Topic: The Importance of Income Diversification for Crypto Traders (Read 730 times)

I know there are people who make trading their source of income. even make it a full time job. but I'm sure it's not the only source of income they have.
no matter where they get their other money from, but it is very unreasonable for someone to make trading their only source of income. if the trader has a family to feed, then the market situation will sometimes make him and his family starve.

That's true, income diversification is important for everyone, not just crypto traders. That of course includes them too, just not limited to them, anyone who has income from a different few sources, could get richer easier, just relying on your salary and nothing more can't make you live a decent life anymore, a lot of people realized that long ago.

I have a friend who literally bought a warehouse, that was not something I thought I would ever see as a "business" or anything, but he did that because it was cheap and he had the money, he took out a small loan, nothing big, and then rented the warehouse to some company for a small amount. That's an example, do that a dozen times and suddenly you do not have to work anymore, do it a few dozen times and you are rich beyond what you can spend.

This is how people get richer, they do not work for money, they make money work for them instead and if you can do that it means that you are going to end up with a good return without a doubt. I personally believe that the best thing we can do right now would be making sure that we invest into different multiple projects and assets, so that we could have income coming from many different places to us.

Not only for crypto traders, anyone must also have more than one source of income, because in an uncertain era like today we cannot rely on just one income, if possible when we have the opportunity we must be able to find more other sources of income, so when one of our sources of income is disrupted, at least we have other sources of income that we are ready to use to support our lives.
However, if someone is too lazy to find other sources of income, and prefers to maximize what they get now, then they must be able to save, invest, and manage their finances better. So when there is a financial problem or when market conditions are not good, at least they have funds ready to be used for whatever it is.

Diversification is the best option for investment in my opinion I mean I through a lot back then I just put all my money into crypto like 100% of all net worth is crypto because I felt like crypto is crazy that can turned a dollar into 100 dollar in matter of second that I mean no other investment can be like that. Some people called stock are volatile asset but dude crypto is way way more volatile than stock.

Crypto can make you rich in a second but can turned you broke in a second too. That is why right now I'm trying to Diversification my asset, I'm not rich but I'm trying my best to get passive income and the way to achieve that Im trying to try other instrument like mutual fund, stock, Gold, obligation.

Some people don't believe other instrument but for me as long those can give you profit then why not

I agree, and also don't put all your money in crypto. Some people who initially only had 10,000$ maybe became millionaires in a few weeks, but some millionaires ended up with only 10,000$ left

Just dont make yourself that being that too desperate then you would really be just that fine but on the moment that you do find yourself you do have that control on what you are trying out to achieve then this is something which is really that recommended. Income diversification is a must considering that we are really that dealing up with struggle specially to those who are really just that earning average.
Diversify as much as you could and not really that dealing with a single source of income on which just like on what everyone is saying on here that it is really that better to have that lots of back up plans
rather than on making yourself that being too confident that you could sustain forever. There would really be those life conditions or situations on which it would really be that needing that financial on which
on the time that your savings has been depleted? For sure you would really be ending up miserable.

This is why it would really be that recommended that you should have those back ups on the time that they will really be experiencing those problems on which of course
you wont really be that struggling if you do have the money that you could really make use on.

The issue with income diversification is that if you overdo it then you are going to end up with something that will not be all that smart and you are going to end up with some issues. I personally believe that the best thing to do would be just doing it very selective, like be very limited on what you accept. If you diversify it to everything, then you are going to be quite upset about it, but if you are careful then you are going to end up with a much better result. I personally believe that the best way to go with this would be just making sure that bitcoin is in it, and if you really want gold can be in it, and depending on where you are and how much you have, real estate "can" be good, can be terrible too, make sure, but I would say nothing else gets in for me.

The main reason on why people would really be having that consideration on sticking into crypto industry or market rather than on having some considerations into those traditional investments on which you had mentioned it is just because of the possible return that it could give. People would really be always loving to see or choose up into those things on which they could really be able to easily make money in a short period of time and this is why they would really be ending up unto this option because they do really know about the potential gains that they could get. Some might not really not know about those traditional investments or they arent interest or simply they are focusing too much into this space and this is why it is really that out of their options. Well, its their choice but it would really be that impossible that you cant be able to think up well and make out those reconsiderations.

No matter what form or step that you would really be  taking and as long it do talks about other income stream by simply acquiring those different spots because of diversification then this what matter most.
People do just missed it out or simply they do skip because of having no knowledge or simply having no capital? We wont really be able to tell, but as much as possible then this should comes up into
your mind.

One of the main issues with those that enter this market for the first time is that they want to do many things at the same time, when instead they should take it easy and take a more relaxed approach.

So investing only on bitcoin is more than enough for them, and once they accumulate more knowledge about this market they may realize investing in bitcoin is by far the best option, however if some of them still want to trade they can do it, but they need to only use a small amount of money, since the majority of those that try to become traders lose the majority of their money in just a few months.

