person who has chosen to generate a living working in the Crypto space. Investing and trading for future gains is a great way to make money but it does, however, have an element that is not income friendly. You may be thinking that “making money” and generating an income are exactly the same but they are actually quite unique. I used the term “Income” in the title of this post because it is inherently different from gains or profit.

A Simple Distinction

When you look at trading or even short to medium-term investing you will find that there is a dynamic at work that limits your performance. This is quite simply, the market! An investor can sit out an extended sideways market that generates zero gains. On the other hand, someone looking to generate a monthly income does not share that luxury. Many are sometimes jealous of those generating a living in the Crypto market. However, their viewpoint is oftentimes romantic and isolated. They see the benefits, especially the freedom but they do not remove the aspects that they so easily take for granted. Just arriving at work every day secures a paycheck at the end of the month. A Cryptoneur on the other hand can arrive and perform only to see very little, especially if his income model is solely reliant upon trading.

An Essential Element I Have Found Beneficial

I have played around in markets for many years and as a result, my journey began solely as a trader. As I began to gain more knowledge of the space my viewpoint and approach began to expand. This eventually encouraged me to diversify into as many approaches as possible, as well as securing the strategic approach of passive income as the ultimate goal. This has encouraged me to explore as many aspects and avenues of Crypto as possible. When your income model is diversified it becomes a lot easier to generate consistent income.

Give Trading An Allocation

I definitely would not exclude trading as an income source but I would also not rely on it. Let’s be honest, trading can really pay off, especially if you are skilled and experienced. However, your skills mean nothing when the waters of the market are as flat as a lake, or worse, going against you. I definitely advocate utilizing trading as an income-generating tool but not in a large capacity. When you are looking to generate a consistent income you need to be placing the most focus on the approaches that also have a high level of consistency.

Similar To An Investment Portfolio

Unless you have truckloads of money to put to work in the Crypto space, you will have to diversify into multiple avenues of income generation. This is how you will be able to ensure multiple income streams that ultimately come together to create a significant amount. Many are lost on this concept due to the preconditioning of salary dependency. For some, it is difficult to imagine a salary coming from multiple places. The paycheck mindset has truly taken root. If that is the path you have chosen to take then there is no issue. However, if you are looking elsewhere then you will require an independent mindset.

An income portfolio requires strategic structuring similar to an investment portfolio. One has to seek out viable options, as well as synergetic coordination. Creating and establishing an income system can be very rewarding on so many levels. This often leads to further creativity, drive, and passion, which ultimately initiates the provision of abundance. Enjoying what you do is always a contributing factor to success.

Final Thoughts

Unless you are a well seasoned and skilled trader, generating an income from trading alone can be a very challenging approach. I would not personally advise it but then again that is simply my opinion. Ultimately, you are wanting to secure as much passive income as possible. This will ultimately enable further growth and experimentation. Once the passive income arm of your model is strong enough to sustain your lifestyle, you have arrived at abundance! This now means that any income that is earned outside of your passive model is surplus and can be utilized to further grow your income, or be used as disposable income. The most important aspect to remember is that continuous income is imperative for success.

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First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.

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Written by   202
4 months ago
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The article is quite easy to follow but very ideal to follow. Thanks for your opinion

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3 months ago

You're very right. I've been a trader on Binance for over three years and trading is quite challenging. Also, most people do not really take time to study the market and read the chart before placing an order. But I still think someone can live with trading and you'll still make your profit. It depends on how skilled you are. Imagine someone that uses $1000 to place an order and his aim is to make one percent of that trade. As we know, one percent of $1000 is $10 and if the person trades thrice in a day, that's three percent which makes $30. How do you see this? A person should still be able to live with this. I think you can make much money from trading when you start with a good amount. But let's not forget that one can still lose his earning so quick like it has always happens to me. Please enlighten me if I'm wrong in anyway 🙏

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4 months ago

Yes, it's definitely a way you can generate income but it is rather unreliable... what happens when you have allocated your entire trading capital long and the market dumps? You have to wait, who knows how long? If you are leveraged, you could lose it all. It's a better method for generating wealth, not an income. The two are completely different.

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4 months ago

Your article is as honest as it depicts the truth about investment in crypto. Sometimes after reading over ambitious articles people are push to make unrealistic investment which could all turn out to be a huge mistake. Kudos!

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4 months ago

Sometimes what we need to hear is not always what we want to hear...

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4 months ago