Topic: Never depend on cryptocurrency as your only source of income. - page 4. (Read 948 times)

I have the impression that you and your friends experience cryptocurrencies as a company. Now that it's in decline, you can't live on it. someone who does programming or development in the crypto industry and is paid for that work in cryptocurrency does not have the same problem as you.
although I would rather say that you did not formulate the advice well.

I assume that you meant trading in cryptocurrencies (which is only part of the possibilities that crypto offers). even though it is now a bear market, it is still possible to make money by trading. although in a bull market everything is much simpler.
yes, you are right, your friends should not have quit their regular jobs, not because they are dealing with cryptocurrencies, but because they are not good enough to be traders.
you don't become a dentist just because you know how to brush your teeth.

Some of the most successful hodlers are people who have other sources of income. You can't expect to be a successful hodler when cryptocurrency is only what you do and base your survival on. It is even advised normally that having one source of income, be it crypto or any other means is strongly discouraged. After securing one source of income, the goal should be to secure another and not become satisfied with just one. IMO, three sources of income should be the least that somebody should have. For the employees, there is no job security, apart from your salary job and investment in crypto, you should strive to have another or more incase you get dropped from your salary job, so you do not become directly dependent on the cryptocurrency you have for your survival. 

It depends..

I am from a country where dollars is the best monthly payment you can ever pray for, ( exchanging dollars to my native currency makes lotta sense ) this is why I build my source of income around online jobs.

I am also a crypto miner, profits are way down now but I am still getting something through free energy. I also earn some passive income through crypto stacking.

In the near future, I will go fully into running Nodes.

The crypto market is too volatile and it could turn you down into racks within few days only as we have witnessed in the recent cause of action but if you are taking it as primary source of income then it could be problematic for you in case you are not a whale or have fund restrictions with you.

This is side business or say making additional profits out of your investment but if you are into professional trading then you would need a setup and complete understanding of the market studying charts as well but to support your loss you must have an separate buisness line up also with funds flowing in your account without any risk maintaining your financial stability.Those who lost funds in bear market or liquidity meltdown have to survive in real life otherwise we have seen worse case scenario where they can't handle it all and results are devastating.

You can earn in many ways that is related to crypto. If I remember correctly, there are some freelancing websites that can pay the freelancers cryptocurrencies, right?
Trading alone as your main source of job is very risky because you don't know what can happen to the market.

What your friends did was wrong because they left their main source of income to another thing that isn't sure whether they will get income from it or not. They chose to go for a quicker way to get money but riskier than a slower way to get money but more sustainable and can be for long term. On the other hand, if they are a professional trader and when I mean professional trader, they are earning more than they are losing then maybe they can make it as their income source.

TBH, I almost did what your friends did but I didn't continue because I choose to remain on my regular job because it pays me my monthly bills. My earning from signature campaign is what I'm using to invest into different assets, and it serves as my emergency funds as well (I'm converting it into fiat).

They can leave their main job not making decent money on crypto, but they should be making good profit during this bull market. But still, relying on the only source of income is not a good idea when the need for money is greater than ever.

The market becomes unprofitable during bearish, most people say it's true. But if your friends have sufficient skills and funds, then I believe they can still profit from price volatility too. The thing is, not everyone will be able to make a profit in the market in every market trend, be it bullish or bearish. It's also not a good idea to be patient in a primary job that only earns $50-$100 per month as inflation will keep them only working and the wages are just enough to cover the day's expenses.

All cryptocurrency investors may benefit from this advice, as we can all see that the negative market has taught us all some valuable lessons.

Although this advice has been given in this forum before, I'm sure the current market situation has given the OP the motivation to remind us of it. After all, if crypto investments are your only source of income, I can almost guarantee that you're looking for ways to get a loan for your personal upkeep. However, if you have your own funds, you can simply keep an eye on your crypto portfolio or take advantage of the current bear market to invest more. However, never quit or leave your work to depend fully on cryptocurrency.

You are not to put all your eggs in one basket,losing and making profit is the nature of trading especially volatile assets you can be a trader but you don't consider the market can turn the other way round not in your favour because you were making so much profit fail to understand the kind of business you are into.

Your friends quit their jobs for Bitcoin thinking they have made the right choice and not considering the nature of business they are into. I will say they are lazy and don't want to be stressed if not they will continue with their job and also trade. Crpto business is not reliable it should be a side thing we do in other to add to our income but never put it first instead put your offline jobs before it.

Your friend's perception is wrong about crypto, they think crypto trading can always make a profit, if they are able to look deeper into what is in crypto trading they will not quit their job. Crypto trading is like a double-edged sword, on the one hand it can provide huge profits while on the other hand it can also be a scary hole.

The great volatility of crypto certainly makes us worried and at the same time very happy on the one hand. Because if crypto prices go up very high, we can get very big profits. In addition to offering profits, crypto assets of course provide losses that can be considered very large. If you miscalculate, instead of the profit you get, you will reap the multiplied loss.
That's the reason Crypto is not a place to hang out for a living, besides trading crypto you also have to have a job in the real world.

First of all, traders make money in both a bull or bear market. If you are a pro trader, you know when to get in, when to get out. Most of the times, you will get profit though you will miss a few times. So, there's nothing like people can't make money on a bear market. Traders can make money all the time.
However, in general, I would never depend on trading only, I'm a bad trader anyway.

Really, I have never thought it as gambling. I always used to take it as an art where smart artist makes money and the average lose.