When people made mention of percentage to allocate in anything that has to do with luck or probability it seems so crazy and sound so weird because of allocating a little fraction to what you seems can't be reliable. There is always a reason why most people keeps saying that people should used not above 10 percent of their income because if that is Lost it could be very to forget about it than using a life savings or their whole salary to invest or trading volatile currencies.

There is no other take that will be reasonable against investment diversification and it's only a fool that will argue otherwise. It is like having the factors of safety, I've never seen the disadvantage of that. However, you have to learn and fully know what you are committing your money to and not just dabble into it because you know people are doing it, fraud and losses are in all investments. Nevertheless, it sounds like a good plan if you can divide your money into about 5-10 uneven parts and invest them wisely in projects, businesses and properties.

If you noticed, I mentioned the "uneven parts," this is because what you are investing the money into will always have its encouraging and discouraging parts, so we should learn the level of risk and the plausibility of dealing with them and earning from them. This is what will help you to know the worth of the portion you are coming into each of them. Even as lousy as people are about crypto, wise investors recently warned that you should not invest more than 10% of your worth (affordability). That is the worst case because it is still a new project that people are hyping. You can invest more in the more feasible ones like stocks, indices and properties that will hardly fail you.

I always advice newbies to keep bitcoin as a side hustle, continue their day job or get one if they are still a student and just newly entering crypto.

Keeping the traditional assets at hand is no harm but only better. Crypto trading was easier for me to cope up with because I had a background of stocks and this can help former stock investors to enter crypto too.

Diversifying is never a bad thing but altcoins should be avoided, in other words, the only crypto in the folio should be bitcoin.

Again it does not mean things other than trading should be given importance to - staking is not something I advice, neither is mining unless you have very cheap electricity and have the rigs in place.

Retracement or basically a correction to what we are having right now, the reality is that we do not "need" it, it is not bad when it happens and anyone who knows the market will know that it happens here and there, so it is not a big deal at all. But it is not a must at all, we can have a growth without a retracement as well, it doesn't really considered to be something all that troubling.

We need to consider how things aren't always what they look like, sometimes it can look one way and be something else, so we need to be careful about it, so I agree that technical analysis could be the most important key factor here, if you know TA then you are not going to act like everyone in the market, you are going to be confident and seeing what could be done and what is the real situation and could make moves based on that.

The money you invest with determines the return you will earn that is the number one rule when investing in bitcoin. The sooner people grasp how bitcoin works, the better because not everyone understands this simple theory. The earlier you learn how bitcoin works, the better. Because, according to the basic analogy you provided, investing $500 amounts to nothing when investing in bitcoin, but this $500 is invested in something with a higher chance of profit than investing in bitcoin. The only reason they will advice you to invest in bitcoin is because it is safer to invest because your money will be in good hands, compare to other altcoins that can crash due to the condition of the market, only few projects can survive, but if you want to take risk then you can actually give altcoin a trail.

Why alot of individuals prefer to invest in altcoins as a way of diversifying is as they see they can make more profits when they invest in altcoins. They do not forget to invest in Bitcoin but diversify with altcoins. $500 invested in an altcoin can give you more profit than when you invest that same $500 in Bitcoin. Investing in fundamental altcoins that is the secret and not investing in random shitcoin or memecoins. All cryptocurrency moves alike but they do not give them same profit. Bitcoin can increase by 100% but altcoins will increase by 500% percent during the same time because they have low market capitalization and a lot of investors are looking for altcoins that can give them profits to invest into. They do not mind if they lose on various attempts when they can finally get a big profits at the end.

What if your only asset is bitcoin or any other blue chip coin and we are in a bear market? Why do we keep locking ourselves into the crypto industry and thinking that diversification means investing in a few altcoins? Why don't we divide our capital and invest in assets such as stocks, gold or businesses? Isn't that diversification?

People just follow the cryptocurrency market and say that diversification is useless, while the concept of diversification is most true when we invest in unrelated assets. You put all your assets in the cryptocurrency market and if it crashes, you lose everything. So I wouldn't call it diversification.

yeah, diversification isn't all rainbow and adhere to our expectation, most people that over diversify usually are the amateur and beginner who thinks diversifying into more shitcoin means less risk, well the bad news is, that's not true, just packing various shitcoin doesn't magically turn it into blue chip coin.

in my book, diversification only work if I want to invest and mantain risk, but also want to try investing into high risk coin some time, then it works, other than that, just a waste of time since BTC perform better than majority of other coin anyway, no point diversifying. this even more apparent when most of coin also just simply follow BTC price like you can diversify to other 5 top coin and the result more likely will be the same as holding just BTC  .

just compare BTC graph below


to ETH, BNB and SOL

almost looks identical

The market will not become healthy if there's no retracement this is to check where the market can hold and soar if you are active in trading with the use of the indicators and signals even though it's not giving a hundred percent price movement still there's a glimpse you can see what are the possible price action, that's why knowing with technical analysis might save you from loss and lessen the risk.
Having different jobs is ideal to make sure you will grab the opportunity in crypto like buying the dips and holding wait for the ATH but recently there are a lot of trend right now in the crypto space that offer a job so you can enjoy crypto while earning.

If you are exploring different projects when it comes to trading, then, it is like you need to learn everyday. As each project is unique from each other, you need to understand what's going on with their actual developments so you know how to attack in the trading market.

Trading is one tedious job. So if you are not emotionally and financially prepared, better not put your hard-earned money into this activity. Maybe, look for other tangible assets to invest with if you have no luxury of time on your plate.

Doesnt matter whether you do get involved in crypto space or not, or simply being a trader or not on which you would really be wanting or needing to have that income diversification on which we do know that
when it comes to this aspect then it would really be always recommended that you should really be having that kind of other source of income to have a good financial condition or state.
It would really be that a common approach to have such aspect on where you would really be needing that multiple income source but the main challenge on here is on how you would really be able to do it?
On the moment that you would really be having such approach on which thinking about multiple income sources then you would be needing up that additional capital and of course that additional risks taking factor
on which on the time that you will really be dealing up with something new then risks management will really be the key or something that must have.

Who doesnt want on getting rich nor being that financially free? Of course we would really be that thriving as much as we can on achieving such state. So it will really be just that depending
on you on how you would gonna do it.

Been a crypto investor if you have different sources of income it is good because you won’t worry to much about the price of bitcoin and you won’t be emotional, one of the things that makes people very emotional when they see their funds coming down as a result of impact of the market. So when their is other sources of income no one will panic because of the market. Their is always difference between those that are holding and those that are trading their is much difference, and even those are trading depending on the type of trading they are doing. You will still lose money and you will make profit the same time. And the analysis that you have to do before you start trading is what discourages a lot of people from trading and the second thing is they don’t want to lose their money. If it is the money you worked for their is no way you won’t get worried about your money, but with time you will get use to it.

That is of course a possibility, but "money you do not need" is not something we can be sure about. Like for example last time I invested heavily, I did that with money I did not need, but then something changed in life and I needed that money and I had to cash it out, wasn't my ideal situation, wasn't what I wanted, but I had literally no other option at all.

In the end, it didn't help anything, and we just did it for a bit more ease of our mind, but I had to do it. So, not everyone can know if you will need that money or not, you may think that you won't, but life could throw you a curveball and suddenly you will need it. Being a crypto trader, one should never rely on trading profits because it is pure uncertain stream of income. So, OP is right here but for my case I am not a crypto trader and I am not living out of trading anyhow.

Thats the main difference into those people who have invested into the amount on which they can afford to lose and into those people who do make investment in crypto with their life savings. You would really be able to have that such difference on which we know that this isnt something that recommended because we do know that crypto investment is something which is really that unpredictable or something that you could really be able to know on where it would be heading. On the moment that you do see that your investment is really that negative for so long then you would really be that might be having that cutting loss on the moment that you cant take it anymore or your patience is really that out of your limit. This is why on the time or moment that you do invest on crypto then make it sure that you are investing on the amount on which you can afford to lose.

Never ever make yourself being that too confident about making profits with this unpredictable space because on the moment that you do find yourself on such condition then
cutting losses would really be that likely and this is something that what makes it even more worst.

The biggest problem is that you can't sit out losses in a situation like this because you are dependent on the money.
You only need to look at the Bitcoin market. For example, if you invested 60k in BTC at the end of the last bull run, you now have a (very large) loss for 2 years. If you are dependent on the money during this time, you will have to sell the BTCs again at a significant loss.

However, if you invest money that you don't actually need, you can skip the 2 years and wait until the prices improve again ... and even if you start with 60k, you are currently making a positive exit.

Patience and time is everything ...

The best way to achieve more in crypto is not to depend on crypto alone; it should be like a source that will provide you with some profit that will help you create a passive income investment in order to get money and also support yourself when you have some financial issues with your crypto investment. The reason I said this is because many people tend to invest in crypto currencies and have no other source of income. If they fully depend on their crypto investments, they will end up using everything that they have already invested, and they will be the ones to end up losing. 
 
So as I said, from the first time, those profits that you will get in trading can be used to enhance some funds for you to create another investment that will also bring some money for you, which will not consume much of your time because if you can’t do some research, your trading investment might be affected. That is why it is always said that you should always have a passive income that will not affect your time.

What is your take now OP? With regards to the recent uprise and potential of it even hitting a higher high?

I think having only trading as income would be hard to live by unless you have large capital that even a 0.5% gain would help you live already for a month. I think that would be the most ideal when you are trying to profit from it.