Are they good at trading?

In trading, it is not easy to win in long run. Even you win big in bull runs, if you are not good at management, you will lose all profit and even capital in bear market.

If they are not good at trading and you learned from them, it's bad.

Maybe they thought they are genius after getting profit from market in bull run. They did not know that it's zero sum game and they will lose it very easily in bear market. Two years, 2021 and 2022 especially this year, proves that.

Trading becomes a bit harder in a bear market, that's what many new crypto traders do not understand until it happens.

Multiple source of income is better, you will be able to hold your coins and keep dollar cost averaging into your favourite altcoins for long term and you will be able to take care of your family and yourself.

Normally trading is very risky, there is no way you won't lose in trading and sometimes your loss will be higher than your winnings, this is why trading isn't reliable, for me at least, I don't know about others.

You really cant have trading in general as your only source of income if you're quite new to the game. On the other hand, if you're good enough to run a hedge fund or a trading firm (which is like sub 1% of all of us here), it can definitely be a great sole source of income.

Also, don't totally rely on signature campaigns as well.

You are getting it wrong. Because I am trading gold, am I into gold business or do I even invest in gold? No. That is how cryptocurrecies are too, because you trade a coin or token, that does not mean that you are into crypto business or investment.

Because you invest in crypto, that does not mean you should quit your job, but trading can give that wrong thinking, thinking you are making money daily or in short time, that you do not need any job again, but that is wrong, most traders are not good traders, they are only lucky with bull market, when the bear market come, they will lose more. You can long and make money during bull, short and make money during bear, it depend on how lucky and good you are, but it is not good to rely on trading, be it forex, crypto, stocks, and others like gold, crude oil and others.

This is not about cryptocurrecies, but about trading. But also not good to quit job for trading.

Your friend is too spoiled by the bull run market so he forgets the risks and takes bad ideas that will be faced later because after the bullish will surely come bearish to meet us next, for me your friend is wrong with cryptocurrency as a source of income one on one while his work in the office was left, where the source of income helped him to survive when the market was bearish, so I think this step is not right and we have to pursue sources of income from anywhere, especially the business that is being run.

I will not take that step and I will continue to do work so that sources of income can be from anywhere, the business will continue to run, going to the office will not be left as long as it is still fun to do so I don't rely on cryptocurrency as the main income but an additional source that invest in bitcoin for long term.

I also always tell my friends never to leave your main job even though you can earn from crypto with that. I say that the cryptocurrency market is very erratic price fluctuations that the market will not be stable.

I think there's a lot of people who invest this way and it's a historic lesson that needs to be learnt somehow by all investors (either by actually doing it or by paper trading).

If you're putting a lot of funds into an investment - more than you can afford to have (such as if your expenses for the next few months aren't available in cash) then you're going to end up at least paying fees on this funds and taking a huge risk by not selling/buying from average prices over a longer period.

You mean "depending on trading cryptocurrencies" not in "cryptocurrencies" , right ?
Trading, whether in cryptocurrencies or other digital assets, is considered a form of gambling. There are no scientific rules that control price movement and therefore all decisions will be based on speculation, as it is an unproductive sector. Whenever you win money, it means that someone else lost it for you to win.
I do not expect that there are women who can live their lives depending on gambling as a main activity, and therefore trading is not useful as a main source of income.

Your friend risk too much without thinking some alternative if things go south and cryptocurrency trading is not for everyone. We should not rely on a single source of income especially in cryptocurrency because of its unpredictability due to high volatility movement.

Just ask this to yourself or to your friend "what makes you think you can survive in crypto space?" Especially if your knowledge is too limited to trading only, there are people who did this, some did great while some didn't make it the same as what happened to your friend.

Trading is not for everybody.

Never think of using cryptocurrencies as your only source of income; always have Alternatives for it, if really you don't want to endup in nothing. See what happens to my friends for making crypto as their only source of income.

When my friends started cryptocurrency few years ago, they seriously engaged in trading, but I knew nothing about trading then, I was just learning from them, during this last bull run, some of my friends that started trading, decided to quit there job just because they believe the money they are making from trading is sufficient for them and they don’t have to be stressing themselves going to office everyday since they can make enough money from cryptocurrency without going out. I advised them not to quit but they didn’t listen to me, now that we are in bear market, all of them have been frustrated since they are not making money from cryptocurrency and they already left their job and is not really easily for them to secure a new job, currently coins are down and this is the best opportunity to buy more coin but unfortunately for them they are selling the coins the already bought to keep for long term just to take care of themselves.

making cryptocurrency your only source of income is a bad idea, you should be expecting money just from one source, is a really bad idea, most people can’t really hold there coins because cryptocurrency is their only source of income, which whenever they are in need of money they endup selling the coins which they purchase to hold for a long period of time, but if you are having other sources of income whenever you are in need of emergency money, you won’t sell your coins, you can get money from those other sources of income you are having. So even if you are into cryptocurrency fully, I believe you should have other business which you will be running to support your cryptocurrency investment, and with that you will be financially stable, if you are holding a coin you will be able to overlook it for long period of time without selling because you don't only depend on it for survival.

My advise to all newbies is that when we join crypto space, don’t quit your job just because of the amount you are making from cryptocurrency, we should always try our possible best to have another source of income so that whenever things goes wrong we will always have backup.

Always remember that Rabbits are always having 3 holes in the Bush to escape Incase you blow smoke for him to suffocate him and make him Run out...