Well, it's a very good advice and something many of us have advised over the years to newbies who might be coming into crypto with the wrong mindset that they can easily make all the money that they want through this industry.
Diversification is very important, because just as you have explained or said, most of the time, the direction of bitcoin is always unclear, and this sometimes drives the market into a mode I personally refer to as unreadable mode, this is a mode where by the market becomes highly risky to trade on, that is, if you force yourself to trade in the market at that particular time or period, it's pretty easy to come out unprofitable, and making matters worst is the fact that Bitcoin still controls majorly all cryptocurrencies in the market, and what this means is that, when ever bitcoin becomes untradable, majority of crypto assets become untradable too, In times like this, shifting to other source is income is highly advised.

Having knowledge is of course very important to be able to get a good income from trading, because it is impossible to get good results in trading without good knowledge about trading and if we choose to persist in trading because it is difficult to get income from other sources. Another thing, of course, is that we have to have good knowledge about trading so that we can continue to make profits from trading and when we can get profits, it would be better if we used these profits to try a physical business, which of course we can master this well so that we can run it. Of course, greed is very detrimental to us in trading, so it is important for us to be able to control our emotions when trading so as not to be greedy.

If you are able to learn well and have knowledge about crypto trading, you defend on it because many people are depending on it to live as they have no alternative.
Although, it will be very good if you have physical business as backup, but it also involves risk which is a bit lesser than the crypto trading, but if you have the knowledge, make it your main source and you will earn from trading if you are not greedy.

Shitcoins are now out of the picture, its golden days have been overdue. Trading with potential altcoins are more profitable as long as you know how to timing the market, but if you're still a beginner trader, I suggest you focus first on bitcoin and hold it for long term.

Trading, regardless of which coins you trade, is still not reliable that it will bring you profits at all times. Diversification is still the key. You could be trading with potential coins, while you are also investing in some potential investments that are highly capable to bring you exceptional profits in time.

I don't know which shitcoin you are referring to, but it is true that traders should avoid many altcoin on their list of coin that are worth their interest. I have no problem trading altcoin and making a profit, it's fine as long as you understand how it works. The market gives you the opportunity to make a profit from every coin/token that is traded freely on the exchange, so make a profit and accumulate bitcoin as a long-term investment.

I agree, I have seen some people (on youtube/tv etc, not real life) who are professional traders and watched what they were doing, and they were quick too.

It is not just about how they have to have focus, but it is also about how quick they are, like they were basically soldiers in a war, with their gun, if they don't see it first, then they will be seen first, they were incredible agile whenever they saw something, they click everywhere with memory very easily in a second.

Like a trader who could look at 100 different pairs in a minute, and can execute a trade in 7 seconds is something dangerous, and that is why I stopped trading daily after a while, I realized that I could never beat those guys and they will always be better than me, because of how hard they work and how fast they work.

I believe that there is no need to be a trader like that, you could just be a trader who buys and sells in span of maybe ten days, like you don't have to act quickly, you do not have to do futures neither, just buy something, wait a week or two, and sell later. That type of trading is easier, because it allows you to make some money without having to deal with anything harder, and make money easier, less money, but easier.

some people might ignore that. they spend a small fortune to get lucky with shitcoins. it's a gamble not a trade or investment that has a future. some people might not believe it until they have their own experience with shitcoins.
Asset diversification is definitely carried out by more traders. Even though there will still be those who are very focused and only believe in Bitcoin, they probably won't reject popular altcoins.

Not only it would require a skill, it requires a dedicated focused time as well, which isn't that easy. This is why there are people out there who trade only for 1-2 hours a day, that's it. Main reason is that if you want to make any money from trading professionally, then you need to be locking your eyes on the screen, and looking at the charts very carefully, even a tiny miniscule information can't pass you without you noticing, you have to see every little dot, every little change, every little action.

This requires an insane focus, and you can't even take a smoke or toilet break. This is why they try to keep it just one or two hours a day, and if you want to do more, you need to take a long break after each one to gain your senses back and to be able to repeat it. I believe that most of the people are just trading for fun, or trading part-time, not as their job because most people cant do this as a job, it is not easy and causes a lot of trouble for a lot of people.

In the end, if we can do something that benefits us, then we need to consider that we are going to be considering the situation to be not easy for most people, it will cause a trouble and we are not ready for that if we are not professionals.

If they are a crypto investor, they will search for many potential coins for their investment. They will start to invest for the project that looks promising to gives them the profit. They will not just have one investment type but they will spreads their investment in many coins that can increase. They will be careful choosing the coins because many coins can not increases for a long time so they will be careful to select the coins and research that before they decides.

As a trader, they will try to learn many lessons about trading and practice so they can improve their skills which can helps them to analyze the market. They will also search for the other sources of income because they know that can gives them more money and more knowledge so they can increase their income.

When you already know that having a few Shitcoins will only be a waste of time for those who expect a lot when holding Shitcoins, of course this can be quite a valuable lesson for them when they don't get anything when they have wasted more time to expect more things through Shitcoin. So now is the time to choose something more certain, such as Bitcoin and several other popular coins which are generally quite well known in the crypto market. So stay away from any Shitcoin and stay on the right track like on Bitcoin.

Not really responding to non-trading income but I think I'll do a favor and let you guys in on dirty secret. Income diversification doesn't include direct income from trading itself.

The only people who make profits in trading are commission earners (from referrals), course subscriptions, signal subscriptions, market makers (from spreads).

You want to make money from trading? Don't trade. Do all this above

Do you mean as a crypto investor, they should have multiple source of income and not just rely on their investment in bitcoin? As a crypto trader, you can always trade the market base on the result of your analysis of the market. You don’t have to wait for the market to be on uptrend or downtrend before you can execute a trade. If you’re an experienced trader, you need to just analyse the market to enter a buy or a sell base on the direction of the market. Only a novice trader will be bothered of this because they won’t really understand the market and might enter a trade wrongly. Multiple source of income is for those that depends on trading for their income and can also do without them when the circumstance does not favour them at that time.

There is not much to say as for the majority of the traders out there this should be their reality already.

Only a minority of traders can trade as their main occupation, as that will require a great deal of skill on their part and an amount of money so large that it will allow to them to pay all their bills with only a fraction of their profits, and the number of traders that can do that as you can imagine is not very high, so the rest have no option but to look for a second or even a third source of income, that way they can avoid trading when the market is not moving much.

You're right.

That's what actual diversification is. You're not leaning towards only one source of income and as well as your assets. I like real estate and crypto and other sorts of trading.

There are miners here and as well as others that have other side hustles. Soon, if there can be other legitimate source of income that shall add to our profit, we should take it if we can be one of it and we shoot to the requirements of how to start it. Most of them no doubt requires some capital, either with money and/or time.

The market will never be boring no matter what side it is. Maybe you only focus on one side or when the price is rising? And that is why you feel bored when the market is dumping. You didn't realize how important it is to buy at the dip. Bitcoin having an unclear direction is only normal, and this is why it is said that it is risky. So, people should only invest what they can afford to lose, and the other one would be is to diversify. Lastly, we should not treat trading as our only source or primary source of income, just like you said, even if we are experienced already because there will always be times that the market will not be in favour with us.

What we need to realize about this is that nothing "entertaining" and fun will make you rich in this market, unless you get some superb luck, it will be a boring grind that will get you rich.

We need to make sure that we know what we are dealing with, which is going to be basically surviving and getting wealthier, this is literally the most important thing in a persons life outside of maybe health. That means, you will not be given money for free for doing nothing, or doing something fun, of course it is going to be something very difficult to handle. If you can handle it all, then we should probably start consider that if we can do something regards to this situation, then we are going to deal with something that will take a while for sure.

The best case we could probably have in this regard, would be just a situation that will not be simple for all the people who are dealing with the same problems. If you keep acting as if this suppose to be fun, then you are going to ruin it for yourself. Just realize that you need time and learning and studying. Obviously this will not be done by all, because not all can be that patient, but if you can do it then you are going to end up putting your difference and make some money.

We feels that boring because of many things such as we make a wrong analysis many times, we lose our money in trading, we are not in the right time to enter and quit the market and else. The market will be like that and will always moves ups and downs so we must realizes that we must manage our emotion and be ready if we wants to enter the market.

We must know that we can not always make a profit consistently and realizes that even pro trader can lose their money bigger than us. If we can limit ourselves from trading and not use too much money to trade, we will not lose big money especially if the market moves fluctuation.

Obviously it is not for everyone. A lot of people who enjoy trading will not realize why people may make a loss or feel bored. Those who are excited about it, do not realize that we do not have the same feelings towards it, and that's fine we can feel like it is boring but also if we know what we are doing and making a profit the new could get bored and still do it.

I think it's about personality, some people are not made for trading, and I do not mean like profit or loss, I mean like they just dislike doing it all together, don't want to even learn. I am one of those people, I dislike working on it and I eventually get bored of it enough to quit for a while, I may miss and come back eventually but I will always quit in the end.

Having various source of income is good because the chance of you getting broke is limited but trading should not be seen as the primary source of income because it is not a guarantee that you will make profit from trading regularly. The unpredictable price of bitcoin have made a lot of traders to run at loss.

Getting a job with regular income is better and from there you can save and invest in other investments of your choice. However, diversification should be done properly if not it can lead to poor wealth growth compare to when you are more focused on one.

The only boring time on which i could really be able to say is on the moment that them market is moving sideways or simply on consolidation period or simply you cant really be able to see price actions, specially if you are someone whose really that making up some short trades then you would really be definitely be having that kind of mood.If you are someone whose really that been simply holding then you cant really be just that
having that kind of boredom since you've been wary from the start that you would really be just that simply holding and you wont really be that worrying about market conditions whether its really that having that
too movy or volatile or something could really be that boring. It would really be that situational. Speaking about diversification then it would really be always that be recommended or suggested on which we know
that this is something which is really that recommended because on the moment that you do find yourself having no considerations on diverfying your investment then if you do do focus on a single point
and turned out to be a loss or having that devastating negative then it would really be that hard to make up some recovery. This is why as much as possible you should really be having this kind of consideration
because not all the time the market would really be going in line on what are your plans. Always set those back up plans and preparation when shit things happen.

The market may not be boring but trading itself may got boring at some point, unlike when you were a beginner where there is high momentum to learn and earn from trading. And to think that trading may not be able to give consistent and sustainable profits, then it’s a wise move not to limit yourself on trading alone but spare some time and money to other sources of income be it investments or jobs that will give you good compensation. Trading profits can be uncertain so you need to prepare for it by exposing yourself into other things that could also generate profits for you.

No, the market is not boring. If you have skills in analyzing the market, you will know there will be a good time to enter to the market. In this time, I guess you can still make a profit although not much because the fluctuation of the price is difficult to predict. But if you don't minds with some profit, that will helps you to accumulates the profit to bigger. But if you feels that you difficult to trades and lack of knowledge or skills, you can select to invest in Bitcoin and holds it until the price rise. That will helps you to make a profit in the future but you must be patience to wait for the price rise higher. You can also search for the other sources of income from out there and not just from crypto because that will gives us an opportunity to make a profit.

Well, diversification is not only exclusive for crypto but we can always invest outside crypto if we are really determine to make more income. Land properties and real estate are very much profitable in the future since their value both grow in time. However, if we will just stick to bitcoin hodling and trading, I think there's no problem with that as long as you know when to buy and hold, and when to trade them for bigger profits. Greed should be out of the picture because that will only affect your decision making towards your crypto goals.

If you're relying on crypto jobs, mining, and staking in crypto as alternative income sources to profit during Bitcoin downturns, I would caution against this strategy as it's akin to putting all your eggs in one basket. These activities are closely tied to Bitcoin's price fluctuations, making them vulnerable to market volatility. It's necassary to explore additional income sources such as real estate, freelancing, or small businesses like a shop.

Bitcoin's market direction can be unpredictable, and relying solely on trading isn't always good idea. Diversifying income streams not only minimize risk but also enhances financial stability.

Diversification assets into multiple baskets ideally sounds like picking fruit from many trees but is not as easy and sweet as expected. Some assets are no longer capable of price reversals, some assets are only good if they are hyped, and all of them will pose a greater risk of loss when losing interest in the market. I'm not the kind of person who likes to divide treasures into parts, as you said, it would just be a pile of useless trash.

Portfolio diversification is important. But the worst thing about it is packing lots of shitcoins like the one being promoted with a post on this forum. There are some shitcoins that are meant to be successful, but we all know the ones that are outdated with the ideas behind them. Some coins' ideas are disgusting and disappointing. So, holding those kinds of coins and expecting them to pump is a waste of time.

In some instances I might buy into your idea, in some cases I will not, am saying so because if you are actually talking of investment in the crypto industry, then their is Bitcoin, we all know that when it comes to investment in cryptocurrency, Bitcoin is the only real asset worth investing in, So on my own opinion, their is no diversification of investment in cryptocurrency, because Bitcoin is second to none, most of all this alt and shit coin out their are just measures put in place by developers to milk investors of their hard earned money.

But on the case of trading, it's very much ok because you can trade any asset of your choice if you really know what it entails to succeed as a trader, though it's not good to depends on a single income but I still sees trading as a major way of making money if you really knows the craft, because as long as their is volatility in the market, people will keep on making money regardless of if the market is going up or down, but in as much as we all strive to be a successful trader, we should not forget to be doing something, like having a person business or working in a firm, so that it would be more easier to finance our daily lives, regardless of the outcome of the trade we are taking or not, so having a job or business aside trading is very good, so that you won't trade with desperation.

Diversification outside crypto market is indeed necessary not to get bankrupt with your resources. Consider crypto as just one entity of asset, whether you are into btc or alts market. Then explore your opportunities to other tangible assets such as real-estate, jewelries and other precious metals. You can also look at stock market if you have good knowledge on how things work on this particular market.

While diversifying we have to put into consideration things that would not need our full attention as it would not be a good idea to divide your attention from trading. Trading needs concentration and time to be able to study the market and practice your strategy to perfection on demo account before using it to trade live. If you diversify by diving your time, before you are done with the new work or business, you might be tried to trade and if you trade while you do not have you brain in its full capacity, that is disaster that you are trying to create. As you diversify, you have created a good opportunity for yourself to make more income but let it not be at the expense of your previous income source. Some good diversification technique that doe not need you to be present for the income to function and bring you money are investments that only needs your money and you should already be making the money from trading to support your investments.

I would say that it depends on what we are talking about, if we are talking about a full on "all in" trading yeah that's wrong, but nobody does that anymore. What you do instead is have maybe like 17 open trades, which means that you are going to make some good return from some of them at least, and while you can't guarantee income from all of them, you will not have 100% correct or 100% wrong ones.

This is why I think we should recognize the fact that it is going to end up with some trouble if we are not careful about it. All in all, just keep on trying your best and you might actually get a good result, all you have to do is focus on how to improve and eventually you will get a good result without a doubt, it's possible.

Remember that in trading, gaining profits is only temporary as we can't assure to keep trading and consistently make profits. So if you are a wise person, you wouldn't put all your trust into trading alone for all your means for survival, as you have to diversify your sources of income as much as possible. If you can invest and trade, much better. But if you can also invest outside bitcoin like real estate, stocks or gold, then the higher the chances you will make a good living in the future. Don't limit yourself into bitcoin, but create limitless opportunities outside bitcoin.

Even as someone who's into investment or business generally, having a single source of income isn't good enough a you may eventually get stucked because there are roo many uncertainties that may come up rising from your single source of income and if it cost you that income source, you are most likely not going to have a means at the moment and end up been stranded as a person.

There are other jobs one can explore in the internet, it mustn't be trading, one can get on some freelanced skill and still make money from which you can get your trading improved. Trading generally is a risky and yet very technical jway of making money as so if you have gotten that skill in trading, total dependence on it may turn out too risky that you may not survive the.loss.

Diversification can help you alot but still many newbies don't diversify when they're trading. They put all their hope on trading which is a wrong move that end them in desperate situations. As you diversify it helps you to get income from elsewhere when the market is dumping. Not diversifying will make you to leave the market without a profit but lost as you sell. As you want to diversify your investments, don't make the mistake of diversify still in cryptocurrency or you will still be losing and have no where to get money when the market is dumping. A good source for diversifying is to look at the business that can give you daily income and invest in them. If you have the money, invest in more than one of those businesses and you'll be taken care of when you're not making profits.

Only a few would really be up into this situation on which on the moment that you do find yourself being profitable with trading then it could possibly that you do make it as your main source of income and it would really be just that normal that you do quite or resign with your current job since you do found yourself that sustainable towards trading.Somehow this isnt really that common just like on what you have said on which only a few would be able to reach out this kind of condition because traders that becomes sustainable are those traders who do considered experts or to those who do have good skills on it.This is something a state that you won't be finding yourself that be able to achieve so easily.

Diversification of investment sounds pretty easy but taking up such step will be needing up that tons of capital if you do plan to have such act but always bare in mind that success isn't always guaranteed on this one.

Well, this actually depends on the situation and also on the individual. There are some people that started trading as an occupation and they made big profit despite that they started small. From trading, some of these people raised  money to invest in other asset or start a big company outside trading.
You can start trading with $10 and if you have a good mastery skill in trading due your effortless practices, you can multiplay that $10 to $100. It may not just happen suddenly but if you are patient, persistent and not too greedy, you will definitely continue to multiplay the money despite the loses you will sometimes incurre.

During the primary stage of learning how to trade, you can have other sources of income. If you can also manage your other jobs or source of income with your trading, that is perfect but I know that trading need a full attention and dedication from the trader. But after you have become successful in trading, you can invest your profite to other asset like the real estate you mentioned.

Professional traders do rely on trading income for life, unless they retire one day of course. I have met plenty of them, some even made millions and retired, that  type of people do exist but they are not common and the rarity makes them feel like they do not exist, I understand that.

We should realize that it is going to take time for people to make sure that we are dealing with something that will take time. We should probably consider the reality is that we could make it work one way or another. I personally believe that the best thing to do in this case would be just focusing on how to get greater result. This will not be simple, and it will be difficult for all, but we need to learn to be better with time for sure.

It's like you shouldn't be in trading if you don't have reliable source of funds or let's say a good paying job that will turn your trading attempt into possibility. Otherwise, your trading funds won't be sustainable enough and by losing even a small amount, you will end up quitting on your trading since you don't have funds anymore to continue trading.

Trading is never a permanent and stable job. It could make you profitable at first but you could also endure possible losses at some point while trading. Probably the reason why one should not rely on trading alone, or if you chose to pursue trading, better have other sources of income or investments that generate sustainable funds so you can still trade and achieve your trading goals in the end.

Multiple sources of income has always been the go-to strategy by most of the richest men we have in the world today. They might make big bucks from a particular sector like real estate then pour some of those profits as capital into other ventures. As a trader, when I make sufficient profit from trading, most of those profits will go into other promising ventures of which real estate is currently the leading candidate. Having other streams of income will very much act as backups especially in times where markets are super slow or just outright boring (ranging or bear market).

It's never going to be a wrong idea to have multiple sources of income lol. Income is the source and the start of generating more after all (via investments, etc). It helps in bootstarting your portfolio, being able to increase the general amount of profits you have by investing more and stuff like that. Two early investors would still have a difference in profits even if they're both early so that speaks volumes itself imo.

Would definitely not rely on trading/market as your sole source though. Full time trading exists I guess, but it's not like there's an opportune moment to trade 24/7, it always takes time. Not to mention with the existence of bots, you can pretty much set up buy/sell orders once your predicted price point is achieved.

If you’re a good trader and do your analysis well, I don’t think you’ll be affected much by the direction the market is heading to now. As a trader, you can always switch to the direction of the market to earn your profits, you don’t have to always be on the uptrend to be on gain and downtrend to be on loss. It all depends on how you understand the market well. Profitable and experienced traders are the ones that are milking this moments the most. Their biggest disadvantage is that for every wrong direction on the market movement will cause them some dollars, so they need to be more careful when analysing and placing trade than an investor who only wants to invest and watch their investment grows over a period of time.

Having a diversified portfolio is very important. You should invest in crypto and bitcoin shouldn't be your only crypto however, you should also have other assets than crypto. Stocks, bonds, gold, ETF's, get some real estate too if possible. If you can have a diversified portfolio you can notice the newly emerging opportunities before other people. Then you can position yourself in that asset or increase your weight before anybody else. If an asset is going to make a 200% move, and you bought it after it made %100, you can only do x2. If you buy it when it made %20, you can do x10. That's how important to be an early investor.

Diversification is part of the strategy to minimize the risk behind the desire to make a profit. Important or not, I think it is important especially in the market conditions we are currently experiencing.
Making an activity a source of income will not be effective because the importance of diversification in varying investment assets is not limited to just one type, such as trading. If you only focus on one type of asset, then it cannot be said to mean diversification. I agree on this. We need to place some type of investment to make a profit.

If you rely on trading for your main source of income, it is clear that you will experience difficulties when the market is volatile and erratic.... even a professional trader they still have other sources of income not only in trading, so it is important to diversify your income in other fields.

I don't rely on crypto trading alone, especially investing in bitcoin does not need a main source of income, which is clear that there must be other jobs that can generate more stable income, if you are still a worker in the office then maintain that income while diving into trading in your spare time.

Tbh this market is annoying..

You've spoken well. Diversification is key.. of op has multiple streams of income then he'll be fine .but again, this takes time to build imo.. for Staking, they're some really good apy on exchanges but wirj clauses. Bitget has some for usdt, saw some on bybit for eth, MNT. I'm sure there are others he can explore too

the market is always unpredictable. you may be seeing where the strand goes in the longer frame but shiting to the daily chart or 4hr chart, things become different already. if it affects your decision like never trading in the market where you are not sure whether you win then having another source of income is a better option. especially for someone like us who doesn't really trade with large capital.

or maybe try staking where you still can earn in crypto while trading. we in the forum still earn a few bucks weekly when we join campaigns and at the same time get us updated regularly with what is going on in the industry.

Trading, no matter how profitable it is, it cannot guarantee a stable source of income most especially in crypto trading where the crypto market is very unpredictable. Even professional traders are aware of that. That's the reason why traders don't have to rely on trading for a lifetime, but should also engage theirselves in other potential investments that could also contribute additional income aside from trading.

However, if they haven't venture yet into potential investments, much better if they have a stable job to fund their trading so they can consistently trade even at a small amount basis. Trading is not just all about profit making, that's why in times of losses, at least you have your current stable job to back up your funds when trading.

Diversification: that's for sure, what's more crypto trading is related to the crypto assets that we trade, changing strategies or varying is important and certain, because by taking these actions at least we remember the losses that might occur and can control the risks in trading activities.

As far as I know, diversification in trading can only be done by three methods, margin, spot and futures, all three have different strategies, so we can carry out various strategies according to the current market, To overcome real losses and risks for those who trade, carrying out several actions and several things in trading is recommended to be able to obtain maximum profits and also minimize the possibility of losses occurring.

I mean, bitcoin's price performance has always been confusing — with it surprising both traders and investors with its price pumps and its drawdowns. It's definitely not something new.

As for diversifying income, I agree. Unless you're an actual professional trader, you gotta have a separate source of income that's more 'stable' than crypto.

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.

I agree here but not as per OP mentioned like staking or mining kind of things. Mining is definitely not suitable for monthly income stream and staking will never be profitable even in long run as per my own things. Real estate must be an investment and not a income stream. Crypto job is good for income stream but finding it would be the real challenge.

Yeah, which is the point of OP and for exact same reason, we have this discussion. I mean having more than one income stream is the perfect plan of having "back up". All the above, I would suggest to go for diversifying across different domains and not within crypto space nor within trading things.

Diversification is always been best which you won't really be just that focusing on a single point because there's no such thing about assurance when it comes to invement.Always think up about back up plans because if you do have that only one source of income and ended up on negative then it would really be that hard to make up some recovery and this is why it would be important that having tons of source of income.Yes it's not that easy but doesn't mean that it would be impossible.This is why it would be better that you should have that kind of consideration.

We do know that there are tons of options which we can choose on but it would really be that hard when you don't have the capital on which we know that in every investment which requires capital.

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.

Since the retracement of Bitcoin, the market has become boring. 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?